In a previous article, I explored how key performance indicators (KPIs) for office spaces need to evolve - how measuring success in commercial real estate can no longer be just about leased square meters but must focus on engagement, well-being, and actual usage.

This shift has become even more critical as Scandinavia and the Netherlands - once pioneers in progressive workplace design – as many other markets now face an office market struggling with both oversupply and underutilisation.  

The COVID-19 pandemic has fundamentally transformed work patterns, with hybrid working becoming the norm across Europe, particularly in the Nordics and the Netherlands. This shift has led to a significant impact on office space utilisation. As a result, office vacancy rates in major cities like Stockholm, Copenhagen, and Amsterdam are climbing. These once-thriving office districts now face an identity crisis as corporate footprints shrink and employees are reluctant to return unless the office offers something truly valuable.

Real estate developers and businesses alike are now forced to ask: What is the future of the office, and how can we make it relevant again?

We already know that hybrid work has reshaped office usage across Europe—but let's take a moment to recap where things stand now and what the latest shifts mean for commercial real estate. Living in Amsterdam, I see this transformation firsthand. Office spaces that were once bustling are now adapting to new ways of working, with some thriving and others struggling to find relevance in a hybrid world.

In the Netherlands, for instance, hybrid working has become deeply entrenched, with many employees working remotely at least part of the week. This trend has contributed to increased office vacancies as companies reassess their spatial needs.
CBRE Report on Hybrid Work & Office Vacancy in the Netherlands

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Similarly, in the Nordic countries, there has been a significant shift towards remote and hybrid work models. This change has led to a reevaluation of traditional office spaces, with a focus on creating environments that support both in-person collaboration and remote work.
Flydesk Report on Nordic Hybrid Work Trends

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These developments underscore the need for a fundamental rethinking of office spaces to align with the evolving work landscape. While the trend itself is well established, the real shift lies in how businesses and landlords are adapting - and that’s where meaningful change is taking shape. 

The European Office Vacancy Crisis - More Than Just Empty Desks

While cities like New York and San Francisco grab headlines with record-breaking office vacancies, Europe is experiencing its own shake-up.

According to CBRE's European Real Estate Market Outlook 2024, the overall vacancy rate in Europe has been rising since early 2020 and continued to do so through 2023, but there were signs of this nearing a peak in 2024. 

In Amsterdam, prime office locations remain occupied, but second-tier locations are struggling with rising availability and slow leasing activity. Cushman & Wakefield reports that Amsterdam leads the Dutch office market, with two-thirds of the square meters of office space leased. However, there is a relatively limited supply of high-quality office space available. 

But the issue isn’t just empty buildings - it’s how space is being used.

Hybrid work has led to entire floors sitting empty on certain days of the week. Many companies realise they don’t need the same square footage, and without a compelling reason to return, employees choose to work from home. The old logic of “if you build it, they will come” no longer applies. 

And this is exactly what I’m after - how do we rethink office space to make it truly relevant again?

The Changing Role of the Office

So what now?

If companies don’t need more space, then they need better space. The office of the future isn’t just about square meters - it’s about purpose. So let´s look into that.

Several key shifts are redefining the Scandinavian and Dutch office markets:

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From Obligation to Experience 

The office must provide intangible value that remote work cannot replicate—whether through a highly curated, hospitality-inspired environment, exclusive networking opportunities, or access to knowledge and culture. Some companies are now integrating multi-sensory design, private members-club aesthetics, andeven concierge-level services to encourage employees to return.

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Office as a Strategic Business Asset 

The traditional office was seen as an operational necessity, but leading companies now treat it as a brand statement and strategic tool for talent attraction. The physical workplace is increasingly designed to reinforce corporate culture, enhance creativity, and build deep professional relationships.

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Hyper-Personalised Work Environments 

Instead of generic office layouts, future-forward workplaces offer AI-driven personalisation that adapts to employees’ preferences. This includes smart lighting, temperature control, and acoustics that adjust based on individual work habits, as well as on-demand reservable spaces tailored for different work styles.(See my previous article on this here.) 

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High-Performance & Energy-Positive Buildings

Sustainability is no longer just about meeting regulations—it’s about creating energy-producing buildings that contribute more to the grid than they consume. The Netherlands is leading with developments like fully circular office buildings, AI-powered energy optimisation, and self-sustaining green facades that actively filter air pollution.

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Workplace as a Third Space

With employees splitting time between home and the office, the traditional binary of “office” and “remote” no longer applies. Scandinavian companies are now blurring the lines between workspace, social hub, and cultural venue, incorporating boutique fitness centers, rooftop urban farms, and spaces for after-hours events and knowledge-sharing salons.

These trends reflect a deeper rethinking of the office as more than a physical space - it’s becoming a curated experience, a strategic business tool, and a key enabler of culture and collaboration.

Winners & Losers in the New Office Market

Not all real estate is suffering equally.

Well-designed, community-driven office spaces are thriving. Scandinavian and Dutch developers who focus on tenant experience - offering co-working areas, social programming, and hospitality-inspired services - are seeing strong demand.

Meanwhile, uninspiring, outdated office buildings are at risk of becoming stranded assets.  

Let's Wrap This Up - A Call for Reinvention  

The office isn’t dead - it’s evolving.
However, real estate developers and companies must stop treating office spaces as mere containers for desks and start shaping them into multi-dimensional hubs for collaboration, creativity, and culture.

The Scandinavian and Dutch markets have long led the way in workplace innovation, but now the challenge is bigger. This is more than just about redesigning office space - it’s about redefining its very purpose. 

We’re adding an entirely new dimension to what the office can be!

This is where real estate must evolve or be left behind.

In my next article, we’ll break down how companies and developers can rethink the very purpose of office space - and create environments where people don’t just show up. Stay tuned.

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