European Office Markets Face Pressure to Adapt as Occupier Demands Shift
The latest CBRE survey highlights the persistent gap between employer requirements and employee office attendance across Europe. While more than half of companies expect staff to work in the office at least three days a week, only 42 percent report that this level of attendance is achieved. The survey, which involved 117 European firms including those in the Czech Republic, illustrates the challenges organisations face in balancing hybrid work with workplace strategies.
The financial services sector shows the widest disparity, with 61 percent of firms demanding attendance three days a week but only 32 percent of employees complying. Simon Orr, Head of Tenant Representation at CBRE Czech Republic, explained that employees often avoid offices that feel half-empty, creating a cycle in which absence reduces workplace appeal. Average office utilisation across the week stands at 46 percent, rising to 71 percent on peak days, and technology companies in particular have seen higher use as work-from-home policies tighten.
One of the most significant developments is the growing demand for flexible office solutions. By 2027, companies expect these to account for nearly a third of their portfolios, up from just over a fifth today. The main motivation is the ability to adjust space without heavy upfront costs, as well as to align more closely with hybrid working patterns. CBRE also found that the traditional model of assigning one desk per employee is disappearing rapidly, with far fewer companies planning to maintain it in the coming years. According to Helena Hemrová, Head of Office Leasing at CBRE Czech Republic, firms are increasingly measuring the return on their office space in terms of occupancy, employee satisfaction, costs, and environmental performance.
JLL’s recent European outlook reinforces CBRE’s findings, noting that while companies remain cautious, leasing activity is improving as occupiers seek to secure suitable space in competitive markets. Cushman & Wakefield adds a sharper warning, pointing out that more than 70 percent of Europe’s office buildings could be obsolete by 2030 without substantial upgrades. With much of the stock more than 30 years old and only a small fraction modernised in the past decade, landlords face rising pressure from occupiers and regulators to deliver sustainable and flexible buildings.
Although office space reductions have dominated in recent years, CBRE notes that the trend is easing, with fewer companies planning further cuts and some beginning to expand again. Yet occupiers looking to relocate are increasingly concerned about whether high-quality offices in desirable locations will be available, particularly as public transport access and sustainability credentials remain top priorities. Analysts suggest the European office market is entering a stabilisation phase, with demand consolidating around modern, efficient and well-connected space, while outdated properties face growing risk of declining value.
Source: CBRE, JLL and Cushman & Wakefield
