Mumbai, June 9, 2025: – Corporate real estate leaders are betting on the future of offices as they seek to build resilience into their businesses in the shadow of economic, geo-political and technological disruption, according to the latest research from global real estate advisor Knight Frank.
Knight Frank’s fourth edition of its (Y)OUR SPACE survey draws on the responses of almost 300 corporate real estate leaders with direct responsibility for over 650 million sq ft of space across the globe. The research reveals how some of the world’s largest international corporations are seeking to balance costs with the need to transform their business operations, while also offering tech-enabled hybrid workplaces that ensure flexibility and resilience in an uncertain global environment.
As many as 63% of the corporate real estate leaders surveyed expressed concern about economic and geopolitical volatility. But instead of freezing decision-making, companies are taking action by building optionality into their space strategies, including shorter leases, more flexible formats, and locations that align with risk diversification and talent access. Far from pulling back, many corporates are accelerating change. 50% of respondents expect their total footprint to grow over the next three to five years, the equivalent of 104 million sq ft of space. 27 companies are expecting to expand by over 20% – creating up to 49 million sq ft of demand from those firms alone.
Dr Lee Elliott, Partner and Head of Global Occupier Research at Knight Frank, comments: “Occupiers are cutting loose from legacy portfolios, but they’re not abandoning space, they’re moving to better space and – in many cases – into more locations as they regionalise their portfolios. The survey highlights a marked shift in location strategies, with organisations consolidating into prime assets, seeking functional flexibility, and designing networks of hubs rather than monolithic headquarters. The trend is already playing out in major markets where demand is tilting toward buildings that offer adaptability, experience, and ESG credentials, particularly in cities that combine global reach with local talent. Global uncertainty and the need for business transformation is speeding up this activity, rather than slowing it down, because corporates know they need to get it right to succeed in the current macro environment.”
Hybrid models continue to dominate and drive workplace design
Workstyle evolution remains a key factor for corporate real estate leaders, selected by nearly 30% of respondents to the (Y)OUR SPACE survey and the third most influential factor in shaping their real estate strategy over the next 3 years. Despite high profile ‘return to the office’ directives requiring employees to be present five-days a week from some major corporates, these ‘office only’ workstyles are expected to be used by just 10% of those surveyed. 46% expect to follow a hybrid workstyle, and a further 22% plan to be ‘office first’. By contrast, only 7% of those surveyed expect to be ‘remote first’ and just 4% plan to offer a ‘work from anywhere’ arrangement.
33% of respondents said their biggest challenge is improving workplace utilisation. As hybrid work settles into the mainstream, leaders are redesigning offices to support outcomes rather than presence, which means workplaces that drive engagement, support culture, and deliver measurable productivity gains. This renewed focus is reshaping demand for buildings that can flex across workstyles, accommodate service-rich environments, and enable organisations to activate space in ways that go beyond desk count. 63% of respondents believe functional amenities are more important than ‘flashy’ workplace amenities, indicating a focus on purposeful design over prestige, while 45% of respondents suggest their future strategy will focus on a flight to value, prioritising cost-efficient space to optimise budgets and operational flexibility.
Dr Lee Elliott, Partner and Head of Global Occupier Research at Knight Frank, adds: “Over the next three to five years, occupiers will be compelled to make decisions in an environment marked by heightened uncertainty, transformation pressures, and evolving organisational models. Corporate real estate is expected to deliver more than ever, and leaders face increasingly urgent challenges that can no longer be parked in the sidings. Hybrid working and office-centric models are seen by a large majority as the future of the workplace but corporates will increasingly focus on the functionality of the environment and whether it delivers for employees and teams.”
Commenting on the findings of the report, Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “Corporate real estate complexities today are being shaped by a convergence of strategic alignment, operational volatility, and fast-evolving workstyles—all against a backdrop of compressed timelines and cost discipline. The CRE function is no longer reacting from the sidelines but is being repositioned at the center of enterprise transformation. In India, this shift is already underway. Office leasing in the country reached 71.9 mn sq ft in 2024—a 21% YoY growth—while 2025 has started on a strong footing, clocking 28.2 mn sq ft in Q1 alone, up 74% YoY. As global firms recalibrate their footprints, India is braced for intensified demand—not just for space, but for future-ready, flexible environments that can deliver performance, resilience, and purposeful design in equal measure. Corporate real estate is being recast. It is no longer the backdrop to business—it is the dynamo. And the next era will be led by those who act with intent, build with agility, and lead with conviction.”
Tim Armstrong, Partner and Global Head of Occupier Strategy and Solutions at Knight Frank, commented: “Flexibility and resilience are vital for decision-makers in the current climate. Corporates are committing to new space but building in flexible lease terms and options on pre-lets to remain nimble, while also looking to regionalise their footprint to embed a strong regional presence, stay relevant to local markets and reduce exposure to geo-political risks. The low supply of best in class office space in key markets is leaving many firms with potentially few choices, which is driving leasing momentum and pushing real estate leaders to look much further ahead than they otherwise would have done.”
Leave a Reply