Let’s Talk Corporate Real Estate Trends

 As return-to-office policies continue to gain momentum, the draw of high-quality, amenity-rich urban office locations is growing stronger. The ongoing “Flight-to-Quality” is a trend we’ll be seeing more of in the next few years. This is a phrase in the real estate industry that refers to newer buildings in prime locations commanding higher occupancy and rents.

Why is this happening?

Companies are seeking better brand value, improved culture, and retaining and attracting talent. Additionally, consolidation and co-location provide efficiencies in real estate for companies, making centralized hubs more attractive.

What are some stats backing this shift?

 “65% of global firms are actively consolidating or relocating offices into better buildings within city centers.”

 “Employees in high-grade offices are 30% more likely to say their workplace enables productivity and connection.”

(CBRE’s 2024 Occupier Sentiment Survey)

What are the impacts of this trend?

As flight-to-quality grows and hybrid work reshapes demand, landlords and developers of underused or ageing properties must evolve from space providers to experience curators. The concept of the ‘office hotel’ – a high-service, amenity-rich, flexible workplace environment – is gaining traction as a response to tenant expectations for hospitality-grade experiences.

What should I take away from this?

“Up to 425 million sq/m of existing office space globally is likely to require substantial capital expenditure over the next 5 years.”

(JLL, Global Real Estate Outlook 2025)

Don’t dismiss the not-so-shiny, ageing properties. That’s over 4.5 billion square feet of potential project work!

When speaking with current and potential clients, ask them about their broader portfolio. Our tendency is to focus on a single project (specific floors or one building) but consider the importance of leveraging a client’s broader holdings.