JLL Research surveyed 100+ business executives across the Midwest to learn how office space will change following COVID-19. Download the full report for their findings.

1. 1 The Future of Office Space
MIDWEST ANALYSIS
The Future
of Office Space
MIDWEST ANALYSIS

2. 2 The Future of Office Space
MIDWEST ANALYSIS
Setting the scene
There has been much speculation about the
future of office space. Some media reports
have hypothesized that a significant amount of
employees will permanently work from home,
which will result in a dramatic decline in the
need for office space. These articles often lack
concrete data though, and instead cite one or
two high-profile companies which have made
bold statements regarding remote working
being a much bigger part of their long-term real
estate strategy.
In an effort to gain a deeper understanding of
this complex topic, JLL Research during the
month of July surveyed more than 100 Midwest
business executives across a wide range of
industries to understand how small businesses
and middle market companies plan to utilize
office space post-COVID-19. Here’s who we
surveyed and what we learned.
What is the size of your
company’s office?
What industry are
you in?
Finance &
Insurance
Construction &
Manufacturing
Real Estate
Other
Professional &
Business Services
Health
Legal
Technology
23%
26%
26%
22%
15%
11%
14%
12%11%
11%
11%
10%
8%
Less than 5,000 square feet
5,000 to 10,000 square feet
More than 50,000 square feet
10,000 to 20,000 square feet
20,000 to 50,000 square feet

3. 3 The Future of Office Space
MIDWEST ANALYSIS
Nearly all offices will
re-open by the end of the year
64% of offices are currently open across the Midwest, and by
the end of the year, that number will increase to 86%.
Of the more than 100 businesses surveyed, only one firm, a
technology company, indicated plans to close their office and
shift employees into coworking space.
When do you
expect your office
to re-open?
Our office already re-opened
39%
Our office never closed
25%
September / October15%
Beyond 202013%
November / December4%
July / August3%
We are closing the office, all
employees will work remotely
1%

4. 4 The Future of Office Space
MIDWEST ANALYSIS
Offices are re-opening, but
employees will be slow to return
While the majority of offices have
re-opened, only 27% of businesses
currently have at least half of their
employees working from the office
regularly. By the end of the year, 60%
of businesses expect to have at least
half of their employees working in the
office regularly.
Conversely, 40% of the businesses
surveyed said they do not intend to
have the majority of employees back
in the office until 2021, signaling that
until a vaccine is widely available,
many employees will continue to
work from home.
When do you expect 50% of your employees
to be working in the office regularly?
40%
Beyond
2020
27%
50% of our employees
are already working in
the office regularly
22%
The fourth quarter
of this year (October
through December)
11%
The third quarter of
this year (July through
September)

5. 5 The Future of Office Space
MIDWEST ANALYSIS
Offices are re-opening without major
capital expenditures
The majority of businesses are not incurring significant expenses to re-open offices. In
fact, only 19% of firms indicated that they were planning capital expenditures in the
short- to medium-term to redesign their office due to COVID-19.
Are you planning capital expenditures in the short- to
medium-term to redesign your office due to COVID-19?
66%
No
19%
Yes
15%
Unsure

6. 6 The Future of Office Space
MIDWEST ANALYSIS
Companies are implementing
practical safety protocols
Most companies are implementing inexpensive and practical policies to keep
employees safe. The most common safety protocols that are being implemented
include social distancing guidelines, enhanced cleaning procedures, and limiting the
number of employees that can congregate in common areas.
When you return to the office, which safety
protocols do you plan to put in place?
Social distancing guidelines
Enhanced cleaning procedures
Limiting access to common areas
Reduce seating capacity
Temperature screening
Foot traffic management
Employee shifts
Contact tracing
98%
87%
69%
62%
50%
48%
42%
38%

7. 7 The Future of Office Space
MIDWEST ANALYSIS
Companies plan to bring almost all
workers back to the office
The last few months have proven
that most employees can work
from home and be productive. As
a result, 60% of the companies
surveyed said that they are
considering having a percentage
of their workforce permanently
work from home.
However, the office will
continue to play a critical role in
employee collaboration, product
innovation, and company culture.
Recognizing this, 80% of the
companies surveyed said that at
least 80% of their employees will
return to the office post-COVID-19.
Does your company plan to keep
some employees working from home
permanently? If so, what percentage?
40%
21%
19%
15%
4%
1%
All employees will
eventually return to
the office
10% to 20% will
permanently work
from home
20% to 50% will
permanently work
from home
Less than 5% will
permanently work
from home
5% to 10% will
permanently work
from home
More than 50% will
permanently work
from home

8. 8 The Future of Office Space
MIDWEST ANALYSIS
Most companies will need about the
same amount of office space
73% of the companies
surveyed said that they will
need about the same amount
of office space in the future,
indicating that overall office
demand should remain fairly
stable post-COVID-19.
That said, 23% of companies
plan to significantly reduce the
size of their office, which could
lead to increased vacancy in the
short- to medium-term. Long-
term, however, this vacancy will
be re-absorbed as the economy
rebounds and companies begin
to grow again.
47%
7%
23%
4%
19%
Our company will need
the same amount of
office space
We will need a
little more space
(an increase of
20% or less)
We will need a lot less
space (a reduction of
more than 20%)
We will need a lot
more space (an
increase of more
than 20%)
We will need a little less
space (a reduction of
20% or less)
What do you expect will be your company’s
future office space needs?

