Office Users' Growth Expectations Hit 5-Year High

Demand for top quality office space could continue its upward climb as the percentage of office occupiers expected to grow their footprints in the next three years is at its highest level in five years. 

With more companies adjusting leases signed before the pandemic, the share of office users planning to grow or maintain their square footage rose from 64% last year to 67% in 2025, according to CBRE's 2025 Americas Office Occupier Sentiment Survey. 

Just one-third of companies expect to decrease their office footprint over the next three years, which is down from a peak of 53% in 2023.

“If people are trying to save money right now as related to the office, it’s through rightsizing the office,” said Jamie Hodari, CBRE CEO of building operations and experience and chief commercial officer, according to a Facilities Dive report. “It is not through down-grading the office.” 

Companies with less than 500 employees are the primary drivers of leasing activity. More than half of all transactions during the first half of 2025 were for leases between 10K SF and 20K SF. 

The percentage of small companies planning to maintain or expand their real estate portfolios in the next three years rose from 85% last year to 96% in 2025. 

Companies with 10,000 or more employees are the most likely to contract, as 60% of those plan space reductions compared to 18% of smaller companies.

Nearly half of those who responded to the survey said they are already concerned about the availability of quality office space in desirable areas despite the nation’s overall 19% vacancy rate approaching a record high. That concern is most pronounced among office users in space deemed Class-A or above, though it is also present for those in Class-B and Class-C buildings as the pipeline of new product dwindles across the country.

Vacancy among prime office locations is more than 4 percentage points lower than nonprime space as users clamor for quality buildings in walkable environments connected to desirable attractions.

Owners of Class-A office space in well-connected areas should expect spillover demand from tenants unable to secure prime real estate. 

The need to add more employees due to a growing business was the biggest reason for planned expansions, though 19% of companies cited an overcontraction during the pandemic or rising return-to-office activity as their reasons. 

Of the companies that do foresee contraction in the years ahead, 85% said it would likely be minimal to moderate reductions. The increase of hybrid work opportunities is the biggest reason for possible downsizing, followed by inefficiencies in companies’ real estate portfolios that predated the pandemic. 

The report also found that offices are effectively at capacity on peak attendance days for 73% of companies compared to 34% of organizations hitting that level with their average attendance.

The percentage of companies that said they have met their office attendance goals rose from 61% last year to 72% in 2025.