Office Rental Trends
2025-07-10 02:33:04

The Shift in Office Rental Space: A Global Perspective for 2025

The Shift in Office Rental Space: A Global Perspective for 2025



Cushman & Wakefield, a global leader in commercial real estate services, has recently released its "Global Tenant Survey Results 2025," shedding light on the changing trends in office rental space. The findings reveal a significant transition as companies begin to favor expansion over reduction in their office spaces. After years of contraction, the trend in office rental sizes is stabilizing, signaling a potential revival in office demand driven by return-to-office strategies.

The data collected in partnership with CoreNet Global indicates that only 32% of companies are planning further space reductions, while 12.5% are looking to increase their office footprint. This marks a considerable change in sentiment, with companies reporting an average increase of 13% in rental space over the past two years. The survey encompasses major tenants from various countries, representing around 8.1 million employees and 31.59 million square meters of office space.

Cameron Allens, head of Cushman & Wakefield's Global Occupier Services for the Asia-Pacific region, commented, "The results align with the information we receive from Fortune 500 clients. We are starting to see the next phase of the market cycle. Our clients are indicating that their office capacities are either nearing their limits or have already reached them, prompting them to evaluate available options in the near future."

Anshul Jain, who oversees tenant representation in the Asia-Pacific, pointed out that the combination of space optimization and a growing workforce is generating demand among mid-sized companies as well. He noted the challenges posed by the pandemic, such as rising interest rates and investment constraints, but mentioned that these pressures are beginning to ease. The return to work momentum is compelling tenants to invest in their office spaces, which is a notable change from earlier hesitation.

According to Jain, "We are undoubtedly approaching a turning point. It will take a few years for tenants to return to a growth level where they can actively consider office leasing contracts. However, based on our discussions with clients, we anticipate that multinational companies will seek larger rental spaces in key markets within the next 6 to 18 months."

Rob Hall, responsible for Integrated Portfolio Management, remarked on how large corporations are still investing in long-term real estate strategies despite the current economic uncertainty. He shared that tenants tend to approach rental real estate strategically over a longer time horizon, often looking at contract renewals and expirations in 3 to 5-year cycles. While some capital investments have been delayed due to ongoing uncertainties, he believes tenants will eventually execute their strategies.

The report highlights that while cost remains a crucial metric for CRE (Corporate Real Estate) professionals, companies are also integrating new indicators like workforce dynamics and corporate culture into their strategies. There is still significant pressure on tenants to manage costs effectively, but organizations are grappling with uncertainties in political stability and workplace behavior shifts that complicate critical strategic decisions.

As companies shift the focus of their hiring strategies, a flexible approach to recruitment is becoming necessary for attracting diverse talent across multiple regions. In the Americas, for example, hiring teams frequently recruit talent from any domestic city, while companies in EMEA (Europe, the Middle East, and Africa) are hiring globally within countries they already operate in. In the Asia-Pacific region, hiring is increasing in countries where companies previously had no presence. The demand for tech talent continues to rise, particularly in the Asia-Pacific, surpassing growth rates seen in the Americas and EMEA.

The ongoing evolution in the CRE sector indicates that it is poised at a crossroads. While managing costs is still a dominant concern, major companies are redefining the value of office spaces beyond financial metrics. According to Carol Wong, who oversees Total Workplace in the Asia-Pacific for Cushman & Wakefield, investments in CRE need to consider employee perspectives on return-on-investment. Employees are beginning to devote time, effort, and resources to returning to the office, which makes it vital for companies to demonstrate the benefits of such investments. This decision goes beyond property management to encompass productivity, talent acquisition, corporate culture, and competitive advantages, thus requiring a comprehensive strategic approach to CRE decision-making.

Overall, the Global Tenant Survey Report underscores a critical transformation in the corporate real estate landscape. It calls for a balanced approach, where long-term strategies blend traditional cost management with innovative measures that cater to the evolving needs of the workforce and corporate culture.

For further insights, you can download the full Global Tenant Survey Report, visit the dedicated website for the survey, or access the English version of the report.

About Cushman & Wakefield


Cushman & Wakefield (NYSE: CWK) is a prominent global commercial real estate services firm listed on the New York Stock Exchange. With approximately 52,000 employees in over 400 offices across 60 countries, we offer comprehensive services, including facilities management, sales brokerage, appraisal, tenant representation, leasing, and project management. Our company generated $9.4 billion in revenue for the year 2024, driven by our philosophy of


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