4 Proven Ways to Cut Corporate Real Estate Costs in 2025

Corporate real estate remains the second largest expense for organizations worldwide, behind salaries. As hybrid work evolves, the pressure to demonstrate ROI on physical spaces is increasing exponentially and is now a must-have, not just a financial exercise. 

Recent data shows that 92% of organizations now use a hybrid work model, yet average office utilization hovers around just 35%—a 45% decrease from pre-pandemic levels. This disconnect between space supply and actual usage presents both a challenge and an opportunity for forward-thinking organizations.

In this post, we’ll explore the most effective strategies for reducing corporate real estate costs in 2025 while enhancing workplace experience and supporting sustainability goals.

1) Data-driven portfolio optimization.

The foundation of any successful cost reduction strategy is comprehensive workplace data. Without accurate utilization metrics, organizations risk making decisions based on assumptions rather than reality.

Key actions:

• Implement workplace analytics tools that provide real-time visibility into how spaces are actually being used
• Track critical metrics beyond traditional square footage per person, focusing on metrics like cost per visit and collaboration effectiveness
• Use predictive analytics to forecast future space needs based on attendance patterns and organizational growth

According to CBRE’s 2024 Workplace & Occupancy Insights report, organizations are increasingly prioritizing workplace effectiveness metrics over traditional space-per-person calculations. This shift reflects the understanding that the value of office space now lies in its ability to support collaboration and employee experience rather than simply housing desks.

2) Dynamic space management. 

Static office configurations designed for maximum capacity are so 2019. Dynamic space management allows organizations to adapt their spaces to fluctuating attendance patterns.

Key actions:

• Implement desk sharing and hoteling systems to increase utilization rates
• Create neighborhood-based layouts that can flex based on team attendance
• Reduce dedicated seating in favor of activity-based workspaces
• Automate space allocation based on real-time demand

Organizations implementing dynamic space management have achieved 65% increases in space utilization rates and reduced their real estate portfolios by 30-40% on average, translating to millions in annual savings.

3) Use different metrics to uncover cost-cutting opportunities.

Office occupancy rates collected from badge swipes have been making weekly headlines for quite some time. However, merely measuring how many people come into the office is no longer a sufficient metric for measuring office performance.

This inability to measure actual performance leaves CRE leaders blind to additional cost-cutting opportunities.

The problem lies both in the metrics themselves and how data is collected.

Occupancy data from badge swipes is an either/or metric. It can’t factor in hybrid work patterns. Employees are either in the office or they’re not.

How long they’re in for, what spaces they’re using and whether their attendance is just performative (i.e. coffee-badging) all remain a mystery.

Space utilization rate, on the other hand, measures how effectively employees are using a given space. That space could be as macro as an entire building or as micro as a small meeting room. Data is collected from workplace occupancy sensors, WiFi signals and workplace booking systems.

Space utilization rate is a comparative metric, yielding data on office performance over the week, the popularity of different types of spaces and which spaces aren’t generating any ROI.

Using space utilization as a performance metric helps CRE leaders:

• Pinpoint where investments aren’t generating enough return




• Rightsize use of energy, facilities management services and resources in proportion to how much employees use a space




• Pinpoint where to cut costs and where doing so could damage workplace experience.

For example, using space utilization, FM teams could predict how much food to order for the cafeteria on each day. This slashes costs and emissions from food waste.

Closing off underused floors and zones to employees on low utilization days, reduces the frequency of cleaning and maintenance. That’s a hefty cost reduction in addition to the lighting, heating and air conditioning that’s no longer needed either.

4. Align Corporate Real Estate Strategy with ESG Goals

Sustainability is no longer just a nice-to-have—it’s becoming a business imperative with direct financial implications for corporate real estate. In many regions, new regulations are encouraging building owners and operators to reduce emissions, with significant fines for non-compliance.

Key actions for sustainable corporate real estate:

• Use occupancy data to right-size spaces, reducing both costs and carbon footprint
• Implement energy-efficient technologies and practices
• Track and report on sustainability metrics to meet increasing disclosure requirements
• Consider sustainability performance when evaluating lease renewals or new locations

Building operations are responsible for a whopping 28% of carbon emissions globally, so reducing portfolio sizes and unnecessary use of energy can make a massive dent.