Corporate real estate leaders are increasingly pursuing cost optimisation and long-term transformation in parallel, marking a significant shift from traditional sequencing of efficiency measures before strategic investments. According to a report by Knight Frank based on a global survey of senior CRE executives, 70.8% of respondents believe organisations can achieve immediate cost savings while continuing to invest in long-term transformation initiatives. This strategic pivot represents a fundamental change in how corporate real estate is approached and managed.
The report reveals that more than 53% of organisations expect CRE teams to play a broader strategic role in areas such as talent management, risk mitigation and enterprise-wide business transformation. Technology is emerging as a key enabler of this shift, with 50.8% of organisations willing to integrate artificial intelligence into workplace operations to improve productivity. Companies are focusing on targeted AI deployment within core workflows rather than large-scale workplace redesign, indicating a more measured and practical approach to technological integration.
Despite the global trend toward portfolio optimisation, India continues to stand out as a growth market with office leasing across major markets reaching 86.4 million sq ft in 2025, representing a 20% year-on-year increase and 43% higher than the pre-pandemic peak recorded in 2019. As reported by Knight Frank, this strong leasing performance reflects India's growing strategic relevance in global corporate real estate strategies. Global Capability Centres (GCCs) leased 32.6 million sq ft, accounting for 38% of total office absorption, with these centres increasingly undertaking higher-value functions across technology, analytics, research and product development.
The report highlights growing demand for flexible workspaces and premium office assets, with flexible workspace operators leasing a record 18.6 million sq ft in 2025, up 18% from a year earlier. Grade A assets accounted for 91% of all office leasing transactions, indicating a clear preference for high-quality, sustainable workplaces that foster collaboration, learning and innovation. This trend reflects companies' focus on optimising existing portfolios while investing in work environments that support modern business requirements.
