Office Exodus: Rethinking Workspaces

Key Takeaways:

3 in 4 business owners don’t currently rent an office space.
Of those who do, 1 in 4 finance it with a business loan.
16% of business owners who currently rent an office space plan to decrease or eliminate it in the next year; 24% plan to within the next 5 years.

Business Owners’ Office Rental Plans

Renting office space

3 in 4 business owners don’t currently rent an office space, but among those who do, 1 in 4 finance it with a business loan.
16% of business owners who currently rent an office space plan to decrease or eliminate it in the next year; 24% plan to within the next 5 years.
Marketing businesses (44%) are the most likely to downsize or eliminate office space in the next 5 years.
Reducing costs (43%) is the top reason why businesses want to downsize or eliminate office space, followed by their employees’ preference for remote or flexible work (20%).

Top Factors Influencing Office Space Rental Decisions

Cost: 52%
Location: 41%
Need space for company operations: 23%
Amenities (parking, kitchen, etc.): 17%
Lease flexibility: 16%
Potential to increase employee productivity: 14%
Financing availability: 12%
Loan terms (interest rate, repayment period, etc.): 10%
Potential to enhance company culture: 9%
Proximity to public transportation: 6%

Plans for Workspace Growth

26% of business owners who currently use an office space plan to increase the space within the next year, and 41% plan to do so within the next 5 years.
Retail businesses (59%) are the most likely to rent more office space in the next 5 years, followed by healthcare businesses (50%).
17% of those not renting office space plan to do so in the next 5 years.

Methodology

We surveyed 663 business owners and entrepreneurs about their future plans and attitudes toward renting office space. Among those we surveyed, 51% were fully remote, 27% were hybrid, and 22% were in-office. For industry breakdowns, only industries with 30 or more respondents were used.

About Clarify Capital

Clarify Capital is a leading provider of business financing solutions, offering a range of loan options to help entrepreneurs and small businesses thrive.

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Emma Parker

Senior Funding Manager

Emma holds a B.S. in finance from NYU and has been working in the business financing industry for over a decade. She is passionate about helping small business owners grow by finding the right funding option that makes sense for them. More about the Clarify team →