Every Major Company Reducing Office Space: 2020-2024

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companies reducing office space

At Buildremote, we’ve reported a staggering amount of well-known companies that have implemented some form of permanent remote work. Next, we analyzed in-depth the true plans for the Fortune 100’s return to office. At one point in March of 2022, only 3 of the Fortune 100 had declared a full return to the office for all employees. The others planned to never come back in full, come back in a hybrid approach, or delay their returns indefinitely.

Well, as it turns out, if thousands of companies are going remote and thousands aren’t ever going back into the office at full capacity, the demand for office space could crater. It seems that is starting to happen.

In the table below, you’ll find every notable announcement from companies reducing, downsizing, or altogether dropping their office spaces. Here are a few notes about the research:

  • I included every announcement I could find about companies reducing office spaces since March 2020 (as a result of COVID and the switch to remote work)
  • I set the minimum number of employees at 1,000 to highlight well-known companies only
  • I did not include these companies that reduced office space:
    • They actually switched office buildings (ie. no net reduction in space)
    • They downsized as a result of layoffs
  • I searched every Fortune 100‘s name to see if they had reduced office space: all of the announcements are included here
  • I will update this list monthly with new announcements

 

Major Companies Reducing Office Space

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Company

Date

Lease Plan

Story

Remote Policy

Carnival Cruises

Sell

"Carnival is aiming to downsize from its sprawling 470,000-square-foot headquarters in Miami, Bloomberg reported. For its new space, the company is looking for about 300,000 square feet."

Hybrid

Glassdoor

Sublease

"“Glassdoor is doubling down on its decision to become a remote-first company by closing its last remaining offices in San Francisco and Chicago," a company spokesperson said in a statement to CoStar News."

Remote First

Amazon

Cancel

"Tech and e-commerce giant Amazon (AMZN) is hatching a plan to save $1.3 billion by significantly reducing its office space and ending leases early."

Hybrid

Humana

Let Lease Expire

Sell


"Humana, the only Fortune 500 company headquartered in Kentucky, plans to vacate its iconic, 27-story headquarters building."

"Brown County’s second largest employer is selling its campus in De Pere, Wisconsin."

Hybrid

Yelp

Sublease

July 1, 2023

"The business review site is further shrinking its office space. About 18,000 of Yelp’s new, 53,000-square-foot office at 350 Mission St. is up for sublease."


July 1, 2023

"On July 1, we plan to close two additional offices — Phoenix, Arizona and Hamburg, Germany — due to low utilization."


June 2021

"Over the past two months, Yelp has signed sublease agreements for some of its office space in New York and San Francisco. The company expects to book an $11 million impairment charge."

Remote First

Verizon

Sublease

"Verizon...plans to sublease the 143,000 square feet at Essex Crossing (which Verizon never built out or occupied)."

Hybrid

General Electric

"GE's exit from The Bank's building that once housed nearly 2,000 GE workers and is part of Downtown's central business district could exacerbate office vacancies."

Hybrid

Phillips 66

"Phillips 66 has begun vacating floors 10 through 18 of its office building, consolidating all employees to the lower nine floors."

Hybrid

Expensify

"The Expensify Lounge was a wild experiment. As of November 1, 2023, it will be closed until further notice."

Remote First

Microsoft

Sublet

"Microsoft to vacate 50,000 square feet of office space in San Francisco as tech-xodus continues amid drug and crime 'doom loop'."

Hybrid

Dropbox

Cancel


October 2023
"Dropbox will pay $79 million to give up 165,000 square feet of office space at its San Francisco HQ."

January 2022
"Dropbox put its money where its mouth is, shelling out $32 million to forgo a part of its lease 750,000 square foot lease at its San Francisco headquarters. "

Remote First

Meta (Facebook)

Cancel


Let Lease Expire

Downsize

September 2023

"Meta has paid £149mn to break its lease on a major London development."


December 2022

"Meta has listed a 113,585-square-foot building in Fremont for sublease."


October 2022

"Meta will take a $2 billion financial hit to close offices and scrap leases as revenue growth slows at the social media giant."

