Tech Tenants Envision a Largely Remote Future
Now that many corporations have gone largely remote, and found that their workforce remains productive, the technology sector appears to be embracing the concept for the long-term.
In a new survey by Savills North America of several hundred technology office tenants, a staggering majority of firms, 94%, said they expect remote work, at least a few days a week, to be normalized at their company in a post-vaccine environment.
The survey comes amid daily news of tech companies making announcements of future, office-light plans. Microsoft last week announced that employees could permanently work from home, and this past July, Google extended its allowance of employees to work remotely until at least next summer.
These shifts are prompting changed expectations on the office footprints of tech firms, according to the Savills technology practice group’s survey. Covid-19 has impacted 64% of firms’ headcount growth projections. The good news is that just 8% of survey respondents said their headcount would likely decrease, while 36% said it would grow as projected and another 6% said it’d grow even faster than projected.
Also of note: while 59% of those surveyed said that, pre-Coronavirus, zero to 10% of their employees worked from home full-time, just 16% of respondents said that same amount of workers would do full-time remote work.
Still, companies are getting ready for a shift, with 55% of companies saying they expect to dispose of some portion of their office space in the next 12 to 18 months.
That dovetails with recent trends. Technology was one of the two top sectors to contribute sublease space to the Los Angeles market, which has increased by 20% in recent months, according to JLL. The sector has been responsible for 26% of the approximately 80 new or expanded subleases that were available as of last month, the