What Tenants Want Now: Smart Offices That Reflect the New Why Behind How We Work

A recent headline stopped me in my tracks—with the rise of weight loss drugs available, restaurants are being forced to reduce portion sizes and adapt to a new reality. What worked in the past will not work in the future. The same can be said for commercial real estate—hybrid work is driving the need for a new space type: that which reflects our work’s purpose and values.

Chicago, where I am based, offers a revealing lens into how this shift is playing out.

• Downtown office vacancy hit 27 percent in July 2025, the highest in city history, with Class B and C assets absorbing the brunt of exits. This reflects a larger flight-to-quality shift happening across the US.

At the same time, demand is rising in selective, strategic ways:

• Downtown office demand grew by 60.4 percent in Q2 2025, the highest year-over-year jump among major US cities.
• The West Loop and Fulton Market continue to outperform, with leasing activity surging over 40 percent year-over-year. Once gritty industrial corridors, these neighborhoods have become Chicago’s epicenter for corporate HQs, tech firms, and lifestyle destinations, making them textbook examples of how the market rewards relevance.

Tenants aren’t leaving, in other words, because they don’t want offices. They’re leaving because they want better space—closer to downtown, transit, and opportunities for socialization. Employers today need to earn the commute.

Design for Outcomes, Not Occupancy

Today’s workforce craves environments that support the work people want to do when they choose to be in person. This means rethinking office design through the lens of collaboration and behavioral outcomes, not occupancy metrics.

At Lincoln International’s Los Angeles office in the US Bank Tower, we designed a semi-outdoor loggia on the 67th floor that offers daylight, fresh air, and a range of informal seating. It’s not just a lounge, it’s wellness-driven and reflects a deeper commitment to enhancing the employee experience.

Lincoln International’s 67th-floor loggia allows fresh air into its lounge and pantry.
Photos by Andrew Rugge © Perkins Eastman

When we designed our own studio space in Chicago, our decisions were guided not merely by aesthetics, but by the need to create a cultural infrastructure with spaces that support brainstorming, impromptu conversations, and communal gatherings.

Our Chicago studio features many communal areas that together create a cultural infrastructure for the team. Beyond its open-plan setting, two private offices are available for virtual meetings, while every other enclosed space is reservable by anyone. Photos by Andrew Rugge © Perkins Eastman

Curate Purpose, Not Policy

People stay, engage, and thrive in an office when their space reinforces shared values, create opportunities for connection, and display a physical manifestation of the brand. Mandates might drive presence, but only meaningful design can drive enthusiastic participation and engagement.

Strategic Hotels & Resorts relocated to a boutique loft office in Chicago to better define who they are. The 7,000 square foot space pairs refined materials like leather and brass with floor-to-ceiling windows that ensure natural light reaches every employee. Private work areas flow into hospitality-style amenities, reinforcing the company’s luxury brand through physical design.

Strategic Hotels & Resorts’ new reception area, above left, and pantry feature luxury hospitality-style finishes and amenities that are emblematic of the properties they manage. Photos by Andrew Rugge © Perkins Eastman

Build Agility into the Asset

Legacy models with rigid, long-term leases and standardized layouts fall short in today’s dynamic market. Leading developers are responding with more adaptive strategies such as short-term flex suites that meet evolving operational needs and amenity-rich shared environments that foster community. More than static assets in a real estate portfolio, their investments are focused on people and experience.

A bold move in this direction is the Audible Innovation Cathedral in Newark, NJ, which transformed a long-vacant Presbyterian church into a high-tech R&D hub. The exterior remains historically preserved while new floors, mezzanines, and structural systems support innovative work inside. This is not just an adaptive reuse project. It is a repositioned asset built around relevance, talent, and long-term impact.

Amazon’s Audible audiobook company asked Perkins Eastman to transform the former Second Presbyterian Church in Newark, NJ, to house its engineering and development hub. Photo © Ben Gancsos

Embrace the Nuance

The workplace industry is still stuck in false binaries: return vs. reject, open vs. closed, hybrid vs. full-time. But the way we work today isn’t either-or: it’s situational, seasonal, and deeply personal.

We’re seeing smart responses to that shift across industries:

• Hotels are offering day passes to remote workers seeking connection and structure
• Airports are redesigning terminals to support well-being and sensory regulation
• Universities are blending living, learning, and working into flexible, purpose-built ecosystems
• Offices are integrating these various space types to provide the best for their talent

For commercial real estate tenants, this shift is similarly focused on strategic realignment. Those who are scaling back want to cut excess, consolidate portfolio locations, and reinvest in design that better supports hybrid work, brand expression, and employee experience. Expansions are focusing on growth that’s more intentional with spaces that attract talent, support collaboration, and align with evolving ways of working.

Whatever the square footage, tenants are demanding more purpose, flexibility, and value from their offices, and we as designers are helping them create it.