• July 14, 2022

Office Occupancy and the Impact on your Balance Sheet

Office Occupancy and the Impact on your Balance Sheet

Office Occupancy and the Impact on your Balance Sheet 1024 536 Avocado55

At the start of the COVID pandemic, most organisations suddenly had to expedite their work from home strategies to ensure survival. Since then more and more companies are offering a hybrid way of working and this is likely going to remain the same for the foreseeable future. 

The latest JLL data from May 2022 has shown that overall office occupancy is up to 70% of pre-pandemic numbers of just 30% in the EU, with the highest numbers being in Amsterdam and Milan while the lowest was in Paris. London and Dublin were lower still.

Office occupancy patterns have also changed, so it is not just significantly lower, but also there is no consistency throughout the week. Now, current occupancy targets are no longer achieved. 

This then poses the question, how do companies adapt and still need the same floor space and real estate footprint? This has always been a huge cost to any company, but previously was deemed a necessary expense, what about now?

The Board of Directors look at their organisation’s balance sheet and treats property and equipment as assets that bolster the balance sheet, rather than the cost associated with it as an expense that should be managed actively before there is a need to cut costs. When this needs doing, it is usually the cost of employees that is looked at first. 

By continuously looking at the costs associated with your property portfolio, you can focus on:

  • Evaluating and consolidating your real estate footprint; 
  • Review contracts and lease agreements;
  • Repurposing spaces and amenities for flexibility, sharing and revenue generation opportunities; 
  • Managing, planning and optimising the occupancy in buildings; 
  • Repurposing the buildings to better suit post-pandemic needs and required services;
  • Look at energy-saving infrastructure and design

Avocado55 has a wealth of experience in this area, from delivering e2e turnkey corporate office solutions to facilities management, maintenance and support services, including ongoing real estate evaluation and optimisation.  

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