Latest News by Industry
Index finds that 58% of US C-suite and business leaders will invest in real estate decision-making amid the current inflation and interest rate environment
NEW YORK, Nov. 16, 2022 /PRNewswire/ -- Ernst & Young LLP (EY US) today announced the launch of its second annual EY Future Workplace Index (the Index), which tracks executive sentiment and behavioral data around the workplace of the future. The survey reveals surprisingly optimistic attitudes from company leadership on real estate investment despite economic tightening.
The US economy is undeniably cooling, and a recession is anticipated in 2023. However, regardless of investment decisions, the macroeconomic outlook is forcing leaders to scrutinize their office portfolios from a new perspective. Amid the current inflation and interest rate environment, the Index found that just 33% of US C-suite business leaders will downsize their investment in commercial real estate, while 58% say they will invest in commercial real estate, which could include enhancing or expanding the real estate footprint.
"The economic downturn will force leaders to make important decisions regarding their real estate portfolios — from investments, to space optimization, to workforce models," says Mark Grinis, EY Americas Real Estate, Hospitality & Construction Leader. "Employers are beginning to understand that they need to earn the commute time of their employees, and many are investing in the 'office of the future' to achieve this."
The latest EY Future Workplace Index also reveals the following:
"Data is paramount to understanding your workforce and creating the best space for a new era of work," says Francisco J. Acoba, Principal, EY Americas Strategy and Transactions; Co-lead – Corporate Real Estate Consulting and Technology. "Data-driven insights that uncover employees' work habits will shape how executives design and approach the workplace moving forward."
To learn more about the EY Future Workplace Index, please visit EY Workplace reimagined.
About EY
EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets.
Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.
Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.
Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.
About the EY Future Workplace Index The EY Future Workplace Index anonymously surveyed more than 500 US C-suite and business leaders spanning a multitude of industries.
Media contact:
Elizabeth Feigenbaum
elizabeth.feigenbaum@ey.com
View original content to download multimedia: https://www.prnewswire.com/news-releases/ey-future-workplace-index-reveals-surprisingly-rosy-attitudes-on-commercial-real-estate-investment-despite-economic-tightening-301679287.html
SOURCE EY