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Office Strategy Shifts Toward People-Focused Metrics

Office strategy is evolving as companies prioritize employee experience alongside cost in real estate decisions.
Office strategy is evolving as companies prioritize employee experience alongside cost in real estate decisions.
  • While cost remains the dominant factor in CRE decisions, nearly one-third of companies now have real estate reporting to HR, highlighting a growing focus on workplace experience and talent outcomes.
  • Two-thirds of occupiers have reduced their footprint post-pandemic, but leasing activity is rebounding, with average lease size growing 13% in two years.
  • Geographic flexibility and amenity-rich offices are increasingly critical as occupiers aim to attract and retain distributed talent.
Key Takeaways

Reframing The Value Of Office

A new Cushman & Wakefield and CoreNet Global survey shows that commercial real estate decisions are slowly shifting from being purely cost-driven to people-focused, reports GlobeSt. While financial departments still oversee most CRE teams, nearly a third of companies now report through HR—a sign that the office is being recognized as a key driver of employee engagement, productivity, and retention.

Real Estate’s Evolving Purpose

The What Occupiers Want report underscores how CRE performance remains measured mostly by traditional metrics like cost, efficiency, and utilization. But as hybrid work models become the norm and talent acquisition gets more competitive, companies are beginning to tie real estate investments to broader corporate objectives, especially HR and IT goals.

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Still, political and economic uncertainty continues to complicate office decision-making, along with shifting expectations around the role of physical workspaces.

Portfolios In Transition

About two-thirds of occupiers have trimmed their footprint since the pandemic began. However, that phase appears to be ending. Companies are now shifting from reactive cuts to proactive, strategic portfolio management. In fact, one in eight companies plans to expand, and average lease size is up 13% over the last two years.

Occupancy is gradually recovering—now hovering between 51% and 60%—thanks in part to space consolidation and stricter return-to-office policies.

The Talent Factor

CRE decisions are increasingly driven by talent strategies, especially among companies in tech-heavy sectors like finance and banking. Geographic flexibility ranks high for employers aiming to attract diverse talent across regions.

At the same time, occupiers expect more from landlords. About half say they’re willing to pay more for spaces with better amenities and services, as only 60% of employees feel their office supports collaboration and culture.

Why It Matters

The office is shifting from a fixed space to a flexible, service-oriented environment. Companies linking CRE to talent, culture, and operations gain a competitive edge in attracting talent and boosting performance.

What’s Next

Landlords that respond to these expectations by delivering high-quality amenities, flexible space, and community-focused experiences stand to benefit the most. As Cushman & Wakefield put it, “The office is being redefined—not just as a place to work, but as a service that needs to justify its value.”

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