01

Over the last three years, hybrid work has driven portfolio reductions and planning efficiencies

Space-sharing has increased the number of people that can be assigned to an office location.

  • As forecast in the 2022 Insights report the average sq. ft./sq. m. per person has dropped 22% and, for the first time ever, the average global occupancy rate (number of people assigned to number of seats) is over 100%.

Existing spaces have been consolidated or redesigned to support hybrid work styles.

  • There has been a 44% increase in collaboration or we space globally since 2021.

Most participants have reduced their office portfolio size since the onset of the pandemic.

  • 62% of participants have reduced their portfolios since January 2020.

02

Today, despite these efficiencies, there is still an imbalance of space supply and demand

Most employees who elect to work in the office do so for connection and community, decreasing the demand for traditional workspaces designed for individual and focused work.

  • 58% of employees go to the office for connection, while only 15% go for focus work.

Organizations are quantifying the use of office space to understand portfolio performance.

  • 80% use space utilization data for portfolio strategy planning.

The combination of hybrid work and underutilized office space has created an imbalance of office supply and demand.

  • From Q2 2022 to Q2 2023, global average office utilization, which measures the real-world use of space was 35%, a 45% decrease from the pre-pandemic global average of 64%.

03

Moving forward, portfolio reductions and new performance metrics will make the workplace more efficient and more effective

Organizations plan to increase space-sharing and eliminate underutilized space to achieve their top priority: portfolio optimization.

  • 43% plan to decrease their portfolio size by more than 30% in the next three years.

The new metrics that matter move beyond measuring occupancy plans to measuring workplace performance.

  • Performance metrics like utilization rate and employee sentiment are being prioritized over planning metrics such as sq. ft./sq. m. per seat.

Workplace effectiveness measures the impact real estate has on employee performance, operational priorities, financial goals and ESG objectives.

  • Co-creating a new workplace effectiveness scorecard with leaders and employees across the business ensures the workplace supports the business and cultural needs of all stakeholders.

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