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Following the launch of the fourth edition of the , bringing together insight from leaders representing 268 companies, Lee Elliott, Partner, Global Head of Occupier Research, explores four of the key challenges facing corporate real estate (CRE), and why now is a pivotal moment for the sector.

Challenge #1: CRE has reached its defining moment 鈥� the time for action is now

Q: The phrase 鈥渄efining moment鈥� features prominently in this year鈥檚 (Y)OUR SPACE findings. What鈥檚 driving this momentum for change?

LE: A large majority of CRE businesses have held on to their pre-COVID real estate footprints, but now need to make decisions about what鈥檚 right for them going into the next cycle. The markets, however, are moving against occupiers - economic pressure, rising costs, and tighter supply are forcing businesses to reassess what they really need.

We believe that 2025 will be a decisive year. If action isn鈥檛 taken now to rightsize and reshape portfolios, time 鈥� and options 鈥� will run out.

Q: Will this result in downsizing?

LE: It鈥檚 about rightsizing. That means getting a portfolio fit for purpose - not cutting space for the sake of it. Over identified portfolio rightsizing and achieving agility as most likely to influence their real estate strategy over the next 3-5 years. The best-informed occupiers are already moving on this, and those who delay may find themselves stuck with ill-fitting space or scrambling in tighter markets.

Challenge #2: No portfolio is safe from disruption 鈥� and this will drive demand

Q: What鈥檚 causing this disruption?

LE: Post pandemic, we have a set of businesses that are very heavily disrupted and need to do things differently. That disruption could be caused by transformative pressures 鈥� such as having the right digital platform in place; AI completely revolutionising the way we work 鈥� or wider geopolitical pressures, supply chain challenges, tariffs or tax changes. Businesses are transforming, and real estate needs to follow. Your Space highlights that no portfolio will be untouched by disruption, and as a result all occupiers will need to deliver some degree of change in their real estate to match the change the business is going through.

Q: How are CRE leaders responding to this disruption?

LE: Businesses are trying to adapt, but the scale of change is huge. Rightsizing, managing location strategy, integrating new technology - all of it is driving demand for new thinking and solutions. We鈥檝e : portfolio strategy and transformation are top priorities.

Challenge #3: The workplace is being reimagined 鈥� performance, not presence, is the benchmark

Q: Workplace has very much been a focus since COVID. Has there been a shift?

LE: Initially, it was all about bringing people back - trying to make returning to the office as enticing as possible through amenities and experience. But what we鈥檙e seeing now is a pivot to performance; less flash and more function in terms of amenities - what matters is productivity, and for that we need Wi-Fi that works, air con that doesn鈥檛 fail, and tech that supports hybrid working.

Reimagination needs to be grounded; it should be less about gimmicks and more about enabling people to do their best work.

Challenge #4: CRE leaders are keen to rise to the challenge 鈥� but are typically sidelined and underpowered

Q: Can you explain more about the disconnect between the desire for change and the ability to deliver?

LE: Our respondents were clear about the challenges and keen to solve them, but a large proportion are lacking strategic engagement with their own business. Too often, real estate is brought in late, after the planning has taken place, and CRE teams told they must deliver against a strategy they weren鈥檛 part of shaping, which means drawing on additional support, either in house or from an external supplier.

Q: Do you believe that鈥檚 a problem for transformation?

LE: Yes. We know that real estate is a strategic device, and that getting it right can support different agendas 鈥� from brand and sustainability goals to wellbeing. But it鈥檚 most effective if it鈥檚 part of the conversation at the outset. Businesses need to accept that CRE should be a strategic imperative and ensure that it is resourced properly. Otherwise, they鈥檒l keep playing catch-up while the business moves on.

As disruption within the sector accelerates and transformation becomes non-negotiable, aims to provide a platform to support those ready to rise to the challenge. Over the next 24 months, the campaign will come to life through insights, anthologies and digests designed to help occupiers understand what鈥檚 changing, and act on it.

To find out more about the campaign, visit .

To stay up to date with all the latest insight from the (Y)OUR SPACE campaign,