Commercial real estate costs 8,000 to 15,000 dollars per employee annually in major cities, plus utilities, supplies, and maintenance. These are fixed costs whether people show up or not.

Switching to remote or hybrid cuts this significantly. Start by surveying which roles actually need physical presence. Engineering, writing, and analysis work happen anywhere with internet.

Implement remote gradually. Downsize office space as leases expire rather than breaking contracts. Invest saved money into home office stipends of 500 to 1,000 dollars per person and better collaboration tools.

The math is clear. Five employees going remote saves roughly 40,000 to 75,000 dollars yearly in space costs alone. Use a fraction of that for quarterly in-person meetups to maintain connection while keeping most savings. Remote culture also expands hiring to lower cost regions, further reducing salary expenses without cutting quality.