Brief | Creating Resilience

Workspace utilization

"New normal" office space requirement depends on the industry

September 15, 2023 2 Minute Read

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CBRE Research examined active office-space requirements as well as signed deals to ascertain the "new normal" for space utilization in the Greater Philadelphia market*. CBRE completed two sets of comparisons, one for active touring tenants in 2023, and one for leases signed between Q2 2020 and Q2 2023. Through observing active tenants, a clear trend is validated. There is a reduction of desired/required office space for industries that are traditionally tied to office space. However, a deeper dive reveals that there is not a single downsizing strategy that works for all tenants across all industries. Specifically, significant differences in the average requirement size by industry show that not all companies are shrinking at the same rate and some industries are growing their footprint.