博鱼体育集团

More than five years since the Covid-19 pandemic reshaped our relationship with work, corporate real estate leaders are still struggling to work out how much office space they need.

The challenges that come with hybrid work are now well established: teams are working in multiple locations, across multiple channels often in multiple time zones. Many employees and teams need to be in the office, while others don't. Many want to go to the office often, while others don't. Some see the office as a quiet refuge from chaotic personal lives; others need it as a space for creative interaction and in-person connection 鈥� a tonic for isolated lives at home.

It's of little surprise, then, that the results of 博鱼体育集团 Frank's 2025 survey of almost 300 corporate real estate leaders shows an industry still wrestling with the practicalities of hybrid work. More than a third of respondents are either 'somewhat dissatisfied' or 'very dissatisfied' with the current level of workplace utilisation in their organisations 鈥� inconsistent attendance is leaving large parts of the office unused.

'Delivering higher utilisation & occupancy' was selected as the greatest workplace management challenge by 30% of our respondents, while another 25% picked 'aligning workstyles & workplace'.

Once-static assets

Solutions must be found, because the problems aren't going away. Almost half of respondents see hybrid work as the predominant workstyle three years from now. A little more than a fifth picked office first.

During the initial phases of these shifts, I think there was a sense among some leaders that by investing heavily, this challenge might just fade away. Perhaps by consolidating into the best office, in the best location with the most amenities, everything might just go back to normal. But those early hopes have given way to a more begrudging acceptance that we're facing an enduring, iterative process in which once-static assets must now evolve and shift as business needs change. Workplace layouts, for example, must be able to adapt over time, whether through modular furniture, multi-use zones, or scalable fit outs.

Granted, amenities such as great food and beverage, wellness spaces, concierge-style support and shared spaces are increasingly seen as integral in attracting people to the office, but our respondents are now working to ensure these services are relevant, well-used and demonstrate value, whether through satisfaction or tangible business impact. Balancing growth and innovation with cost control was by far the most frequently cited factor shaping real estate strategy over the next three to five years.

CEOs want answers 鈥� and CRE leaders are under pressure to deliver. Many organisations are investing in more granular workplace data 鈥� tracking not just badge swipes, but patterns of desk and meeting room use, peak times by team or function, and correlations with productivity and engagement. The hope is that better data will allow for more agile decisions, and ultimately, a workplace that works better for everyone.

Collaborative hubs

Frustration with underused space has naturally created a clamour to 'rightsize' - 55% of respondents picked 'portfolio rightsizing and achieving agility' as the biggest challenge facing CRE professionals.

That doesn't just mean downsizing, either. In fact, half of our respondents reckon their portfolios will get larger during the next 3 - 5 years, compared with one fifth who expect their portfolio to shrink. And here, the data will only get you so far.

As our report notes, beneath the strategic logic of rightsizing lies a more complex organisational reckoning. Many businesses are confronting cultural and political tensions as they reshape their portfolios - particularly when it comes, say, to trading an underutilised HQ for a network of smaller collaborative hubs. For some, legacy offices carry symbolic weight 鈥� seen as markers of status, stability or identity 鈥� making their downsizing a delicate internal conversation.

In other cases, business units compete for square footage based on historical entitlements rather than current usage patterns, resisting centralised decision-making.

There are also disparities in how teams use space: legal or finance may visit the office sparingly, while product or client-facing roles rely on physical presence. These variations complicate blanket portfolio strategies. The result is a growing emphasis on change management, stakeholder alignment, and scenario planning 鈥� not just architectural or locational decisions. Rightsizing, done well, demands not only data but diplomacy.

Operational efficiency

Delivery in the seniors housing sector continues to accelerate. 博鱼体育集团 Frank data shows 6,380 new units were delivered across the UK in 2024, up 4% on the year before, according to 博鱼体育集团 Frank's . This year, the total is expected to exceed 8,000 鈥� the highest figure since 2018.

This is still chronically short of need. The 2022 Mayhew Review recommended 50,000 new seniors housing units are built each year to meet demand.

This growth delivery occurred despite a decline in the number of standalone developments, reflecting a shift towards larger-scale projects. Around 10% of schemes completed in 2024 comprised more than 100 units. The trend toward larger developments is evident across the Seniors Housing sector, but Integrated Retirement Communities (IRCs) continue to lead in terms of scale. IRCs remain a key focus for operators, investors, and lenders, underscoring their growing importance in the market.

Larger schemes also contribute to improved operational efficiency, which is critical for IRC operators committed to long-term service delivery.

Broadly stable

UK house prices fell -0.4% in May, following a rise of +0.3% in April, Halifax this morning. That brings the annual growth rate to 2.5%.

That aligns with other indicators suggesting the market remains broadly stable.

Mortgage approvals for the purchase of homes declined marginally for the third consecutive month in April, and at 60,500 are now running about 10% below the 2019 average, the Bank of England said on Monday. 

鈥淒emand was frontloaded this year thanks to April鈥檚 stamp duty deadline, which means house prices are coming under downwards pressure as buyers still in the market have a lot to choose from," 博鱼体育集团 Frank's Tom Bill told . "While activity will eventually pick up, concerns around inflation and the government鈥檚 tight financial headroom mean mortgage rates don鈥檛 feel poised to drop meaningfully. We expect UK growth of 3.5% in 2025, which suggests the direction of travel for prices will be largely sideways.鈥�

In other news...

We have just launched our Q2 2025  land, development and new homes survey, which provides a snapshot of the key trends across the UK residential development sector. If you are a housebuilder or developer operating in England we would welcome your insights. The survey takes five minutes and is available here: .

Elsewhere - Most new build homes in England to be required to have solar panels ().