Companies Who Adopt Remote/Hybrid Models Cut Real Estate Costs by 50%

New data has put a price tag on how cost-effective it can be for companies to switch to remote or hybrid models of work. A recent Fortune article evaluated how much businesses save by minimizing their office spaces. Haibu Space, estimates companies can cut real estate costs by opting for a hybrid working style. Global Workplace Analytics calculated that enterprises could save up to $11,000 for each employee working remotely for two or three days of the week. 

Tech giant Cisco, which has been hybrid for the last half-decade, is a great example. The company has cut 50% of real estate, saving about $500 million. 

The cost savings result from reduced rent and qualities like increased productivity, lower absenteeism and less turnover, which have been shown to come from flexible work environments. Pre-pandemic, most major companies in America dedicated about 3% to 9% of their budgets to real estate. The standard for office spaces was about 150 square feet of room per employee.

But now, 74% of Fortune 500 CEOs report that they plan to or have already reduced their company’s office space. 

Haibu Space, headquartered in Abu Dhabi, is the first coworking space in the UAE and poised to be the solution for businesses seeking flexible working environments. Haibu Space serves Fortune 500 companies, SMEs, startups and freelancers, and our model has been rapidly growing in popularity.

And as demand for flexible working environments continues to increase, Haibu Space is working towards a goal of becoming the dominant operator in the MENA region.

Haibu Space offers partnership agreements for commercial real estate owners and developers to reposition underperforming real estate assets into profit centers by converting such spaces into vibrant flexspace with private offices, co-working areas, collaboration spaces, business lounges and meeting rooms.