Hybrid

Penguin Random House

"Penguin Random House adjusted their policy on office attendance as well as their use of space at 1745 Broadway. Notably, the company will “reduce our footprint at 1745 Broadway this fall” in order to “save costs on the spaces that are not being used today.”"

Hybrid

Johnson & Johnson

Sublease

"Johnson & Johnson is slashing its Tampa office space by more than 60%. It will leave behind nearly 90,000 square feet."

Hybrid

JLL

August 2023

Sublease

"JLL is looking to slash its Chicago footprint by more than 30%. The firm is looking to sublease out about 61.3K SF of its 202K SF headquarters space."

Best Buy

Sublease

"Best Buy Co. Inc. is offering more space for lease at its massive Twin Cities headquarters, with a recent commercial listing showing as much as 600,000 square feet of the campus could be up for grabs."

Hybrid

AmerisourceBergen

July 2023

Sublease

"AmerisourceBergen listed its entire 300,000 square foot property at 5025 Plano Parkway in Carrollton for sublease."

Remote First

Charles Schwab

"The financial services company is hoping to reduce its real estate footprint by 'closing floors or closing offices' at its downtown office space (SF). Similar downsizing efforts are planned for... Boston; Chicago; Henderson, Nevada; and Jersey City, while offices in Atlanta, San Antonio, San Diego, St. Louis and Tampa are slated to close completely."

Hybrid

US Federal Government

Let Lease Expire

"The majority of federal offices are still largely vacant on most days. ... What we're hearing from federal agencies and the federal employee unions is that they don't want to or feel they need to come back to the office in the same way that they did pre-pandemic."

Hybrid

Progressive

July 1, 2023

"Progressive plans to consolidate its corporate headquarters by closing one of its two campuses in the village. Progressive is also consolidating office space in Carmel, Indiana; Colorado Springs, Colorado; Riverview, Florida; and St. Petersburgh, Florida, according to the statement."

Hybrid

3M

Sublease

"Conglomerate 3M is looking to sublease the 204,000-square-foot Parmer 3.3 building (Austin)."

Hybrid

Home Depot

Sublease

"The home improvement giant Home Depot has closed one of its offices in Austin, Texas, placing it on the sublease market. A company representative said they let go of the space due to the fact that its office employees work remotely and the space is no longer needed."

Alphabet (Google)

Sublease

"Google has put more than 1.4 million square feet of office space in Silicon Valley on the sublease market. Reducing its Bay Area real estate holdings is part of the tech company’s efforts to reassess its global real estate footprint."

Washington State (Government)

"The state government’s goal is to reduce overall office space by at least 20 percent by 2025 and 30 percent by 2027, potentially saving around $20 million through 2027. Over the next six years, agencies plan to close operations at 50 leased buildings, relocate from 35 sites, and demolish seven facilities."

Kickstarter

Sell

"Remote work is taking its toll on city office space. And now, a 33,000-square-foot landmarked Brooklyn property that was reimagined as Kickstarter’s quirky headquarters a decade ago is now for sale. ...

“We won’t have a centralized office for individuals on the team,” then-CEO Aziz Hasan told Time in March 2022."

Centene

Sublease/

Cancel


May 2023
"More than half a million square feet of office space is now listed for sublease at the Centene campus in Natomas."

May 2022
"Centene Corp. is terminating leases for two of its office buildings in St. Louis. The move to shed more office space locally is part of the health care giant's ongoing efforts to shed half its office space."

Partial

Uber

Sublease

May 2023

"Uber has since put 116,000 square feet of its Dallas office space up for sublease. Uber’s office reversals have an element of distress as the struggling ride-share company tries to lower its real estate costs."


January 2022

"Uber is marketing for sublease all 286,548 square feet in one of four buildings it uses for its global headquarters.

“... We remain committed to our hybrid work approach.”"

AT&T



Sublease

May 2023
"AT&T is slashing its office footprint and asking more than 60,000 managers to return to offices at least three days a week."

August 2020
"AT&T has reportedly placed a large block of Class A office up for sublease that would run through December 2028. The space totals 335,893 square feet."

Hybrid

Exxon Mobil

April 2023

Sell

"The campus – a 290-acre masterplanned campus centered around a 379,000-square-foot office building – will hit the market relatively soon now that Exxon Mobil Corp. is moving its headquarters to the Houston area."

