Research from Grant Thornton’s International Business Report says that 39% of UK mid-sized companies are expected to reduce the amount of office space they hold in the future, as working from home continues to dominate the working landscape.
The research found that of those mid-sized companies (companies with revenue between £15 million - £1 billion) who expect to reduce their space, 74% foresee a decrease in their existing footprint by up to a quarter (10-25% reduction), with a further 12% expecting to reduce office space by up to a half (26%-50% reduction).
The survey also found that there is still a need and want for corporate space, however the way it is used is likely to change in the future. The survey also identified that there was no consistent view as to how office space may be used in the future, with some predicting a greater focus on more internal collaborative team activity rather than desk-based activity, with an increased use as a meeting, event and collaboration space for clients.
John Burgess, associate director, real estate and assets, Grant Thornton UK, commented: “Our research shows that as home working becomes the norm, and demand for office space reduces, businesses will be looking to scale back their property portfolios and optimize spaces to suit new working models.
“It’s clear that there is still a need for a corporate space, and, while there has been much talk of the ‘death of the office’, what we’re seeing is more of an evolution. Teams still need to meat each other and many organisations will need dedicated space to meet clients and host events. The nature and purpose of office space is likely to change to accommodate the different ways of working, and there will be a focus on reducing space gradually over time.”
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