Imagine a world where office space costs are no longer a burden on businesses. A world where companies can push resources toward innovation and growth, not rent and maintenance. As remote and hybrid work grows deeper roots, more companies are realizing this vision. They’re making lowering the cost of office space their reality.
For many companies, the coworking space is the new conference room. Home offices mean company real estate is now partially owned by its employees. The formal office is shrinking before our eyes as more companies rethink where and how they work.
Companies planning to maintain their same office footprint over the next three years fell to just 9%, compared to 27% in 2021. One driving force is the prospect of saving money and reducing wasted space left in the wake of remote and hybrid work.
This can be your reality, too. Let’s look at some practical strategies you can use to lower office space cost without sacrificing comfort or performance.
Create a Data-Driven Workplace Strategy
Before making changes, it’s worthwhile to develop a workplace strategy and collect data that will inform how you cut back on office costs. Not all companies have embraced 100% remote work; not all companies love 100% on-site, either. Rather, customizing a policy based on your people, places, and processes can help you reach an optimal outcome.
Examples of potential hybrid strategies include:
Work from anywhere: Employees decide where they want to work, whether it’s in their home, the office, coworking space, or somewhere else.
Work near home: Employees can take their pick of satellite offices based on their location at any given time.
Hub and spoke: A core office combines with multiple flexible spaces in various locations, allowing workers to choose where they perform best.
To select the right approach, take your employees’ perceptions of the office into account, as well as what your current lease terms will allow. In some cases, a phased approach makes the most sense for your finances and employee adoption.
5 Strategies for Reducing Office Space Costs
With your ideal work approach in mind, consider how you can apply these strategies to lower the cost of office space.
1. Consider downsizing
The obvious first choice is to move to a smaller space. Less square footage usually means lower monthly rent, which can give you immediate cost savings. You can maximize these savings even more if you’re shifting from an urban area to an economic development zone or suburb.
You might also explore the option of moving into a dedicated space within a flexible office or coworking space. These are turnkey offices with short-term leases and fixed prices so you can budget accordingly while saving money.
The ultimate downsize would be to go officeless. If a 100% remote model works for your business, getting rid of the office altogether can save thousands of dollars per month. However, there’s still value in gathering as a team and meeting clients in-person. Having an on-demand space can help you avoid paying for space when you don’t need it.
2. Take advantage of on-demand workspaces
Office space on demand lets you leverage offices when and where it matters most. This option gives your employees more flexibility over their workspaces, a concept called hot desking. Rather than being tied to fixed leases and ongoing overhead, you can secure a workspace when you need it and avoid paying for space when you don’t.
Using these purpose-built spaces gives you access to enterprise-grade technology and all the full-service office amenities you need without having to shoulder the entire cost yourself.
To find on-demand workspaces, LiquidSpace features thousands of listings that you can search based on your criteria. You can filter your search by a variety of amenities and needs, such as 24/7 access, pet-friendly, handicap accessible, or even spaces with catering or coffee and tea service.
This approach gives you access to a variety of amenities that might otherwise be too cost prohibitive to furnish on your own.
3. Implement a staggered work schedule
Allowing employees to stagger their hours can reduce demand on office systems and lower the need for office square footage. Employees are working different days and hours rather than the same set schedule as everyone else, which means fewer people in the building at any given time. You may be able to move to a smaller space, have fewer desks and chairs, and shift to an open office rather than personal offices or cubicles.
4. Outsource some functions
Outsourcing some functions or entire departments can free up physical space, which makes it easier to downsize or implement hybrid or remote policies. Popular outsourcing candidates include:
- Customer support
- Administrative duties
- Payroll
- Bookkeeping
- IT services
Not only can outsourcing certain functions save on payroll, but they can also reduce office space needs and free up resources for innovation and business growth.
5. Renegotiate contracts
If moving your office isn’t feasible at the moment, consider renegotiating your existing commercial lease with your landlord. With more companies open to the idea of hybrid and remote work, it’s estimated that demand for commercial office space could fall as much as 13% by 2030. Landlords may be keen on keeping their tenants for as long as possible, even if it means taking a small cut in monthly rent.
You can also negotiate existing contracts and renewals for office-related expenses, including supplies, cleaning, and internet service. Freeing up capital in these areas helps you lower the total cost of your office space—every dollar matters.
LiquidSpace: The Genius Way to Reduce the Cost of Office Space
Saving money on office space and overhead is always a smart idea. It frees up resources that can be put toward training and development, employee satisfaction, and improving the health and future of the business. These investments can make your business more resilient during hard times and more agile when new opportunities arise.
LiquidSpace helps you find offices on demand based on your location, budget, team size, and other factors. Lower your office space cost by using LiquidSpace Enterprise—the genius way to save on space without sacrifice.
Sources:
https://www.cbre.com/press-releases/cbre-survey-finds-most-companies-anticipate-reshaping-their-offices-for-hybrid-work
https://blog.liquidspace.com/scenarios/tag/hybrid-workplace-101
https://www.forbes.com/sites/jenamcgregor/2023/07/12/demand-for-office-space-could-fall-13-by-2030-and-thats-not-the-severe-forecast/?sh=67f3d5e63dbc
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