Will Employees Return to the Office?

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Will employees ever return to the office? No one knows for sure. But the office of 2022 will be different as hybrid working systems become the most common solution.

  • Property developers like SL Green Belt Realty outfitted the new 93-story skyscraper in Manhattan with a superior air filtration system, a 4,000 square foot terrace, included a high-end café. 90% of the tower’s 1.7 million square feet is leased after opening in September 2020.
  • New office designs avoid allocating space by department. Instead, areas have a focus and employees can choose between quiet spaces, rooms with advanced video conferencing technology or areas for team working.
  • Demand for newly designed office space is strong, but weak for traditional office space.

The stark reality is that many offices may be under-utilized for the foreseeable future.

  • New York law firm Greenberg Traurig has given up 25% of its space and opened 4 regional offices nearer where employees live. Despite this change, only 50% of workers are showing up.
  • Heidrick & Struggles signed a new lease for 35,000 square feet at the end of 2020, roughly 50% less space than it had before.
  • UiPath has signed a lease for 26,000 square feet in the new 93-story skyscraper in Manhattan but doesn’t plan to move in until Fall 2022.

Employers are meeting resistance from employees who have developed a taste for working-from-home. 30% of workers surveyed by Gallup would prefer never to come into the office.

  • Molson Coors has dropped plans for a 5-day-a-week, changed to 4-day-a-week and now is aiming for 3-day-a-week after meeting resistance from its 2,200 employees concerned about Covid, childcare, unexpected school closures and vaccinations. Molson Coors implemented a vaccine mandate to address employee safety concerns. Employees sharing conference rooms must wear masks. The UK office in England though has returned to 100% remote working under the UK’s latest work-from-home order.
  • Vacancy rates for office properties are at near record levels in US cities and rents may be depressed for years.
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