Hybrid

UnitedHealth Group

March 2023

Let Lease Expire

"UnitedHealth Group did not renew the lease by the deadline set for the end of 2022.

"Given our flexible working model, we are continuing to evaluate the best arrangement for our employees.""

Electronic Arts

"Electronic Arts is cutting 6% of its workforce, equal to about 800 jobs, and reducing office space. ... The company expects to take impairment charges ranging from $170 to $200 million, according to a filing with the SEC."

Intel

Sell

"Intel has put its four-building campus in San Jose on the market. That’s nearly 500,000 square feet of office space for the Santa Clara-based tech company, which has about 8,700 employees in the Bay Area."

Hybrid

Reddit

Let Lease Expire

"[Reddit] leased 47,000 square feet at 303 Second St. in South of Market, a spokesperson confirmed to The Chronicle. Reddit is downsizing from its current 78,000-square-foot office at 1455 Market St."

Remote First

Ryder

Sell

"Ryder announces it has sold its Miami headquarters campus. The 16.8-acre property, which has housed Ryder’s 248,989-square-foot headquarters office building since 2005, was sold for $42.1 million."

Hybrid

GitHub

Let Lease Expire

"After announcing in February that it will gradually shift to a fully virtual company structure, GitHub will transition away from its physical office spaces as its leases expire."

Salesforce

Sublease/

Cancel

March 2023

"Salesforce is subleasing an additional six floors or roughly 125,000 square feet of its office space as it continues to shrink its physical footprint at Salesforce Tower."


January 2022

"In San Francisco, where Salesforce is the city’s largest private employer, the company canceled its 325,000 square foot lease at a yet-to-be-built tower in the Transbay neighborhood."

Merck

Sell

"A joint venture... has acquired Merck’s former world headquarters, which features nearly two million square feet. Merck will lease back the entirety of the historic site, vacating in phases over the next several years."

Hybrid

Walgreens Boots Alliance

Sell/

Cancel

"Pharmacy chain Walgreens Boots Alliance will be selling two office buildings in its Deerfield, Ill. corporate headquarters campus as it adjusts to a hybrid work model that’s resulted in underutilized space."

Hybrid

Trulia

Let Lease Expire

"Online real estate marketplace Trulia is downsizing its San Francisco headquarters. Trulia has reduced its footprint, preserving just two of the six floors it operated out of following the expiration of its lease last year."

Walmart

"Walmart plans to close three of its U.S. technology hubs and require hundreds of workers to relocate to keep their jobs, according to a memo reviewed by The Wall Street Journal."

Tyson Foods

Sublease

"With its Chicago exit, Tyson Foods is putting a meaty chunk of office space on the sublease market. The food processing company has listed a 233,000-square-foot, four-story office building."

Hybrid

Prudential Financial

"Workforce composition is one of many components that figure into Prudential's program. Along with that, implementing a hybrid work model and reducing office space footprint in the U.S. by approximately 50%."

Molina Healthcare

"Molina Healthcare said in a Dec. 28 SEC filing that it will record a $200 million impairment charge in the fourth quarter of 2022 attributable to leased space."

Remote First

Ford Motor

Sell

"Demolition is underway at the 670,000-square-foot office building Shehadi purchased from Ford in November 2022."

Hybrid

Block

Let Lease Expire

"Block is leaving behind the Market Street headquarters that had been the high-profile company’s San Francisco headquarters when its lease expires in September 2023. The space in the city’s Mid-Market district that Block is leaving totals about 470,000 square feet."

Remote First

Chevron

Sell

"Chevron plans to sell its 92-acre headquarters campus in San Ramon, seek smaller office space in the city and move some employees to Houston. The headquarters complex of  Chevron Park includes 13 buildings encompassing 1.4M SF and more than 2,000 workers."

Hybrid

CLEAResult

Cancel

"A Texas energy firm is departing a prominent Portand, Oregon, office tower for a much smaller space, joining a growing list of companies across the country announcing significant leasing cuts as they embrace new hybrid work norms."

