Number of employers planning to lease more space is rising

A growing number of organisations plan to lease more space in the coming months, according to a recent survey from MRI Software and CoreNet Global.

This finding, based on responses from more than 1,300 real estate occupiers globally, contrasts significantly with those of three previous surveys conducted by MRI and CoreNet in 2021 and 2022.

This year, 42 per cent of respondents reported that they plan to lease more space, compared to less than 10 per cent in December 2022, 11 per cent in August 2021, and nine per cent in March 2021. At the same time, most respondents in the latest survey also reported limited seating capacity for their workforces, indicating a focus on improved common spaces and on-site amenities to attract employees back to the office.

Brian Zrimsek, Industry Principal at MRI Software commented: “Many organisations are discovering that creative use of space and appealing work environments can be employee perks.”

In some cases, employees have little choice about where and when they work. The survey shows that many employers are formalising their policies for work arrangements. It comes as no surprise, therefore, that Mondays – and even Fridays – have “re-entered” the standard on-site workweek.

On the other hand, 30 per cent of organisations are offering a choice of environments, and remote work continues to increase. These statistics align with the finding that two-thirds of respondents expect no more than 50 per cent of their workforces to be on-site by the end of 2024.

Zrimsek noted: “Overall, the findings are positive for the office real estate market. Commercial landlords and leasing agents can take comfort in the anticipated expansions of space. But it’s also clear that attitudes and policies are continuing to shift, and the labor market will influence the extent to which employers will allow flexibility or improve their office environments.”