Are the COVID-19 footprints fading? analysing dynamics in work, corporate real estate strategies and building use

Sentiments about hybrid working have changed in line with the waning of the Covid-19 pandemic. Businesses and organizations are increasingly driving a return-to-office (RTO) mandate, which questions previous perceptions about reimagining office space use and the ESG and economic impacts at the pandemic apex. Using data from two waves of Knight Frank's (Y)OUR SPACE survey (2021 and 2023), we employ probit models to analyse the link between the COVID-19 pandemic and workspace dynamics. We also compare the influence of business strategies and work patterns on office space use expectations during the lockdown and 2 years after. The results indicate that the COVID-19-driven hybrid working led to firms’ decisions to reduce their office space quantity while improving the quality of space. However, these sentiments and expectations are changing in line with post-pandemic work culture and organizational strategies. Our results further reveal that office space flexibility may not be a priority in organizations’ future workspace strategy. These insights indicate that economic factors remain core priorities in future workspace strategies while environmental and social factors remain secondary. This study extends the literature beyond the economic drivers of workspace strategies to environmental and social factors.