The European Investment Atlas Q1 2025
Bucharest, June 2025 – Approximately 40% of office building occupiers require employees to work from the office 2 or 3 days per week, while 1 in 8 tenants is planning to expand its office footprint. These are among the key findings of the “What Occupiers Want 2025” report, based on a global survey conducted by the Cushman & Wakefield real estate consultancy company.
The era of portfolio contraction is easing. Over the past two years, two-thirds of occupiers have reduced their footprint, with only 32% planning further reductions. Most are now shifting from reactive downsizing to proactive portfolio management.
Following post-pandemic shrinkage, office lease sizes are rebounding, with the average lease growing by 13% in the past two years.
Occupancy levels are stabilizing, thus the average office occupancy reached 51–60%, indicating a settling point for many organizations. While this is still below pre-pandemic utilization rates of 65-75%, usage is steadily rising.
Globally, more organizations are shifting their policies to encourage in-office presence. However, regional differences persist, with 20% of Americas-based organizations reporting utilization above 50%, compared to over 40% of businesses headquartered in EMEA and APAC.
The report also analyzes how office space selection criteria have evolved over time, as well as regional differences in occupier priorities.
Cost continues to drive real estate strategies, with pressure to reduce and control spending remaining as strong as ever.
Real estate leaders across industries worldwide view cost as their organization’s primary business challenge and the key driver of real estate decision-making. As a result, financial metrics have become the cornerstone of these decisions, with real estate strategies overwhelmingly shaped by financial KPIs—the most familiar and widely used benchmarks.
However, the concern isn’t just about cost, it’s also uncertainty. The biggest obstacle to action is lack of clarity. Political and economic instability, shifting workplace behaviors that challenge the purpose of the office, and difficulties in forecasting and measuring ROI are shaking confidence.
Meanwhile, ESG is losing traction—at least on the surface. Globally, its strategic priority ranking has dropped from No. 5 to No. 8, returning to 2021 levels. However, the picture is more nuanced across global regions. ESG holds greater significance in EMEA and APAC, with European occupiers often ranking it as a top priority, frequently in the No. 1 or No. 2 spot. In addition, larger organizations tend to prioritize ESG more highly.
In Romania, the local context adds an interesting dimension: the relatively young commercial stock offers a competitive advantage for investors interested in sustainable assets, as modernization costs are lower. Additionally, non-financial reporting obligations and tenant requirements are prompting landlords to upgrade buildings to ESG standards, even as cost pressures remain high.
Another key conclusion of the study is that tenants want more and are willing to pay for it. Occupiers now expect more than just quality office space. They’re looking to landlords to provide amenities, services, and community-focused events within and beyond the workspace. This sentiment is clear, with 85% of occupiers seeking enhanced landlord support. Nearly half (46%) are willing to pay a premium for better amenities and services.
The office’s primary purposes remain fostering collaboration, relationships and company culture. Yet, only about 60% of employees believe their office meets these needs.
Mădălina Cojocaru, Partner Office Agency, Cushman & Wakefield Echinox: “Cost pressure is the direct result of the growing competition for high-quality, yet easily accessible office spaces. Location remains essential: tenants seek buildings near major transportation hubs which offer a generous number of parking spaces. Moreover, the buildings’ surroundings are becoming increasingly important, as the nearby services must be well-clustered and integrated into a clear commercial concept which brings value to both employees and visitors. In this context, real estate strategies are no longer just a matter of square meters, but they are also centered towards the people’s real needs. In Romania, the demand recovery is supported by a modern stock of buildings which are highly attractive for sustainable investments. In an uncertain economic climate, companies are now focusing on solutions which optimize costs while also offering a better office experience.”
What Occupiers Want explores the evolution of strategic decision drivers, trends in location and workplace, and perspectives on changes to portfolios. Each issue has a specific area of focus. Globally, over 235 CRE leaders completed the What Occupiers Want survey in H1 2025. Respondents represent companies with 8.1 million employees globally and approximately 32 million sqm of office floor area.
