Navigating uncertainty in CREM: Quantitative, qualitative and location-related adaptation of offices in times of structural change

Martin Christian Höcker, Kyra Voll, Andreas Pfnür and Jens Schlüter
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Martin Christian Höcker: Research Assistant, Department of Law and Economics, Technical University of Darmstadt, Germany
Kyra Voll: Research Assistant, Department of Law and Economics, Technical University of Darmstadt, Germany
Andreas Pfnür: Professor of Real Estate Economics and Construction Management, Department of Law and Economics, Technical University of Darmstadt, Germany
Jens Schlüter: work-in-fusion, Berlin, Germany

Corporate Real Estate Journal, 2025, vol. 14, issue 4, 391-406

Abstract: Corporates worldwide are in the midst of structural change. This not only requires a transformation of corporates and their business models but also a change in how employees work in offices. Therefore, to adapt flexibility, offices must adapt to this change as they no longer fulfil the requirements of corporates and their employees. So far, there is still uncertainty among corporate real estate managers about the necessary quantitative, qualitative and location-related adjustments of offices. This study aims to fill this gap. To this end, the key results of a survey of 25 German corporate real estate managers are presented. The results obtained from expert interviews and a quantitative survey are outlined and discussed. Quantitative change in the corporates’ office portfolios is analysed. In addition, evaluations of criteria for high-quality office space are presented and the future importance of office location criteria is examined. The results represent one of the first comprehensive analyses of the expected adjustment of offices from the perspective of corporate real estate managers. They suggest a quantitative reduction in the corporates’ office stock. Furthermore, the results suggest that space planning must continuously align with the users’ requirements. In addition, corporates are still hesitant to realise space reductions. The qualitative upgrading in the ‘flight to quality’ of offices is reflected in the adaptation of space to the new role of the office in a hybrid working world. However, the quality standards that have been applied to date must still be addressed. In addition, the previously overlooked potential of specific space criteria is becoming apparent. Regarding the location-related adaptation of offices, the results reveal that in the future, corporates should focus on central locations with a lively environment. For corporates, the results thus provide a foundation for making informed decisions and implementing the transformation of their offices.

Keywords: business transformation; corporate real estate management (CREM); office; flight to quality (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2025
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