Office Attendance Monitoring: Trends and Concerns
Return to the Office Gains Momentum, With Companies Tightening Attendance and Eyeing Expansion
The push to bring employees back to the office is gaining significant traction, with attendance rates higher than at any time since the pandemic’s onset, according to a new report from CBRE. While fully remote and hybrid models still exist, a clear trend toward increased in-office presence is emerging.
Nearly three-quarters of the 184 companies surveyed by CBRE report meeting their attendance goals, a significant increase from 61% last year. This is coupled with a jump in monitoring and enforcement: 69% of companies are now tracking attendance, up from 45% in 2023, and 37% are actively enforcing attendance policies, compared to just 17% last year. Companies are aiming for an average of 3.2 days a week in the office,though actual attendance remains slightly below that target.
“I think it was pretty loosey goosey for the last year or two, and I think the companies have got a lot better at that right now,” said Manish Kashyap, CBRE’s global president of leasing. “They’re coming up with policies that allow hybrid structures and allow flexibility, but whatever their new policy is, their implementation around that, and the governance around that, is definitely a lot better.”
This renewed focus on in-office work isn’t necessarily signaling a complete abandonment of flexibility. Rather, companies are refining their hybrid strategies and implementing more robust systems to ensure adherence.
Office Footprints Stabilize,and some even Grow
Interestingly,more companies are now considering expanding,or at least maintaining,their office space,reversing a trend of downsizing seen in recent years. The slowdown in new office development and the rise in conversions to residential properties are also contributing factors.
According to the survey, 67% of companies plan to keep their office footprints the same or expand them within the next three years, up from 64% a year ago. Expansion plans are largely driven by business and headcount growth. The percentage of companies planning to reduce their office space has decreased to about a third, down from 36% last year and 53% in 2023.
Despite ongoing economic concerns and potential tariffs, companies are demonstrating a willingness to commit to long-term leases, suggesting a growing sense of stability and clarity around their future workplace needs.
“You have organizations that finally have clarity and decision making, because they’ve been living in this world of hybrid for so long, and now they know what it truly looks like for them, so all those decisions that they may have put off, even if there’s a little bit of economic uncertainty right now, they’re still willing to move forward with some additional deals,” explained Julie Whelan, CBRE’s global head of occupier research.
Demand for High-Quality Space Outpaces Supply
While overall office vacancies remain elevated at 18.9% – just under the 30-year high of 19% – nearly half of the surveyed companies expressed concern about the availability of high-quality office space over the next three years. This concern is especially acute regarding prime space, which represents only 8% of the total office inventory but boasts significantly lower vacancy rates.
The focus is shifting towards creating more effective and collaborative workplaces. “For many, office footprints now are smaller but more effective and better tailored for collaborative work,” Whelan noted. “Employers are much more focused now than they were pre-pandemic on quality of workplace experience, the efficiency of seat sharing and the vibrancy of the districts in which they’re located.”