Welcome to WorkplaceBytes – August 2025, a rundown of articles and reports on the future of work, office occupancy trends, and how workplace leaders like you are blazing new trails as teams adjust to the new workplace.
Here’s what’s making news this month:
- More companies are finally hitting their office attendance targets – CBRE’s latest survey of 185 real estate executives shows 72% of organizations are now meeting attendance goals (up from 61% in 2024), with smaller firms leading the way.
- Skilled freelancers may be more future-ready than employees – Upwork’s Future Workforce Index reveals freelancers are outpacing full-time workers in AI adoption, renewable energy skills, and software development, while staying more energized through self-directed learning.
- AI is helpful – but human insight still matters most – LinkedIn’s global survey finds 57% of workers are optimistic about AI, yet nearly half feel overwhelmed learning it. When it comes to career moves, professionals still rely most on colleagues, managers, and mentors . This finding underscores the role of the workplace and employee satisfaction in the modern enterprise and the need to consider AI impacts on work as we move ahead with workplace optimization.
- Employee engagement has flatlined – Gallup reports only 32% of employees are engaged. Disengagement is costing the global economy $438B annually, underscoring the need for leadership training and support. Now, more than ever, we must recognize the essential role that workplace leaders play in creating environments that foster collaboration and engagement.
- Gen Z Is craving offices for community – A Bupa survey of 8,000 workers finds 45% of Gen Z are seeking jobs with more social interaction. Loneliness is driving the shift, though hybrid balance remains the goal.
Corporate real estate is at an inflection point – Three big trends are shaping up for 2025: balancing efficiency with long-term growth, building AI-ready data foundations, and repositioning CRE as a strategic driver of talent and culture.
Let’s dive in!
More companies are finally hitting their office attendance targets
Office attendance targets once felt like wishful thinking. But according to CBRE’s newest research, more companies are actually hitting those goals in 2025. CBRE surveyed 185 corporate real estate executives. These companies ranged from 500 employees to 10,000, and the findings show a noticeable shift compared to just a year ago.
Hitting attendance goals (mostly)
One of the biggest takeaways? More companies say they’re actually meeting their in-office attendance targets. This year, 72% of organizations reported hitting their attendance goals, up from 61% in 2024. It suggests that either employees are adjusting, companies are being more realistic, or most likely a bit of both.
Policies, monitoring, and enforcement are all on the rise
It’s also clear that organizations are getting more structured about their approach:
- 85% now communicate an attendance policy, compared to 80% last year.
- 69% are monitoring attendance, a big jump from last year’s 45%.
- 35% are enforcing attendance policies, more than double the 17% who said the same in 2024.
Smaller companies lead the way
Smaller companies want people in the office an average of 3.4 days per week, and employees are actually showing up – wait for it – 3.4 days.
Larger companies expect 3.1 days, but employees are averaging 2.5 days.
Overall, across all companies, the expectation sits at 3.2 days in office, while the actual attendance is averaging 2.9 days.
The four-to-five-day crowd grows (slightly)
26% of employers now require four to five days in the office, up from 23% last year. Not a seismic shift, but still notable.
Small spaces, big potential: Rethinking the modern office
A survey of 99 organizations with more than 745 million square feet of office space, shows just how much things are changing.
Companies are shrinking and sharing space
To adjust, employers are rethinking how much space they need. The trend is clear: less dedicated space, more sharing.
- 17% are reducing enclosed offices (compared to just 3% increasing them).
- 13% are trimming open workspaces (again, only 3% are adding).
Offices and workstations themselves are shrinking too. Most companies want enclosed offices under 125 square feet and workstations under 50 square feet – both smaller than today’s averages.
Goodbye reception desks, hello focus rooms
The classic office setup is changing as well. Companies are cutting things like reception areas, file storage, and copy rooms. In their place? More practical spaces for today’s needs: phone booths, lockers, and small huddle rooms for quick collaboration or privacy.
The new role of the office
The modern office has a dual role: it’s both a collaboration hub and a quiet space for focused work.
That balance – between cutting costs and creating spaces employees actually want to use – is what’s shaping the next chapter of workplace design.
