Chapter 5
Conclusion
2023–2024 CBRE Global Workplace & Occupancy Insights
5 Minute Read
01
Over the last three years, hybrid work has driven portfolio reductions and planning efficiencies
Space-sharing has increased the number of people that can be assigned to an office location.
- As forecast in the 2022 Insights report the average sq. ft./sq. m. per person has dropped 22% and, for the first time ever, the average global occupancy rate (number of people assigned to number of seats) is over 100%.
Existing spaces have been consolidated or redesigned to support hybrid work styles.
- There has been a 44% increase in collaboration or we space globally since 2021.
Most participants have reduced their office portfolio size since the onset of the pandemic.
- 62% of participants have reduced their portfolios since January 2020.
02
Today, despite these efficiencies, there is still an imbalance of space supply and demand
Most employees who elect to work in the office do so for connection and community, decreasing the demand for traditional workspaces designed for individual and focused work.
- 58% of employees go to the office for connection, while only 15% go for focus work.
Organizations are quantifying the use of office space to understand portfolio performance.
- 80% use space utilization data for portfolio strategy planning.
The combination of hybrid work and underutilized office space has created an imbalance of office supply and demand.
- From Q2 2022 to Q2 2023, global average office utilization, which measures the real-world use of space was 35%, a 45% decrease from the pre-pandemic global average of 64%.
03
Moving forward, portfolio reductions and new performance metrics will make the workplace more efficient and more effective
Organizations plan to increase space-sharing and eliminate underutilized space to achieve their top priority: portfolio optimization.
- 43% plan to decrease their portfolio size by more than 30% in the next three years.
The new metrics that matter move beyond measuring occupancy plans to measuring workplace performance.
- Performance metrics like utilization rate and employee sentiment are being prioritized over planning metrics such as sq. ft./sq. m. per seat.
Workplace effectiveness measures the impact real estate has on employee performance, operational priorities, financial goals and ESG objectives.
- Co-creating a new workplace effectiveness scorecard with leaders and employees across the business ensures the workplace supports the business and cultural needs of all stakeholders.
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Related Insights
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Q3 findings indicate that most companies now require some in-office work, and a company’s stated attendance policy may influence turnover rates and time to hire.
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Brief | Creating Resilience
Three Office Occupancy Trends That Are Impacting Portfolio Strategy
September 1, 2023
CBRE’s 2023 Workplace & Occupancy Benchmarking Program has identified three trends across Occupancy Management clients.
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The conventional narrative that knowledge workers are abandoning high-cost major U.S. markets is not the complete story.
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Podcast | Adaptive Spaces
Where It’s At: Expert takes on creating the ideal office experience
June 27, 2023
Want a more engaged, productive workforce in the age of hybrid work? The key is rethinking the office with new design approaches, flexible space and an abundance of practical amenities. So say three workplace strategy experts—Industrious CEO Jamie Hodari and CBRE’s Lenny Beaudoin and John Stephens—in a discussion about the future of cities.
Authors
Susan Wasmund
Executive Managing Director, Americas Consulting | Global Occupancy Management
