Real Estate in the Age of AI: Doing More with Less
As artificial intelligence reshapes every corner of the technology industry, real estate leaders are under growing pressure to optimize their portfolios and free up capital for innovation. Technology companies are actively reducing square footage and office locations while simultaneously seeing utilization rates climbing—with 56% of technology CRE organizations anticipating further increases in utilization rates in the future. This signals a smarter, more targeted approach to space planning.
Rather than land-banking or over-investing in amenities, today’s CRE strategies are increasingly data-driven and aligned to specific business goals. Leading firms are consolidating locations, trimming operating costs and reinvesting in the spaces that matter most like collaborative hubs and advanced R&D facilities.
Technology companies are enhancing office spaces strategically to improve both utilization and effectiveness. Most are decreasing dedicated workstations while increasing shared workstations and collaborative spaces and implementing higher seat-sharing ratios. The emphasis is on creating spaces that facilitate small, action-oriented meetings through neighborhood layouts and huddle rooms, while also providing phone rooms and focus spaces for individual productivity.
Most technology companies, even those without a mandate, are encouraging a return to the office to foster collaboration and productivity. A lack of adequate workspace, distributed teams or a difficult commute are a barrier to productive in-office work. Companies have found some success in increasing attendance through offering food and events, although this sometimes results in “coffee-badging”, where employees come for the perks and then leave. Mandates also spur attendance but can hurt morale and retention. Boosting employee effectiveness as well as attendance requires both supportive real estate and culture.
The Lab Conundrum: High-Cost Space, Low Visibility
Labs and R&D environments are taking center stage as tech firms ramp up AI, quantum and hardware innovation, but many organizations lack a clear strategy to manage these spaces effectively. While 91% of tech companies rank utilization as a top metric, nearly half don’t track usage in lab environments.
Without proper planning and data, these spaces risk becoming expensive inefficiencies rather than competitive differentiators. The report explores in more detail how leading companies can adapt office-level data practices to labs—balancing speed, safety and sustainability in mission-critical areas of their portfolios.
The Future Is Now: Designing the Next-Generation Technology Workplace
The workplace of the future is already taking shape—and it’s smarter, more sustainable and more collaborative than ever before. Top technology firms are leading the way by investing in energy-conscious infrastructure, data-enabled decision-making and adaptive layouts that reflect the changing nature of work.
To position their organizations for success, corporate real estate teams need to:
1. Establish the vision
2. Implement a targeted data strategy
3. Apply AI strategically
4. Test and learn
5. Be flexible
Whether it’s aligning physical space with evolving hybrid models or using AI to anticipate employee needs, the 2025 Technology Spaces report details how CRE teams can prepare for the tech workplace of the future.