Global COO of Work Dynamics Paul Morgan unpacks JLL’s 2025 Benchmark Report, where leaders rank portfolio optimization as their top priority but admit execution gaps persist.
Originally published on Allwork.space
Creating the right office environment has never been more complex for today’s leading companies. Several key dynamics are creating tension between the C-suite, business leaders and employees as organizations try to balance employee experience and space utilization with financial objectives.
Many companies want to enhance the workplace with an eye on the bottom line, but don’t know where to begin.
JLL recently released its 2025 Global Occupancy Planning Benchmarking Report, bringing together insights from 99 organizations, collectively representing more than 745 million square feet of space around the world. The findings indicate that companies are moving beyond the initial adjustment period of hybrid work and now need to optimize their portfolios for performance.
The Blueprint for Optimizing CRE Portfolios
A holistic approach can help occupiers take data and turn it into an actionable strategy. To get started, companies need to:
- Understand and assess their data ecosystem
- Redefine optimization goals to align with dynamic business and human needs
- Commit to intentional hybrid strategies that balance flexibility with purpose
This article dives into each of these in more detail, but let’s start with the trends driving workplace strategy today.
Macro Trends Note Shift in Priorities
Corporate real estate leaders responding to JLL’s survey indicated that their number one occupancy planning priority in 2025 is portfolio optimization.
Optimization used to be synonymous with “reduce square footage,” but now, it must focus on so much more, including measuring and improving performance, reducing cost, increasing flexibility, and enabling growth. Sounds easy, right?
The challenge comes with the push-pull from differing stakeholder perspectives, and hybrid work is the key variable underpinning the conflict.
For example, a CFO might be fixated on how space currently under lease is not being fully used. The business leaders are likely to be focused on getting people back in the office and making them productive.
Meanwhile, the workforce doesn’t necessarily want to return five days a week, citing more comfortable working conditions at home or a desire to skip the commute altogether.
Hybrid work is nothing new; it certainly pre-dates the COVID-19 pandemic, but what is new is the amount of flexibility that today’s workforce demands. Companies must navigate these differing stakeholder priorities while also being able to predict workforce shifts and macroeconomic variables.
An added challenge is that many companies are trying to do all of this without reliable data or forecasting tools.