RTO experience crucial for workplace efficiency, employers say

A new report showed that nearly half (48 per cent) of small businesses are looking to upsize their offices and make improvements to their work environment – in a plan to improve workplace effectiveness.

In August 2025, commercial real estate services and investment firm CBRE published its 2025 Asia Pacific Office Occupier Survey, which provides insight into “evolving office occupancy trends and corporate real estate strategies” to increase workplace efficiency and effectiveness.

The report found that 76 per cent of occupiers expect three to five days of office attendance weekly, up 6 percentage points year on year.

Additionally, it found, “82 per cent of respondents reported consequences for employees failing to comply with return-to-office protocols”, which is up from 66 per cent in 2024.

“Our survey underscores a clear flight-to-quality and flight-to-core trend across the region,” said Ada Choi, head of research at CBRE for the Asia-Pacific region.

Moving and growing

CBRE revealed that smaller companies (in finance, legal, and tech) have the biggest desire (48 per cent) over the next three years to expand their offices to drive workplace performance and productivity.

Larger companies, on the other hand – especially those in tech and finance – are “rebalancing portfolios and improving space utilisation under stricter return-to-office policies”.

The central business district (CBD) remained the most favourable office location, according to the survey. It said that 65 per cent of respondents preferred CBD core locations, whereas 32 per cent preferred the CBD fringe. In contrast, less than 30 per cent of respondents favoured non-CBD locations.

Head of leasing at CBRE for the Asia-Pacific region, Tom Gaffney, said: “Securing quality CBD space has become increasingly competitive across Asia-Pacific.”

CBRE said that “in Australia, companies in Sydney prefer to be in core areas as the best locations are seen as key to attracting and retaining talent”.

Gaffney said: “Availability is concentrated in non-CBD areas, making it more challenging for companies to secure high-quality CBD office space.”

Worth the trip?

Respondents reported a link between office attendance and performance reviews at a rate of 50 per cent – up from 29 per cent last year.

“Many are adjusting workplace strategies to support expansion or encourage greater in-office attendance,” CBRE said.

It highlighted that over 70 per cent of employers reported that onsite experience is crucial for workplace efficiency.

CBRE found an increased emphasis on employee experience and workplace optimisation – 58 per cent of respondents reported that enhancing employee experience and optimising the workspace for better performance and efficiency were their top priorities this year.

Better amenities (62 per cent) and commuting times (42 per cent) received the biggest rise in importance for employees compared with last year’s data. It noted: “This reflects a prominent flight-to-quality trend, with occupiers wanting to improve their employees’ journey to and from the office.”

The firm also observed: “Buildings near public transportation and with good access to F&B are in demand as these features can directly enhance employees’ return-to-office experience.”

CBRE explained: “These goals are driving occupiers to relocate to better locations and upgrade quality, fostering higher engagement and productivity to support business growth amid global economic uncertainty.”

Choi said: “Occupiers are balancing expansion, workplace efficiency, and employee engagement against economic uncertainty, shaping a complex and evolving real estate landscape that demands flexible, forward-looking approaches.”