Skilled freelancers are shaping the future of work
We all know the world of work is shifting fast. According to the World Economic Forum, nearly 40% of worker skills will be transformed or outdated within the next five years. For freelancers – who don’t have the benefit of corporate training programs or HR-led development – that raises a big question: can they keep up?
A new report from the Upwork Research Institute suggests not only are they keeping up, but in many cases, skilled freelancers are outpacing full-time employees when it comes to future readiness.
Freelancers lead in growth areas
When it comes to expertise in high-demand fields, freelancers are pulling ahead:
- 31% report extensive experience in renewable energy and sustainability (vs. 17% of full-time employees).
- 29% are building and training machine learning models (vs. 18–20%).
- 35% bring deep experience in software development (vs. 28%).
This suggests that freelancers are leaning into the work that’s growing fastest.
In our own work with clients, we are seeing more top workplace teams making special considerations for freelance workers – especially as more of these contract employees are required to abide by company workplace attendance policies.
Learning on their own terms
Both freelancers and employees are hungry to keep learning, but the how looks different. Full-time employees rely more on formal company training, while freelancers take a broader approach:
- 64% engage in self-directed learning.
- 41% pursue certifications.
- 28% use apprenticeships and mentorships (vs. 20% of employees).
Getting ahead with AI
Freelancers are particularly strong when it comes to AI. More than half (54%) report advanced or expert-level skills with AI tools, and 62% use them weekly – higher than their employee counterparts. Importantly, 84% are excited about AI’s potential to reshape their work, rather than worried it will replace them.
Three trends reshaping corporate real estate in 2025
According to a recent study, Corporate real estate (CRE) is in the middle of a major transformation. As hybrid work stabilizes, AI becomes more practical, and organizations demand more value from their space, CRE leaders are being pushed to rethink everything from portfolio strategy to team capabilities. Here are three key trends shaping the year ahead.
1. Portfolio transformation in a post-hybrid era
Hybrid is no longer an experiment – it’s the norm. Most companies are settling around 3 – 4 days in the office as a baseline, but expectations are still shifting. Nearly 43% of organizations expect office days to increase in the coming years, signalling eventual portfolio growth.
For CRE leaders, the challenge is balancing two competing priorities:
- Short-term efficiency (optimizing space today).
- Long-term expansion (future-proofing for growth).
Some companies are taking a strict office-first stance, closely monitoring compliance, while others are leaning into employee choice and experience – investing in workplace services and community to draw people back in. Either way, the “human experience” is rising in importance. Real estate is being reimagined as a holistic environment for collaboration, learning, and well-being.
2. AI-Enabled workplaces demand data readiness
AI is no longer just hype – 92% of executives believe it will reshape the workforce within five years, and 90% plan to accelerate AI investment. For CRE, this means shifting from traditional workplace management to data-driven decision-making.
Occupancy sensors, analytics, and visualization tools are providing more insight than ever into occupancy and utilization. But most organizations are still early on the maturity curve. To make AI real, leaders must:
- Build data readiness (infrastructure, policies, governance).
- Close skills gaps with training and cross-functional partnerships.
- Experiment through collaborations with startups, research centers, and innovators.
The payoff? Smarter, more efficient portfolio decisions- and workplaces that adapt in real time to how people use them.
3. Reinventing CRE as a Value Driver
For decades, CRE was seen as a cost center. Now, it’s being repositioned as a strategic value driver tied to culture, talent retention, and innovation.
To get there, CRE leaders need to reimagine their roles. Technical expertise in leasing and transactions still matters, but tomorrow’s leaders must also be:
- Strategic thinkers with financial and tech fluency.
- Strong collaborators with HR, IT, and finance.
- Advocates for employee experience.
Forward-looking organizations are also rethinking delivery models – outsourcing some technical activities, monetizing underused assets, and even building innovation labs to drive new ideas. Training, mentorship, and rotational programs will be essential to develop the next generation of CRE leaders.
AI at work: Helpful, but no substitute for human insight
A new global survey from LinkedIn reveals how professionals are really feeling about AI in the workplace and the results show a mix of optimism, pressure, and a strong belief in the continued value of human judgment.
