Office Downsizing and COVID-19 Go Hand-in-Hand

By  //  August 6, 2021

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Office downsizing is the newest business trend we see as things open back up again. 

Office downsizing has become the newest business trend of 2021. However, in an economy still shaken by the events of the last 18 months, it is proving to be an effective solution to help the worst-hit businesses to keep their doors open.

We reviewed what office downsizing was and why coronavirus is urging on a spate of office relocations across the US during this article.

What is Office downsizing?

Office downsizing is what it sounds like: choosing a smaller office than the one you have been using this far to use less space. It’s not just about using less space, though, and has more to do with the profit and loss accounts than most businesses are willing to admit.

Downsizing your office can mean any number of things. It might be that you need to go back to your landlord and talk about your rent. It may be that you can clear out an office or a floor of your building for someone else to use. Your landlord might allow this for the extra rent, but it could save you money on the overhead of a whole building.

You might also consider hiring a coworking space New York as an alternative to renting an entire building all on your own. When you share that office space, you share the bills, the Wi-Fi, the gossip, and other things, too. Also, lighting and heating are less expensive when those costs are split. 

Why has Covid-19 brought it About?

Why has Covid-19 seen a steady surge in those downsizing their office spaces? Because businesses are going broke left, right, and center. Those that have survived the pandemic so far are in desperate need of ways to save cash. 

But it’s not all been bad news on the business front, either. Covid-19 brought about a new appreciation for the world of technology that many of us simply didn’t have before. The satellite office has been a concept since the ’80s, but it wasn’t until recently that we truly appreciated how well it could work. 

Working from Home has taught us that the satellite office is entirely plausible, and this ripple effect is being felt all over the globe. Especially for the office workers who find it much better for their work/life balance. Now that we know it is possible, why would we go back to bricks and mortar office buildings if we didn’t have to? Indeed it is better to stay home, stay germ-free, and not use heat, light, Wi-Fi, and water, all being provided for by the company?

Added together, you start to see how much of a saving office employers are making when they do away with the buildings we are used to.

Moving Forward Without Offices?

We are not at the stage of being completely office-free just yet. It will take more time, money, and technology before all of us are happy with WFH. In the meantime, downsizing is the critical business trend to watch out for in 2021. Sooner or later, we will all be doing business online.