The silent workspace risks leaders can’t afford to ignore

When early real estate decisions are overlooked or treated tactically, the risks don’t always appear immediately, but compound over time, and by the time they surface, are costly, disruptive, and difficult to reverse.

In one recent engagement, a global organisation approached us with its growth and restructuring plans already underway. As real estate had not been embedded in early strategic discussions, the business had already committed to long-term leases based on assumptions that no longer reflected its operating model, resulting in underutilisation of space. Although we were able to restructure certain elements and unlock significant savings, the financial impact of entering the conversation too late was considerable and could have been avoided.

The latest (Y)OUR SPACE survey findings correlate with this example, highlighting that one of the most persistent challenges for business leaders is the alignment of real estate with overarching business strategy.

Of the 300 senior corporate real estate (CRE) leaders surveyed - directly responsible for more than 650 million sq. ft of space globally - 39% said that real estate too often “enters the room” after the business strategy has been set. The result is a growing misalignment between business ambition and the spaces that need to support a workforce’s evolving needs.

Below, we explore three of the most common - and least visible - risks that emerge when real estate is treated as a support function rather than a strategic enabler.

1. Committing to space that doesn’t give you flexibility as your business changes

Overcommitting to space based on assumptions about headcount, growth and structure can lock in cost and limit agility. The workspace landscape is far from linear or predictable:

headcounts fluctuate and expansion may be uneven across teams or markets, with some sectors scaling rapidly, others operating in cycles, and some entering new geographies with no certainty on scale or duration.

It is essential to build in optionality for longer-term business changes: while initially a space may appear appropriate and costs manageable, misalignment builds over time, resulting in underutilised or overcrowded environments, inflexible cost bases, and a reduced ability to respond to opportunities or risks.

2. An imbalance between workspace and ways of working

Workplace strategies are often fixed, but ways of working continue to evolve, so boards need to plan for continued change. Hybrid working may have stabilised, but it has not standardised, and different teams are using space in very different ways.

Leading organisations are already rethinking the role of the workplace, moving beyond presence alone and towards spaces designed for progression. Offices are increasingly being reimagined as development hubs, with classrooms, learning studios, auditoria, and flexible collaboration environments that support culture, creativity, and connection.

When these shifts aren’t accounted for, productivity and engagement can erode gradually, undermining both performance and talent retention. A recent survey from Mitie found that poorly designed and maintained workplaces could potentially be costing the UK economy £71.4 billion in gross domestic product (GDP) every year.

3. Leaving value on the table when finding your next workspace

What ultimately determines long-term success is how well a space performs over time: financially, operationally, and environmentally. Failing to plan far enough in advance for your next office can impact the quality of your future workplace, particularly when there is an imbalance between supply and demand.

Shaping long-term performance drivers early - such as sustainability integration, lifecycle cost efficiency and adaptability of design, means alignment between occupier, landlord, developer, contractor, and design team.

Carbon performance can be influenced, operational efficiency can be modelled, and flexibility can be embedded into design and lease negotiations - but only if these considerations are prioritised before commitments are fixed.

The risk is lost potential. Once agreements are signed and designs are set, the ability to materially influence long-term performance reduces significantly.

Early involvement unlocks resilience

Although any of these issues in isolation may not be responsible for impacting growth overnight, gradual increases in costs, reduced adaptability, and limited strategic choice can limit effectiveness, workplace planning, and talent retention.

Building flexibility and resilience into workspace strategy as early as possible is how organisations stay ahead of uncertainty, ensuring real estate supports growth, adaptability, and long-term performance, rather than constraining it. 

To understand timelines, and how this might impact the next review of your workspace, please get in touch.