The promise vs. The pressure
AI tools are showing up everywhere at work, but they’re also creating tension. According to LinkedIn’s research:
- 57% are optimistic about AI making daily work life better.
- But 51% feel they aren’t realizing AI’s full potential.
- And nearly half (46%) say learning new AI tools feels like taking on a second job.
In other words, people see the benefits – but they’re still struggling to keep up.
Human insight still rules
Despite AI’s rapid rise, the majority of professionals believe that human judgment is irreplaceable:
- 82% say trusted human insight will remain essential.
- Yet, 28% admit feeling embarrassed about their AI knowledge.
- And 32% feel nervous even talking about AI at work.
That blend of confidence in humans and uncertainty around AI highlights the growing need for support and guidance – not just tools.
Where people turn for advice
When it comes to real decisions – like whether to ask for a raise or change careers – AI isn’t the first stop. Only 25% would trust tools like ChatGPT or Copilot for this kind of guidance. Instead, professionals lean on:
- Colleagues (51%)
- Friends and family (44%)
- Managers (35%)
As LinkedIn career expert Brendan Wong put it: “AI gives us access to information, but it’s colleagues and mentors who help us make confident decisions.”
This is great support for the essential role that workplace leaders play in creating environments that foster collaboration and engagement. It reinforces the importance of data-driven decision-making and how workplaces must evolve to reflect the ways our work lives are changing. Daily tasks are evolving, work time is becoming more collaborative, and workplace leaders are at the forefront of reflecting these changes in engaging workplaces that maximize productivity and employee engagement.
Low engagement, high stakes: Why leadership matters more than ever
Employee engagement is stuck in a rut – and Gallup’s recent research shows just how serious the problem has become.
Engagement has flatlined
According to Gallup’s mid-year data, only 32% of employees feel engaged at work.
Managers are feeling it too
Managers themselves are running out of steam. Engagement among managers slid from 30% to 27% in just one year. Some groups are feeling the strain more than others:
- Younger managers (under 35): down 5 points
- Female managers: down 7 points in both engagement and wellbeing
- Older managers: down 5 points in wellbeing
Why does this matter? Gallup estimates that 70% of the variance in team engagement comes directly from the manager. If they’re disengaged, their whole team feels it.
This isn’t just a “soft” problem – it’s an expensive one. Gallup puts the global price tag of low engagement at $438 billion in lost productivity. And beyond dollars, morale is slipping: in the U.S., employee enthusiasm is at its lowest point in a decade, and overall life satisfaction has dropped across nearly every demographic.
What leaders can do
The good news? There’s a clear path forward. Gallup’s advice is simple but powerful: invest in managers.
Right now, only 44% of managers worldwide have received leadership training. But those who do – especially when paired with coaching or someone who encourages their development—are far more likely to thrive. And when managers thrive, so do their teams.
At XY Sense, we also believe that more engaging and built-for-purpose workplaces can play a key role. Spaces that foster relationships, collaboration, mentorship and positive daily experiences can play an important role in enhancing worker engagement.
Back to the office? For Gen Z, it’s about people, not policies
For years, the debate around returning to the office has centered on employers pushing people back in – often under the banner of “culture” and “connection,” while employees suspected it was more about keeping tabs. But a new Bupa survey of 8,000 workers suggests a different twist: 45% of Gen Z are actually considering jobs with more in-person social interaction.
Why the shift? Loneliness. 38% of Gen Z workers say their current work setup leaves them socially isolated – a higher rate than any other generation. Interestingly, even those living the so-called dream – influencers and content creators – reported the highest levels of workplace loneliness. Nearly half (45%) said their work made them feel lonely, and a third are even considering moving back into traditional full-time jobs in the next five years.
The reality check
Of course, this doesn’t mean Gen Z is clamoring for a 9-to-5, five-days-a-week office grind. Other surveys show only about 1 in 10 young workers want to be in the office full-time. Instead, they’re craving a balance – enough office time to connect, collaborate, and feel part of something, without giving up the flexibility of hybrid work.
That’s it for this month’s edition of WorkplaceBytes. We hope you enjoyed the read.
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