As companies navigate the post-pandemic workplace, a complex interplay of factors influences return-to-office (RTO) policies. While productivity, collaboration, and company culture are often cited as reasons for bringing employees back to physical offices, a less-discussed but significant driver is the impact of office leases. A recent study from résumé-building platform Resume.org highlights how these contracts shape corporate decisions, even as many employees push back against the idea of commuting full-time.
According to the Resume.org study, nearly half of companies that currently rent office space report that their leases have influenced their RTO policies. Among these, 16% cite leases as having a “major impact” on their decisions. This phenomenon is particularly pronounced for companies that locked into long-term agreements before the COVID-19 pandemic disrupted traditional workplace norms.
Approximately 43% of companies signed their leases before 2019, unaware of the impending shift toward remote work. Surprisingly, 27% of organizations entered into new leases between 2020 and 2022, during the height of remote work trends, while another 30% signed agreements in 2023 or later. These contracts often come with significant financial commitments, making it difficult for companies to justify empty or underutilized office spaces.
Future Office Mandates: A Growing Trend
As lease obligations persist, many organizations are implementing stricter RTO policies. Nearly 30% of companies plan to require employees to work in the office five days a week by 2025, while 73% anticipate mandating at least three days per week. These policies align with the lease durations of many firms; half of the companies surveyed revealed that their leases won’t expire until 2028 or later.
When leases eventually end, a significant portion of companies (25%) plan to reduce their office footprint or adopt strategies to optimize their existing spaces. Renovations, relocations, or reorganizations may become necessary to accommodate shifting employee preferences and operational needs.
Returning employees to physical offices isn’t without its challenges. Companies that downsized or consolidated office spaces during the pandemic now face logistical hurdles in accommodating a growing number of in-office workers. For instance, AT&T consolidated its office presence to cut costs during the pandemic but now finds itself needing to improve facilities and increase capacity to meet RTO demands.
Similarly, Amazon has encountered issues with insufficient desks and workspace as employees return to the office. Such challenges underscore the importance of flexible and adaptable office strategies, particularly in an era where workplace expectations continue to evolve.
Employee Resistance to Return-to-Office Mandates
While companies grapple with lease-driven RTO policies, many employees remain resistant to returning to the office full-time. According to a study from WFH Research, led by Stanford economists, half of workers would rather quit or seek new employment than commute five days a week. This sentiment reflects a broader shift in employee priorities, with many valuing flexibility, reduced commute times, and work-life balance over traditional office perks.
Stanford economist Nick Bloom notes that employees who are comfortable with in-office work have already returned, leaving a significant portion of the workforce increasingly resistant to mandates. The tension between employee preferences and corporate lease obligations creates a complex landscape for HR and leadership teams to navigate.
As leases expire and organizations reassess their office needs, many are considering strategies to better align their physical spaces with modern work trends. Hybrid work models, which combine in-office and remote work, have emerged as a popular compromise. Companies are also exploring ways to make offices more appealing, including redesigning workspaces to foster collaboration and innovation.
Some organizations are leveraging technology to optimize space usage, implementing desk booking systems and flexible seating arrangements. Others are investing in amenities that enhance the in-office experience, such as wellness rooms, updated technology, and collaborative workspaces. These efforts aim to create an environment that employees find engaging and worth commuting to, even if only part-time.
The intersection of office leases and RTO policies highlights the challenges companies face in the post-pandemic workplace. While financial commitments to office spaces drive many organizations to enforce in-person attendance, employee resistance underscores the need for thoughtful and flexible strategies. As businesses navigate these complexities, the future of work will likely involve a mix of adaptation, innovation, and ongoing dialogue between employers and employees.
Ultimately, the ability to strike a balance between lease obligations and workforce expectations will determine how successfully companies can navigate this transitional period and maintain productivity, engagement, and retention in the years to come.
