Over one-third of Massachusetts companies responding to a survey plan to decrease their real estate footprints following the widespread adoption of work-from-home models during the pandemic.
Employers anticipate that 32 percent of employees will work mostly or all-remote in the future, up from 6 percent prior to COVID-19, according to a survey of 110 companies representing over 113,000 employees in Massachusetts by the Massachusetts Competitive Partnership. Not a single respondent said they plan to expand their real estate footprint significantly.
The responses have major implications for future office leasing and rent trends, as sublease space offerings skyrocketed in the early and middle stages of the pandemic. A majority of the office deals signed in the first two months of 2021 were subleases, according to a Newmark research report.
As office vacancies in Boston topped 15 percent in the first quarter, building owners started to reduce rents to spur leasing, Colliers reported.
“We have learned a lot through the pandemic and one of the most important takeaways is that return-to-work does not have to mean `return-to-status quo’,” Dr. Jeffrey M. Leiden, executive chairman of Vertex Pharmaceuticals and chair of the MACP board of directors said in a statement.
Eighty-two percent of respondents said they’re planning hybrid or fully remote models, but 48 percent expect some to be back in the office by September.
Despite the glut of available space, a relatively small percentage of companies are weighing relocation. Only 5 percent of respondents said they’re considering moving out-of-state, down from 38 percent in a December 2020 survey. But a slight majority of companies said they’re now considering hiring employees from outside Massachusetts.