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Small Office Strategy in the Telework Era

This article explains why more companies are shifting to smaller offices in the telework era. It outlines concrete benefits such as lower running costs, reduced CO2 emissions, and better location flexibility, helping business leaders make informed decisions.

Last updated: About 2 min read

As telework becomes more common, more companies are shifting to smaller offices. This article explains in detail the reasons behind the growing move to small offices and the benefits this offers to companies.

Why is telework considered necessary now?

The growing need for telework is driven by the need to support diverse ways of working. Examples include making use of employees who cannot commute for reasons such as caregiving, improving work-life balance by reducing commuting time, and maintaining employment in regional areas where population decline is advancing. Creating an environment where people are not tied to a specific workplace is a management issue directly linked to maintaining a company's competitiveness.

What kind of office is suitable when introducing telework?

When introducing telework, a large office space is not necessary. This is because the number of staff on site is limited and work can be completed with only the minimum required equipment. In addition, as operations become more paperless and digital, the space required for document storage can also be reduced significantly.

Effective options include using employees' homes as telework offices or leasing a small, well-located space to serve as a business base.

What benefits come with moving to a small office?

Downsizing the office offers companies several benefits.

Running costs can be reduced substantially

A large office requires corresponding utility costs, equipment costs, and rent. By downsizing, companies can reduce these running costs and reinvest surplus funds in high-performance equipment or properties with better location conditions. The amount saved varies by company size, but there have been cases where monthly fixed costs were reduced by 30 to 50%.

Environmental impact can be reduced

Shorter commuting distances and reduced operating time for air conditioners and computers help lower a company's CO2 emissions. This is also viewed positively as part of ESG management and sustainability efforts, and it contributes not only to cost reduction but also to improving corporate brand value.

Team communication becomes more efficient

When the necessary members gather in a small office, communication among employees becomes more active. This helps resolve the weaker human connections often found in large offices and builds a close-knit team environment where high-quality work can be done.

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Frequently Asked Questions (FAQ)

Q. Is there a general guideline for the office size suited to telework?

The calculation should take into account the percentage of employees who come to the office on a regular basis. For example, if the attendance rate is 30%, a space equal to about 30% of the previous office is a useful guideline. However, meeting rooms and shared spaces are also necessary, so designing based on actual operating conditions is important.

Q. Are there security risks when moving to a small office?

Appropriate cloud security measures and VPN implementation are prerequisites, but these issues can be addressed by establishing a proper information security policy. In some cases, shrinking the physical office can even reduce access control costs.

Q. When introducing telework, how should a company proceed with terminating its leased office?

It is important to confirm the lease termination notice period, which is typically 6 to 12 months in advance, and plan backward from the transition schedule. If a penalty applies, the decision should be made by comparing it against the expected cost savings.

Q. Does moving to a small office affect employee motivation?

Reducing commuting burdens and enabling flexible work styles are positive for many employees. At the same time, there is a risk that their sense of belonging to the office community may weaken, so it is important to design regular opportunities for in-person interaction.

Daisuke Inazawa, President & CEO of INA&Associates Inc.

Author

President & CEOINA&Associates Inc.

President & CEO of INA&Associates Inc. Leads real estate brokerage, rental leasing, and property management across Greater Tokyo and the Kansai region. Specialises in income-property investment strategy and advisory for ultra-high-net-worth individuals.

Daisuke Inazawa is the President and CEO of INA&Associates Inc., a Japanese real estate firm headquartered in Osaka with a Tokyo branch. He leads the company's three core businesses — real estate sales brokerage, rental leasing, and property management — across the Greater Tokyo Area and the Kansai region.

His areas of expertise include investment strategy for income-generating real estate, profitability optimisation of rental operations, real estate advisory for ultra-high-net-worth individuals (UHNWIs) and institutional investors, and cross-border real estate investment. He provides data-driven, long-horizon advisory to investors in Japan and overseas.

Under the management philosophy "a company's most important asset is its people," he positions INA&Associates as a "people-investment company" and is committed to sustainable corporate-value creation through talent development. He also writes and speaks publicly on leadership and organisational culture in times of change.

He has passed eleven Japanese professional qualification examinations: Licensed Real Estate Broker (Takken), Certified Real Estate Consulting Master, Licensed Condominium Manager, Licensed Building Management Supervisor, Certified Rental Housing Management Professional, Gyōseishoshi Lawyer (administrative scrivener), Certified Personal Information Protection Officer, Class-A Fire Prevention Manager, Certified Auctioned Real Estate Specialist, Certified Condominium Maintenance Engineer, and Licensed Moneylending Operations Supervisor.

  • Licensed Real Estate Broker (Takken)
  • Certified Real Estate Consulting Master
  • Licensed Condominium Manager
  • Licensed Building Management Supervisor
  • Certified Rental Housing Management Professional
  • Gyōseishoshi Lawyer (Administrative Scrivener)
  • Certified Personal Information Protection Officer
  • Class-A Fire Prevention Manager
  • Certified Auctioned Real Estate Specialist
  • Certified Condominium Maintenance Engineer
  • Licensed Moneylending Operations Supervisor