Technology Practice Group: COVID-19 Impacts and Sentiment Survey - SAVILLS NORTH AMERICA - CREtech
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SAVILLS NORTH AMERICA Technology Practice Group: COVID-19 Impacts and Sentiment Survey October 2020
TABLE OF
CONTENTS
01 INTRODUCTION
02 SURVEY FINDINGS: COVID-19 IMPACTS
Safety Protocols
Headcount Growth
Real Estate Needs
Flexible and Remote Work
Workplace Design
Introduction
Survey Overview
In August and September 2020, the Savills Tech Practice group gathered survey
responses from several hundred tech tenants to gauge the anticipated impacts of
COVID-19 on their plans for office space both in the near term and in a post-
vaccine world.
Unsurprisingly, uncertainty is the most prevailing theme among the responses, with
regards to space needs, workplace designs, and their organizations’ approaches towards
flexible and remote work in the future.
While much remains to be seen based on the hopeful arrival of a vaccine, we are
beginning to see several trends emerging:
EXPECTED DISPOSITIONS:
55% of respondents anticipate looking to dispose of at least some portion
of their space in the next 12-18 months.
A RISE IN FLEXIBLE AND FULL-TIME REMOTE WORK:
59% of tenants responded that less than 10% of their workforce was full-time
remote pre-COVID-19. When asked what share of their workforce they
anticipate working remotely full-time in a post-pandemic world, only 16%
of organizations expect less than 10% of their workforce being remote.
LACK OF CONSENSUS ON FUTURE OF WORKPLACE DENSITY:
While some organizations expect no change in density planning in a post-
vaccine world, 34% answered that they will need more rentable square feet
per seat going forward.
3Introduction Who Took The Survey
COMPANY LOCATION COMPANY SIZE/STAGE
92% headquartered Most common respondents About half of respondents were 43% of respondents have
in United States were companies with venture backed companies. between 2-5 locations.
51-250 employees.
Responses also included HQ’s in:
Global Headcount Global Offices
Canada France
United Kingdom Sweden 1-50 employees
1 17%
24%
The San Francisco
Bay Area was the 51-250 employees
most common
Private but Public 2-5 43%
HQ location 28% not venture
24%
backed
251-1000 employees 29% 6-10 14%
Top HQ % of US 21%
Metro Areas Responses Series D-E
1001-5000 employees Seed 14%
New York, NY 19% Series A 11-20 13%
19% 1%
Silicon Valley /
12% Series B-C
15%
South Bay, CA 5001+ employees 20% 21+ 12%
San Francisco, CA 13% 7%
Washington, DC 12% 0% 20% 40% 60%
0% 10% 20% 30%
Los Angeles, CA 12%
% of Responses % of Responses
4Survey Findings: COVID-19 Impacts
Safety Protocols When asked about a target return-to-office
date, the most common answer was January
2021, at the earliest
26% of organizations do not plan to return to
“
Jan 1, 2021 AT THE EARLIEST likely to push
out further
the office in a pre-vaccine environment (Los Angeles, HQ, 251-1000 employees)
“
Currently, it’s targeted for January 2021, but may
Which of the following safety procedures do you anticipate establishing shift depending on infection rate.
(New York HQ, 251-1000 employees)
upon the return to the office in a pre-vaccine environment?
Respondents able to select multiple answers
Many tech tenants are approaching office
Social distancing of re-openings on a location-to-location basis…
79%
“
workspaces
[Return to office date] varies by location and
local regulations
Increased cleaning services 70% (Canadian HQ, 51-250 employees)
“
Masks required 69% As a global company we are following WHO +
the guidance of local authorities and local
conditions to make decisions for our sites.
Shift towards more
permanent remote work 53% (French HQ, 5001+ employees)
Shift-based schedules
(e.g.: M-W-F, shifting schedules 50% … while others are planning to work
for certain groups) remotely until they guarantee the safety
of their employees
“
Changes in HVAC protocols 35%
Honestly, that majority of our decisions are still in
flux. We love having office space to collaborate;
Specified circulation routes 33% however, our company has been operating
wonderfully remote and feel it's irresponsible to
We do not plan to return to bring people back in given the nature of our work
the office in a pre-vaccine 26% until risk is all but eliminated.
environment (Washington, DC HQ, 1-50 employees)
0% 20% 40% 60% 80% 100%
6Headcount Growth Which of the following best describes how COVID-19
has impacted your headcount growth projections, if at all?
64% answered that COVID-19 has
impacted their headcount
growth projections HEADCOUNT WILL LIKELY…
Has COVID-19 impacted your
headcount growth projections? decrease 8%
remain steady, though we
had projected growth
before COVID-19
17%
NO
grow at a slower rate
36% than projected 30%
YES
64% grow as projected 36%
grow at a faster rate
than projected 6%
0% 10% 20% 30% 40%
7Real Estate Which of the following best describes the Do you anticipate looking to dispose of at
Needs impact of COVID-19 on your office space least some portion of your existing space
needs in the next 12-18 months? in the next 12-18 months?
We will likely lease LESS space than planned
82% 82%
UNSURE
of organizations
anticipate needing less Likely no change in space needs
17%
space than planned for
the next 12-18 months,
15% NO YES
28% 55%
AN D
We will likely lease MORE space than planned
3%
55%
0% 20% 40% 60% 80% 100%
anticipate looking to
dispose of space in the
next 12-18 months
8Real Estate Needs
62%
of companies with a footprint in flexible office providers report that their
approach towards flexible office space will not be impacted
If your organization has multiple locations: Which of the following best describes how COVID-19 has impacted your
Do you have operations within flexible office approach to using flexible office in the future, if at all?
providers (e.g.: WeWork, Knotel, Regus)? Respondents able to select multiple answers
Our approach is not impacted.
