Corporate real estate is entering a new era. The focus is shifting from simply managing space to enabling transformation, flexibility, and performance. This blog explores the key findings from Knight Frank’s (Y)OUR SPACE 2025 report, spotlighting how CREs are tackling today’s biggest challenges and preparing for the trends that will shape the future of office.
What is (Y)OUR SPACE 2025?
(Y)OUR SPACE is Knight Frank’s flagship global research initiative, offering a deep dive into the rapidly evolving world of corporate real estate (CRE). The 2025 edition highlights insights from global CRE leaders, revealing the shifting priorities, rising pressures, and strategic opportunities shaping the future of real estate management.
Top 3 Biggest Challenges
1. Business Growth and Transformation
Corporate Real Estate (CRE) leaders are under increasing pressure to deliver more value. According to the report, the biggest hurdle is a lack of strategic alignment, with 39% of respondents stating that CRE is often involved too late. This leads to costly misalignment, inefficiencies and missed opportunities. Only half of CRE teams are formally involved in strategic planning, while 8% report no involvement at all. At the same time, 65% of leaders are concerned about ongoing macroeconomic disruption, prompting the need for greater agility and scenario planning. The message is clear: CRE must move faster, flex more and be brought in earlier to shape strategy, not just execute it.
2. Portfolio Management
The CRE is now a strategic lever for business transformation. Rightsizing cited by 55% of respondents is the top challenge, as companies recalibrate portfolios to fit hybrid work models, reduce unused space, and control costs. But rightsizing doesn’t always mean shrinking. It often involves investing in smarter, more flexible, better-located spaces. Organizations are also relocating offices and functions to better support resilience, talent access, and performance. In addition, for 17% of the respondents ESG (Environmental, Social and Governance factors) considerations are becoming essential with companies embedding sustainability, diversity, and ethics into their real estate decisions. New challenges like supply chain fragility and reshoring are also influencing portfolio strategies. Overall, CRE must adopt a data-driven, ecosystem mindset, managing portfolios with agility and aligned cross-functional collaboration.
3. Workplace Management
Workplace strategy is now at the core of CRE. With hybrid work becoming the norm and employee expectations rising, companies are rethinking how office space can be optimized. The top challenge, according to 30% of respondents, is improving space utilization.
Other critical issues include:
- Aligning workstyles and workspace (25%)
- Delivering meaningful amenities and services (19%)
- Bringing change to the design and configuration of the workplace (17%)
- Mobilising workplace technology and data (9%)
The office is no longer just a cost, it’s a strategic tool for engagement, innovation, and performance. To unlock its full value, CRE must work in tandem with respective business leaders, backed by real-time data and a clear understanding of how work happens today.
Top 3 Trends Shaping Real Estate Strategy over the next 3-5 years
1. Balancing Growth and Innovation with Cost Control
Striking the right balance between innovation and cost control defines today’s corporate real estate strategy. While companies strongly aim to modernize portfolios through technology and transformation, they must ground these efforts in financial discipline, especially amid a still-fragile and highly volatile macroeconomic environment. As highlighted in Changing Tact, many occupiers are now taking a more analytical approach to space usage, shifting their focus from sheer presence to measurable return on investment (ROI).
2. Uncertainty and Volatility in the Operating Environment
Corporate real estate strategies are being fundamentally reshaped by ongoing geopolitical and economic turbulence. From inflationary pressures to geopolitical fragmentation, volatility has become a structural reality. In response to this trend, occupiers are building greater resilience and adaptability into their portfolios. This includes:
- Favoring shorter lease terms
- Designing adaptable configurations
- Engaging in rigorous scenario and contingency planning
Rather than waiting for stability to return, organizations are proactively embedding agility into their real estate decisions ensuring they remain responsive in an unpredictable world.
3. Workstyle Evolution
As hybrid work becomes embedded in the corporate fabric, companies are reimagining the role of physical space. The office is no longer a fixed destination. It is now seen as a dynamic tool for connection, collaboration, and culture-building. This shift reflects a broader trend: designing spaces that enable purpose-driven interactions rather than simply accommodating people. Supporting this 18% of respondents suggest moving away from flashy, status-driven amenities in favor of functional, intentional workplace design.
Read more on the findings from last year’s (Y)ourSpace 2025 here: knightfrank/yourspace2025
Your trusted CRE partner
As the role of corporate real estate continues to evolve, having the right partner is key to staying ahead. Whether you’re rightsizing, reimagining your workplace, or expanding into new markets, aligning real estate with strategy has never been more critical. At Santos Knight Frank, we bring together global insight and local expertise to help your business make smarter real estate decisions.
Looking to future-proof your real estate strategy? Reach us at +63 917 806 6315 or email at inquiry@santos.knightfrank.ph.
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