The majority of employees still don’t return to the workplace as frequently as they did prior to the outbreak. According to a number of statistics, at least in big markets, fewer than half of employees actually enter an office on any given day. Leading software companies and investment banks, for instance, have given deadlines for returning to work as a result of this.
It’s still too early to tell whether such corporate demands will result in increased office work, as prior requests seem to have had no effect. In the end, there might be a change in customer behavior, making it challenging for employers to put the toothpaste back in the tube.
This sentiment is having an impact on the real estate industry. Between 10 and 20 percent of the office real estate stock needs to be removed or repurposed. In the remaining office space, landlords will need to do a better job of delivering what tenants want.
Many businesses will continue to cling onto their offices as employers and their employees decide on their preferred working arrangements, either out of caution in case they need the space in the future or because they are unable to break their lease. However, more businesses are cutting staff or opting not to extend their leases. As a result, unlike every other significant property sector, vacancy rates are still slowly increasing.