Global Occupancy Benchmarks | 2022 Learnings, 2023 Vision—Unlocking Success in the New World of Work
Looking for the right workplace strategy for CRE success in 2023 can be challenging due to the constantly evolving dynamics of office utilization. Historical benchmarks and norms offer minimal context for the near- and potentially long-term future.
To help fill this gap, Basking has compiled valuable insights through its report on global workplace occupancy trends. Our team analyzed office utilization metrics, including peak occupancy rate, duration, frequency, and weekdays for office visits across different regions and city groups throughout 2022 and into 2023.
The findings indicate the materialization of new workplace occupancy patterns in the post-pandemic era, bringing to light the challenges of managing a workplace where empty desks one day can turn into overcrowding the next. Despite global trends, the data also shows high variability by region, emphasizing the importance of relevant and actionable data sources.
- Hybrid work is the new norm, informing employee expectations, experience, and utilization—and workplace strategy.
- The traditional “eight hours a day, five days a week” in-office work model is no longer valid, and CRE strategies must adapt to this new reality.
- Commute time is a critical factor for determining the success of RTO in a city. Employers must prioritize creating workspaces that boost employee satisfaction and productivity.
- Workplaces are the busiest during midweeks, creating avenues for financial and environmental savings as well as creative distribution incentives.
- Utilization data is the only way to respond to these changes in real time, and can unlock new opportunities for real estate management.
GLOBAL WEEKLY AVERAGE PEAK OCCUPANCY RATE STAYED BELOW 40%
In 2022, factors such as culture, demography, politics, and the pandemic have significantly impacted workplace occupancy trends in various markets.
IN US, CENTRAL REGION HAD HIGHEST WEEKLY AVERAGE PEAK OCCUPANCY RATE
In the US, significant differences in occupancy rates between regions further highlight the impact of external factors on the “Return-to-Office” trend.
“ONCE A WEEK” VISITS REMAIN MOST POPULAR
The rapid rise of hybrid work globally led to a shift in the purpose of the workplace, resulting in the emergence of new office usage patterns.
34% OF VISITS LASTED LESS THAN 6 HOURS
Flexible work has not only affected the frequency of office visits but also the duration of those visits.
OCCUPANCY DEVIATION WAS THE HIGHEST IN EMEA AND LATAM
The emergence of hybrid work has also presented opportunities for employers to reduce operational expenses by optimizing operations on low occupancy weekdays.
OCCUPANCY RATE FOR LARGE CITIES INCREASED BY 29% IN Q4 2022
Wide differences in workplace occupancy rates for different city groups can help understand the demand for commercial real estate in metro cities around the world.
MEGA CITIES HAD THE HIGHEST “ONCE A WEEK VISITS” EACH QUARTER
It is crucial for the real estate management to understand their employees’ mobility patterns to achieve their CRE Goals.
The shift in occupancy trends throughout 2022 underscores the speed of hybrid work adoption by companies across the globe. These dramatic changes in the workplace environment are driven by both employees’ demands and companies adjusting their expectations accordingly. At Basking, we’re committed to providing valuable insights that help our clients achieve their CRE goals. Whether it’s understanding the shifting dynamics of office space utilization or leveraging data to optimize real estate management, our team is here to help.
You can find Basking’s full report on 2022 Global Workplace Occupancy Data here, and don’t miss our recent webinar featuring David Mirmelli, Head of CRE EMEA with Fortinet, for a practical discussion of these insights and the key workplace trends they forecast for 2023. Contact us to learn more about how we can help you achieve success in 2023 and beyond.