The evolving workplace prioritizes experience while optimizing space

CHICAGO, June 24, 2025 – In a dramatic swing that signals evolving corporate real estate priorities, JLL’s 2025 Occupancy Planning Benchmark Report reveals portfolio optimization has surpassed cost-cutting as the primary focus for corporate real estate leaders and office utilization has increased as organizations tighten policies on hybrid work. Improving space data accuracy and reporting; increasing employee presence on site; and growing the use of utilization data for space planning round out the top five priorities.

Rather than simply slashing expenses, companies are now strategically reimagining their workspace footprints, with 73% of respondents identifying portfolio optimization as their top objective, overtaking improved reporting and cost reduction from last year. Additionally, sustainability continues as a key priority, with 74% of organizations reporting active sustainability programs integrating with occupancy planning through waste reduction initiatives, rightsizing scenarios and furniture reuse plans.

“JLL’s report highlights that workplaces are at a pivotal moment of transformation signalled by corporate real estate leaders changing their priorities,” said Paul Morgan, COO of Work Dynamics at JLL. “Data has become the critical factor in enabling organizations to better understand how their spaces are being used so they can best leverage their real estate portfolios and navigate new work styles. Forward-thinking companies are employing data to reimagine their workplaces as strategic assets that drive both organizational performance and employee satisfaction in the evolving hybrid-work era.”

The global office utilization rate grew to 54% globally, up from 50% in 2024, and utilization targets are up 4% to 79%. Regional improvements include North America (+4%), EMEA (+8%), APAC (+4%) and Latin America (+9%). This highlights the ongoing tension between workplace flexibility and maintaining vibrant office environments, as employers recognize delivering compelling reasons for office attendance is critical.

Badge swipe data remains the predominant utilization tracking method (90%), while reservation systems (49%) and visual observations (41%) are also widely used. Effectively analyzing the data collected through these tracking methods is a key component of a successful space optimization strategy.

“Despite most organizations tracking utilization through various technologies, our research reveals a startling capability gap: Only 7% rate their data collection as excellent,” said Wei Xie, Head of Research and Strategy for Workplace Management at JLL. “A successful real estate strategy starts with an effective data strategy. Organizations with advanced data capabilities gain significant advantages in pattern identification, space allocation and ultimately portfolio optimization.”

Additionally, companies aren’t just talking about utilization – they’re acting, with 55% cutting real estate footprints, 42% implementing return-to-office mandates and 38% completely reimagining their workspaces. The data also reveals that structured office mandates are delivering the strongest results with a remarkable 61% effectiveness rate, proving that clear direction can significantly outperform other utilization strategies.

The report shows hybrid work adoption declining by 10 percentage points year-over-year, and approximately half of employees now work in offices three to five days per week. As 37% of organizations reported increased in-office expectations, 68% of organizations are requiring either a defined number of in-office days or designating specific in-office days, up 7 percentage points from last year.

“The pendulum has swung toward structure in hybrid work arrangements, with nearly half of organizations mandating specific in-office days, almost double from 2023,” said Melissa Michalik, Global Leader of Occupancy Planning and Management at JLL. “Even more telling is the collapse of fully flexible arrangements, which have plummeted from 41% to 15% in the same timeframe, signalling a definitive shift as companies reclaim control of workplace attendance patterns to drive collaboration and culture.”

To facilitate effective hybrid environments, organizations continue investing in supporting technologies and facility modifications, with reservation systems (58%), collaboration spaces (56%) and minor facility reconfigurations (50%) being the most common adaptations.”

Space standards continue to change as companies refine workplace strategies. The average space per person for office and administrative space has decreased from 171 to 165 rentable square feet year-over-year, though still above the target of 132 rentable square feet. Sit-to-stand desks continue becoming standard, with 77% of organizations providing them in new buildouts, up from 67% last year.

Workplace designs also are evolving, and the report shows a year-over-year increase in more substantial workspace changes, including space program modifications (44% from 36%) and major facility renovations (30% from 17%). Organizations are notably expanding both focused work and collaborative spaces, including private phone booths, focus areas and small meeting spaces to meet employee needs for privacy, in addition to concentration, and collaboration areas to support team interactions. Companies also are increasing health and cultural spaces like mother’s rooms, prayer and meditation spaces and wellness areas.

“Organizations are increasingly sophisticated in their approach to space planning, with 78% using occupancy planning services to maintain their space data,” said Matt Quadro, Senior Director, Occupancy Planning and Management at JLL. “The workplace is transforming into an experience-centered environment that prioritizes collaboration and employee wellbeing while optimizing real estate investments, with the most successful organizations balancing portfolio optimization with human-centric design to create magnetic workplaces that attract employees through experience-rich environments while delivering strategic value.”

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