Hybrid

Voya Financial

Cancel

"Voya Financial last week announced it's moving within downtown Minneapolis, but downsizing from a 148,000-square-foot space to 37,000 square feet, according to Minneapolis/St. Paul Business Journal."

Wells Fargo

"According to Crain’s, Wells Fargo reduced its commercial space in New York City by 600,000 square feet last year."

Hybrid

JPMorgan Chase

"JPMorgan Chase, New York City’s largest office tenant, cut its commercial footprint by 400,000 square feet last year. The bank, which has said it plans to “significantly reduce” its global office footprint in the coming years, also downsized by 300,000 square feet in 2020."

Office First

Pinterest

Cancel

"...terminating its 490,000 square foot lease at a yet-to-be-constructed high-rise near its existing HQ in San Francisco. Pinterest paid nearly $90 million for the privilege. Rather than a cost reduction strategy, Pinterest execs cited the advantages of a more distributed workforce and the ability to hire more people with a wider range of backgrounds and experiences as key drivers in the decision."

Remote First

REI

Sell

"Outdoor retailer REI built a gorgeous eight-acre corporate headquarters outside Seattle—only to promptly sell it. When the pandemic hit, REI reconsidered everything. The never-used 400,000 square-foot campus was eventually sold to Facebook for $390 million, a positive return on investment, according to REI."

Optional

Autodesk

Cancel

"Autodesk is ending its 117,000 square foot lease in San Francisco and will close part of another office in San Rafael. The company says reducing and consolidating its office footprint will allow it to invest in other areas to grow its business."

Hybrid

Anthem

Sublease

"Anthem is seeking tenants to sublease 164,000 square feet at its technology campus [in Atlanta]. Its decision comes amid uncertaintly about the demand for office space."

Comcast

Sublease

"Comcast Corp has decided to close and sublease a 150,000-square foot office building it had used as a call center.

"Since the start of the pandemic, our Newark-based employees successfully shifted to virtual positions, and as a result, we made the decision to close the facility," Comcast said in a statement."

Thermo Fisher Scientific

Sell

"Thermo Fisher Scientific is seeking new office space in Wilmington and exploring opportunities to sell its current downtown property. According to an announcement, the multi-year initiative will enable Thermo Fisher Scientific to better match current and future workspace needs with flexible work models."

USAA

Sublease

"USAA will sublease portions of its downtown office on Convent Street, as the pandemic-era trend toward remote work continues to reshape the city’s office landscape. 'Like many companies, the pandemic and a shift to hybrid and remote working have changed our real estate needs,' wrote USAA spokesman Christian Bove in an email."

Hybrid

Citigroup

Cancel

"Citigroup plans to exit its 41-story namesake tower in downtown San Francisco for a new home half the size on the Embarcadero. PGIM Real Estate listed Citigroup’s six floors at 1 Sansome Street as a direct listing available in January 2023."

Hybrid

Allstate

Sell

"'Allstate is selling the property as employees have more choice about where they work and many are choosing to work from home,' the company said in a news release Monday."

Optional

Coca-Cola Bottling Co.

Let Lease Expire

"Coca-Cola Bottling Co. United moved office space from 600 Beacon Parkway in Birmingham to 200 Wildwood Parkway in Homewood. The relocation reduced its square footage, which the company's vice president of public affairs and communications, Linda Sewell, said was due to work-from-home trends."

Hybrid

Lockheed Martin

Downsize

"Lockheed Martin Corp. renewed its office lease at 221 Crystal Drive, but for only 180,000 square feet, downsizing from 220,000 square feet [an 18% contraction]. Lockheed is planning for about half of its 115,000 employees to work on site full-time, with 10% fully remote and the remainder in hybrid configurations."

Hybrid

Eventbrite

Let Lease Expire

"Eventbrite is opting to not renew a lease on its 97,000 square-foot headquarters in the University of the Pacific building, and instead moving in with Zillow. 'Our lease for our existing office space ended in May and we took this as an opportunity to look for a space that supported the needs of our new hybrid workforce,' said a company representative."

Hybrid

Zynga

Cancel

"Game-maker Zynga is exiting its San Francisco headquarters amid a company shift to a hybrid workplace model. CFO Gerard Griffin said that the company will face an $82 million charge due to the 'impairment of our existing lease and related leasehold improvements.'"

