As we enter 2025, organizations are adjusting to a rapidly changing work environment. With rising real estate costs, aging facilities, and evolving work model needs, companies are rethinking how they use their spaces. In this blog, Nuvolo experts share their predictions for 2025 workplace and IWMS trends, revealing how organizations are navigating evolving challenges and embracing new opportunities in areas like office utilization, asset management, and smart technology. #1: Office Strategies Will Shift to Balance Cost, Sustainability, and Workforce Needs Global office utilization rates have dropped to an average of just 38%, leading organizations to rethink their real estate strategies. Rising costs, coupled with changing workplace dynamics, are driving companies to reevaluate how they use their office spaces, particularly in high-cost urban markets. “In 2025, we expect real estate spending to come under heightened scrutiny,” says Bob Mostachetti, VP of Industry Solutions at Nuvolo. “Many organizations are embarking on ambitious footprint reduction initiatives, with some planning to cut their office space by as much as 40% over the next five years. This trend is especially noticeable in Class A office spaces in cities like New York and San Francisco where the pressure to optimize costs is particularly intense.” In addition to space reduction, Mostachetti highlights a shift in how organizations approach workplace strategies. “We anticipate a rise in in-office mandates as companies recalibrate their hybrid work models,” he explains. This shift reflects a broader effort to balance collaboration, efficiency, and the evolving needs of a distributed workforce. At the same time, sustainability will continue to be a focus. “Organizations will look to align environmental, social, and governance (ESG) policies with sustainable solutions that support the workplace of the future,” Mostachetti adds. “For instance, the adoption of technologies that enable smarter energy management is on the rise. Innovations like this not only drive significant cost savings but also enhance brand reputation and play a pivotal role in attracting and retaining top talent.” As companies adapt to these trends, the intersection of cost efficiency, workplace evolution, and sustainability will shape the future of their real estate portfolios, fostering a smarter, more sustainable approach to office management. #2: IWMS Will Provide Smarter Solutions for Aging Infrastructure In 2025, Integrated Workplace Management Systems (IWMS) will play a pivotal role in helping facilities professionals address the challenges of aging infrastructure. A recent study of 430 hospitals and health system facilities managers revealed that 80% view aging infrastructure as their top concern. “Insights from Nuvolo’s discussions with large facilities leaders across various sectors reveal a shared focus on data-driven, smart facilities management,” says Michele Mucia, Senior Director, Healthcare Industry Strategic Solutions at Nuvolo. “By leveraging data from IWMS platforms, facilities professionals can proactively tackle the challenges of aging infrastructure.” IWMS solutions offer critical insights across areas like asset performance, maintenance, capital projects, space utilization, real estate, and sustainability. These tools help identify urgent maintenance needs, predict equipment failures, and optimize resource allocation, ensuring facilities remain efficient and sustainable over the long term. “The key is finding the balance among all these critical data-driven outputs from a solidified IWMS solution,” says Mucia. “It’s what a leader does with the information that matters: establishing a business case for the continuous health and function of their building and people to create the most productive environment possible.” As facilities leaders embrace IWMS technology, they will be empowered not only to manage aging infrastructure but to transform it into a strategic advantage. By harnessing the power of data, organizations can ensure the health and longevity of their facilities while creating an environment that supports both operational excellence and long-term sustainability. #3: IWMS Will Drive Transformative Value for Pandemic Impacted Companies As companies move beyond pandemic-driven priorities, the integration of assets, facilities, and workspaces into a unified platform will unlock strategic value this year. “While IWMS as a concept has been around for some time, Life Sciences companies, and perhaps other industries as well, were focused on the impacts and requirements of the pandemic–safely keeping essential staff at work, managing safe return to work, enabling hybrid work arrangements–and are only now seeing the initial returns,” says Ethan Smith, VP, Life Sciences at Nuvolo. Insights from IWMS platforms, such as preventative maintenance and workspace utilization, are becoming essential tools for driving efficiency and innovation. For Life Sciences companies, this means moving beyond maintaining complex scientific equipment and state-of-the-art facilities to positioning these functions as strategic drivers of success. “Leading-edge biopharma are finding that providing a consumer-grade user experience to their prized workforce plus managing their assets’ utilization to deliver predictive analytics on strategic IT platform is truly a ‘one plus one plus one equals four’ scenario, in terms of value to the business and savings to IT and Facilities,” explains Smith. #4: Federal Agencies Will Reassess Real Estate Strategies Amid Utilization and Sustainability Pressures In 2025, federal agencies are expected to take a closer look at their real estate strategies as they face mounting scrutiny over real estate spending. Evolving directives from the Office of Management and Budget (OMB) and legislation like the Federal Property Management Reform Act of 2016 are driving this shift. “It will be interesting to see if any proposed government efficiency initiatives might affect headcount, budgets, and, ultimately, the overall real estate footprint,” says Paul Head, Director at Nuvolo. Findings from the Government Accountability Office (GAO) reveal that many agency offices are operating at just 25% capacity, highlighting a stark need for optimization. “Due to office underutilization, either more people will return to the office to support collaboration and efficiency, or agencies will reduce their space by as much as 40% in the coming years,” explains Head. While addressing underutilization is a key priority, sustainability remains equally critical. “Given the historical stance of recent administrations on climate change, new mandates may emerge that prioritize resilient, energy-efficient solutions,” Head adds. As agencies confront these dual challenges, the focus on flexible, tech-driven solutions and environmentally conscious designs will be pivotal in shaping the future of federal workspaces. Share