Six months into the global remote work experiment, it is becoming increasingly clear that some of us love remote work, some of us hate it, and most of us are somewhere in the middle, opting for a mix of both remote and on-premise work.

Many people would love the option of working from a central space for just two to three days a week, as it offers them an opportunity for a change of scenery, and to connect and collaborate with other human beings.

Despite being long-time remote work laggards, corporate management teams around the world are encouraging their employees to work remotely. The forced experiment has quelled trust concerns, and also made many managers appreciate the benefits of remote work insofar as having more personal time and greater freedom to design one’s day is concerned.

Inevitably, this will drive down demand for office space, as organizations look to decrease, and in some cases eliminate entirely, the central office footprint.

The other obvious benefit this brings is cost savings.

The average annual office space rental cost per employee ranges from US$6,000 in markets such as Boston and Los Angeles through to US$14,000 in markets such as San Francisco and New York.

This can quickly add up.

A 100-seat office in Boston would set a company back US$600,000 a year, whereas a 500-seat investment bank in New York would be paying roughly US$7 million a year.

Even a 50% decrease in office footprint represents considerable cost savings.

Reinvest Office Savings into People

Rather than account for said savings in profit, or reinvest it into product or marketing, management should reallocate some or all of the savings into their people.

Here’s where we should be investing to ensure our remote workers can be their best, offer them some of the luxuries of the modern office, and reinforce a positive company culture.