The office space downsizing trend may be past its peak, according to a CBRE survey of 225 companies with offices in the U.S., Canada, and Latin America.
Just 37% of companies plan to shrink their office space this year compared to 57% last year, the survey found. In addition, more companies plan to expand their office space over the next several years with 38% planning to do so, compared to 20% a year ago.
Some companies may have trimmed too much space in recent years, CBRE says.
“An 18-percentage-point, year-over-year increase in companies anticipating expansion of their office footprints is a significant step toward a return to growth,” says Manish Kashyap, CBRE Global President of Advisory & Transaction Services. “It bodes well for a U.S. office market, which has faced many challenges in recent years. There remains a segment of demand where companies are opting to renew their leases to forego the costs of moving, but there is now a change in sentiment favoring expansion.”
Most companies say office attendance is holding steady. Companies looking to relocate are interested in upgraded space, such as a better location, better quality space or improved employee experience.
Related Stories
Office Buildings | May 22, 2018
Where fun follows function: New study reemphasizes the value of play in the workplace
Perkins Eastman recommends personalization, access and “linkages,” and variety as design criteria.
Office Buildings | Apr 25, 2018
Cardiff is home to the new BBC Cymru Wales headquarters
Foster + Partners designed the building.
Office Buildings | Apr 23, 2018
Activity-based design takes precedence in new office projects
The latest report by Ted Moudis Associates also finds more space being allocated for amenities and wellness.
Office Buildings | Apr 19, 2018
From fitness to bowling alleys: How commercial office buildings are differentiating themselves through amenities
Here are five ways that amenities can help developers and building owners attract and secure tenants by appealing to their inhabitants.
Office Buildings | Mar 21, 2018
Yeti’s new global headquarters evokes the outdoors
Gensler designed the new HQ.
Office Buildings | Mar 19, 2018
A cost guide to office fit-outs provides comparisons for 59 markets
The new JLL report also finds landlords offering more generous tenant improvement allowances.
Movers+Shapers | Mar 19, 2018
Movers + Shapers: Tech takeover
From Chicago to Charlotte, the tech boom is transforming urban real estate markets and redefining workplace design.
Office Buildings | Mar 19, 2018
The new office has roots in retail
How retail’s focus on brand authenticity, heritage and education are transforming workplace design.
Office Buildings | Mar 13, 2018
Using workplace data to create connected communities
Workplace data is being put to use by corporate service groups to provide a better employee experience and empower the businesses that are their customers.
Office Buildings | Mar 12, 2018
Sound advice on workplace design
Thoughtful design, paired with a change management program to educate staff, can both enhance connectivity and minimize distractions.
