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Businesses cut costs as they open offices away from city centres – research

Office giant IWG has reported a continued shift towards hybrid working, with many firms moving from city centres (IWG/PA)
Office giant IWG has reported a continued shift towards hybrid working, with many firms moving from city centres (IWG/PA)

Almost three-quarters of businesses say they have cut the cost of their offices amid the continued shift towards hybrid working, according to new research.

More than half of businesses have office or co-working space outside city centres, the research conducted by office and real estate firm IWG has found.

Mark Dixon, chief executive officer of the Regus operator, said the days of expecting workers to make an “unproductive and expensive commute” are “long gone”.

The latest data from more than 500 business bosses across the UK found that 82% of companies have reconfigured their office footprints to better suit hybrid working.

The majority of changes to workspaces have been designed to allow staff to work in offices and co-working locations closer to where they live, according to the survey.

It also found 54% of businesses have office or co-working space outside city centres while 38% have opted for secondary locations in the heart of commuter towns.

As a result, 73% said they reduced the cost of their office footprint.

Companies also suggested they are benefiting financially from their employees having shorter commutes, with 36% saying they were paying less in expenses for staff travel.

Mr Dixon said: “It’s clear that the old ways of working, with a daily unproductive and expensive commute, are long gone.

“Businesses are realising that not only does hybrid working make sense for their bottom lines, it also benefits their workforces.

“It’s encouraging to see that businesses are translating their hybrid working savings into real benefits for employees.

“Not only does this help in the immediate term, with improved productivity and wellbeing, but it will also help them retain and recruit the best talent.”