What is your office portfolio actually optimised for?

The future of office won't be defined by attendance, but by how effectively space supports people, performance and organisational resilience.

Organisations are continuing to rethink their[JW1] [RK2]  office footprint as rapid shifts in technology, workplace expectations and cost pressures reshape how space is used. As a result, real estate decisions are becoming more strategic with a more deliberate approach to portfolio management emerging.

Now, office occupiers are focused on unlocking value within existing assets, balancing global strategy with local nuance and rethinking the role the office plays altogether.

In doing so, organisations are not only improving portfolio performance but also delivering better outcomes for their business.

The role of the office is evolving

Flexibility is no longer optional. According to 2025 research from the Australian HR Institute, the most common preference among full‑time employees is a hybrid model, with three days in the office and two days working remotely. This closely mirrors employer policy, where three to four in‑office days has become the prevailing model across many organisations.

The significance of those in‑person days lies less in volume and more in quality. Workplace research consistently shows that time spent in the office is most valuable when it supports collaboration, learning and social connection rather than individual, task‑based work.

This matters because the human dimension of work has measurable consequences. Findings from the Harvard Study of Adult Development, one of the world’s longest‑running longitudinal studies, show that the strength of social relationships is among the strongest predictors of long‑term health and wellbeing. In practical terms, the office plays a unique role in enabling frequent, low‑effort social interaction, the informal conversations and shared moments that fall outside structured meetings but underpin connection and culture.

At the same time, it’s important to recognize that different types of work require different environments. Periods of solitude are consistently linked to deeper focus and creativity, while shared physical environments support accountability, collective momentum and faster decision‑making. This reinforces a growing consensus: the challenge for organisations is not choosing between remote or in‑office work but enabling both.

A more strategic approach to portfolio management

Office real estate has traditionally been managed reactively, often triggered by lease expiries or short‑term operational needs. That approach is changing. Portfolios are being managed far more deliberately, with decisions driven by cost, performance and long-term business strategy.

In many cases, existing portfolios hold more value than organisations realise. Lease terms like contraction options, break clauses and rent reviews are being used more deliberately, not just to cut costs, but to reduce risk and create flexibility.

Consolidation is accelerating, especially in mature office markets where utilisation hasn't recovered to pre-pandemic levels. Rather than maintaining geographic spread for its own sake, organisations are prioritising quality, efficiency and adaptability; reshaping portfolios to do more with less space.

As a result, workplace design is moving away from static layouts towards adaptable environments. Shorter lease commitments, phased delivery models and modular spaces that enable organisations to respond more quickly as needs evolve. Rather than optimising for a single way of working, workplaces are being designed to accommodate multiple modes, collaboration, concentration, learning and social connection, often within the same footprint.

This evolution is also driving greater cross‑functional alignment. Real estate decisions are increasingly made in conjunction with HR and technology teams, reflecting the fact that workplace performance spans productivity, culture, wellbeing and talent attraction.

Purpose is playing a more visible role as well. Sustainability targets, carbon reduction commitments and employee experience outcomes are now shaping decisions.

Insights from Knight Frank’s Global CRE Sentiment Index indicate this shift is being driven not only by economics, but by a growing recognition that portfolio decisions directly influence workforce experience and organisational performance.

Designing workplaces with strategic influence

Against a backdrop of economic volatility, capacity constraints and rising employee expectations, leaders are being asked to deliver workplaces that support transformation round location, fit‑out and investment. In this sense, the workplace has become a strategic signal, not just of how work is done, but of what an organisation values.

Taken together, the evidence is clear. The future of the office will not be defined by attendance alone, but by how effectively space supports people, performance and long‑term business resilience.

This article is from Knight Frank’s The Tenant View publication. To download the report, click here.