Leaders Turn To Real Estate To Offset Expenses, Refocus The Office’s Purpose

Rightsizing office space is the name of the game as companies prepare for an economic downturn. 

According to the 2022 Refocus and Rationalize the Workplace study from FM:Systems, leaders are increasingly focusing on slashing their real estate costs over the next few years. 

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But it’s not just about cost savings — many business leaders realize that hybrid and remote work models don’t dent productivity.

The problem lies in nurturing collaboration and camaraderie, which is why leaders are looking to create an office space that serves as a destination, rather than a requirement.  

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According to the study, business leaders believe that the top workplace priorities are:  

• Team meetings (54%) 
• Collaboration (45%) 
• Client meetings (37%) 
• Access to fully-equipped offices (32%) 
• Onboarding (31%) 

Leaders primarily believed that hybrid work will be the dominant model over the next few years, but 61% admitted to still wanting workers back into the office full-time.   

The gap in workplace desires stems from the belief that productivity and culture suffer in a remote environment. Still, 76% understand that a hybrid arrangement improves the work-life balance of employees, and 56% agree that it can be used as a tool to attract and retain top talent. 

“[Organizations] face ongoing pressures of a tight labor market and economic uncertainties, they know they can no longer make real estate decisions based on cost or availability alone,” said Brian Haines, Chief Strategy Officer at FM:Systems. 

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“To deliver the right spaces and experiences for their teams, while also uncovering cost-reduction opportunities, will require using a multi-point data analysis approach. This’ll capture everything from workplace utilization, employee mobility, and more.” 

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