Global occupier trends to watch in 2025

Most organizations are early in the maturity curve and will need a multi-faceted strategy to capitalize on the promise of AI.

Organizations are embracing the potential of AI to transform workplace management and, through experimentation, have discovered both the challenges and opportunities inherent in scaling this capability. Data readiness is the key driver of success, while closing the skills gap to enable AI programs will be crucial in evolving these platforms further. The evolution of CRE is defined by a rapid pace of change and a growing emphasis on innovation, agility and adaptability. 93% of C-suite leaders believe artificial intelligence (AI) will change how the workforce operates in the next five years, and 90% of organizations plan to accelerate AI investment during that time. To stay ahead of the curve and deliver maximum value to their organizations, CRE leaders must be proactive in identifying and investing in the key technologies that can scale to shape the future of work.

The integration of AI and machine learning into the workplace will require data readiness and most organizations are quite early in the maturity curve. Delivering on the promise of AI to transform how we work and how we manage real estate efficiently requires a systematic approach to both hardware upgrades and policy alignment before it can become reality. Partnerships will be critical in developing and implementing AI strategies and mitigating the risk of failure.

The development of more data-driven and evidence-based decision-making capabilities will be critical for CRE in the future. With the proliferation of sensors and other data-gathering technologies, CRE teams will have access to an unprecedented amount of information about how their spaces are being used and how they are performing. By leveraging advanced analytics and data visualization tools, CRE leaders can gain new insights into occupancy patterns and other key metrics, enabling them to make more informed decisions about use of space, maintenance and capital investments.

To support these investments, CRE teams will need to work closely with IT and other functions to ensure that these technologies are seamlessly integrated into the workplace and that employees are properly trained and supported in their use. CRE teams will need to develop partnerships and collaborations both within and outside of their organizations. This may involve working with startups and other innovators to identify and pilot new technologies and solutions, as well as partnering with academic institutions and research centers to stay ahead of emerging trends and best practices.

Corporate real estate should be positioned as a value driver rather than a cost center, requiring new skills and partnerships.

As the business landscape continues to evolve at an unprecedented pace, the CRE function finds itself at a critical inflection point. To remain relevant and drive strategic value for their organizations, CRE leaders must fundamentally reimagine and reinvent their roles, capabilities and competencies. Partnerships with human resources leaders are becoming more important, as organizations acknowledge the role their real estate plays in supporting both culture and talent retention, and workforce expectations become the primary basis for space design and the range of facilities. Breaking down traditional silos to work closely with HR, IT and finance will help to develop integrated workplace strategies to support the needs of a diverse and dynamic workforce.

The first step in this journey is to recognize that the traditional skills and competencies that have defined success in CRE are no longer sufficient. While technical expertise in areas such as leasing, transactions and project management will always be important, the CRE leaders of tomorrow must also possess a broader set of strategic leadership, financial and technological capabilities. They must be able to think holistically about the role of the built environment in supporting business objectives, human experience and technology imperatives. Leaders will also need to engage with the C-suite to translate that vision into actionable strategies, reinforce the value of the real estate portfolio and the teams that manage it, and effectively drive measurable results.

To position CRE as a career of choice and develop this new breed of talent, organizations must invest in comprehensive training and development programs that go beyond traditional classroom-based learning. This may include rotational programs that expose CRE professionals to different aspects of the business, as well as mentorship and coaching initiatives that provide ongoing support and guidance. CRE leaders should also prioritize diversity and inclusion in their talent acquisition and development strategies, recognizing that a more diverse and representative workforce can bring new perspectives and ideas to the table. 

To truly elevate the CRE function, however, organizations must also be willing to rethink traditional models of service delivery and embrace new ways of working. This may involve the outsourcing of certain technical activities to specialist providers, the development of new revenue streams through the monetization of underused assets or the creation of innovation labs and accelerators that can drive new ideas and solutions.

The reinvention of the CRE function is not a one-time event, but an ongoing process of continuous improvement and adaptation by prioritizing talent development, forging strong partnerships and embracing new ways of working.

Conclusion

The corporate real estate landscape is at a pivotal point of transformation. By embracing flexibility to achieve balanced growth, making strategic investments in workplace design and technology, prioritizing the human experience and reimagining the CRE function itself, organizations can position themselves for success in the years to come.

CRE leaders who can navigate these trends skillfully will not only add value to their organizations but also play a crucial role in shaping the future of work. As organizations move forward, it is imperative to remember that flexibility, collaboration and a relentless focus on employee needs will be the greatest assets in this evolving landscape.

Navigating the future: key considerations for corporate real estate leaders

As leaders work to address these trends within their organization, they should keep the following overarching principles in mind:

Agility and adaptability: build flexibility into your CRE function, strategy, space design and employee programs, and be prepared to pivot as new trends emerge or unexpected challenges arise. Continuously evolve skills to empower the CRE function and enhance capabilities in an ever-changing landscape. 

Data-driven decision-making: while widespread AI adoption may be slower than anticipated, the importance of data in CRE decision-making cannot be overstated, particularly as it supports tech-enabled workplaces and sustainability goals. Continue to invest in data collection and analytics capabilities, even if full AI integration is a longer-term goal. 

Employee-centric approach: throughout all these trends, the needs and preferences of employees should remain at the forefront. Wellness will continue to drive employee value and support talent attraction and retention. Integrate these considerations into all aspects of your CRE function.