As businesses look towards the future of work in 2025, there appears to be a significant shift in attitudes regarding office environments and employee expectations, informed by the experiences of the pandemic and the rise of technological innovations. This evolution in workplace dynamics is analysed by Philipp Ueberschaer, a real estate expert from Knight Frank, who elaborated on these trends in a recent feature for City A.M.
Reflecting on how the pandemic transformed work practices, Ueberschaer noted that the global health crisis compelled companies to embrace hybrid working arrangements. Initially spurred by necessity, this evolution demonstrated the viability of remote work, fundamentally challenging the traditional view of the office as the primary place for work. The most notable change has been observed in the demand for offices, which has fluctuated across different cultures and sectors, influenced by varying infrastructure capabilities and corporate strategies.
Ueberschaer drew attention to Knight Frank's third quarter 2024 Global Corporate Real Estate Sentiment Index, where data suggest that a majority of companies have settled into a new equilibrium: employees are predominantly working in hybrid models. Importantly, the study reveals a surge in the adoption of artificial intelligence (AI) within workplaces, with 48 per cent of organizations anticipating a high degree of integration of AI technologies over the coming year. Despite such optimism around AI, the data indicates that most businesses do not foresee significant changes in their property portfolios as a direct result of AI. Specifically, only 10 per cent expect a slight decrease, and just one per cent anticipate a considerable downturn.
With the trend towards increased reliance on AI, Ueberschaer suggests that the implications for workplace design and function will be profound. The focus, he contends, should move away from superficial gimmicks and instead centre on fundamental aspects of the work environment. He highlighted a cultural shift in employee demands; while amenities such as cafés and entertainment gaming facilities were once considered appealing, these features alone have not successfully drawn employees back into the office. In his observations, locations with exemplary views and lavish offerings lacked sufficient occupancy, signalling that workers prioritise functionality and comfort over extravagant office features.
Ueberschaer argues that the post-pandemic office should emphasise sustainability, ultra-reliable connectivity, and health considerations, such as allowing windows to be opened for fresh air. He noted, “the reason people come in to the office is to work,” advocating that future office designs must create spaces that facilitate productivity and collaboration while catering to the changing balance between work and personal life.
As organisations adapt to this new landscape, Ueberschaer encouraged a return to basic principles in creating effective workspaces that meet the contemporary needs of employees. Acknowledging the lasting impact of the pandemic on workplace culture, he is optimistic that companies can recalibrate to foster an environment that supports the core purpose of work, bringing together function and comfort in a way that resonates with modern employees.
Source: Noah Wire Services