Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
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Despite ongoing calls from some companies to bring employees back to the office full-time, hybrid work remains firmly entrenched across much of the workforce. A recent survey of over 100 companies representing an estimated 3 million employees showed that remote work allowances now average 2.6 days per week, according to Urbanite’s Future of Work Outlook.Â
Office Attendance Stabilizes, But Below Expectations
Return-to-office (RTO) rates have held steady at around 40% for more than a year, signaling a new norm in workplace occupancy. However, actual in-office attendance frequently falls short of company expectations, indicating a disconnect between policy and practice. The gap underscores the need for adaptable workplace strategies that reflect employees’ evolving preferences.
Surging Office Vacancies Prompt Real Estate Rethink
With attendance levels stabilizing but not recovering to pre-pandemic norms, European office space is expected to see an additional 120 million square meters of vacancy by 2030. Many companies are already rethinking their real estate footprints, with surveyed organizations planning to reduce office space by an average of 13% by the end of the decade. This trend is most pronounced in sectors with high remote adoption, such as public services, tech, media, telecom (TMT), and financial services.
Measuring Flexibility with the Workplace Rigidity Index
To help businesses evaluate their approach, a new “Workplace Rigidity Index” has been introduced. It benchmarks company policies on required in-office days, enforcement practices, and flexibility in working from different countries. Findings indicate that sectors emphasizing in-person collaboration — like law firms — tend to have the most rigid policies. In contrast, sectors with large non-office-based workforces (such as industrial or FMCG) enforce stricter rules to minimize perceived inequities between remote-eligible and on-site employees.
ESG and Space Optimization Now Strategic Priorities
Environmental, social, and governance (ESG) goals are also shaping workplace strategy. Companies are investing in sustainable office spaces and supporting infrastructure like active mobility solutions to meet climate goals and attract eco-conscious talent. With lease terms averaging five to ten years, full real estate alignment with new work patterns will take time, but the transition is already underway.
The Bigger Picture
Combined, respondents to the survey are planning reductions totaling approximately 3 million square meters (30M sq ft) by 2030. If extrapolated across the European and U.S. office markets, this could contribute to an additional 120 million and 75 million square meters of vacant office space, respectively. If repurposed for residential use, that space could house as many as 3 million people.
