The evolving workplace prioritises experience while optimising space
JLL’s new Occupancy Planning Benchmark Report reveals shifting workplace strategies across all regions, as hybrid adoption declines
In a dramatic swing that signals evolving corporate real estate priorities, JLL’s 2025 Occupancy Planning Benchmark Report reveals portfolio optimisation has surpassed cost-cutting as the primary focus for corporate real estate leaders and office utilisation has increased as organisations tighten policies on hybrid work. Improving space data accuracy and reporting; increasing employee presence on site; and growing the use of utilisation 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 per cent of respondents identifying portfolio optimisation as their top objective, overtaking improved reporting and cost reduction (70 per cent) for the first time. Additionally, sustainability continues as a key priority, with 74 per cent of organisations reporting active sustainability programmes 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 organisations 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 organisational performance and employee satisfaction in the evolving hybrid-work era.”
Global office utilisation improves with organisations taking action
The global office utilisation rate grew to 54 per cent globally, up from 50 per cent in 2024, and utilisation targets are up 4 per cent to 79 per cent. Regional improvements include North America (+4 per cent), EMEA (+8 per cent), APAC (+3 per cent) and Latin America (+9 per cent). This highlights the ongoing tension between workplace flexibility and maintaining vibrant office environments, as employers recognise delivering compelling reasons for office attendance is critical.
Badge swipe data remains the predominant utilisation tracking method (90 per cent), while reservation systems (49 per cent) and visual observations (41 per cent) are also widely used. Effectively analysing the data collected through these tracking methods is a key component of a successful space optimisation strategy.
“Despite most organisations tracking utilisation through various technologies, our research reveals a startling capability gap: Only 7 per cent of 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. Organisations with advanced data capabilities gain significant advantages in pattern identification, space allocation and ultimately portfolio optimisation.”
Additionally, companies aren’t just talking about utilisation – they’re acting, with 55 per cent cutting real estate footprints, 42 per cent implementing return-to-office mandates and 38 per cent completely reimagining their workspaces. The data also reveals that structured office mandates are delivering the strongest results with a remarkable 61 per cent effectiveness rate, proving that clear direction can significantly outperform other utilisation strategies.
Hybrid work displays signs of deceleration
The report shows hybrid work adoption declining by 10 per cent year-over-year, and approximately half of employees now work in offices three to five days per week. As 37 per cent of organisations reported increased in-office expectations, 51 per cent of organisations are mandating specific numbers of in-office days, up 5 per cent.
“The pendulum has swung dramatically toward structure in hybrid work arrangements, with nearly half of organisations mandating specific in-office days, nearly double from 2022,” 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 40 per cent to 15 per cent 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, organisations continue investing in supporting technologies and facility modifications, with reservation systems (58 per cent), collaboration spaces for overflow occupancy (56 per cent) and furniture reconfigurations (50 per cent) being the most common adaptations.”
Space standards evolve for balance between efficiency and experience
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 per cent of organisations providing them in new buildouts, up from 67 per cent 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 per cent from 36 per cent) and major facility renovations (30 per cent from 17 per cent). 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.
“Organisations are increasingly sophisticated in their approach to space planning, with 78 per cent 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 prioritises collaboration and employee wellbeing while optimising real estate investments, with the most successful organisations balancing portfolio optimisation with human-centric design to create magnetic workplaces that attract employees through experience-rich environments while delivering strategic value.”
