Half of the biggest global companies plan to cut office space. US cities will suffer most

London CNN — Around 50% of major global companies will need less real estate in the next three years, with American cities — led by San Francisco — most exposed to empty offices, new research has found. Half of firms with more than 50,000 employees plan to prune office space, with most anticipating a reduction of between 10% and 20%, according to a survey of 347 companies around the world by Knight Frank, a UK-based real estate firm. While large multinationals are reducing office space, 55% of all surveyed companies expect to “increase or greatly increase” their footprints over the next three years, with growth led by smaller firms of up to 10,000 employees, Knight Frank said. The research published last week by another British real estate firm, Savills, found that US cities are most at risk of having the most surplus office space in the next decade, with San Francisco, New York and Los Angeles topping the global list, followed by Chicago, Houston and Washington DC. Savills identified a “broad East-West divide” with demand for office space in Asia-Pacific supported by limited supply, younger populations, expanding service economies and cultural factors, in contrast to the downturn in America.