A recent survey by Resume.org has found a significant link between an employer’s return-to-office (RTO) policy and their lease status. The study surveyed 900 respondents from companies that have implemented RTO policies following a remote work period.
The results show that two-thirds of the surveyed companies currently lease office space, with nearly half of these leases extending to 2028 or beyond. Lease terms significantly influence RTO policies, with 16% of companies reporting a major impact and 38% experiencing some impact.
When lease expiration dates approach, companies plan to adjust their RTO strategies. 23% of companies will decrease the amount of office space they rent, with 32% reducing the number of required days in the office and 8% eliminating the need for employees to go into the office. This shift suggests that companies are reassessing their use of resources.
The commercial real estate market is also undergoing changes. A recent assessment by Cresa found that we are at a midpoint in a commercial re-adjustment, with leases signed before 2020 now halfway through rolling. Remote work remains the biggest driver of decreased office demand, and many companies have incorporated hybrid work arrangements into their space planning.
With more years of pre-Covid lease commitments ahead, it is likely that additional office space will continue to be shed. The RTO debate is far from resolved, as companies weigh the costs of talent retention and real estate.
Source: https://www.nojitter.com/workspace-connect/expect-rto-policies-change-leases-do