“Downsizing has peaked” says global occupier report

• Pent up demand for space evident following years of footprint rationalisation

• Return to office strategies accelerating demand for space

More businesses are taking on larger leases as the era of downsizing slowly turns a corner, according to a report from global real estate services firm Cushman & Wakefield.

The What Occupiers Want report External Link, released in conjunction with the global professional association for corporate real estate CoreNet Global, said occupiers were shifting from reactive downsizing to proactive portfolio management, with one in eight planning to expand their footprint and average lease sizes growing by 13% in the past two years.

The findings were based on surveys of major occupiers across the globe¹. Cushman & Wakefield’s Asia Pacific Head of Global Occupier Services Cameron Ahrens said the findings echoed what the firm was hearing from Fortune 500 clients.

“We are definitely beginning to see the next phase of the market cycle. We are hearing from our clients that they are either at capacity, or nearing capacity and therefore considering what options are available in the near-term.” 

Anshul Jain, who heads the firm’s Asia Pacific Tenant Representation business, said the same combination of space rationalization and headcount growth had also created demand among mid-market occupiers:

“We need to remember that following the flight from offices during the pandemic, interest rates were high so CapEx was hard to come by. Then rates started to come down, but slowly, which was followed by uncertainty around Trump’s policies. So there have been quite a few years of real estate prudence while companies continued to grow – occupiers were not releasing their purse strings unless they were really forced to.”

But Ahrens said increasing occupancy rates and gathering momentum behind return to office strategies were forcing occupiers’ hands.

“We are definitely nearing a tipping point. It has taken a few years to return to a level of growth where occupiers feel they can commit to taking on space. But based on conversations with clients, I expect over the next six, 12, 18 months we will see multinationals start to act on their need for more space, especially in key markets.”

Head of Integrated Portfolio Management² Rob Hall said larger occupiers remained committed to their long-term real estate strategies despite current uncertainty in the broader economy.
“Occupiers tend to follow a long-term approach to portfolios, with lease events monitored and strategized over a three- or sometimes five-year time frame. Some CapEx decisions are being delayed by a quarter or two by the current economic and geo-political uncertainties, but this will only delay decision making temporarily—it won’t derail occupiers from their long-term glide path.”

About the What Occupiers Want report

Findings from the What Occupiers Want 2025 survey highlight an industry at a strategic crossroads, as companies balance traditional cost control measures with new imperatives around talent, culture, and portfolio agility. 

Cost Still Reigns, but Uncertainty Dominates Decision-Making

• Cost control remains the top driver of corporate real estate decisions globally, as CRE leaders face continued pressure to reduce or optimize spending. Financial KPIs—particularly cost, efficiency, and space utilization—still dominate strategy.
• However, uncertainty looms large. Political instability, changing workplace behaviors, and unclear ROI metrics have left many organizations hesitant to act boldly. Additionally, environmental, social, and governance (ESG) priorities—once on the rise—have slipped back to pre-2021 levels in global importance, though they remain a top concern for occupiers in the EMEA and APAC regions.

CRE Organizational Models Are Evolving—And Metrics Must Keep Pace

• One of the report’s most striking findings: nearly one-third (29%) of companies that recently changed their CRE reporting structure now have real estate teams reporting to Human Resources.
• Despite these organizational changes, most companies continue to rely heavily on traditional financial measures. The report calls for a balanced scorecard approach that bridges the gap between cost control and workforce impact.

Downsizing Has Peaked as Occupiers Stabilize Portfolios

• After several years of footprint reduction, the era of mass downsizing appears to be over. Only 32% of companies plan further space cuts, while 1 in 8 occupiers plan to expand their footprint. Meanwhile, average office lease sizes have grown by 13% since 2023.
• Office utilization rates are stabilizing as well, with global occupancy levels settling between 51% and 60%—still below pre-pandemic norms but rising steadily as more firms implement structured return-to-office policies.

Landlords Must Step Up as the Office Becomes a Service

• Tenants are demanding more from their landlords—85% of occupiers now expect landlords to provide enhanced amenities, services, and workplace experiences, and nearly half (46%) are willing to pay a premium for these upgrades.
• Top-tier office space commands a nearly double-digit rental premium as a result. Yet there remains a gap between expectation and delivery: only 60% of employees believe their current workplace fully supports collaboration, relationships, and culture-building—the very elements that draw people back to the office.

Flexible Location Strategies Are the New Talent Imperative

• Flexible hiring practices are now standard, with 61% of companies adapting their real estate strategies to access diverse talent pools across multiple geographies. Regional trends show varied approaches:
• In the Americas, hybrid and country-level hiring dominate.
• EMEA firms favor selective global hiring where a presence already exists.
• APAC leads in expanding remote hiring options.
• Technology talent remains in high demand, particularly in APAC, where growth outpaces that of the Americas and EMEA.

The 2025 What Occupiers Want survey reveals a CRE industry in transition: while cost pressures remain paramount, leading organizations are redefining value beyond financial savings.

Head of Total Workplace Asia Pacific Carol Wong said: “Corporate real estate needs to think about return on investment not just from a financial perspective, but from an employee’s perspective. As employees start to invest the time and energy and money into returning to the office, there needs to be a benefit to them. So real estate decisions become decisions about workplace performance, talent retention, culture and competitive advantage. They need to be considered holistically, it’s a strategic imperative.”

¹ 52% from the Americas, 34% from EMEA, 14% from Asia Pacific. The views represent approximately 8.1 million employees globally and approximately 340M square feet of floor area.

² Cushman & Wakefield’s IPM business manages leasing activity on behalf of global occupier clients.

About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com.

About CoreNet Global
CoreNet Global is a non-profit association, headquartered in Atlanta, Georgia (US), representing more than 11,000 executives in 50 countries with strategic responsibility for the real estate assets of large corporations. The organization’s mission is to advance the practice of corporate real estate through professional development opportunities, publications, research, conferences, designations and networking in 46 local chapters and networking groups globally. For more information, please visit www.corenetglobal.org External Link.