Poll Results: How Much Is Your Company Downsizing Office Space?

By how much is your company downsizing office space in the face of an economic slowdown and hybrid work?

In CPE’s latest monthly poll, readers were asked about their companies’ possible downsizing of office space, particularly in the face of an anticipated recession, as well as the unchanging appeal of hybrid work. Nearly three quarters of respondents, 73 percent, stated that their company is not shrinking their spaces at all, likely owing to longer-term leases and warming sentiments toward working in-person.

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At the same time, a total of 27 percent stated that their office space is being downsized by orders of 26 to 50 percent, 51 to 75 percent, and 76 to 100 percent, with an even 7 percent split of those seeing decreases of over half their space. These statistics likely owe to ongoing struggles in the sector, such as historically low occupancy levels, imminently expiring leases that are unlikely to be renewed in full, as well as an ever-more uncertain lending and deal making environment, furthered by the recent collapse of two banks carrying sizeable commercial real estate loans.

The tech sector is a significant contributor to these trends, with leases of over 20,000 square feet down 74 percent from a quarterly average of 8.6 million square feet recorded prior to the pandemic, according to data from a January 2023 report from Savills.

Click here to access the current poll, and to see the results of previous polls.