A survey of more than 500 corporate real estate professionals conducted by Colliers online and at the CoreNet Global Summit in Chicago in November found that hybrid work will lessen the space requirements for many corporate real estate users of traditional office space. 

Survey respondents say that better work/life balance for employees is a key advantage to the corporation that implements a hybrid work strategy. Respondents also redefined success in terms of space utilization rates as workers divide their time between remote locations and the office. 

Below are the questions respondents were asked and the responses:

When asked about the impact of the current move to hybrid working on long-term average demand for office space users:

·       They will need more space: 3.1%

·       No overall impact: 3.9%

·       0 to 10% less space required: 4.5%

·       10% to 20% less space required: 16.7%

·       20% to 30% less space required: 29.8%

·       30% to 40% less space required: 23%

·       40% to 50% less space required: 12.7%

·       More than 50% less space required: 6.1%

What percentage of office users’ portfolios will move from traditional lease to flex leases within 5 years?

·      0 to 10% of leases: 13.7%

·      10% to 20% of leases: 26.8%

·      20% to 30% of leases: 25.7%

·      30% to 40% of leases: 15.1%

·      40% to 50% of leases: 11.8%

·      More than 50% of leases: 6.7%

What do you believe is the biggest challenge or disadvantage for an office occupier when the majority of people work remote/from home?

·      Loss of cultural identity and cohesion: 34%

·      Negative impact on the younger people who need development and coaching: 31%

·      Employee engagement and retention challenges: 24.9%

·      No disadvantages: 4.9%

·      Loss of productivity: 3.1%

·      Limits business growth: 1%

·      Recruitment challenges: 0.7%

What do you believe is the biggest opportunity or advantage for an office occupier when the majority of people work remote/ from home?

·      Better work/life balance: 49.0%

·      Reduced occupancy costs for the business: 14.6%

·      Easier to recruit: 13%

·      Increased employee engagement and retention: 6.7%

·      Positive environmental impact via reduced carbon footprint: 5.1%

·      Increased organizational productivity: 4.0%

·      Saves money on travel for the employee: 3.9%

·      No advantages: 2.3%

·      Enhancement of cultural identity and cohesion: 1.4%

Moving forward, how do you define “successful” average utilization of office space by an occupier, Tuesdays through Thursdays?

·      More than 80% occupancy: 17.2 %

·      Between 45% and 79% occupancy: 76.65%

·      Below 45% occupancy: 6.1%

Moving forward, what is most important to “successful” utilization of office space by occupiers? (Those who selected the following as the most important):

·      Managers taking ownership and leadership to ensure time in the office is valuable: 63.8%

·      Mandate from the c-suite: 31.2%

·      Reducing the amount of space and embracing remote working: 28.1%

·      Provide more office space for collaboration and gathering in the office: 22.4%

·      Space design and amenities, wellness, and sustainability: 22.1%

·      Increase in the number of offices very close to the target population’s homes: 14.9%