Improved technology and cost-cutting pressure are leading more companies to adopt strategies like telecommuting to reduce the amount spent on office space. This article discusses the results of a recent survey of the real estate directors of 50 major corporations, who together account for more than two billion square feet of office space, who were asked to rate their best options for cutting their real-estate costs. The top choice of 37% of respondents was telecommuting and hoteling, up from 6% just two years ago. Among the additional cost-cutting strategies discussed in this article include consolidating multiple offices into fewer locations and trimming a floor or two of space without moving.
The author cautions firms that cutting too much space can hamper the ability to expand when business picks up. He ends the article by emphasizing the positive effects of hoteling and telecommuting, including the heightened ability to “lure new talent by offering a a flexible workplace, including a day or two of working from home a week.”
Source: Ryan Chittum, Wall Street Journal (Eastern Edition); July 27, 2005