European companies are succeeding in increasing office attendance among their workers.
The rates of office utilization in Europe have been steadily rising, especially among the largest companies, as reported by a survey conducted by CBRE Group Inc. The survey shows that only a third of the companies now have office-utilization rates below 40%, a significant decrease from last year.
The increase in office attendance can be attributed to the implementation of return-to-work mandates, with 75% of companies now enforcing a minimum attendance policy, according to the commercial real estate services firm based in Dallas.
Factors such as smaller homes, improved public transport, and less urban sprawl have contributed to European workers returning to the office faster compared to their counterparts in the US, where office attendance levels remain lower than pre-pandemic times. This difference is reflected in the office market outlook, with vacancy rates in major US metropolitan areas standing at around 20%, more than double the average of 8.4% in Europe.
| Utilization Rate (% of desk capacity) | 2023 | 2024 |
|---|---|---|
| 0-25% | 11% | 4% |
| 26-40% | 37% | 29% |
| 61-80% | 12% | 14% |
| 81-100% | 3% | 0% |
Richard Holberton, CBRE’s head of European office research, stated, “Offices are returning to vibrancy and, while many see the current levels of utilization as stable, 30% of companies expect further increases. The general acceptance of hybrid working is widespread, but the challenge remains of matching employers’ expectations with that of their employees over the long term.”
The survey found that almost two-thirds of the largest companies in Europe, with 5,000 employees or more, have utilization rates above 40%. Prior to the pandemic, global offices recorded an average attendance rate of 65%, according to CBRE’s data.
