06
M O V E M E N T A W A Y F R O M M E T R O A R E A S
Traditionally, companies have established
office buildings in major metropolitan areas
where they can access the largest talent
pools. As companies have oscillated
between remote and hybrid work and
instituted various return to office
mandates, commute times have come
under significant scrutiny.
Many employees relocated to more
affordable areas when remote work was
normalized, only to be told they had to
start commuting again later. Some were
even explicitly hired as remote workers,
then reclassified as hybrid or in-person.
And as the cost of living continues to soar,
suburban locations have seen massive
increases in population.
With a hybrid work model or a generous
remote work policy, companies can tap
into a far larger labor pool, hiring
employees who live out of state or even
out of the country. And so it's less crucial
for an office to be located in a densely
populated urban area. Organizations have
the flexibility to seek out more affordable
real estate and accessible locations.
Alternatively, some companies will likely
choose to lease multiple smaller locations,
using satellite offices to replace or
supplement a single larger office.
6 Predictions for Lease Accounting and Administration: Prediction #6
Copyright © 2025 Tango. All rights reserved.
9
According to a 2024 Fast Company survey
of HR leaders, 42% of respondents said
commute times were one of the top
reasons for employee turnover.
Additionally, 72% believed that offering
employees office space closer to home
helps with talent retention, and 77% agreed
that it would aid talent acquisition efforts.
In 2025, we can expect that more
companies will shift their lease portfolios
away from metropolitan areas to both
capitalize on cost savings and appeal to
talent that's increasingly moving to
suburban areas.
