Trends Shaping the Office of the Future: Space Needs Refined for a Return to Office with Hybrid
The driving forces in the office market are not necessarily new. Trends in a return to the office that took place in 2024 and solidified in early 2025 continue to take shape, and will continue to strengthen in the year ahead with hybrid policy a critical focus for leaders.
While the debate over where employees should work has dragged on since the start of the pandemic — making headlines like the recent JPMorgan mandate for employees to return five-days per week or year-end directives from Amazon, AT&T, and Starbucks — a far more important consideration is how the workplace will be utilized to best serve the unique needs of a company and its people.
As the leading provider of integrated real estate services with a 100% commitment to advocating the interests and needs of tenants, CBIZ Gibraltar works with clients to uncover the potential of the work environment as a business driver, maximizing human capital and delivering the best possible solutions.
Taking Advantage of 2025 Lease Economics
While office space is generally the second largest expense on the balance sheet after payroll, more leaders are seeing these costs as an investment and view the work environment as a driver of business.
Companies are taking advantage of current market trends for economic advantage and view real estate operating costs as an investment as markets across the US remain soft and tenant favorable. For example, as vacancy rates hold around 20%, landlords will continue to offer meaningful tenant improvement allowances and rent abatement packages.
For companies that don’t necessarily want to spend a lot on custom build-outs, in the current market, move-in-ready spaces or “spec suites” have increasing appeal. Spec suites give office occupiers the ability to make a move without significant disruptions in productivity and allows tenants to avoid exposure to the current inflated construction costs and lead times.
Embracing Hybrid Work with Functional Space
It’s important to consider not just how many employees will be coming in and how many executives need private offices, but also what types of collaboration, meeting and training spaces will meet business and employee needs.
From a functional perspective, we’re seeing companies reimagining the purpose of their offices. They’re looking to create offices that serve as a hub for collaboration and foster productivity. Equally important, it needs to be a place that employees value and want to come to on a regular basis.
Optimizing the company’s physical office locations is crucial, with the right combination of in-person collaboration and remote flexibility.
According to Kastle, peak day office occupancy has remained around 60% (with highest numbers on Tuesdays (up more than 40 points following the holidays, with Chicago and New York rise more than 50 points and Houston and Austin leading in late February). Fridays remain as the average lows, with recent data at 26.3%
CBIZ Gibraltar works with clients on space needs assessments to determine the type and amount of space they need. Based on these details from the company, plus an evaluation of the current space and expected growth, we’re able to recommend the appropriate square footage and suggest amenities.
Driving Performance with a 2025 Return
For the rest of 2025, organizations expect their office space to help boost productivity, inspire collaboration and spark creativity. For companies that have implemented a return to the office (RTO) policy, the most significant improvements were seen in employee relationships (77%), followed by worker productivity (69%), company culture (70%), revenue (61%), and worker retention (54%), according to a Resume Builder survey.
Companies with plans to RTO in 2025 also expect to see these factors improve.
When you’re looking for new space, having a representative that exclusively works with tenants is your best interest, helping you achieve the best possible rate, lease concessions, flexibility and market favorable terms — at NO cost to you.
Contact CBIZ Gibraltar to learn more about our strategic solutions for tenants.