Hybrid work is fundamentally reshaping CRE strategies, with a focus on efficiency, cost management, data-driven decisions, strategic space utilization and flexible portfolio management to meet employee needs in the evolving workplace.
Office building utilization reached 53% in 2025, up from 38% in 2024 and 35% in 2023 and peak utilization averages 80%, surpassing the 65% target that most organizations use, according to a CBRE analysis. This indicates that hybrid strategies and return-to-office policies are effectively driving in-office activity, though peak days may create capacity pressures affecting comfort and productivity.
Hybrid work is also evident in global occupancy, which reached 111%, meaning more people are allocated than there are physical seats. Rotating schedules and flexible arrangements remain key to managing this density, said CBRE. Design density has tightened to 190 square feet per seat from 196 square feet per seat, and people density to 158 square feet per person from 172 square feet per person, as organizations fit more employees into existing space while maintaining areas for collaboration.
Desk sharing is widespread, with 69% of organizations reporting that more than 40% of employees share desks. Most target 1.01–1.49 people per seat, while only 33% exceed 1.5, down from 62% in 2024. Sharing ratios are increasingly informed by job function (83%), space utilization (78%) and supply-demand data (68%), according to CBRE.
CRE teams remain focused on portfolio optimization, a top priority since 2021, primarily through disposing of underutilized space, subletting and accommodating growth within existing space. More than half of survey respondents said they expect portfolio contraction over the next three years, up from 48% last year, while only 31% anticipate expansion. Expecting more contraction than expansion has been the norm since 2023, despite a brief narrowing last year.
The primary driver for contraction is "less space is needed due to hybrid work" (67%), highlighting the impact of hybrid models on real estate decisions. Only 13% of those anticipating expansion cite over-contraction during the pandemic as the reason. Most attribute it to other factors (59%) or new workplace design standards (36%).
To manage higher density and hybrid demands, organizations invest in flexible furniture, noise reduction, space design, technology and employee feedback systems, according to CBRE.
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