Offices remain crucial for business operations, according to a recent study.

A new study by the Institute of the German Economy (IW), published on Friday, reveals that most companies in Germany are not planning to give up office space, even as remote work becomes more common due to the coronavirus pandemic.

The survey, conducted on over 1,200 companies in the fourth quarter of 2020, shows that only 6.4 percent of companies plan to reduce their office space in the next 12 months. On the contrary, 17 percent of the surveyed companies plan to renovate their offices, with some initiatives focusing on dismantling group offices and creating more space for communication and exchange.

However, it is important to note that there are no direct mentions of specific German companies planning to expand or remodel their office spaces in the next decade. Some office spaces in large German cities are currently empty with decreasing demand, and there are initiatives to convert offices into housing rather than expanding for communication purposes.

Before the pandemic, employees typically worked from home for only a few hours or one day a week. Yet, more than half of the employees currently working from home spend 20 hours or more at their home desk instead of in the office. The survey did not provide information on the percentage of companies planning to offer their employees more home office time after the corona crisis.

Two-thirds of companies do not plan to offer their employees more home office time after the corona crisis than before, according to the IW study. This suggests that most companies expect to still need their offices post-pandemic.

The survey did not specify the percentage of companies planning to increase their office space. It also did not provide information on the changes in the rental prices of office spaces in the future. Interestingly, the expected drop in office rental prices did not materialize in 2020, and rents even increased slightly last year.

It is worth noting that a fixed office space is often part of the employment contract. The survey did not mention any changes in the percentage of companies with a fixed office space as part of the employment contract.

In conclusion, the IW study indicates that most companies in Germany do not want to give up office space, even while working from home. While some companies do want to renovate to create more space for exchange and communication, there are no direct mentions of specific companies planning to expand their office spaces in the next decade. The survey did not provide information on the changes in the rental prices of office spaces in the future or the percentage of companies planning to offer their employees more home office time after the corona crisis.