Future Of Work — 2023 Outlook
Discover the results of our latest international occupier survey.
executive summary
Whilst by end of 2021, less than 20% of respondents had announced their remote working policies, this percentage has increased by 73% by year-end 2022. Remote working allowances continue to increase, but employers still struggle to bring employees back to the office. They look to offer more real estate flexibility and extend their recruitment strategies to reach new talent pools. ESG is on top of most organisations' agenda and we notice a significant push towards reducing the carbon footprint from commutes to the office via improving the facilities and services offered to tenants to encourage and promote the use soft mobility.
Remote working allowance continues to increase since 2021
Strong consensus remains both from employers and employees on 2 to 3 days of remote working, with a slight trend toward more remote (2.4 days vs. 2.2 days). No major difference based on company size.
Employees do more remote than their allowance
Across all business sectors, we find that employees return to the office for less than what is expected from their employers. There is still a struggle to bring employees back to the office.
The impact of real-estate footprint remains stable despite more remote
The expected space reduction over the next 5 years remained constant at around 16-18% on average.
Expanded recruitment strategies to reach new talent pools
More than 54% of respondents (61% for medium and large companies) are adjusting and expanding their recruitment strategies to new geographies to tap into larger talent pools.
The adoption of flexible real-estate solutions continues to increase
68% of respondents are providing access to co-working spaces to their employees (vs. 53% in 2021). The main reason is to reduce core office space or for ad-hoc meeting and event requirements.
Soft mobility facilities and services are a growing consideration for most occupiers
Over 80% of respondents are planning to increase their investment in improving facilities and adding new services in an effort to promote soft modes of transports, and reduce the carbon footprint associated from employees' commutes.
respondents
We collected over 70 responses from small to large companies, representative of all business sectors, and occupying more than 13 million square meters of office space.
Respondents
(Mostly Heads of CRE)
Estimated Total SQM
of Office Occupancy
Significant increase of companies that have announced A remote policy
While only 17% of participants had announced their remote working policy last year, this number has now increased to 73% by year-end 2022.
2021
2022
The consensus on 2-3 days of hybrid working remains, with a slight increase toward more remote.
Remote Working Allowance
Remote working allowance pre-Covid vs. 2022 (days / week).
Pre-Covid vs. 2022 Average
Average remote working allowance pre-Covid vs. 2022 (days / week).
Average Office Occupancy
Pre-Covid average office occupancy rate vs. 2022 average estimated return to office rate.
Adoption of Agile Workplaces
Share of respondents with desk sharing, pre-Covid vs. 2022.
Return to office rates remain low and across all business sectors lower than the expected return to office set by the employers.
key figures
Overview and key takeaways for all business sectors.
Have Strong Views on Post-Covid Strategy
Average Days per Week of Remote Working
Have Desk Sharing Policies Implemented
Will Provide Access to Co-working as Alternative
Will Allow Temporary Work From Another Country
Will Allow Permanent Relocation Abroad
Will Allow the Use of Other Existing Offices
Are Planning Space Reduction
Average Potential Reduction on Required Space
Impact on real-estate footprint
The estimated impact on real estate footprint, despite increased remote working allowance, remains stables between 2021 and 2022 at 16% on average, with no significant difference by company size.
Remote Working Allowance
Average remote working allowance pre-Covid vs. 2022(days / week).
Estimated Space Reduction
Estimated space reduction within the next 5 years (%).
2022 recruitment strategy
More than half of our respondents are adjusting and expanding their recruitment strategy to new geographies in order to reach new talent pools.
use of co-working spaces
Co-working locations are mostly used to manage space overflow, ad-hoc meetings & events and to organize ad-hoc meetings as well as internal & external events.
68% of respondents will provide access to co-working spaces as a flexible alternative.
Space Reduction
52% to reduce core office space and use co-working / flexible space as an overflow.
Meetings
52% to provide access to on-demand meeting space.
Flex
34% to replace traditional leases with co-working / flexible leases.
Talent
30% to provide space closer to new talent pools (new cities, new countries).
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Coverage
20% to increase coverage in a given metropolitan area (city).
Watch the Replay
Catch the full recording of our Future of Work 2023 Outlook webinar. Hear exclusive insights from Urbanite Advisors' experts and discover what lies ahead for occupiers and landlords navigating the evolving workplace landscape.