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The return-to-office (RTO) landscape in 2025 is shifting as companies solidify long-term workplace strategies. While strict in-office mandates are increasing among major corporations, hybrid work models remain dominant. Leasing activity is stabilizing, but full recovery to pre-pandemic levels is still uncertain.

Key Takeaways:

• Corporate Realignment on RTO: Companies are either committing to full in-office policies or structured hybrid models, influencing leasing decisions and office utilization.
• Leasing Trends Vary by Market: Manhattan’s office leasing volume is surging, while tech-heavy markets like San Francisco are still seeing high vacancy rates.
• Federal Push to Return to Office: Government policies may accelerate office utilization, particularly in Washington, D.C.
• Space vs. Headcount Mismatch: Despite office-using employment increasing 5.3% since 2019, occupied office space has declined by 4.3%, signaling lasting hybrid work adoption.
• The Evolving Role of Office Spaces: Companies must design purpose-driven environments that enhance collaboration, productivity, and engagement, rather than simply mandating in-office presence.

While return-to-office strategies continue to evolve, the most successful organizations are focusing on workplace flexibility, real estate optimization, and employee experience to navigate this new era of office dynamics.