July 24, 2025
Better offices for all as occupiers shift focus away from cost cutting
New research suggests a worldwide shift in workplace strategy, with portfolio optimisation and better offices now the top priorities for corporate real estate leaders, overtaking cost reduction for the first time. JLL’s 2025 Occupancy Planning Benchmark Report found that 73 percent of respondents identified portfolio optimisation as their main focus, compared with 70 percent who cited cost reduction and improved reporting.
The findings are based on a global survey and reflect broader changes in how organisations approach space planning, hybrid work and sustainability. According to the report, companies are increasingly moving away from reactive cost-cutting measures and towards more strategic workspace decisions. The shift comes as office utilisation improves and structured return-to-office policies become more widespread.
Office utilisation rates have increased globally, rising to 54 percent in 2025 from 50 percent the previous year. The report shows that targets for utilisation are also rising, now averaging 79 percent. Increases were reported across all regions, with Latin America showing the greatest change at nine percent. Despite this, hybrid working continues to evolve, with adoption rates declining by 10 percent year on year. The number of organisations mandating in-office attendance has grown to 37 percent, with 51 percent now requiring specific days on site.
To facilitate effective hybrid environments, organisations continue investing in supporting technologies and facility modifications, with reservation systems (58 percent), collaboration spaces for overflow occupancy (56 percent) and furniture reconfigurations (50 percent) being the most common adaptations.”
Space standards also 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-stand desks continue to become standard elements in many setups, with 77 percent of organisations providing them in new buildouts, up from 67 percent last year.
Workplace designs are also evolving, and the report shows a year-over-year increase in more substantial workspace changes, including space program modifications (44 percent from 36 percent) and major facility renovations (30 percent from 17 percent). Organisations 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.
At the same time, the data reveals that while most organisations track workplace usage, only a small proportion rate their data collection as effective. Just 7 percent said they had excellent data collection capabilities, highlighting what JLL describes as a significant capability gap. Most companies continue to rely on badge swipe data, while others use reservation systems and observational methods to assess usage.
Sustainability remains a key focus, with 74 percent of organisations reporting active programmes that link occupancy planning with waste reduction, furniture reuse and rightsizing efforts. Space standards are also changing, with average space per person falling slightly year on year, though still above target levels. Sit-to-stand desks and wellness-related spaces such as prayer rooms and mother’s rooms are becoming more common in new fit outs.
JLL said the findings indicate a growing effort to balance space efficiency with employee experience. The use of occupancy planning services has increased, with many organisations adapting their workplaces to better support collaboration, wellbeing and evolving patterns of work.
