As large organizations like Allstate
downsize their real estate portfolios,
they're seeing dramatic cost savings.
(Allstate "slashed annual spending on
corporate offices from $382 million in 2020
to $138 million this year.") And it remains to
be seen whether the loss of collaboration-
related benefits touted by RTO proponents
will manifest itself.
Most recent studies show no significant
difference in productivity between fully
in-person and hybrid employees, and
hybrid models result in greater employee
satisfaction and retention. So for the
companies that can be hybrid or remote,
there's little reason not to optimize. And
even companies that enforce RTO
mandates need to invest in solutions that
let them predict and respond to the
demand for space. Amazon, for example, is
still struggling to facilitate its RTO
ambitions in some locations due to lack of
space. After years of remote and hybrid
work, their demand for space is now
greater than their supply.
"Space optimization or 'rightsizing' is
nascent," John Vivaldi says. "There's
much more to be done, and workplace
models will impact an organization's
ability to optimize space. Having
employees come into the office Tuesday,
Wed, and Thursday is equivalent, from a
workplace optimization standpoint, to a 5-
day mandate. You need the same amount
of space for both."
Even organizations that have been leaders
in space optimization have more work
ahead of them. "Tango is still in the process
of rightsizing our portfolio, too," Andy
Anderson says. "We let our AgilQuest
office lease expire. Same with WatchWire
in New York City."
Some companies have still been waiting to
take advantage of downsizing.
"Most businesses haven't yet, either
because they couldn't get out of their
leases or because they are worried about
not having enough space," Stève Cattin
says.
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T H E A P P E A L O F S P A C E O P T I M I Z A T I O N
W I L L G R O W
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2025 Workplace Predictions: Prediction #6
