Mandates, amenities, location among several factors driving occupier decisions in major global markets

A handful of years beyond one of the most disruptive events of our time - the global Covid-19 pandemic – the effects on the office sector are still pervasive. Many assets within the U.S. and abroad have been so negatively impacted by the workforce operating en masse from home, as well as the shift in work patterns that followed, that they are anticipated never to recover. Even so, there is resiliency within the sector, and many properties are even thriving.

Return to office mandates and flight to quality are unquestionably at the center of today’s office forecast. While more workers are now back in the office, at least part of the week, there is visible variation in the intensity of the mandates across industries, companies, and individual markets. Office experts cite the impact of commutes on occupier decisions, and professional development opportunities encouraging employee office attendance outside of what is mandated.

“There is a definite return to office happening,” says Tripp Guin, SIOR, Principal and Broker-in-Charge at Charlotte, North Carolina-based Tripp Commercial, a tenant representation firm providing guidance on acquisitions, dispositions, site selection, complex transaction negotiations and more. “Many companies are moving to a four-day work week, with Friday being a flex day. Remote jobs are harder to get and, as more people work from the office, dress codes are getting stricter.”

Guin points out one meaningful benefit that in-office workers have over their remote counterparts. “There’s obvious proximity bias in the workplace,” he says. “If a manager needs help with something, he or she is likely to pick someone down the hall to help and, over time, that individual may be more likely to garner advancement opportunities simply by being present.”

While the U.S. has seen a significant amount of its workforce steadily move away from the remote model, so too have other countries. In some places, the return has happened more rapidly.

“Return to office activity has been stronger in the UK than in the U.S.,” says Chris Aquilina, SIOR, Senior Director of Spring4, a boutique tenant representation firm operating in London, across the UK and worldwide. At Spring4, Aquilina and his colleagues provide professional real estate, project management and portfolio services to commercial occupiers, offering deep expertise in the office sector. He notes that many workers within London and the UK are now in the office three or four days per week.

“We experienced the same issues and lockdowns with Covid,” he says. “However, we got back into the office quicker and in stronger numbers than the U.S., with the financial and legal industries being the initial drivers of those mandates.”

Those industries have been early advocates for return to office in U.S. as well. Says Guin, “In the U.S., financial services, legal and large enterprise occupiers have been more stringent about this from the start.”

South of the U.S., in Central and Latin America, the workforce has also migrated back. Alvaro Cortes, SIOR, Senior Advisor at Cushman & Wakefield and Member of the SIOR Global Business Growth Group and SIOR Tenant Rep and Corporate Services Committee, is based in San Jose, Costa Rica and cites post-pandemic absorption as a key indicator of the trend.

“Data indicates gross absorption of office space in Costa Rica returned to pre-pandemic levels, with approximately 1.5 million square feet absorbed in 2024 and about 1.2 million square feet in 2025,” he says. “We are also seeing lower vacancy rates in countries like Guatemala and Dominican Republic due to their quality inventory having low availability, as well as their more conservative approach to Hybrid/Remote work,” he adds.

As a representative for multi-national companies, specializing in site selection and workplace strategy across Central America and the Dominican Republic, Cortes keeps close watch of the metrics across his territories, and monitors how the hybrid work model influences space requirements.

“While many have returned to the office, the direct link between job growth and real estate demand remains broken,” he says. “Hybrid work policies now dictate space needs, rather than headcounts.”

Flight to Quality and Shrinking Footprints

Cortes is pointing to shrinking occupier footprints. “Small footprint leases up to 500 square meters have grown from about 60-62% to 69% of the market, post-pandemic,” he says. “Likewise, large leases of 2,000 square meters or more have decreased from about 13-14% to 9% of the market.”

Guin affirms the same trend is occurring within U.S. markets. “Companies want less square footage, but higher quality space,” he says. “Class A buildings are taking the lead on leasing and the market is separating. Class B and C properties are getting left behind.”

Notably, in London and the UK, the trend toward smaller footprints isn’t as pronounced. “We are not really seeing companies seeking smaller spaces,” says Aquilina. “It goes back to the fact that if you want your staff back in the office, you have to provide better spaces.”

Convergence of Location and Amenities

Class A properties are noticeably in the highest demand across all the regions Guin, Aquilina, and Cortes cover. However, more factors influence occupier decision making today. Infrastructure, design, functionality, amenities, location, and commuter impacts are all critical factors.

“The winning assets are the Class A and Class A+ buildings that feature modern infrastructure and strong amenity packages, and that support hybrid work models,” says Cortes. “Competitive offerings are key.”

Commutes, which may not have been as widely considered by employers before the pandemic, have become central to occupier site selection.

“Commuting is such a pain point, with traffic and poor public transportation in certain areas,” adds Cortes. “We are now looking closely at commuting analysis data to identify the location that minimizes travel time for a company’s employee base, even if that location happens to fall in a non-traditional area. Ultimately, the ‘one size fits all’ approach has been replaced by the ‘one size fits one’ model.”

Speaking of transportation impacts to office marketability in London, Aquilina concurs. “Major employment centers, such as Canary Wharf, experienced an exodus of companies because the location outside the city center was no longer desirable to workers with longer commutes or that had to navigate lackluster transport centers to make it into the office. We are only just now seeing companies revisit Canary Wharf as an option because the Class A office market has become so tight in central London.”

Amenity demands have also clearly shifted from the novel to the practical and functional. Aquilina says in his markets one of the most in demand office amenities for companies and workers is ‘end of ride’ facilities. “So many people ride a bike to work, and they want quality bike storage, lockers, showers and towel service.”

In the U.S., Guin points to highly functional and flexible office space, with health and wellness features, along with any amenities that make the work day feel better as a primary occupier focus. “It’s no longer about having something like a ping pong table,” he says. “People want gathering spaces that are comfortable and feel more like a living room. They want to feel at home when they are at work.”

Says Cortes, “In Central America, workers want outdoor spaces, parks, walkability and dining options across a range of prices. This allows them to have a walking meeting outdoors, a quick lunch with co-workers, or take an important client to a fancier meal. Onsite gyms also offer real benefit to employees, along with tangible, financial savings benefit.”

Observations from Guin, Aquilina, and Cortes reflect employee and employer considerations impacting the continued return to office movement. Occupiers expect the ‘flight to quality’ trend within the U.S. and across European and Latin American markets to continue. However, it is clear none of these trends presents uniformly across countries, markets and industries. Real estate remains a local business, with each market a microcosm showcasing its own unique dynamics.