Hybrid

Boeing

Sell

"A Florida-based company has acquired from Boeing the Bellevue Eastgate Campus, a seven-building property. Boeing has said it plans to sell off as much as 30% of its global real estate holdings."

Hybrid

Affirm Holdings

Sublease

"The company decided to sublease one of its two offices in San Francisco to recover some of its rent, as it doesn’t expect all employees to come back. Affirm booked a roughly $11 million charge during the quarter ended March 31 for subleasing the office. It continues to operate offices in New York, Chicago, Toronto, Pittsburgh and Salt Lake City."

Remote First

McKesson

Cancel

"McKesson in May said it plans to adopt a hybrid work model. The Irving, Texas-based company, which has about 76,000 employees around the world, is shrinking its real-estate footprint and expects to book $180-280 million in related restructuring charges over the next year, CFO Britt Vitalone said. The reductions in office space, once fully implemented, are expected to save McKesson $60-80 million a year."

Hybrid

Airbnb

Sublease/ Cancel

"Airbnb Inc. plans to shed an additional 287,000 square feet at its San Francisco headquarters, bringing the total reduction of its real estate footprint in the city to more than 438,000 square feet. The company took a $113 million charge related to unneeded office space in San Francisco."

Remote First

Raytheon Technologies

"Raytheon Technologies is embracing the hybrid work model as a means to reduce its footprint and foster a more inclusive workforce, CEO Greg Hayes said. Raytheon is looking at reducing its 32 million square feet of space by 25%."

Hybrid

United Airlines

Cancel

"United Airlines is giving up some 150,000 square feet, or over 17 percent of its space, at Willis Tower in Chicago, the third-tallest building in the country and a prized possession of Blackstone, the Wall Street firm."

Target

"Target Corp. announced it will leave its headquarters space in the City Center building, reducing its downtown office footprint by a third, or 1 million square feet, while not laying off any employees. Meaning more people are working from home, and will continue to be."

Partial

CVS Health

"CVS Health says it will shrink its office footprint by about 30% in response to the COVID-19 pandemic, which has ushered in an era of telecommuting and prompted greater investments in digitization measures."

Hybrid

Nike

"Nike is leaving its 280,000-square-foot office space in Sunset Corridor at the Tektronix campus in Beaverton. According to a report from the real estate firm JLL Capital Markets, the ongoing COVID-19 pandemic has led to a rapid decline in demand for office space not seen in past recessions."

Hybrid

Oracle

Sublease

"Oracle Corp has placed four out of five stories it occupies in the Financial District office building in San Francisco on the sublease market. The block comprises 85,622 square feet. Oracle's sublease comes just over a month after the company announced... that it would relocate its headquarters from Redwood City to Austin, Texas."

Hybrid

State Farm Insurance

Cancel

"State Farm Insurance Co. is poised to become one of the first major Northern Colorado employers to abandon its physical office spaces and adopt a fully work-from-home employment model as a result of the COVID-19 pandemic. The Bloomington, Illinois-based insurer plans to vacate a dozen offices across the country."


(State Farm is ranked as a top insurance company to work for)

Hybrid

PricewaterhouseCoopers

Sublease

"PwC, an accounting and consultancy firm, is trying to sublet two floors, or about 53,000 square feet, of its Canadian headquarters in the business node south of the financial core, according to Avison."

Remote First

Credit Karma

"The company closed the San Francisco headquarters for good, allowing employees to come in and pick up essentials like medicine, bicycles or valuable personal items. Whenever employees return to work, Oakland will be the lone office in the Bay Area, and those who would have stayed in San Francisco will instead be able to work from home."

Office First

Fujitsu

"Fujitsu announced definitive plans to reduce office space and accommodate a more permanent remote workforce. As part of its plan, Fujitsu says it will reduce its real estate footprint in Japan by 50% within the next two years by shifting roughly 80,000 employees to primarily remote work."

Remote First

Liberty Mutual Insurance Group

Sublease

Texas: "Liberty Mutual Insurance is seeking to rent out almost a quarter of its two-tower office campus on the Dallas North Tollway. Liberty Mutual built the more than 1 million-square-foot office complex to house up to 5,000 workers. But the Boston-based insurance giant has never occupied all of the buildings and is now pitching some of its space for lease to other companies."

