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Billion-dollar decisions, zero data: the RTO problem AI is solving.

Written by David White | Apr 7, 2025 5:30:00 PM

Every major business function—finance, operations, marketing—should embrace AI for smarter decision-making.

But corporate real estate? It's still stuck in a reactive, lease-driven cycle that ignores the fundamental shift in how people use office space.

Here's the reality:

  • Pre-pandemic space planning models no longer apply.
  • Employees aren't using offices the way portfolios were designed.
  • RTO mandates haven't solved underutilization or inefficiency.

So why are companies still making long-term real estate decisions based on gut instinct instead of real-time data?

 

The CRE data deficit.

Most CRE leaders still rely on spreadsheets, outdated systems, and manual surveys to track office space. That's not a tech stack—it's a liability.

Without real-time utilization insights, companies risk:

  • Overspending on unused space—footing the bill for square footage that sits empty most of the time.
  • Rigid lease commitments—trapped in long-term contracts that don't reflect actual workforce behavior.
  • A misalignment between cost and value—offices measured by occupancy, not business impact.

This outdated approach isn't just expensive—it's a competitive disadvantage.

Ready to eliminate guesswork from your real estate strategy?

RTO: making it work—a strategic guide—outlines a powerful workplace optimization framework to build flexible, future-ready models.

👉 Download the Guide

 

What a lease can't tell you.

Leases are rigid. AI is not.

AI-powered workplace intelligence tools like Portfolio Manager AI help companies dynamically optimize their office strategy. Instead of reacting to inefficiencies after they become problems, AI enables proactive decision-making.

AI can help you:

  • Simulate different portfolio scenarios - Forecast cost savings and employee usage before making a commitment.
  • Detect inefficiencies in real-time - Identify underutilized space and recommend workspace alternatives.
  • Predict demand for space - Help companies shift from reactive to proactive office space planning.
  • Optimize footprint decisions - Align real estate investment with workforce behavior and productivity.

Companies leveraging AI aren't just tracking office utilization—they're orchestrating smarter workplace strategies that balance cost, flexibility, and employee experience.

 

From passive tracking to intelligent coordination.

Most workplace tools today operate like an appointment calendar for desks—passive systems that assume employees will manually plan their office visits. But that's not how hybrid work happens.

What's needed instead:

  • AI-driven coordination - Suggesting optimal office days and locations based on whenteams are in.
  • Workplace experience tools - Matching employees to spaces designed for their tasks.
  • A fully connected ecosystem - Where Slack, Teams, calendars, and booking tools like Team Connect work together to make collaboration seamless instead of chaotic.

Companies that get this right won't just save millions—they'll create an office experience that people actually want to use.

 

The future of CRE: data or disaster?

The smartest companies aren't downsizing reactively—they're restructuring their entire approach to workspace strategy.

The new playbook:

  • Replace long-term leases with agile contracts. Companies are opting for managed offices, on-demand spaces, and shorter lease terms that provide built-in flexibility.
  • Use AI-driven portfolio optimization. No more gut instinct—real-time data reveals actual space usage, ensuring cost-efficiency and workforce alignment.
  • Shift from cost per square foot to cost per employee. The most valuable offices won't be the biggest—they'll be the ones that drive productivity, innovation, and collaboration.

Companies that adapt fastest will gain a competitive edge—not just in cost reduction, but in talent retention, business agility, and long-term growth.

Ready to make smarter RTO decisions?

The smartest companies aren't just cutting costs—they're reinventing their real estate strategies.

👉 Talk with a workplace planning expert to explore how agile contracts and AI-driven optimization can future-proof your real estate.