The global trend of office downsizing in commercial real estate is driven by the rise of remote work and a focus on sustainable and greener office spaces. HSBC's decision to move to a smaller development in central London exemplifies this shift. The downsizing trend poses challenges to large office landlords, impacts real estate markets, and has the potential to reshape cities.

The COVID-19 pandemic has accelerated the adoption of remote work, leading many companies to reduce their office footprint. This, combined with soaring financing costs, puts pressure on landlords and real estate developers. The downsizing trend has caused distress in real estate markets, particularly in Europe, with countries like Sweden experiencing challenges due to high debts and a weakening economy.

Companies are also driven by sustainability targets, facing pressure to align with green policies. This prompts a re-evaluation of office space requirements, with a preference for smaller, environmentally friendly spaces. HSBC's downsizing decision aligns with its ambitious target to reduce office space globally by 40%. The change in face time culture disrupts the commercial real estate sector, forcing stakeholders to adapt and potentially transforming cities.