Return to Office (RTO) isn’t just a workplace challenge—it’s a bottom-line crisis.
For years, corporate real estate decisions were based on headcount projections and lease cycles, not how employees use space. Now, as executives push employees back to the office, they’re facing a harsh reality:
They’re paying for way more space than they need.
Billions are wasted annually on underutilized offices, long-term lease obligations, and fixed costs that no longer align with how work gets done. Companies clinging to old-school office strategies—hoping mandates will fix utilization—are in for a rude awakening.
The smart companies? They’re realigning their real estate footprint with actual demand, cutting costs, and still keeping employees productive and engaged.
To see how leading companies are RTO planning, download: RTO: making it work for the full play by play.
|
Cost Factor |
Traditional Lease | LiquidSpace | Estimated Savings |
|
Lease Commitment |
5+ years, rigid terms. | Flexible terms. | Eliminate long-term liabilities. |
|
Upfront Capital Costs |
High – requires buildout, furniture, and deposits. | None – spaces are move-in ready. | Save hundreds of thousands in upfront costs. |
| Monthly Rent | Fixed, regardless of usage. | Pay-per-use. | Reduce by 80%+ by eliminating wasted space. |
| Flexibility | Low – difficult to scale up/down. | High – scale up or down as needed. | Avoid costly relocations or a glut of surplus space. |
| Utilization Efficiency | Low – paying for unused space. | High – optimized for actual demand. | Improve ROI by rightsizing office footprint. |
| Exit Costs | High – early termination penalties. | None – no penalties for scaling down. | Save on significant termination fees comprised of rent and unamortized costs. |
| Scalability | Limited – difficult to adjust footprint. | Easily adjustable based on workforce needs. | Quickly adapt without financial risk. |
| Operational Expenses | The tenant is responsible for maintenance, utilities, and security. | Utilities and maintenance are included. | Eliminate unpredictable maintenance expenses. |
To learn more read LiquidSpace vs. The Lease.
The 3 biggest RTO planning mistakes (and how to fix them).
1. Locking into long-term leases in a fast-changing market.
For decades, signing a 5- or 10-year lease was the norm. Now? It’s a financial trap. Market volatility and shifting workforce needs make fixed real estate commitments a liability.
Yet companies still:
- Lock in high costs while their workforce remains hybrid.
- Maintain oversized HQs that employees barely use.
- Struggle with downsizing due to restrictive lease agreements.
The Fix:
- Shift from long-term leases to flexible, on-demand solutions. Managed offices and workspace marketplaces provide agility without the risk. Read: LiquidSpace vs. The Lease to dive deeper.
- Use data, not guesswork. Real-time space utilization analytics ensure you’re only paying for what you actually need.
- Negotiate lease flexibility. Ensure contracts allow for footprint adjustments as workforce demands change.
2. Paying for empty space instead of real collaboration.
Bringing employees back doesn’t equal office success. Mandates don’t drive engagement or justify excess real estate costs.
What’s actually happening in most offices:
- Employees come in on different days, leaving vast spaces underutilized.
- Office footprints remain half-empty—even at peak times.
- Conference rooms sit unused while companies foot massive rental bills.
The Fix:
- Ditch the "butts in seats" metric. Instead, measure engagement per square foot—how space is used for collaboration and business impact.
- Reallocate budget from static space to dynamic, on-demand solutions. Provide workspaces that flex based on real demand. Connect with a workspace expert to explore your options.
- Use team coordination tools to align office attendance with key collaboration moments.
3. Treating office space like a cost instead of a strategic asset.
Most companies see real estate as a necessary expense. That’s a mistake.
Every other major expense—talent, technology, operations—is optimized for efficiency and ROI. Yet companies rarely scrutinize their real estate like they do payroll or software investments.
The Fix:
- Think in terms of cost per employee, not cost per square foot. Measure how space impacts productivity, retention, and collaboration.
- Use AI-powered portfolio management tools to optimize office usage in real time, cutting waste and reallocating investment to high-value locations.
- Treat office space as a flexible resource, not a liability. Pay for what you need, when you need it.
The future of RTO: less waste, more impact
The best companies aren’t forcing employees back into outdated, expensive office setups. They’re designing smarter workplace strategies that reduce costs, boost collaboration, and drive real business agility.
That means:
- Eliminating wasted space by aligning office portfolios with actual workforce demand.
- Optimizing utilization with smarter, data-driven workplace management.
- Building flexibility into real estate portfolios to adapt to business needs—without financial penalties.
It’s time to stop overpaying for empty space.
It’s time to build an office strategy that actually delivers ROI.
👉 Download RTO: making it work–a strategic guide to see how leading enterprises are slashing costs, optimizing space, and designing a workplace strategy built for the future.
