Commercial real estate (CRE) leaders are navigating a landscape that feels like a battlefield.
The war for talent, economic uncertainty, and shifting workplace policy strategies are colliding, leaving many decision-makers paralyzed—stuck between nostalgia for the past and uncertainty about the future.
For most, the reliable old models for office planning no longer feel applicable, yet the way forward is still clouded by competing narratives and short-term thinking.
However, amidst this fog, five clear truths are emerging—truths that will shape the CRE strategies of progressive enterprises in 2025. These aren’t theories. They are already materializing in companies that are willing to break from outdated assumptions and embrace the new reality of work.
1. The future is ‘return to an/any/many offices’—not ‘return to THE office.’
A vocal minority has hijacked the narrative around return-to-office (RTO)—politicians, traditionalist CEOs, and a handful of real estate stakeholders with a vested interest in long-term leases. But the reality on the ground is different.
Progressive companies aren’t forcing employees back to a single, centralized HQ. Instead, they are facilitating a distributed, flexible work ecosystem that encourages employees to gather where it makes the most sense—whether that’s a company HQ location, a regional hub, a satellite coworking space, or an on-demand meeting room.
Mandating a return to one office is retrograde. Enabling gathering in many places is the future.
2. Employee choice & on-demand space are now core to workplace strategy.
Despite the headlines pushing a corporate RTO agenda, the reality on the ground tells a different story. Hybrid work isn’t a trend—it’s the new standard. The smartest companies aren’t clinging to outdated real estate models—they’re embracing flexibility as a strategic advantage.
Enterprise adoption of on-demand space is accelerating. Thoughtful companies like T-Mobile, Allstate, Airbnb, and Spotify have already proven that replacing underutilized fixed offices with flexible options can slash real estate costs by as much as 80% while also increasing employee engagement and collaboration.
The reality is clear: rigid portfolios are a liability, and choice-driven, agile workspace models are the new normal.
3. The hybrid dividend: a two-part ROI that can't be ignored.
The shift to hybrid isn’t just a response to employee demands—it’s a financial and cultural imperative. Companies that fully embrace hybrid work are unlocking a two-part hybrid dividend:
- A real estate cost dividend.
A dramatic reduction in total workplace costs by optimizing the mix of leased, owned, and on-demand office space. Companies that rebalance their portfolios from fixed to flex are achieving double-digit percentage reductions in overall real estate expenses.
T-Mobile proved just how powerful this shift can be. By replacing underutilized offices with a network of on-demand workspaces, they slashed real estate costs by 80%—all while expanding employee access to workspace options nationwide.
- A people dividend.
Increased employee engagement, productivity, retention, and advocacy. Data shows that employees who are given agency over how and where they work are not only more satisfied, but they also perform better and stay longer.
T-Mobile’s flexible approach didn’t just cut costs—it empowered employees with 10X the variety of workspaces, giving teams the ability to meet, collaborate, and focus in spaces that best fit their needs. The result? Higher engagement, smarter space utilization, and a workplace strategy built for the future.
Leaders who embrace hybrid are reaping both financial and human capital rewards. Those who resist it will be left with expensive, underutilized space and a disengaged workforce.
Schedule a consultation with us today to explore how a data-driven hybrid strategy can transform your workplace and maximize efficiency.
4. Data-driven decision-making will unlock clarity & action.
For too long, CRE strategy has been driven by outdated assumptions and biased advice from brokers still incentivized to push long-term leases. The old planning models no longer apply. The new frontier of workplace decision-making is data-driven.
Platforms like LiquidSpace Portfolio Manager are enabling CRE leaders to understand, in real-time, where their employees are choosing to work, how spaces are being used, and where investments should (or shouldn’t) be made. Gut instinct and tradition can no longer be the guiding forces of real estate strategy. The companies that embrace real-time data to inform their workplace strategies will be the ones that move forward with confidence and clarity.
5. The age of ‘peak office’ & the rise of the ‘unbuilding’ movement.
We’ve reached ‘peak office’—the moment when traditional, long-term leased office space is no longer the default assumption for companies. Many enterprises are realizing that they don’t need (and can’t justify) the same footprint they once did.
The next decade will be defined by unbuilding—not in the literal sense of demolishing structures, but in rethinking how we use the built environment. Instead of adding more static office supply, companies will harvest, repurpose, and optimize existing spaces through technology-driven, demand-based models.
This shift isn’t just an economic necessity—it’s an environmental one. Buildings account for nearly 40% of global carbon emissions. Maximizing utilization through flexible space strategies is one of the most impactful sustainability moves a company can make.
The call to lead.
The CRE leaders of 2025 have a choice: cling to outdated models and watch their portfolios become stranded assets, or embrace these five emerging truths and create a workplace strategy that drives efficiency, engagement, and agility.
The playbook for workplace strategy has been rewritten. The companies that win will be the ones that move from being stuck to being strategic. The fog is lifting. The path forward is clear.
Will you step into the future or be left behind?
Contact us now for a personalized strategy built on real data. Don't wait—dismantle outdated models and turn uncertainty into opportunity.
