Back in the office: Companies heading for full occupancy despite hybrid reforms

Jun
2022

Steen Uno

Despite companies' post-covid hybrid work solutions, they consider increasing, and surprisingly high occupancies of their physical office environments, the MatchOffice Industry Survey 2022 is currently reporting.

Jun
2022

Steen Uno

Today, most office companies worldwide implemented hybrid work models to accommodate the significant number of employees who thrived on working from home during the two-year corona lockdowns.

Yet, several reports of increasing and surprisingly high occupancy rates with returning employees in their physical office spaces and environments..

In the MatchOffice Industry Survey 2022, three-quarters of the responding European office providers report a current post-covid occupancy rate of over 70% - a quarter of them even over 90%.

The annual report is based on the current responses from 1,395 office operators in 55 countries communicates that a clear majority of providers (72%) expect a further increase in their office occupancies during the second half of 2022.

Core service

"Undoubtedly, large numbers of global office workers have professionally and privately very much enjoyed working from home. Homeworking will definitely become a crucial core service companies can offer their employees.

However, the company environments, cultures, coherence and business flows need to have its employees physically present in the workplace - at least most of the time," MatchOffice CEO Jakob Dalhoff says.

Despite the companies' new hybrid workflows, employees are globally returning in
significant numbers to their physical office spaces and environments.
Photos: iStock & Eastside Tech Hub Austin

That is why thousands of office workers now return to their workspaces. Only the largest office companies still hesitate to bring all employees back to the physical environments.

"Interestingly, our new survey confirms that providers right now are far more focused on expanding their office spaces and portfolios than reducing or closing them down," Jakob Dalhoff adds.

Market optimism

The global office providers - interviewed to MatchOffice Industry Survey 2022 during May - express their great optimism about the market outlook in general after two years of covid standby and largely stagnant leasing.

The expectations are highest among North American providers: 46.6% of these respondents look bright, and 39.1% are enthusiastically about the post-pandemic prospects for the office rental market.

The MatchOffice Industry Survey 2022 shows that three-quarters of the European
office providers report a current post-covid occupancy rate of more than 70% - a
quarter of them even more than 90%. MatchOffice Graphics

In comparison, the figures for European providers show 41.2% and 35.1%, while the Asian ones express slightly more subdued expectations, 32.8% and 31.7%.

Among European office landlords, market optimism is currently very high in Sweden (72.1% and 17.5%), Germany (65.2% and 21.1%), the Netherlands (77.3% and 10.1% ) and Denmark (45.9 and 33.4%).

Flexibility

Furthermore, the MatchOffice Industry Survey 2022 shows that more than half of global providers, after two lean years expect higher or significantly higher rental prices and earnings through 2022.

"The providers continue to be remarkably active and visible in their efforts to meet their tenants' needs for the flexibility that can promote employees´ well-being and cooperation," Jakob Dalhoff says.

"Our survey confirms that providers are far more focused on expanding their office
portfolios than reducing or closing them," MatchOffice CEO Jakob Dalhoff says.

Similar current studies confirm that both landlords and companies are optimizing the flexibilities of their office spaces and environments to implement and make the new work patterns work in the best possible way.

According to a recent CBRE research, 51% of 185 US companies surveyed say they expect flex space to account for a significant part of their office portfolios within two years - 17% say they already do today.

Hybrid adaptation

"At the moment, companies globally are deeply concerned with adapting their corporate cultures and collaborative environments to the new hybrid workflows, including flexible space design, equipment and technical solutions.

As the demand for flex spaces, according to our new Industry Survey, grows significantly again, the providers in the dense market are wise to offer the widest possible selection of flexible workstations and services," MatchOffice CEO Jakob Dalhoff underlines. ●