The federal government’s return-to-in-person work mandate has created significant leverage to push for a return to in-office work across the private sector. With the largest employer in the United States setting a precedent, companies can more confidently implement similar policies, knowing they are aligned with federal standards.
Although this alignment can help mitigate resistance from staff and provide a framework for enforcing in-office attendance, organizations across the nation are grappling with how to bring people back. The approach varies significantly depending on the market sector, with some opting for incentives while others are leaning toward mandates. Occupiers are left wondering: What strategies are companies employing to encourage a return to the office? What are the broader implications for the office real estate market?
Incentivize or mandate?
One of the critical questions facing business leaders is whether to incentivize staff to return to the office or to mandate it. The federal government’s mandate for full-time in-office work provides leverage to companies, potentially making it easier to enforce similar policies. However, the effectiveness of this approach can vary.
Several major companies have opted to mandate a full return to the office. For example, Amazon has announced plans to require staff to be in the office five days a week starting this year. Similarly, JPMorgan Chase, Goldman Sachs, and Tesla have all implemented policies requiring full-time in-office attendance. These companies believe that in-person work fosters better collaboration, innovation, and productivity. Some of these mandates have been met with resistance and logistical challenges due to insufficient workspace.
In contrast, other companies are focusing on incentives to encourage staff to return to the office. This approach is particularly prevalent in sectors with highly competitive talent attraction and retention. Companies are investing in high-quality work environments, such as A+ buildings with amenities like indoor pickleball courts, high-end cafes, valet services, and enhanced communal spaces. These buildings are typically located in vibrant, desirable areas, such as city centers, business districts, and suburban business parks, offering convenient parking or access to public transportation.
Luxury amenities are only one strategy companies are using to attract staff to the office. Many are also offering flexible work schedules, commuter benefits, and wellness programs to make the transition back to the office smoother. By creating a more attractive and supportive work environment, companies hope to encourage staff to return voluntarily.
Market trends and real estate implications
The office real estate market is undergoing a significant transformation as organizations reevaluate their space needs. A clear trend has emerged: tenants are moving away from older, underutilized Class B and C buildings in favor of smaller, high-quality spaces in prime locations. This “flight to quality” is reshaping demand across U.S. metro areas.
Rather than leasing larger, outdated offices, companies are choosing to invest in Class A or trophy buildings that offer modern amenities, flexible layouts, and walkable urban environments. Many are willing to pay a premium for these upgraded spaces, even if it means downsizing overall square footage.
This shift was accelerated by the pandemic, which allowed business leaders the opportunity to reassess their real estate strategies. Whether reducing their footprint or relocating to more desirable areas, many used the moment to upgrade their work environments, reallocating resources toward high-end buildouts and collaborative, tech-enabled spaces that support hybrid work and staff engagement.
As a result, vacancy rates are rising in older buildings that no longer meet tenant expectations. Demand for quality space will likely rise as business leaders assess additional space needs tied to return-to-office efforts.
Strategic realignment in a changing office landscape
As federal mandates and corporate workplace policies converge to bring staff back to the office, organizations are seizing the moment to rethink both where and how work happens. The return-to-office movement, driven through mandates and incentives, has business leaders reshaping their workplace strategies to align with evolving workspace expectations and business goals.
This shift is driving a clear real estate trend: a decisive move toward quality over quantity. Outdated office stock is falling out of favor, while investment flows into modern, amenity-rich environments that support collaboration, flexibility, and well-being. For middle-market leaders, this is a pivotal moment to reassess portfolios and optimize space. With demand for top-tier office space intensifying, you should begin planning your future space needs now to secure the best opportunities and stay ahead in an increasingly competitive landscape.
To explore how your organization can navigate this shift, connect with our real estate consultants today. We’re here to help you evaluate your options, identify strategic opportunities, and make informed decisions that align with your business goals.
