The Data-Driven Blueprint For Optimizing Corporate Real Estate In The Hybrid Work Era

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Paul Morgan
Paul Morgan is the Global Chief Operating Officer for Work Dynamics at JLL and leads its Workplace Management sub-business line that houses facilities management, technical services, energy and sustainability, and experience and occupancy services. His extensive global leadership experience encompasses account management, sales and business development, service execution, and strategic planning.

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:

  1. Understand and assess their data ecosystem
  2. Redefine optimization goals to align with dynamic business and human needs
  3. 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.

The Role of Data in Space Utilization

Organizations can’t achieve portfolio optimization without understanding how (and when) their spaces are being utilized. Today, companies should no longer be asking “Do we have enough space?” and rather, “Is the space being used well?”

Utilization rates — the percent of time individual seats are occupied over a specific time — are continuing to improve across the globe, with the Latin America region achieving 60% utilization in 2025, the highest of all regions. North America comes in the lowest at 48%. “Average daily peaks” is the most popular utilization calculation method, focusing on maximum daily attendance.

Myriad decisions should be driven by office utilization data, yet many organizations don’t have a handle on what data they currently have, what data they still need and how to turn that data into action.

In JLL’s report, it is noted that sixty-eight percent of survey respondents name “improving space data accuracy” as their primary goal, indicating a greater understanding of the important role data plays in workplace strategy decisions.

Many companies already have important infrastructure in place that can tell them how spaces are being used. However, most of these same companies are not leveraging those data sources to draw conclusions or adapt a strategy.

Some of the most underutilized data sources for space utilization analysis include:

  • IP connectivity / WIFI tracking: Detects when connected devices enter or move within a space, supporting measurement of movement patterns and dwell time
  • Desk and room booking systems: Growing in popularity as organizations implement more formal booking processes for shared spaces
  • IoT/AI sensors: A cost-effective solution for companies to understand how desks and common areas are actually being used
  • Room cameras: Many video conferencing systems include built-in sensors or AI features to confirm if and when meeting rooms are being used
  • Badge data: Remains the most common utilization tracking method, offering a cost-effective tool that leverages existing security systems
  • Visual observations and anecdotal floor ambassador intel: Useful despite the growth of more precise and automated tracking methods

The first step in this process is to assess what you already have. Even incremental bits of data can help make a step change in how companies understand their occupancy and how they provision space to support it.

Not all data sources tell a complete story, however.

Badge swipes, for example, tell when someone is swiping in, but don’t supply much insight as to how various spaces are used throughout the day. In fact, it’s possible the swiper arrives, enjoys a cup of coffee, and then leaves. Adding IoT / AI sensors to the technology mix can help analyze workplace usage, including desk occupancy and office density.

You must first have conversations with IT, AV vendors and facilities teams to understand what tracking methods are already in place and where the data sits.

With Data in Hand, Spaces are Evolving

When armed with real data, companies can design their spaces to support different workstyles and encourage a productive, in-office culture.

One of the most prominent changes noted in JLL’s report is the shift from permanent, assigned spaces to open seating. Shared open workstations, “touchdown” spaces and bench seating have become more prevalent, while dedicated offices and workstations have seen the most reduction.

More than 20% of survey respondents indicated they have increased the amount of shared open workstations in their office.

Organizations are also adjusting their allocation of shared amenity and function spaces. Thirty-five percent of respondents to the JLL report indicated a year-over-year increase in collaboration areas and phone rooms to their spaces, with focus rooms following closely behind.

Companies are beginning to understand the importance of not only collecting, analyzing and listening to data, but of taking action by redesigning their spaces to better support their occupants.

Your Space Strategy is now a Talent Strategy

Hybrid work is here to stay, but companies have a responsibility to foster the next generation of talent and provide a setting that supports career growth, visibility, and belonging.

Sadly, a sizable percentage of today’s workforce has had most of their professional career conducted through a video screen. Physical presence still matters for building relationships and advancing careers.

But now, as many companies find themselves at an evolutionary crossroads, they also have the power to leverage their real estate portfolio as a value driver.

When accurate data is merged with intentional hybrid strategies and inspirational workplaces, you have the recipe for business success.

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