One in five companies looking to expand their office footprint are doing so as a result of over-contraction or higher than expected return to office, according to CBRE’s 2025 European Office Occupier Survey.
Key takeaways from the survey
- Business and headcount growth remain the number one motive for expansion
- Almost half of all companies expect employees in 3+ days a week
- Pipeline of new stock is a concern for 52% of those planning office moves in the next three years
Office Over-Contraction Drives Expansion Plans
One in five companies looking to expand their office footprint are doing so as a result of over-contraction or higher than expected return to office, according to CBRE’s 2025 European Office Occupier Survey. This compares to just 7% in the firm’s 2024 survey, demonstrating the difficulty in providing enough space to respond to fluctuating return-to-office policies and subsequent compliance levels.
While over-contraction has seen the greatest year-on-year shift, companies identified business and headcount growth as the number one reason for expansion. For those downsizing, the reasons are more diverse, led by the impact of hybrid work (70%) and cost (56%).
The disparity between employers’ expectations and employee’s attendance levels continue to stall office utilisation rates, with a weekly average of 46% and a 71% peak day average. According to the research, more than half of the respondents (54%) want 3+ days of attendance, but only 42% are achieving it. The gap is even more pronounced in the Financial Services (FS) sector, with 61% of firms wanting 3+ days of attendance, and only 32% meeting this target. As a result, 57% of FS companies expect attendance to increase further.
Companies Expect a Rise in Office Attendance
Across the board, companies are increasingly uncomfortable with current attendance levels, with 47% anticipating a rise in attendance, up from 31% in CBRE’s 2024 findings. The ability to create a vibrant, engaging office atmosphere was identified as the top challenge in achieving this.
Well-located and higher quality office space the most sought after among occupiers
The drivers behind choosing whether to stay in an existing office or move to a new one vary. Stay-go decisions are primarily driven by employee location preferences (72% renewals, 51% relocations), cost (68% renewals, 53% relocations), and sustainability (60% renewals, 58% relocations).
For those with relocation plans over the next three years, the supply of new stock is also front of mind. More than half (52%) are concerned about the availability of well-located and/or high-quality space, heightened for those in FS (63%), UK respondents (60%), Italy respondents (57%) and companies with more than 10,000+ employees (57%).
When asked which locations they were targeting for relocations, 47% of respondents pointed to Central Business Districts (CBD’s), with a shift away from outer ring suburbs. Nuances exist at a country level, with Spain, France, Germany, Italy and the UK putting a higher emphasis on CBDs at 67%, 64%, 62%, 62% and 55% respectively.
Cautious Approach to Real Estate Strategy
Companies are carefully assessing priorities and, as a result, are taking a cautious approach to their real estate portfolio strategy. Balancing costs, meeting sustainability targets, attracting and retaining talent, and concerns around the supply pipeline mean that one size does not fit all.
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*CBRE’s 2025 European Office Occupier Survey canvassed the views of 117 companies in Europe across nine sectors including FS, Tech, Media & Telecoms, Professional Services, Energy, Oil & Gas, Manufacturing, Industrial & logistics, Life Sciences and Healthcare.
