More than half of the world’s largest firms are using hybrid office/working from home as the norm with 50% planning to cut desk space as a consequence.
Most of the firms surveyed are looking to cut office space by between 10 and 20%, said property group Knight Frank, which carried out the survey.
According to the data, around 56% of multinationals now use a hybrid model (office/WFH) as normal practice.
Some firms such as US bank JP Morgan, Apple and Tesla have tried to force workers back full-time, but have run into increasing resistance from staff who say they work better out of the office.
Knight Frank said a third of the businesses who responded said they still wanted all their staff back full-time but are finding it a battle.
According to the report, New York had seen office work return to about 60% of pre-pandemic levels but that number is now flatlining.
Consequently, businesses there and elsewhere are planning to reduce or radically overhaul their property portfolios.
Knight Frank’s Tim Armstrong said: “For most occupiers, an office-centric approach in a more flexible environment will require a fundamental reworking of the workplace, and many occupiers will conclude that their current office buildings cannot meet their requirements.”
UK property giant British Land recently lost its spot in the FTSE 100 in the latest reshuffle as its property portfolio dived in value due to rising interest rates plus the move towards home working.