Successful Large Firms Reduce Office Space
Major firms are looking to unload big blocks of office space, the latest sign that remote work is hurting demand for this pillar of commercial real estate, according to the Wall Street Journal. Large companies typically sign office leases for a decade or longer, giving them few options for reducing their footprint beyond subleasing floors to other tenants. CBRE Group Inc. reported that at the end of 2020, 137 million square feet of office space was available for sublease across the United States, up 40 percent from 2019 and the highest figure since 2003.
Many of the companies ditching real estate are doing well financially and need less space because they expect more employees to work at least part time from home even after the pandemic is over.