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Over the past year, US companies have made more progress by bringing employees back to their offices at any time since 2020, when the pandemic fundamentally changed the traditional work paradigm. This is according to upcoming reports from CBRE, which are scheduled to be released next week. Some employers are completely far apart, and some employers offer hybrid job opportunities, but pushes continue to bring more workers back to the office.
Nearly three-quarters of the 184 companies surveyed by CBRE said they met their attendance targets from 61% last year. The share of companies monitoring attendance jumped from 45% last year to 69% this year, with those implementing attendance policies rising from 17% to 37%. The surveyed company said office employees wanted an average of 3.2 days a week. However, actual attendance is slightly below that.
“I think last year, I’ve been a pretty loose goozy for two years. I think companies are getting much better about it now,” said Manish Kassyap, global president of leasing at CBRE. “They come up with policies that allow for hybrid structures and allow for flexibility, but whatever their new policy is, the implementation around it and governance around it is definitely far better.”
The survey said more companies expect to expand their office footprint rather than contracts. Over the past few years, there has been a surge in office development and housing conversions.
The majority of survey respondents, 67% of businesses, said they would either keep their office footprints the same size or increase from 64% a year ago within the next three years. For expansion, most pointed to business or personnel growth. About a third said they would cut space from 36% last year and 53% in 2023.
There are several companies that are hesitant to make long-term decisions about economic and tariff concerns, but CBRE has found that, even if they have concerns, they are undertaking a longer-term lease than a year ago.
“We’ve lived in this hybrid world for so long, so we have organisations that ultimately do clarity and decision-making, and now we know what it really is for them, so even if there’s economic uncertainty right now, they still want to go ahead with some additional deals.
Despite the fact that the total office vacancies are 18.9%, less than 19% of the 30-year high, almost half of the companies surveyed say they are worried about the availability of high-quality office space over the next three years. This concern is of paramount importance when it comes to Prime Space. This accounts for only 8% of all office inventory and has a much lower vacancy rate than other markets.
“In many cases, the office footprint is smaller, but it is more effective and tailored to a collaborative job. Employers are focused much more than they were based on the quality of their workplace experience, the efficiency of seating sharing, and the vibrantness of the district they reside in,” Whelan said.
