How to Build an Office Portfolio That Fits a Hybrid Workforce

Hybrid work is here to stay. Few companies are returning to five days in the office. At the same time, most executives recognise that physical space still matters. The office provides a hub for collaboration, culture, and client interaction.

The challenge is no longer “Do we need an office?” but “What shape should our office portfolio take to fit a hybrid workforce?”

This article explores how leaders can balance flexibility, cost, and employee experience when designing an office strategy for 2025 and beyond.

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Why Hybrid Changes the Office Equation

Traditional office models assumed one desk per employee. Hybrid working breaks that assumption.

· Lower desk demand: Fewer employees in the office at once.
· Higher collaboration demand: More team meetings, project sprints, and cross-functional workshops.
· Shift in priorities: Employees value location convenience, amenities, and flexibility over private desks.

For CFOs, this means reevaluating space requirements. For Facilities Directors, it means managing different types of spaces across multiple sites.

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Portfolio Models That Work for Hybrid

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1.Core HQ + Satellite Offices (Hub and Spoke)

A central HQ in a key city, supported by smaller regional offices closer to where employees live.

Pros:

· Reduces commute times
· Expands talent pool beyond one city
· Provides backup if HQ is disrupted

Cons:

· Higher management complexity
· Multiple leases to negotiate and monitor

2.Core HQ + Flexible Workspace

A stable headquarters combined with flexible memberships in serviced or coworking spaces.

Pros:

· Predictable base with flexible overflow capacity
· Scales with project teams or temporary headcount changes
· No upfront capex for flexible sites

Cons:

· Higher per-desk cost at flexible sites
· Less brand control in flexible spaces

3. Fully Flexible (Serviced and Coworking)

Relying entirely on flexible spaces instead of a long-term lease.

Pros:

· Minimal upfront investment
· Easy to scale up or down
· Lower risk exposure

Cons:

· Higher monthly opex
· Limited customisation
· Potential cultural fragmentation if teams spread across sites

4. Hybrid + On-Demand Meeting Spaces

Using a small core office plus pay-as-you-go meeting and collaboration spaces.

Pros:

· Very cost-efficient if desk demand is low
· Employees meet when needed without overcommitting space
· Useful for distributed teams

Cons:

· Harder to maintain culture without a consistent hub
· Availability can be a risk during peak demand

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Key Metrics for CFOs and Facilities Leaders

When evaluating hybrid office portfolios, focus on data:

· Desk Utilisation Rate: What percentage of desks are occupied on average?
· Meeting Room Utilisation: How often are rooms booked and at what capacity?
· Employee Commute Time: Directly influences retention and engagement.
· Cost Per Employee: Divide total occupancy cost by headcount — a more accurate measure than rent per square foot.
· Attrition Rate: Monitor how office experience influences turnover.

👉 Use LEVEL’s Office Cost Calculator to model utilisation and cost per employee across different scenarios.

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Real-World Example: The Hybrid Transition

A 250-person professional services firm in London adopted a core + flex model.

· Before hybrid: 20,000 sq ft lease in central London, £1.2m annual rent + £400,000 operating costs.
· After hybrid: 8,000 sq ft HQ + 100 flexible memberships across coworking sites. Total cost dropped 30% while employee satisfaction rose 15%.

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Employee Experience Still Matters

Hybrid portfolios are not only about cost. They are also about attracting and keeping talent. Employees increasingly expect:

· Collaboration spaces: informal lounges, breakout rooms, creative zones
· Wellness features: gyms, natural light, sustainable buildings
· Technology: seamless Wi-Fi, video conferencing, hybrid meeting tools
· Convenience: proximity to transport, food options, childcare facilities

An office that ignores these factors risks higher turnover.

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How to Design a Hybrid Portfolio Step by Step

1. Audit Current Utilisation
Use sensors, surveys, and booking data to see how desks and rooms are used.

2. Map Employee Locations
Plot where staff live to determine optimal hubs.

3. Set Growth Assumptions
Forecast headcount changes for 3–5 years.

4. Model Portfolio Scenarios
Compare costs of traditional, flexible, or mixed portfolios.

5. Pilot First
Test a flexible membership or satellite office before making long-term commitments.

6. Track and Adjust
Review utilisation quarterly and adapt space accordingly.

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FAQs: Hybrid Office Portfolios

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What is a hub-and-spoke office model?

A hub-and-spoke model combines a central HQ with smaller satellite offices closer to employees or clients.

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Is hybrid office space cheaper?

It depends on utilisation. Hybrid offices often reduce total space required, which lowers costs. But flexible memberships have higher per-desk prices.

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How do CFOs measure hybrid success?

Key metrics include cost per employee, retention rates, and utilisation of collaboration spaces.

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Should companies abandon traditional leases?

Not always. Stable companies with predictable headcount may still benefit from long leases — but many now prefer flexible hybrids to reduce risk.

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How do hybrid offices affect culture?

Culture thrives when offices are designed for collaboration and social connection. Hybrid requires more intentional office design.

Building an office portfolio for a hybrid workforce is not about guessing where people will work. It is about aligning cost with flexibility and culture.

CFOs protect balance sheets. Facilities Directors ensure functionality. Chiefs of Staff guard culture. The right hybrid strategy brings these priorities together.

👉 Start by modeling your options with LEVEL’s Office Cost Calculator. It gives you a clear picture of how core, flexible, or hybrid portfolios will affect your budget — and your people.