According to CBRE’s 2024 European Office Occupier Sentiment Survey, efforts to bring employees back to the office over the past year have generated high degrees of success.
Key findings that feature in occupiers’ decision-making processes
1. Office attendance is rising: 61% of companies report average utilisation of between 41-80%, compared with 48% of companies last year. And nearly a third of companies expect a further increase in attendance levels.
2. Attendance policies are being implemented: Over 75% of companies now have some form of attendance policy in place, but it is only mandatory for around half of these.
3. Portfolio reductions are anticipated: Nearly 60% of companies expect a reduction in their portfolio size over the next three years, but a quarter expect to expand.
4. Workplace effectiveness is a focus area: Two-thirds of companies think that their workplace is effective in fulfilling its purpose, but only 46% are actually measuring this.
5. The focus on sustainability is intensifying: Over 80% of companies have publicly stated net zero targets. Only just over half have a digital strategy and roadmap.
Higher office utilisation
According to the research, the proportion of companies reporting average building utilisation of 41-80% has risen to 61%, up from 48% in 2023. Conversely, the proportion of companies reporting lower utilisation has fallen, with only a third reporting utilisation of 40% or below, compared with nearly half of the companies surveyed last year.
The largest companies (5,000 employees or more) are achieving more success, with nearly two-thirds of this cohort reporting utilisation of 41% or higher, a result of both natural momentum and the increased use of mandates.
The proportion of employees going to the office three or more days a week has risen to 43%, compared with 37% in 2023, reflecting the increase in average utilisation. This suggests that the higher utilisation rates are mainly due to employees visiting the office more frequently, instead of stemming from companies reducing their portfolio size.
Although operating at lower overall utilisation levels, smaller companies are seeing an improved rate of high-frequency attendance. According to the findings, companies with less than 5,000 employees have seen an 18% increase in the four‑to‑five-day group. This is even more pronounced for companies with less than 1,000 employees, with 31% of this cohort achieving four-to-five-day attendance.
Parallel to rising utilisation rates, the implementation of mandates also continues to grow. CBRE’s research found that more than three-quarters (76%) of companies have some form of attendance policy in place, although only 40% said that the policy is mandatory. A further 17% of respondents said that office attendance decisions are made within individual teams, indicating that there is no ‘one size fits all’ approach to monitoring and enforcing mandates.
Office portfolio consolidation
Further consolidation is expected despite increased momentum and higher levels of office attendance. Just over half (57%) of companies plan to decrease their portfolio size over the next three years, likely due to larger companies carrying surplus space and the need to reduce real estate costs.
Nevertheless, portfolio consolidation is not universal. A number of companies (17%) plan to maintain their current portfolio size, and according to CBRE’s research, a further 24% said that they plan to expand. Almost three-quarters (74%) of this group cite anticipated business growth as the key driver.
Most of those looking to reduce their footprint plan to do so by exercising lease expirations. However, 58% of respondents said they are likely to renew existing leases where they remain fit for purpose, as landlords are increasingly willing to negotiate and offer more flexibility.
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Nordics / Norway: Christer Farstad
Sweden: Anders Hansén
Denmark: Michael Jahn
Finland: Niko Penttinen
