Executive Summary
After ditching two-thirds of its office space and selling its Chicago headquarters, this company adopted a strategy emphasizing coworking access and redesigning traditional offices with more usable, purpose-built spaces instead of cubicles. This forward-thinking approach met employee needs, boosted collaboration and productivity, reduced office expenses from $382M in 2020 to $138M in 2024, and achieved $244 million in annual real estate savings.
64%
CRE expense reduction
8M
SQFT of space eliminated
25%
of team with office access
The Challenge:
Company leaders recognized the pandemic's lasting impact on workplace dynamics and the urgent need to adapt. Faced with rising costs from underutilized office spaces, growing employee demand for flexible work arrangements, and the critical role of in-person collaboration in driving innovation and team cohesion, the company embarked on a strategic overhaul of its office footprint to align with these evolving needs.
The Solution:
They leveraged LiquidSpace's extensive workspace network and data-driven insights to craft a tailored CRE strategy that prioritized purposeful in-person team gathering and collaboration while optimizing costs and flexibility. Key initiatives included:
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Strategic flex space adoption:
Employees in cities like Minneapolis, Atlanta, and Tampa gained access to on-demand coworking spaces, providing a collaborative environment without the burden of long-term lease commitments or wasted resources. -
Purpose-driven office planning and design:
Traditional offices were transformed into multifunctional spaces such as quiet libraries, cozy cafes, and training hubs, creating environments that promote teamwork, focus, and creativity. -
Enhanced employee experience:
Remote-first employees were given opportunities to meet periodically for training, team-building, and mentorship, fostering stronger workplace connections and a more cohesive company culture.
We’re building something new. When I talk to our people, they’re just so surprised we’re doing this, and trying something different.
- Workplace Futurist, F100 Insurance Company
The Results:
The impact of this new hybrid strategy has been transformative, reshaping the company’s real estate approach and overall employee experience:
- Massive cost savings:
Annual corporate office space expenses plummeted from $382M in 2020 to $138M in 2024, freeing up resources for other priorities, such as employee development and technology investments. - Enhanced team connection and collaboration:
A mix of coworking spaces and purpose-built offices enabled more effective in-person teamwork, improved cross-departmental collaboration, and fostered a culture of innovation and communication. - Increased employee retention:
Streamlined in-person onboarding programs reduced new hire turnover from 35% to 5% in critical departments, helping retain top talent and build stronger, more cohesive teams.
Key Takeaways
For large organizations navigating the challenges of hybrid work, this case study highlights strategies to optimize corporate real estate and create a more effective workplace:
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Ditch inefficient spaces:
Reduce unnecessary overhead by replacing underutilized offices with on-demand solutions.
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Invest in collaboration:
Design spaces that encourage meaningful connections, whether for training, brainstorming, or mentoring.
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Flexibility wins:
Equip your workforce with options that align with their needs and preferences; this is the surest way to boost satisfaction and productivity.
