A recent report reveals that over one-third of office desks worldwide remain unused for an entire week.
XY Sense, an Australian workplace sensor supplier, conducted a study across nine countries and regions including the United States, the United Kingdom, Hong Kong, China, and Singapore, covering a total of 24,855 workplaces. The study found that 36% of workplaces, including cubicles and desks, have never been used, indicating an oversupply situation.
The report highlights that the most frequently used spaces are meeting rooms for two to three people, which are occupied 90% of the time on average. Overall, office space utilization has remained at around 50% of pre-pandemic levels.
These statistics underscore the challenges faced by companies when assessing their office space needs. A study by Boston Consulting Group revealed that although employees and managers believe that at least one-third of working time should be spent in the office, it does not necessarily mean being tied to a desk.
Compared to traditional cubicles, small private meeting spaces, open collaboration areas, and soundproof designs suitable for individual focused work are more important in today's office culture. However, XY Sense's research found that 80% of office space is occupied by individual workstations, leaving only 20% for team collaboration.
Furthermore, there is evidence that office desks are becoming less prevalent. A study by office furniture manufacturer Haworth found that prior to 2020, 85% of employees had their own assigned desks, whereas now, less than half do.
As many companies ponder how to bring employees back to the office, people are also starting to question whether the current workplace design meets their needs. Alex Birch, co-founder and CEO of XY Sense, stated:
&#34;It's time to rethink the outdated office desk. They occupy office space for too long and are costly, while our work patterns have changed since before the pandemic. With most people now working from home for a significant portion of their work, companies no longer need as many desks. Instead, they should reconfigure the space to provide a better office experience or simply save on office expenses.&#34;
Kay Sargent, Workplace Practice Director at architectural design firm HOK, said:
&#34;For a long time, we have designed offices like potted plants. Do you really want to bring employees back to an office where they have to sit at a desk all day? Or do you want to encourage interaction, feedback, and innovation among them?&#34;
The low utilization of office desks may also prompt employers to reconsider their commercial real estate needs. A survey by CBRE, a leading real estate consulting firm, found that among large corporations, nine out of ten companies have low office utilization rates, with over half of them expecting to reduce their office space within the next three years.
Last month, McKinsey Global Institute stated in a report that the hybrid model of &#34;office + remote work&#34; is reshaping the value of commercial real estate, particularly office buildings.
Last month, CBRE conducted a survey which showed that among large corporations, nine out of ten companies have low office utilization rates, with over half of them expecting to reduce their office space within the next three years.
The vacancy rate of office buildings will continue to rise.
According to data from XY Sense, there was little change in office occupancy rates from the first quarter to the second quarter of this year. However, according to commercial real estate brokerage firm JLL, approximately one million office employees in the United States are facing increased requirements to return to the office more frequently by the end of the year.

ACRE

Office space is generally in oversupply, highlighting the challenges that companies face when assessing their office space needs. According to a survey, among large enterprises, nine out of ten have low office utilization rates, and more than half of these companies expect to reduce their commercial office space in the next three years.

The "Big Trouble" of Commercial Real Estate: One-third of office desks worldwide are "empty" every working day.