A new survey of more than 400 finance professionals from LeaseQuery demonstrates the growing impact of the ongoing pandemic on companies’ office usage, with 31% of respondents planning to reduce their real estate footprint and 18% planning to reduce their real estate leases. On the other hand, however, just over 20% of respondents say they plan to increase space next year.
Even among those organizations looking to hold steady on their leases, 29% have asked for rent concessions (largely restaurants and retail businesses) and 31% are trying to get more favorable terms. Of those renegotiating, 35% are looking for better terms in exit or termination clauses and 29% want a change to their contract duration.
“While the global pandemic and economic downturn affected each company differently, the common denominator is disruption,” the report notes.