The rapid shift to remote work, initially born out of necessity, has inadvertently led to a diminished workplace culture while enhancing the flexibility employees crave. To manage costs, some companies have turned to “hoteling” (employees reserve a desk only when needed) and “hybrid-at-will” (employees choose which days to come in) office models.
Although these approaches appear to save on real estate, they risk sacrificing valuable inperson interactions that build vibrant company culture, employee engagement, and trust among colleagues. A better solution? A hybrid work model with structured “anchor days,” on which all employees are in the office, while remote work remains an option for others. Anchor days are typically two to four in-office days each week, tailored to what best suits the company’s business and culture.
The pitfalls of purely cost-driven real estate strategies
Structuring return-to-office plans around real estate cost savings can feel like the “tail wagging the dog.” If you are already committed to paying for physical space, utilize it effectively by supporting the human aspects of work that drive success – interactions that fuel innovation and accountability and generate moments for growth. Companies on an upward trajectory should not shy away from expanding their offices, even if their space is only occupied for three to four anchor days per week. While cost efficiency matters, it shouldn’t overshadow the company’s culture and operational needs.
Reducing office space or adopting hoteling models may cut overhead, but these strategies foster a disconnected, transient environment, ultimately hindering engagement and employee satisfaction. Spontaneous conversations – those unplanned “watercooler chats” – spark creative brainstorming and create touchpoints for effective mentoring, career development, and team bonding. As business leadership author Simon Sinek notes, “Trust is what is built between the meetings.”
Why anchor days work
A hybrid model with anchor days strikes the right balance by designating certain days every week for everyone to be onsite. Employees enjoy autonomy on remote days, while the anchor days offer a predictable rhythm for teamwork and relationship-building. Regular inperson time can significantly cultivate trust, collaboration, and purpose while boosting engagement and business outcomes in client service and innovation. Team members feel more connected and invested in their work, and, as a result, retention rates can improve.
Real estate implications and the New York market
Anchor days also have positive implications for commercial real estate, particularly in dense urban markets like New York City. Rather than reducing office space needs, anchor days encourage companies to maintain or expand their real estate footprint to accommodate their full workforce. This consistency provides a predictable flow of employees through office districts, boosting foot traffic for surrounding local businesses and contributing to a more vibrant urban environment.
Commuter rail ridership is now at 88% of pre-pandemic levels, and Tuesdays through Thursdays see nearly 100% of pre-pandemic volume, per a recent report by CBRE Research. In 2024, several large companies increased their real estate footprint in New York City to support hybrid models with structured in-office attendance. Bloomberg, for example, expanded its offices at 919 Third Avenue, bringing its total office commitments to nearly 2 million square feet to accommodate a growing workforce. Similarly, Bain & Company and Ares Management recently committed to new Midtown leases. This commitment reflects a broader trend: companies recognize the importance of in-person work and invest in spaces that can support this.
A winning strategy for workplaces and urban centers
The case for anchor days is strong. It’s a strategy that supports a thriving workplace culture and aligns with the flexibility that today’s workforce values. While reducing overhead is an important consideration, it should not come at the cost of team engagement and retention. Rather than choosing extremes—full-time office attendance or unstructured remote work—companies should explore hybrid solutions that bring their people together regularly, with flexible remote work. Hybrid work with anchor days is a powerful way to rebuild the vibrancy and commitment of a pre-pandemic workplace. And for cities like New York, this approach offers a path to revitalizing the commercial real estate market, creating a dynamic, thriving urban environment for businesses and workers alike.
Alan Tarter is the founding partner and managing partner at Tarter Krinsky & Drogin
Elizabeth Yasnay is the special projects manager/team liaison at Tarter Krinsky & Drogin
