Devono workplace and workforce outlook: 5 in 2025

As 2025 unfolds, workplaces face transformative shifts shaped by a myriad of factors, from shift in hybrid working approaches and workforce expectations through to global economic and political uncertainties, leading to changes in tax policies, tariffs, and international relations.

All of which are creating challenges and opportunities for businesses looking to implement workplace strategies and investment in the years ahead. Devono, the UK’s leading occupier-only real estate consultancy, tasked its Insight Team with a bit of crystal ball gazing, and here are five key predictions for the year ahead impacting the workplace.

Prediction 1: Return to the office reset

Hybrid working which became commonplace in recent years is undergoing yet another evolution. Large employers such as Amazon, Disney, Boots, Barclays and Goldman Sachs have already redefined their work-from-home (WFH) policies to bring workers back into the office 5 days a week and in 2025 we expect that many more firms of all sizes will follow suit, implementing changes to mandated hybrid arrangements or returning to the office fully.

Generational preferences play a significant role in this current reset. Younger employees increasingly value in-person collaboration, mentorship and networking opportunities. To ensure that this is addressed, employers are expected to ramp up spending on technology, creating alternative workspaces, offering a range of amenities and redesigning office layouts. By aligning this shift in workforce dynamics with workplace functionality, companies will look to optimise their spaces to foster collaboration and productivity.

The return-to-office reset is expected to reflect a broader effort to balance flexibility with the benefits of physical presence, ensuring long-term organisational success.

Prediction 2: The social value of offices

The office’s role extends beyond physical workspaces – they are hubs for collaboration, innovation, and social connection. Modern office buildings and fit-outs are increasingly prioritising employee wellbeing, providing spaces that foster a sense of purpose, supporting businesses efforts to implement initiatives on diversity, equity, and inclusion (DEI).

Offices in 2025 will not only serve as operational spaces but as a strategic tool to boost morale, enhance company culture, and attract and retain top talent.

ESG goals have gained greater prominence on business agendas, and we believe that in 2025 the ‘S’ will take centre stage. Such focus will require firms to not just look at improvements in the actual office, but will shine a light on behaviours, processes, interactions with colleagues and our engagement with clients and the wider community.   

A greater number of firms will set out to align their social efforts with employee expectations and societal demands, to not only make an impact on the workforce but to also gain competitive advantages. 

Prediction 3: AI in the workplace

2025 will see a rapid push by businesses to implement artificial intelligence (AI) technologies, which is set to revolutionise how businesses operate. Companies across a multitude of industries are recognising the potential to enhance efficiency and are eager to avoid falling behind the competition.  

Applications such as predictive analytics, natural language processing, and intelligent automation are becoming standard. Other applications include chatbots for customer service, automation of data entry, contract analysis for compliance, recruitment support and forecasting for planning, highlighting some of the range of AI’s breadth.  

While AI adoption may reduce certain manual roles, it is predicted to increase overall headcounts as companies upskill employees and hire specialists to manage AI systems. This shift may lead to greater demand for tech-enabled office spaces optimised for AI integration, including energy-efficient designs.  

In 2025, companies will likely prioritise AI investments, focusing on targeted applications that free employees for higher-value tasks rather than attempting to overhaul all operations. AI spending will become more strategic, emphasising areas that deliver the most meaningful benefits for both businesses and their workforce. 

Prediction 4: Office rent and cost growth in 2025

In 2024, significant growth in office rents was observed, especially for the best-in-class spaces both in the Grade A and Grade B buildings. London and the UK’s regional cities experienced a hike in rental prices as landlords’ confidence was buoyed by an occupier willingness to pay for high-quality spaces, favouring the newly built/refurbished developments, which has set new rental tones for business districts.  

While rent-free incentives have softened these increases, landlords are expected to reduce such offers in 2025 to maximise rental income. So, in 2025, the impact of recent and future rental growth will hit businesses’ operating expenses. As a result, those with active or imminent office searches may well face a number of compromises, from location to space quality or reduced spending elsewhere. However, competition amongst landlords remains strong, creating opportunities for occupiers to negotiate favourable deals.  

Prediction 5: Flex offices become mainstream and a long-term solution

Businesses are increasingly adopting flexible office solutions to remain agile amidst uncertain economic conditions and shifting workplace practices. Serviced (flex) offices and coworking spaces provide the scalability and short-term commitments that companies require, making them an attractive alternative to traditional leasehold leases. This workplace solution has particularly appealed to startups and SMEs but is increasingly appealing to businesses of all sizes.  

Serviced offices are no longer a trend but a mainstream strategy. In 2025, not only do we expect to see the serviced office option become a standard option as part of all office searches, but for those who use serviced offices already to do so on a longer-term basis. Flexible office solutions are becoming integral to long-term planning and as space providers face increased competition occupiers will benefit from unique offerings, advantageous terms and spaces providing the best amenities.  

2025 promises to be a year of recalibration for workplaces and workforces. Devono is here to support businesses with their workplace strategy, aligning goals with reality. To find out more head to www.devono.com.