62%
We expect to use flexible office providers but anticipate requiring more
space per seat.
38%
NO
YES
39% We expect to use flexible office providers for more of our locations.
61% 26%
We expect to use flexible office providers for fewer of our locations, opting
instead for more traditional offices.
22%
0% 10% 20% 30% 40% 50% 60% 70%
9Flexible and Remote Work
71%
answered that COVID-19 has impacted their organization’s approach towards
flexible or remote work in the future
Has remote work during COVID-19 impacted your organization’s approach towards flexible or remote work in the future?
YES STILL IN CONSIDERATION NO
71% 25% 4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
FLEXIBLE WORK REMOTE WORK
As a result of remote work during COVID-19, do you anticipate that As a result of remote work during COVID-19, do you anticipate that
working remotely part-time (e.g.: a few days per week) will be working remotely full-time will be normalized in your organization?
normalized in your organization in a post-vaccine environment? Respondents able to select multiple answers
Yes, for certain roles
or functions 76%
YES
32%
94% Yes, for certain locations
Yes, for individuals with long
commute times 29%
NO Yes, for individuals for other
personal reasons 44%
6% No, full-time remote work is
unlikely to be normalized in 17%
our organization
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80%
10Organizations are expecting a greater share of their
Flexible and
workforce to work remotely full-time in a post-
Remote Work vaccine environment.
Approximately what share of employees Approximately what share of
in your organization worked remotely employees in your organization do you
full-time before COVID-19? think will work remotely full-time in a
post-vaccine environment?
0-10% 59% 0-10% 16%
11-20% 17% 11-20% 16%
21-30% 11% 21-30% 20%
31-40% 3% 31-40% 14%
41-50% 3% 41-50% 12%
51-60% 3% 51-60% 10%
61-100% 4% 61-100% 12%
0% 20% 40% 60% 0% 20% 40% 60%
11Workplace Before COVID-19, a majority of the tech organizations
surveyed had a density planning target of less than
There appear to be two camps of tech
tenants when it comes to imagining their
Design 150 RSF per seat.
Before COVID-19, what was your organization’s approximate density
organization’s workplace of the future….
Some tenants are confident that
planning target (RSF per seat)?
workplace design will return to pre-
COVID-19 density
9%
“
< 100
100-124 21% As time goes on and the virus is contained
125-149 21% (vaccine, etc.) we will likely revert back to
the 150-175 sq ft per employee target
RSF PER SEAT
150-174 20%
9% (Phoenix HQ, 51-250 employees)
34%
175-199
200-224 13%
225-249 2%
Others believe that past space
responded that their 250-274 2%
targets will no longer work in a post-
275-300 2%
organization will require 2%
pandemic world
“
300+
more RSF per seat, 0% 5% 10% 15% 20% 25% We know the popular densification model is
a thing of the past & we will be expanding
this for the next project.
Organizations whose pre-COVID-19 density planning
(Washington, DC HQ, 51-250 employees)
AN D targets were less than 150 RSF per seat were only slightly
more likely to have updated their target to require more
space per seat. Most respondents who elaborated on
How has your organization’s density planning target been impacted? their workplace designs mentioned
that flexible work will impact their
PRE-COVID DENSITY FUTURE DENSITY workplace needs
“
PLANNING TARGET PLANNING TARGET
40%
We do expect to see a higher % of work
Greater than
10% 20% 30% 40% from home, probably on a part-time basis
150 RSF per seat
... So can envision where we utilize a
5% hoteling concept rather than permanent
have not yet decided on Less than desk assignments
17% 38% 40%
an updated density 150 RSF per seat
(Silicon Valley HQ, 51-250 employees)
planning target 0% 20% 40% 60% 80% 100%
Less RSF per seat No change More RSF per seat Unsure
12Workplace Design
Before COVID-19, nearly 90% of tech organizations had mostly open office or entirely
open office workplace layouts, and many of those users are still considering how their
workplace planning will look going forward.
PRE-COVID-19 GOING FORWARD
Before COVID-19, which of the following best Which of the following best describes your
describes your organization’s typical workspace organization’s preferences regarding workspace
planning layout? planning going forward?
46% All open office with benching or cubicles
22%
43% Mostly open office, some private offices 33%
8% About 50/50 of open office and private offices 10%
2% Mostly private offices, some section as benching
or cubicles 2%
Still in consideration
32%
50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50%
13For more information,
please contact us:
Peyton Johnson
Manager, Occupier Services
pjohnson@savills.us
Joe Brady
Executive Managing Director
SAVILLS NORTH AMERICA
joebrady@savills.us
Technology Practice Group
Michael Mathias
Executive Managing Director We value deep, meaningful partnerships. Our team of
mmathias@savills.us
collaborative, tech-focused specialists provide strategic
real estate and workplace advice to unlock growth for
Michael Mordaunt
Vice Chairman
the world’s most innovative companies.
mmordaunt@savills.us
From startup to enterprise, we advocate on the
Zev Holzman
occupier's behalf to eliminate conflicts and translate
Executive Managing Director business goals into strategy.
zholzman@savills.us
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