More than 1 in 5 company execs plan to slash office space

Survey shows 72% of execs say they plan no change

National /
Mar.March 26, 2021 05:55 PM
21% of company execs say they plan to reduce office space. (Getty)

21% of company execs say they plan to reduce office space. (Getty)

Even as Covid vaccinations bring a return-to-office closer to fruition, more companies are expecting to reduce their real estate footprints.

A recent survey conducted by the American Institute of CPA found that 21 percent of company executives said they expect to reduce their office space in the next 12 months, Bloomberg News reported. That’s up by 3 percentage points from the third quarter of 2020.

Big employers including Dropbox, Zillow and Twitter have already announced that a majority if not all of their workforce can permanently work from home. Other companies have adopted hybrid models, allowing employees to come in at their own discretion.

At the same time, 72 percent of executives said they expect no change in their office footprint, down by 5 percentage points from the third quarter of 2020.

“As the recovery progresses and we move toward the next-normal, more and more people will return to their traditional places of work,” Ash Noah, vice president at the Association of International Certified Professional Accountants, told the publication. “But this doesn’t change the fundamental shifts we’re seeing toward more virtual and remote operations.”

But working from home isn’t for everyone: 7 percent of respondents said they plan to increase office space, up by 2 percentage points from the third quarter of 2020.

There were 693 chief financial officers, controllers, and other senior-level certified public accountants and management accountants surveyed between Feb. 2 and Feb. 24.

[Bloomberg News] — Akiko Matsuda






    Related Articles

    arrow_forward_ios
    Cherre CEO L.D. Salmanson (Cherre/Facebook)
    Real estate data firm Cherre raises $50M
    Real estate data firm Cherre raises $50M
    (Tropicana Las Vegas via Facebook, Bally's Corp)
    Bally’s buys Las Vegas’ Tropicana casino for $150M
    Bally’s buys Las Vegas’ Tropicana casino for $150M
    Hammerson CEO Rita-Rose Gagne and Brookfield's Bruce Flatt. (Hammerson, Brookfield, Getty)
    Brookfield’s US malls are struggling. Now it’s buying some in Europe
    Brookfield’s US malls are struggling. Now it’s buying some in Europe
    (iStock)
    Homebuilder sentiment ticks up in April
    Homebuilder sentiment ticks up in April
    HqO CEO Chase Garbarino (HqO via Facebook)
    Big landlords invest $60M in “tenant experience” startup HqO
    Big landlords invest $60M in “tenant experience” startup HqO
    Doctors and medical professionals have remained on time with their rent payments in the past year (iStock)
    Medical offices are just what the doctor ordered for landlords
    Medical offices are just what the doctor ordered for landlords
    The rate of loans sent to special servicers continued to fall in March. (Unsplash)
    CMBS special servicing rate declines in March
    CMBS special servicing rate declines in March
    Sao Carlos CFO Fabio Itikawa. (Getty, YouTube via Levante Investimentos)
    In pandemic-battered Brazil, 3G Capital founders hunt for real estate deals
    In pandemic-battered Brazil, 3G Capital founders hunt for real estate deals
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...