The statistic is part of Cushman & Wakefield’s recent What Occupiers Want study.
More CRE teams now report to HR than to finance, corporate services or operations departments, signaling a shift in how companies view the role of the workplace, said Smith. Aligning CRE with HR demonstrates a commitment to prioritizing people, culture and the employee experience, and office space is increasingly seen as a strategic tool to enable productivity, engagement, well-being, connection and overall performance. This is particularly significant for companies trying to attract and retain talent in a hybrid work environment, he said.
Many companies continue to rely on traditional financial metrics to assess the effectiveness of their CRE assets, however. These metrics overlook non-financial measures such as morale, engagement and business outcomes, said Smith.
“It’s a little bit like measuring morale with a calculator,” he said.
Companies have an opportunity to develop cross-functional metrics that align real estate decisions with a wider range of business objectives beyond cost reduction.
“Office space isn’t just about managing square footage or cutting costs anymore,” said Smith. “It’s about enabling people to do their best work, supporting not just how they work, but how they feel, connect and thrive. It’s about being in an environment that’s intentionally designed to elevate their experience and their performance.”
