Many employees continue to resist employers' calls to return to the office due to noise, lack of privacy, and the fact that many offices still lack the comfort of home, according to a JLL analysis.

Addressing Issues

Companies are addressing these issues with better workspaces. However, a major obstacle often exists: rising costs for construction, materials, and durable accessories like soundproof phone booths or electrical equipment.

Worldwide, labor shortages and wage increases exacerbate the problem. In EMEA alone, labor costs have risen by over 12% in the past 12 months, and the average fit-out cost has increased by 5.2% year-on-year, according to JLL's latest Fit-Out Cost Guide.

In Asia Pacific, material price increases have stabilized, but high energy costs and supply chain disruptions remain factors, while in the Americas, evolving office design strategies and tenant demands drive up costs.

"Supporting both hybrid and face-to-face work comes at a price," says Andrew Hudson, Senior Director of Project Execution at JLL PDS. "It requires adaptability, collaborative and private space, multifunctional rooms, and integrated technological solutions—all involving capital expenditure."

Technology Takes the Lion's Share of the Budget

Despite more employees being in the office, the complexity of hybrid work means they may still be involved in calls with colleagues working elsewhere. This is why technology that supports seamless collaboration and immersive meeting experiences tops wish lists.

"A much larger portion of the fit-out budget is spent on better technological solutions, larger high-definition screens, better sound, and tracking cameras to better reflect in-person meetings," says Hudson.

JLL's Global Technology Survey found that over three-quarters of corporate real estate leaders are investing in better office technology, while the 2024 Global Occupancy Benchmarking report shows that 39% have specifically improved conference room technology.

However, technology alone won't improve productivity. "It's crucial to train your people on how to get the best out of it," says Romeu Carpinteiro, Head of Commercial Operations at JLL's design and fit-out company, Tétris.

It's a familiar problem for many. Cisco found that seven out of ten employees reported competency issues with video conferencing platforms and cloud-based document sharing, while two-thirds said current meeting rooms are inefficient.

Occupancy sensors, plus those supporting wellness and sustainability goals by monitoring light and air quality or energy usage, are also commonly used.

With 86% of CRE leaders focused on cost reduction, Carpinteiro says this investment in technology can quickly pay for itself. "It helps reduce total operating costs and provides concrete ROI metrics after training."

Adaptability Generates Value

Many firms struggle to balance the need for collaborative space with individual work. JLL found that just over half of the time spent in the office was dedicated to individual tasks.

Hudson says there is now much more consideration for purpose-driven layouts and how the space will be used—rather than just how it looks. "Different types of lighting, furniture, plants, and acoustic finishes, for example, can tangibly affect comfort levels and positively contribute to productivity and experience."

Adaptability is key to increasing ROI, he says. "We're increasing flexibility in both fit-out and furniture solutions, based on human experience-driven design."

This human-centered vision guided the office fit-out for Diaego, which has three zones adapted for the vibrancy and level of privacy needed for different activities.

Carpinteiro says modular, mobile furniture, partitions, and booths allow for changes in the workspace from day to day or from morning to afternoon. They also help manage costs by making the most of, in some cases, a reduced office footprint. Recycled and reused furniture is also often seen as a cost-effective and sustainable solution.

Shifting from quantity to multifunctional quality raises different questions. "Instead of how many desks we can fit, we look at how many types of experiences we can fit in the space," he says.

Take TravelPerk, which incorporated an "Arrivals Lounge" at their office to encourage informal and collaborative work, while a large bistro area provides flexible community space that can be transformed to suit different purposes.

Hudson emphasizes that staying flexible, listening to employees, and making small adjustments over time is how you can continue to get value from your fit-out dollars.

Carpinteiro agrees. "It's vital to track whether both the business and employees are getting what they need. But by placing people at the center of your strategy, you'll win."