A Reuters analysis of quarterly earnings calls over the past week revealed more than 25 large companies plan to reduce their office space in the year ahead, a move designed to reduce the second-largest expense after payrolls at corporations.
Regions Financial Corp, meanwhile, told analysts: “Whether through increased use of hoteling, work from home or modified scheduling, we are confident overall office square footage will continue to decline,” as some workers share desks or stop coming into the building.
“Every company just went through a mass work-from-home experience and for the majority it was mostly positive,” he said.
See Who still needs the office? U.S. companies start cutting space
Corporate America is downsizing its real estate footprint as companies allow more employees to work from home, a growing threat to the bottom line of owners of traditional office buildings and a sign that companies are looking for ways to cut costs as a result of the coronavirus pandemic.