Some 6% of German businesses have reduced their office space since more and more people started working remotely following the coronavirus pandemic, according to a survey by Germany’s renowned ifo Institute for Economic Research.
Some 8% of firms surveyed plan to downsize their offices within the next five years, the researchers found.
Larger companies and service providers in particular are looking to reduce their office space, according to ifo, while the trend was less pronounced among the manufacturing, trade and construction sectors. Smaller companies are also less likely to downsize, the researchers said.
“Based on our studies, we expect the demand for office space to fall by around 12% in the long term” due to people working from home, said ifo researcher Simon Krause.
Some 25% of employees in Germany have been working from home since 2022, according to ifo. The pandemic first hit Germany in early 2020.
“Despite calls from individual companies to return to the office, regular working from home has become established, which is why companies are gradually adjusting their office space requirements,” Krause said.
“Since leases are often concluded on a long-term basis, the overall effect will only be felt over time.”
