Hybrid Working Reshapes the Workplace Landscape

The hybrid workplace model has gained traction among organizations in the post-pandemic era, primarily driven by the need to optimize real estate portfolios and reduce long-term occupancy costs. This shift towards flexible working arrangements empowers companies to adapt quickly to changing market conditions and operational demands. By strategically integrating remote and in-office work, organizations can scale their workspace requirements up or down as needed. However, successfully transitioning to a hybrid workplace model requires careful management of changes in work styles, as well as consideration of the various settings in which employees thrive.

For hybrid programs to succeed, organizations must establish clear policies, design offices that support flexible working and invest in tools for hybrid collaboration. This includes creating physical layouts that encourage teamwork and implementing digital platforms that ensure effective communication across diverse work environments.

According to the recent Global Office Benchmarking and Client Sentiment surveys by CBRE—the leading international property consultant, most organizations require employees to spend at least half of their time in the office, while less than 10% mandate full-time office attendance. Notably, 63% of these organizations have office portfolios primarily designed for activity-based working, and 44% of respondents are incorporating change management and technology investments into their flexible working strategies.

“The rise of hybrid work has significantly impacted the demand for office space. Since 2021, the widespread adoption of hybrid workplaces has led to a 30% increase in space sharing, reflecting a shift in how companies utilize their physical environments. Today’s demand for office space is not driven solely by headcount but by a combination of business requirements, workplace policies and employee behavior,” Ms. Chotika Tungsirisurp, Head of Research and Consulting at CBRE Thailand, said.

CBRE’s Workplace and Occupancy Management survey reveals that many organizations are achieving office occupancy rates above 100% through space sharing. This indicates that more staff are assigned to an office location than there are workspaces available at that location, reflecting the shift towards a hybrid workplace. However, actual global space utilization rates remain below 40%, highlighting that despite extensive planning, less than 40% of workspaces are fully utilized.

While improved planning efficiency can lead to portfolio optimization and eventual cost reductions, the low utilization rate reveals a critical imbalance between space supply and demand. Underutilized space is a top concern for corporate real estate (CRE) leaders, prompting many organizations to implement or expand utilization management solutions to better support flexible working. Moving forward, the focus will be on increasing space sharing while eliminating underutilized areas to achieve effective portfolio optimization in the hybrid workplace.

Our recent Global Office Benchmarking and Client Sentiment surveys included nearly 1,000 buildings across the Asia-Pacific (APAC) region, encompassing almost 6 million square meters of office space. This comprehensive data set enables us to identify key trends that organizations can leverage to enhance their workplace strategies, particularly in the context of the hybrid workplace model. Regionally, all three key office metrics—utilization rate, occupancy rate and average square meters per person—indicate that APAC has the most efficient office space globally, with this efficiency improving over the last three years. In 2023, occupancy rates reached 125%, utilization rates stood at 40%, and density metrics were at 12 square meters per seat and 9 square meters per person.

Around 90% of APAC respondents reported only a 10% change or no change in their portfolio size since 2020, with no significant reductions noted. Moreover, one-third of APAC respondents expect their portfolio size to increase, the highest proportion among all regions. APAC has also achieved the highest alignment between leader expectations and employee behaviors at 50%, compared to the global average of 19%. This may be attributed to APAC’s higher rate of tracking employee attendance and enforcing consequences for not adhering to policy. By analyzing these metrics, companies can better understand their unique challenges and opportunities related to flexible working, leading to more informed decision-making in their real estate planning.

“To optimize a real estate portfolio, organizations must have a consistent, recurring process for modeling and responding to ongoing changes in space supply and demand. This shift in strategy not only helps organizations reduce operational costs but also aligns their real estate investments with future trends in workplace behavior, positioning them for long-term success in an environment prone to rapid change. The process starts with a deep understanding of the current portfolio, employee behavior, workplace policies, business requirements and headcount projections. This data can be used to calculate the space required for the hybrid workplace and to facilitate flexible working for current and future employees. Once space needs are understood, scenario plans can be developed to assess the costs and benefits of potential changes,” Ms. Chotika added.

Most office tenants in Bangkok are multinational companies that continue to adapt to various forms of hybrid working. As such, office developers will also need to adjust and provide spaces that support hybrid workplace setups and flexible working arrangements.

This evolution in the market underscores the importance of aligning real estate offerings with the changing needs of businesses and their employees, ensuring that all stakeholders can thrive in a dynamic work environment. By embracing these changes, the industry can foster innovation and enhance workplace satisfaction and productivity for all involved.