Washington: 
"Liberty Mutual Insurance Co. plans to shed more than 100,000 square feet of office space in Liberty Lake this year as a portion of the company’s 1,150-person workforce here shifts to working from home permanently."

Optional

International Business Machines

Cancel

India: "IBM is planning to discontinue lease agreements at nearly half of its offices in major cities across the country as the US-based technology leader sees the work-from-home model becoming mainstream. IBM has more than 10 million square feet of leased office [and 100,000 employees] in the country.

Hybrid

Nationwide

"Nationwide plans to permanently transition to a hybrid operating model that comprises primarily working-from-office in four main corporate campuses and working-from-home in most other locations. The company said it will exit most buildings outside of four main campuses by November 1, 2020."

Hybrid


See Also: 

 

Lease Plan Definitions

In the table, you’ll see a few different classifications in the “lease plan” column. That column is where we marked the company’s intention to exit the office space. Here’s how we define the terms you see there.

  • Cancel: The company plans to terminate its lease early which usually comes with a penalty fee.
  • Downsize: The company let its existing lease expire and renewed with less square footage.
  • Let Lease Expire: The company let its lease expire without renewing.
  • Sell: The company owns its office building but has put it up for sale (or plans to put it up for sale).
  • Sublease: The company is seeking a tenant to take over its existing lease so it can exit.
  • Unknown: For cells that are blank, this means the company did not release its plans for exiting the office space.

 

Remote Policy Definitions

In the table, you’ll see a few different classifications in the “remote policy” column. Here’s how we define remote work policies.

  1. Optional: Employees have the option to work from home or the office.
  2. Partial: Some employees, based on role and situation, are able to work from home.
  3. Remote First: The processes required to work remotely lead the company’s operations, with in-office processes coming second.
  4. Fully Remote: The company does not have any physical office locations.
  5. Hybrid: The company plans to have employees working from home part of the time and in an office part of the time.

See Also: Every Company Going Remote Permanently

 

Statistics About Office Space Downsizing

The statistics and studies tell a mind-boggling story about the drop in demand for office space as a result of the move to remote and hybrid work. Here are a few to highlight the extent to which companies are reducing office space.

  • CBRE Group Inc., April 2022: Commercial vacancy rates in San Francisco rose to 23.8% during the first quarter of 2022, according to a report from real estate services firm CBRE. That’s higher than the levels seen during the peak of the dot-com crash (19% in 2003 and 16% in 2010).”
  • Colliers, March 2022: “Just under 94 million square feet of office space is available for rent in Manhattan, according to a report from Colliers. The availability rate reached 17.4 percent last month, up 74 percent since the start of the pandemic in March 2020, even as demand has more than doubled from a year ago.”
  • CBRE Group Inc., July 2021: More than a year into the pandemic, demand for office space has decreased significantly. During the first quarter, the amount of U.S. office space that became vacant exceeded the amount of space that was leased by 34.8 million square feet, commercial real-estate services and investment firm CBRE Group Inc. said. The difference between the two figures—known in the industry as net absorption—was the largest in at least two decades, CBRE said.
  • Cushman & Wakefield PLC, July 2021: About 16.4% of office space across the country stood empty at the end of the first quarter, up from 13% a year earlier, according to Cushman & Wakefield PLC, a commercial real-estate firm.
  • Fortune, June 2021: “74% of Fortune 500 CEOs expect to reduce office space.
  • PwC, June 2021: “PwC predicts that half of the 258 biggest firms in the UK are planning to cut size of their property portfolio.”
  • JP Morgan Chase, April 2021: “For every 100 JPMorgan staffers, CEO Jamie Dimon estimated, they would need just 60 desks.”
  • Avison Young, September 2020: “Space available for sublease in downtown Toronto nearly tripled to 1.7 million square feet in August of 2020 from the end of last year.”

See Also: 

Want to add a notable announcement?

We researched extensively and update the list every month. But inevitably, we’ll miss some notable companies. Fill in this form to let us know who we missed.

 

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