Reducing office space? 74% of Fortune 500 CEOs say it's likely
View this email in your browser. Enjoy this sneak peek of Fortune Analytics - a weekly newsletter available only to premium subscribers with business insights based on exclusive surveys & proprietary data. $108 billed annually. Cancel anytime. June 11, 2021
How Fortune 500 CEOs view the post-pandemic business world
In the face of employee pushback, Amazon is pivoting: On Thursday, the e-commerce juggernaut told staffers they're softening their back-to-work policy. Going forward they'll allow corporate employees to work from home two days per week, and up to four weeks per year of remote flex days.
That policy shift by Amazon shows just how cautious employers are being as they bring back staffers. Simply put, they're trying to balance a return to normalcy without upsetting workers. After all, a hot labor market makes it all too easy for workers to walk. To figure out how the big dogs will play their cards, we conducted a poll of Fortune 500 chief executive officers last month.*
Here's what we found.
The numbers to know 53%
74%
53%
10%
50%
47%
61%
Like what you've read so far? Subscribe to Fortune Premium to get this newsletter every week in your inbox! $108 billed annually. Cancel anytime.
The big picture
A few deeper takeaways
1. The worst is yet to come for commercial office space.
For much of the pandemic central business districts in major cities were ghost towns. One might assume it'd make commercial office space owners insolvent. Not really: They were protected by long leases, often in the 5-year to 10-year ballpark.
But 15 months into this crisis, it's becoming pretty clear that post-pandemic work will require less office space than the pre-pandemic workplace. Among Fortune 500 CEOs, 73.6% say they'll need less office space in the future. Including 51.4% who say a little less space, and 22.2% who say a lot less space. Clearly, companies are eager to start scaling back on their commercial real estate expenses. Industry experts say suburban back-offices—not corporate HQs—are the most likely to be cut.
"As leases lapse over the coming year or two, we need to watch how companies renew their contracts. If we see a push to offload some square footage, as surveys suggest, landlords could feel the pinch. Segments of the office space remain an unknown risk to the economy," Ali Wolf, chief economist at Zonda, tells Fortune.
2. Office space might get cut—but CEOs still view it as critical to success.
Don't expect the company office to wither away: Among CEOs, 72% say office space is important for employee productivity. Only 13% disagree. The pandemic shifted some workplace dogmas about remote work—but it also engrained others. As Fortune Analytics has previously reported, some employees saw their productivity fall during WFH. It wasn't for everyone, and leaders took note. That's why most companies still want to incorporate some form of in-person work.
3. USA is No. 1.
The consensus among economists is that 2021 will be the best year for U.S. economic growth since the early 1980s. So it isn't surprising that 83% of Fortune 500 CEOs, aka the leaders of the 500 largest public U.S. companies by revenue, say the U.S. is the region with the best opportunities for investment. Next was China at 12%.
A big underpinning here is the fact that vaccines by U.S. drug makers Moderna, Pfizer, and Johnson & Johnson put the country much closer to the end of the pandemic. Even as caseloads plummet here, other nations are seeing breakouts.
With a Fortune Premium subscription, you'll also get access to subscriber webinars, exclusive list analysis, investment guides, weekly proprietary research, and unlimited articles. $108 billed annually. Cancel anytime.
I’d love to know what you think of the newsletter. Email me with feedback at lance.lambert@fortune.com.
Lance Lambert
*Methodology: Fortune 500 CEO Poll conducted May 3 and 14. A total of 72 Fortune 500 CEOs responded to the survey. (Our "corporate risk" question was provided by survey sponsor, Zurich North America Insurance).
Thanks for reading Fortune Analytics.
Subscribe to Fortune Premium to access this newsletter and more every week. $108 billed annually. Cancel anytime.
|
Older messages
There's a battle for talent brewing
Wednesday, June 9, 2021
Workers are making it clear that they expect something more than a “return” to the status quo pre-COVID. Click here to view this email in your browser. June 9, 2021 Welcome to Worksheet, a newsletter
Who made the Fortune 500 list?
Tuesday, June 8, 2021
Get the jump on who prospered, who stumbled, and why. Fortune 500 Together, the corporations on this year's FORTUNE 500 generated $13.8 trillion in revenue, or some two-thirds of the US economy.
Could that meeting have been an email?
Wednesday, June 2, 2021
The pandemic exposed some terrible workplace habits. Chief among them: our dependence on meetings. Click here to view this email in your browser. June 2, 2021 Welcome to Worksheet, a newsletter about
Fortune 500 New List and Full CEO Survey Results
Tuesday, June 1, 2021
FORTUNE There is little doubt in my mind that historians will look back at the last few years as a significant turning point in the history of business. Digital transformation has dramatically
Are you ready for 6/2?
Wednesday, May 26, 2021
Get the lowdown on who's moving up. Fortune 500 THE FORTUNE 500 DROPS JUNE 2ND Get the lowdown on who's moving up. SPECIAL SUBSCRIPTION OFFER For a limited time, new subscribers will also
You Might Also Like
Numlock News: April 25, 2024 • Octocorals, Pinyin, Wizards
Thursday, April 25, 2024
By Walt Hickey Digital Books Libraries pay extra when it comes to e-books that they lend out, and it can pinch them financially. For instance, Britney Spears' memoir The Woman In Me cost a library
☕ Getting the trophy (again)
Thursday, April 25, 2024
How TikTok can avoid a ban... April 25, 2024 View Online | Sign Up | Shop Morning Brew PRESENTED BY GACW Good morning. And so it begins: Cicadas are emerging in South Carolina. In Newberry County,
If Britain is so bothered by China, why do these .gov.uk sites use Chinese ad brokers? [Thu Apr 25 2024]
Thursday, April 25, 2024
Hi The Register Subscriber | Log in The Register {* Daily Headlines *} 25 April 2024 A map of the UK If Britain is so bothered by China, why do these .gov.uk sites use Chinese ad brokers? One wonders
Abort the Court
Thursday, April 25, 2024
SCOTUS heard arguments in what could be the most consequential post-Dobbs abortion case. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
How to build a “Bloomberg for X” media company
Thursday, April 25, 2024
Many companies that attempted to monetize media outlets with non-media tech products have stumbled. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Prefer to Skip Mother’s Day Emails?
Thursday, April 25, 2024
Tap a button, and you won't hear from us. The Strategist Prefer to Skip Mother's Day Emails? Mother's Day is coming up, and we understand that this can be a difficult time for some. So if
GeekWire Mid-Week Update
Wednesday, April 24, 2024
Read the top tech stories so far this week from GeekWire GeekWire Mid-Week Update Top stories so far this week After lobbying by Uber and DoorDash, new proposal would overhaul Seattle's minimum
Student Protesters Are Schooling Their Universities
Wednesday, April 24, 2024
Columns and commentary on news, politics, business, and technology from the Intelligencer team. Intelligencer student protests Student Protesters Are Schooling Their Universities Pro-Palestinian
The magic of white noise
Wednesday, April 24, 2024
Sweet dreams ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Thursday Briefing: Israel seems poised to invade Rafah
Wednesday, April 24, 2024
Also, details of the US aid package to Ukraine and Taylor Swift's new album View in browser|nytimes.com Continue reading the main story Ad Morning Briefing: Asia Pacific Edition April 25, 2024