9. 9 The Future of Office Space
MIDWEST ANALYSIS
Very few companies have immediate
plans to dispose of space
65% percent of companies do not
plan to sublease or dispose of space
in the short- to medium-term, which
is reflective of the fact that most
companies plan to need about the
same amount of office space
post-COVID-19.
However, 11% of companies
do plan to shed office space
and another 24% are undecided.
If these companies follow through
on giving back space, that could
result in a meaningful increase
in office vacancy in the
short- to medium-term.
Do you plan to sublease or dispose of office
space in the short- to medium-term?
65%
24%
11%
No
Unsure
Yes

10. 10 The Future of Office Space
MIDWEST ANALYSIS
Companies remain committed to
downtown offices
Many have speculated that companies will migrate from downtown to the suburbs to de-densify
and address employee concerns about public transportation. This is not likely to be the case in the
Midwest, in part because most employees already commute by car, but also because the underlying
factors that drove companies to locate downtown will remain in place post-COVID-19, including the
central location, proximity to clients, and the highly amenitized setting.
A resounding 93% of business leaders who currently have offices in downtowns across the Midwest
said they have no intention of relocating to the suburbs.
If your office is currently located
downtown, are you planning to
relocate to the suburbs?
93% 7%
No Unsure

11. 11 The Future of Office Space
MIDWEST ANALYSIS
Very few companies plan to move
to a hub-and-spoke model
Some companies have announced
plans to move to a hub-and-spoke
model in large metropolitan regions
like New York and Los Angeles.
This is being driven by the excessive
commute times in those regions, the
inability for companies to access talent
pools, and employee concerns over
public transportation.
This trend is unlikely to play out in the
Midwest given the shorter commute
times and the fact that most employees
drive to work. In fact, only 5% of the
businesses surveyed said they were
planning to add additional offices as
part of a hub-and-spoke model.
Do you plan to add additional office
locations as part of a hub-and-spoke model?
80%
15%
5%No
Unsure
Yes

12. 12 The Future of Office Space
MIDWEST ANALYSIS
Most companies are not planning to
consolidate offices
When asked if companies were
considering consolidating
multiple offices within a region,
in part to save costs, 67% of the
businesses surveyed indicated
no plans to do so.
The office will remain a critical
asset to companies, serving as
a place to conduct business,
collaborate, and innovate. The
underlying drivers that led
companies to establish
multiple offices within a
region will largely remain in
place post-COVID-19.
If you have multiple offices within the region,
do you plan to consolidate locations?
67% No
17% Unsure
16% Yes

13. 13 The Future of Office Space
MIDWEST ANALYSIS
The future of coworking in the
Midwest is unclear
Over the last decade, companies
have increasingly embraced
coworking space given the
flexibility it provides in terms of
cost, time, and scale. However,
in the age of COVID-19, many
companies are looking to exit
coworking agreements due to
health concerns and the need to
preserve capital.
The future of coworking space
in the Midwest is very much
unclear, with 57% of the survey
respondents saying they were
unsure if they would increase or
decrease their company’s usage
of coworking space in the future.
Is your company planning to change its
usage of coworking space in the future?
57% 27% 16%
We are planning to
increase our usage of
coworking space
Unsure We are planning to
decrease our usage of
coworking space

14. 14 The Future of Office Space
MIDWEST ANALYSIS
What else we heard
Having our team together in the office
as much and as soon as possible is
important for the team’s productivity,
mental health, and collaboration.
“
”
Our answers to the survey questions
change daily as the situation evolves.
Currently the goal is to shift more than
50% of the workforce to work form
home and have employees come to
the office as needed. Only essential
personnel will be onsite daily.
“
”
Issues of child support will greatly
impact the need to work remotely i.e. if
schools are predominantly online and/
or daycare access is limited – coming
back into the office full time will not be
an option for many employees.
“
”
We thought we would move to bigger
space when our lease is up, not sure if
we will still do that to allow for social
distancing, or if we will take less space
because more employees will be
working from home.
“
”
It is unclear what our work environment will
look like post-COVID-19, but it is apparent
to the leadership that many employees
can work from home productively and
some continued remote working may be
permanent. But we are a collaborative
culture, and that will factor into some return
to the office when safe.
“
”
You can’t build culture without an office
presence. I’ve already seen it when
people are back together, it’s amazing.
When you’re apart again, it’s obvious this
cannot last if you want to build a winning
culture and team.
“
”
I expect we’ll have a lot of people
who work from home one to
three days per week and come
into the office the other days.
“
”
The COVID-19 crisis materially
changed our perception of what
we need from a physical office.
That said, when we do get back
together we will remember how
much can get done face-to-face.
“
”

15. For more information, please contact:
Andrew Batson
Senior Vice President
Director of Midwest Research
andrew.batson@am.jll.com
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