Companies that spent years opting to shrink their office space are now making a striking U-turn. Rather than cutting square metres, they are instead investing in high-quality, sustainable workspaces. This strategic shift reflects a fundamental change in how organisations view their office space: no longer as a cost to be minimised, but as an investment in employee satisfaction, productivity and company culture.

From downsizing to quality: a historic turning point

The office market is at a historic turning point. For the first time in at least 25 years, more office space is being taken off the market than is being added. This might sound like a crisis, but the opposite is true. What we're seeing isn't a defensive retreat, but a deliberate choice by companies to align their office space with their organisation's actual needs.

This trend is often described as "right-sizing" rather than simply downsizing. The distinction matters: where downsizing implies necessity, this is about finding the best balance between space, quality and usage. Companies are leaving outdated, oversized office buildings and deliberately choosing smaller but higher-quality spaces in better locations.

Investment in European offices rose by 30% in 2025, after years of uncertainty. This recovery is most visible in modern, energy-efficient buildings in prime locations. As a result, the market is splitting into two segments: high-quality buildings that remain in demand, and outdated buildings that sit empty for long periods.

Hybrid working calls for different offices

Hybrid working isn't a passing trend, but a lasting change in how we work. Forty-three per cent of organisations now have a fixed hybrid model in place, where employees come into the office a set number of days a week. On average, people now work just 2.9 days a week in the office. This has major implications for how office space is designed and used.

As a result, traditional offices with a fixed desk for everyone are outdated. Instead, many organisations are opting for a layout where employees choose the workspace that suits their tasks for the day. There are quiet zones for focused work, open spaces for collaboration, and informal areas for spontaneous conversations. The modern office offers a suitable environment for every type of work.

Research shows that almost 70% of Dutch employees have no more than two mandatory office days, if any. This has led to a redesign of offices. Where roughly 70% of space used to be devoted to individual desks and 30% to collaboration, experts expect this ratio to shift by 2030 to 40% individual workspace and 60% space for meeting and collaboration.

Sustainability and regulation as drivers

Requirements for office buildings are becoming increasingly strict. Since 2023, all office buildings in the Netherlands must have at least an energy label C. This means primary fossil energy consumption must not exceed 225 kilowatt-hours per square metre per year. By early 2026, 84% of total office space meets this requirement, but action is still needed for the remaining 16%.

In addition, the EU's Corporate Sustainability Reporting Directive requires large companies to report on their sustainability performance from 2025 onwards. Office space plays an important role in this. Choosing a sustainable building isn't just a practical decision — it's also a clear signal to investors, clients and prospective employees.

As a result, companies are increasingly choosing buildings with recognised sustainability certification, such as BREEAM. Such certification doesn't just assess energy consumption, but also looks at health, material reuse and future-readiness. Organisations that choose renovation over new-build can save costs while also reducing their environmental footprint, by using less construction waste and fewer new materials.

The real cost of quality

A high-quality office costs more per square metre, but the total cost gives a fuller picture. The average rent for office space in the Netherlands is between 130 and 132 euros per square metre per year. On top of that come service charges of 30 to 85 euros per square metre, plus any costs for fit-out and facilities.

Amsterdam tops the list, with prices of up to 500 euros per square metre on the Zuidas. In less central locations in the same city, prices range between 150 and 250 euros. Rotterdam is slightly cheaper, with prices between 100 and 275 euros. In Utrecht and The Hague, rents average between 160 and 185 euros.

For a team of 20 employees under a hybrid working model, that works out at around 32,000 euros a year in Rotterdam, or 103 euros per employee per month. That might sound like a lot, but set against the costs of staff turnover, sickness absence and lost productivity from a poor working environment, investing in quality often turns out to be the more cost-effective option.

Why companies are choosing quality

The main reason behind this shift is retaining talent. Research shows that employees who can decide for themselves when to come into the office do so more willingly than when it's mandatory. An attractive office with good facilities, a thoughtful layout and attention to wellbeing encourages people to work together, even without a fixed attendance requirement.

The link between workplace quality and employee satisfaction is clearly measurable. Companies that invest in ergonomic workstations, good acoustics, natural light and greenery see productivity rise by around 10% on average. Sickness absence also falls by roughly 35%, and staff turnover drops by 58%.

The tightness of the labour market also plays an important role. At a time when good staff are hard to find, the working environment makes a real difference. Jobseekers look not only at salary and benefits, but also at where they'll actually be working. A modern, sustainable office in a good location shows that an organisation invests in its people and moves with the times.

Choosing the right office solution

Today's office market offers a range of solutions for different needs. A traditional leased office gives maximum control over layout and image, but requires larger upfront investment and longer lease terms. Flexible office concepts, with fitted-out spaces and additional services, offer more freedom of movement but at a higher cost per square metre.

Shared workspaces are particularly popular with freelancers and small teams who value contact with others. For larger organisations seeking flexibility, there are a growing number of office concepts with different zones for different activities.

The right choice depends on factors such as expected growth, financial resources, desired flexibility and specific space requirements. Smaller organisations with uncertain growth often opt for flexible solutions despite the higher price per square metre. Stable organisations with long-term plans are generally better off with a traditional lease.

Location remains crucial

Accessibility tops the list of important factors when choosing an office location. It's not just about geography, but also good public transport links, sufficient parking and how attractive the surrounding area is. Offices within walking distance of a central station remain popular because they cut travel time for employees.

Interestingly, location has become even more important since hybrid working became the norm. When employees only come into the office two or three days a week, the quality of both the office and its location need to make the trip worthwhile. Employees are more willing to accept a longer commute for a well-located, appealing office than for a mediocre workplace in an awkward location.

This explains why companies are willing to pay higher rents for better locations. Research shows that large organisations rent, on average, 7.5% fewer square metres, yet pay 27% more for prime locations. Location also projects an organisation's identity and ambitions to clients, partners and future employees.

Investing in the future

The shift from quantity to quality in office space isn't a temporary development, but a lasting change. The shortage of high-quality, sustainable office space will continue to grow in the coming years, while outdated buildings become increasingly difficult to let. Organisations that choose quality now are strengthening their position for the future.

Financially, too, investments in sustainability are becoming increasingly attractive. LED lighting often pays for itself within one to two years, and better insulation within five to seven years. But the biggest gains lie in the indirect effects: less staff turnover, lower sickness absence and higher productivity. For organisations that depend on knowledge and expertise, these benefits can more than offset the extra cost of a high-quality office.

The future of office space is about creating value for employees, not keeping costs as low as possible. Organisations that understand this and act on it improve their chances of success in the war for talent and in building a productive, inspiring working environment. The modern office is not a cost to be minimised, but a strategic investment in the organisation's future.

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