Global firms target over 100 mn sq ft workspace: Knight Frank survey

Knight Frank's (Y)OUR SPACE report finds companies are not abandoning offices but seeking better, flexible, ESG-compliant spaces despite global uncertainties

Betting on the future of offices, global corporates are eyeing over 100 million square feet of new workspace worldwide, as they seek to expand and build resilience in their business portfolios amid economic, geo-political and technological disruptions across the world, real estate consultancy Knight Frank revealed in its report on Monday.

 

The fourth edition of Knight Frank (Y)OUR SPACE survey gathered insights from around 300 corporate real estate leaders responsible for managing over 650 million square feet (mn sqft) of office space worldwide.

 

“Occupiers are cutting loose from legacy portfolios, but they are not abandoning space, they are moving to better space, and into more locations in some cases, as they regionalise their portfolios. The trend is already playing out in major markets where demand is tilting toward buildings that offer adaptability, experience, and ESG credentials, particularly in cities that combine global reach with local talent,” said Lee Elliott, partner and head, Global Occupier Research, Knight Frank.

 

The report revealed that 50 per cent of respondents expect their total footprint to grow over the next three to five years, translating to an estimated 104 million square feet of additional space. Notably, 27 companies plan to expand by over 20 per cent, potentially generating 49 million square feet of demand from these firms alone. 

 

A majority of corporate real estate leaders, about 63 per cent, are concerned about economic and geopolitical volatility, but rather than stalling decisions, companies are responding proactively. They are incorporating flexibility into their space strategies through shorter leases, adaptable formats, and diversified locations that mitigate risk and enhance access to talent.

 

Despite some high-profile mandates requiring employees to return to the office five days a week, Knight Frank reports that only 10 per cent of respondents expect to adopt a fully in-office model. Instead, 46 per cent anticipate a hybrid setup, 22 per cent plan to be office-first, while just 7 per cent prefer remote-first, and only 4 per cent aim for a ‘work from anywhere’ model.

 

On the other hand, 33 per cent of respondents identified improving workplace utilisation as their top challenge. With hybrid work becoming the norm, leaders are shifting focus from occupancy to outcomes, designing offices that enhance engagement, foster culture, and boost measurable productivity.

  Shishir Baijal, chairman and managing director of Knight Frank India, noted that office leasing across the country reached 71.9 million square feet in 2024, marking a 21 per cent year-on-year growth. He added that 2025 has started on a robust note, with Q1 leasing activity touching 28.2 mn sqft, up 74 per cent compared to the same period last year. 

According to reports, Samsung India has recently leased about 60,000 square feet of workspace from shared office space provider WeWork, while adding 1,000 desks. Earlier in June, EV major Tesla leased its fourth office in the country, with 4,500 square feet in Mumbai’s Kurla location. German IT firm Nagarro leased about 700,00 square feet in Gurgaon for GCC operations.