- Cost control remains the primary driver of corporate real estate decisions, but priorities are shifting towards talent, flexibility, and service.
- Nearly one-third of companies have shifted their corporate real estate reporting to Human Resources, emphasizing the growing role of workplace experience.
- Corporate downsizing has slowed, with a significant number of companies now planning to expand their office footprints.
Cushman & Wakefield (CWK, Financial), in collaboration with CoreNet Global, has unveiled the findings of the "What Occupiers Want 2025" survey. The survey, which included corporate real estate (CRE) decision-makers from the Americas (52%), EMEA (34%), and APAC (14%), indicates a strategic shift in CRE strategies influenced by cost pressures, organizational changes, and a heightened demand for workplace flexibility and services.
Cost remains a dominating factor in CRE decision-making. However, the report highlights a transition as companies increasingly acknowledge the impact of real estate on employee experience and business performance. "Organizations are realizing the potential to enhance employee engagement and productivity through strategic real estate decisions," stated Despina Katsikakis, Global Lead, Total Workplace Consulting at Cushman & Wakefield.
Despite the persistent focus on cost and efficiency, the sector faces significant uncertainty due to political instability, evolving workplace behaviors, and lack of clear ROI metrics. Moreover, interest in environmental, social, and governance (ESG) priorities has waned to pre-2021 levels globally, although they continue to be significant concerns in EMEA and APAC regions.
The report reveals that nearly 29% of companies now have their CRE teams report to Human Resources, underscoring the importance of integrating employee experience with real estate strategies. David Smith, Head of Americas Insights, emphasized the need for new performance metrics that link workplace investments to employee experience rather than just financial outcomes.
The phase of widespread downsizing appears to have reached a plateau, with only 32% of companies planning further reductions in space. In fact, 1 in 8 firms intends to expand their office space, and average lease sizes have grown by 13% since 2023.
The demand for enhanced amenities and services from landlords is intensifying, with 85% of occupiers expecting improved workplace experiences. However, a disconnect remains, with only 60% of employees feeling their current workplaces fully support collaboration and culture-building.
The survey also identifies flexible location strategies as crucial for talent acquisition, with 61% of companies adapting their real estate strategies to access a diverse talent pool. Regional differences are evident: the Americas focus on hybrid and country-level hiring, EMEA on selective global hiring, while APAC leads in expanding remote hiring options.
In a rapidly evolving landscape, the "What Occupiers Want 2025" survey underscores the importance of moving beyond mere cost-saving measures to embrace strategies that enhance workforce performance and organizational culture.
