The Majority of Companies Will Keep Remote Work Policies
Following the pandemic, 64% of companies plan to increase remote work policies and 32% of companies will decrease their office footprint.
October 22, 2020 | Kelsi Maree Borland | GlobeSt.com
Remote work seems like it is here to stay. S&P Global Market Intelligence’s Digital Pulse survey, which tracks market disruption, measured the impact that the coronavirus pandemic has had on businesses. It concluded that pandemic-inspired workplace models will likely stay in place following the pandemic.
The survey reports that 69% of companies have found that 75% of their workforce can work remotely without issue. As a result, 64% of companies plan to increase remote work policies following the pandemic, compared to policies in place prior to the pandemic. In addition, 32% of companies will reduce their office footprint as a result of remote work adoption. Smaller companies are more likely to adopt these policies permanently, and companies with fewer than 1,000 employees found that 100% of the work staff could work remotely in the long term.
This could hae significant consequences for the office market. Already, the office market has seen an 11.7% increase in office sublease space nationwide last quarter, according to a report from Colliers International. In major markets, that space is being offered at a 23% decrease in rent compared to direct leasing space. Further reductions in office footprint or permanent work-from-home strategies will put more pressure on this space.
