Business | Property

UK businesses look at reducing office space as WFH continues

A number of office staff have worked from home since March 2020
PA
Joanna Hodgson
1 February 2021

As working from home continues, over a third of UK mid sized companies expect to reduce office space they occupy, according to a new study.

The findings from accountancy group Grant Thornton’s report come from 275 bosses or other senior executives at UK firms that make annual revenues of between £15 million and £1 billion.

Of those that expect to reduce their space, 74% anticipate decreasing their existing footprint by up to a quarter (10%-25% reduction). A further 12% expect to reduce their space by up to a half .

However, Grant Thornton added that the research shows “that there is still a need and want for some corporate space, but how it will be used is likely to change”.  

Numerous office staff have worked from home since March 2020 when the first lockdown started. A number of bosses are expected to look at a mixture of home and office work in the future, once Covid restrictions lift.

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John Burgess, associate director, real estate and assets, Grant Thornton, said: “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 optimise spaces to suit new working models.”

Burgess added: “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 meet 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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