%20(2)%20(1)_0.jpg?jtBV5VDvkclnuWYrGJaE9ysJuP3jkjxv&itok=0U_WkSIE "A Knight Frank survey of around 300 corporate real estate leaders globally found that half expect their total workspace footprint to grow over the next three to five years (Picture: Samuel Isaac Chua/The Edge Singapore)")
A survey by Knight Frank has found that businesses are betting on the future of offices as they navigate an uncertain global environment. The survey, which polled about 300 corporate real estate (CRE) leaders overseeing over 650 million sq ft of space globally, revealed that over 50% of respondents plan to grow their office workspace over the next three to five years, the equivalent of 104 million sq ft.
Plans to expand come as companies seek to build resilience in a landscape being shaped by economic, geopolitical and technological disruptions. In Knight Frank’s survey, respondents identified the need to balance growth and innovation with cost control as the biggest influence over their real estate strategy over the next three to five years.
The second-biggest influence identified by CRE leaders was uncertainty and volatility in the operating environment. Trade wars and political tension also ranked highly among respondents, coming in at fourth place.
Despite these concerns, rather than cutting workspace or freezing decision-making, many companies are choosing to expand, says Knight Frank. Of the survey respondents that plan to grow their office footprint, 27 companies are expected to boost their workspace by over 20%.
At the same time, corporations are embracing change by pivoting to real estate strategies that build in optionality and flexibility, including shorter leases, more flexible formats, and diversified locations.
“Corporates are committing to new space but building in flexible lease terms and options on pre-lets to remain nimble,” says Tim Armstrong, partner and global head of occupier strategy and solutions at Knight Frank. He adds that companies are looking to regionalise their footprint to stay relevant to local markets while also diversifying exposure to geopolitical risks.
Lee Elliott, partner and head of global occupier research at Knight Frank, notes that as occupiers regionalise portfolios, many are moving away from monolithic headquarters towards having networks of hubs in prime office assets. “The trend is already playing out in major markets where demand is tilting toward buildings that offer adaptability, experience, and ESG credentials, particularly in cities that combine global reach with local talent,” he adds.
Workstyle evolution was cited as the third most influential factor for real estate strategy among respondents over the next three to five years. However, in contrast to the high-profile full return-to-office mandates that have made headlines in the last year, Knight Frank’s survey found that only 10% of respondents expected to opt for an “office only” workstyle in the next three years. The majority, at 46%, expected to follow a hybrid workstyle, while 22% elected for an “office first” approach.
As hybrid work settles into the mainstream, leaders are redesigning offices for better workplace utilisation by focusing on supporting outcomes rather than presence, says Knight Frank. This, in turn, is leading to demand for workspaces that can flex across work styles while activating spaces in ways that drive engagement, support culture and deliver measurable productivity gains.
“Corporate real estate is expected to deliver more than ever, and leaders face increasingly urgent challenges that can no longer be parked in the sidings,” says Elliott, adding that while many see hybrid working and office-centric models as the future of the workplace, corporations will increasingly focus on the functionality of the environment and whether it delivers for employees and teams.
