The pandemic’s impact on CRE: Companies are using less real estate, but many expect growth over the next one to five years

A survey conducted by CoreNet Global, the association for corporate real estate professionals, has found that global companies are currently using less office space than when the pandemic began, but many expect to increase the amount of space they occupy over the next one to five years.

The survey was conducted in January 2022 and yielded more than 300 responses from all regions including North America, Europe, Asia and the Middle East.

According to the survey, when respondents were asked whether their companies were currently using less space than in March 2020:

• 45% said they were using 0-10 percent less
• 12% said they were using 10-20 percent less
• 12% said they were using 20-30 percent less
• 16% said they were using more than 30 percent less
• 15% said they had increased the amount of space they are currently using, compared to March 2020

Notably, many corporate real estate managers expect their portfolios to grow over the next five years. Forty-one percent said they would in fact increase the amount of space they are using, while 60 percent predicted a net decrease.

Respondents replied as follows when asked “How do you anticipate your company’s portfolio to change in the next one to five years, when compared with the amount of office space your company currently uses?”

• 17% said space would increase by 0% – 10%
• 5% said space would increase by 10% – 20%
• 5% said space would increase by 20% – 30%
• 2% said space would increase by more than 30%
• 22% said space would decrease by 0% – 10%
• 17% said space would decrease by 10% – 20%
• 12% said space would decrease by 20% – 30%
• 8% said space would decrease by more than 30%