The growing trend of working from home is leading companies to cut down on office space, with some already making changes and others planning to do so in the near future.
Home office trend impacts office space needs
As more employees continue to work from home, the demand for office space is decreasing. According to the Ifo Institute, 6% of all companies have already reduced their office space, and another 8% plan to do so within the next five years. Simon Krause, a researcher at Ifo, predicts that in the long term, the overall demand for office space could decline by around 12%.
A quarter of employees now work from home
Since 2022, about one-quarter of employees in Germany have been working from home regularly. “Despite calls from some companies for employees to return to the office, regular home office work has become well-established,” said Krause. He noted that companies are gradually adjusting their office space needs accordingly. “This trend is particularly noticeable among service providers and large corporations, which use the majority of office space.” However, due to the long-term nature of many rental contracts, these changes are happening gradually.
