Evolving Priorities: Beyond Just Cost

For businesses looking for office or warehouse space, the decision-making process is becoming more nuanced than ever. A new survey by Cushman & Wakefield and CoreNet Global highlights that while managing costs is still a primary driver, it's no longer the sole focus.

Talent and Employee Experience Take Center Stage

Attracting and retaining talent is increasingly influencing real estate strategy. The survey found that nearly one-third of companies that restructured their Corporate Real Estate (CRE) teams now have them reporting to Human Resources, underscoring the growing importance of the employee experience within the physical workspace. Businesses are recognizing that the office environment is a key factor in their employer brand and ability to compete for skilled workers.

The Demand for Flexibility and Enhanced Services

Flexibility in location and lease terms is a critical component for businesses needing to access diverse talent pools. Beyond flexibility, there is a clear expectation for landlords to provide more. A significant 85% of occupiers expect enhanced amenities and services from their landlords, with a substantial 46% indicating they are willing to pay a premium for these upgrades. This signals a market shift towards valuing the overall workplace experience and convenient, well-serviced locations.

Space Trends: Less Downsizing, More Stability

The trend of aggressive downsizing appears to be slowing. Only 32% of companies surveyed plan further cuts to their real estate footprint. In fact, the average office lease sizes have increased, suggesting a potential shift towards optimizing space for collaborative work and employee amenities rather than simply reducing square footage. Occupancy rates are also showing signs of stability, hovering between 51% and 60%.

These findings collectively paint a picture of corporate occupiers who are strategically leveraging their real estate not just as an operational necessity, but as a tool for talent management, employee engagement, and business growth. Businesses searching for space should consider how their real estate choices align with these broader strategic objectives.

Source: cushmanwakefield.com