2020 has been an unusual year that has restricted people at homes, compelling the most prominent organizations to change the way they operate. Everyone worked from home as the governments implemented complete lockdown. The Covid-19 pandemic locked everyone inside their homes making public interaction and gatherings a thing of the past. This also impacted the working culture in which thousands of employees worked under a single roof in a large facility. Huge buildings with the capacity to hold hundreds of workers sitting adjacent to each other, sharing lavish workspaces with high-end facilities- was the most common scene for almost all organizations, especially IT companies.
However, now as these extensive facilities lay vacant, many surveys show that the companies are downsizing office spaces.
CEOs Want Downsizing Office Space
Deloitte conducted a Survey with Fortune with a large sample size of 171 CEOs in various USA states regarding their opinion about the WFH culture and their plans to manage the office spaces. One must note that the companies pay a huge amount of money either for a lease or rent amount for their lavish office facilities.
When the pandemic struck, the companies started allowing their employees to temporarily work from home, thinking the situation would normalize in a few weeks, and everyone would return to offices. But this continued for many months, and even now, there is no surety when the pandemic would end. The coronavirus spread is still on and getting deadlier, with many people having lost their lives.
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Shrinking Corporate Real Estate
The corporates would now invest more heavily in providing the best infrastructure and facilities to work from home and downsizing office space. The news is not good for the real estate as most of the corporate footprint on the real estate will shrink substantially now.
Work From Home To Stay
In the wake of such a critical situation, most organizations foresee that the remote working or work from home culture would continue and may become permanent.
There are also massive infrastructure maintenance costs associated with the offices, which they have to levy even when the people are not working there, so CEOs feel downsizing office space is better. The survey established that more than 3/4th or 76 Percent of the CEOs plan to decrease their office space. Around 28 percent of the CEOs highlighted that the companies would need considerably lesser office space in the future.