Progressive to Sell Office Buildings as Shift to Remote Work Cuts Need for Space

Source: AM Best | Published on April 22, 2024

Progressive to sell office space

Progressive Corp. intends to list several of its office buildings across the United States for sale as it consolidates office buildings amid a changing work environment, a company spokesman said.

Among those that will be offloaded are its Campus 1 facility in Mayfield, Ohio and the Progressive Home campus in St. Petersburg, Florida, according to an email. Also slated for sale are the Colorado Springs campus in Colorado, the Riverview campus in Riverview, Florida, and Progressive Fleet & Specialty in Carmel, Indiana.

“As we continue to grow and reimagine our workforce, Progressive offers flexible work options for many of our employees with most people choosing to work from their homes,” a Progressive spokesman said in the email.

“Our current office locations have always been a mixture of owned and leased spaces,” it said. “As we continue to look for ways to operate as efficiently as possible while providing the best for our employees and customers, our Real Estate team has completed a comprehensive market analysis and will begin marketing efforts for the sale and/or lease of some buildings involved in previously announced consolidations.”

Progressive first announced last July it would consolidate several of its properties in Northeast Ohio and across the United States, with the company planning to hold the locations within its portfolio until the latest announcement. Progressive said It will continue to monitor and review office utilization in order to make the best decisions for employees and the company.

Progressive Corp. net income climbed more than five-fold to $2.33 billion in the first quarter as its combined ratio improved 12.9 points to 86.1.

A year earlier the company posted net income of $447.9 million. First quarter net premiums written increased 18% to $18.96 billion.”

Most operating entities of Progressive Corp. currently have a Best’s Financial Strength Rating of A+ (Superior).