Hybrid Work in 2025: The Lasting Impact on Employees, Leadership, and Real Estate

Introduction

In 2020, the COVID-19 pandemic upended the world and forced millions of employees to work from home. What began as a temporary measure has, five years later, led to a fundamental shift in our work patterns. The first symptoms of hybrid work emerged in 2021, and in 2023 - when COVID-19 restrictions were largely lifted - many employers expected a mass return to the traditional 5-day office model.

That return, however, never fully materialized. In 2025, while everyone is permitted to return to the office five days a week, more than half of employees choose to continue working in a hybrid fashion: 2-3 days in the office and 2-3 days at home or even from abroad. This enduring shift has far-reaching implications for employees, leaders, and the real estate sector.

The Evolution of Hybrid Work (2021-2025)

When Microsoft published their first "Work Trend Index" in 2021, they already signaled that hybrid work would be "the next great disruption." Four years later, we can confirm they were right. What began as an emergency measure has evolved into a permanent phenomenon that has become an integral part of our working world.

Interestingly, a clear gap was already visible in 2021 between what employees and leaders thought about hybrid work. In 2021, 73% of employees wanted flexible work options to remain, while 67% desired more in-person contact with their team (Microsoft, 2021). These seemingly contradictory desires have led to the hybrid model we know today, where employees combine the benefits of working from home with the social and collaborative aspects of office work.

The Employee Perspective in 2025

Four years after the first major hybrid work studies, employee priorities have shifted dramatically. Where work previously often stood central in many people's lives, we now see that employees have found a better balance. In early 2022, 47% of employees already indicated they valued family and private life more than work, compared to the pre-pandemic period (Microsoft, 2022). In 2025, this percentage has only increased.

The concept of "working to live" instead of "living to work" is more widely accepted today, which has led to concrete shifts in how employees approach their careers:

• Purposeful office visits: In 2021, 38% of hybrid employees indicated that their biggest challenge was knowing when and why they should come to the office (Microsoft, 2021). In 2025, this question is still relevant, but organizations are now much better at communicating clear expectations about when physical presence adds value.
• Flexibility as non-negotiable: What began in 2021 as a desire for flexibility has evolved into a non-negotiable demand for many employees. Where in 2021, 73% of employees indicated they needed a better reason to come to the office than just company policy (Microsoft, 2021), this need for meaning has only strengthened. The office is now primarily a place for meaningful interactions.
• Wellbeing central: The importance of mental and physical wellbeing, which was already named as a priority by 53% of employees in 2022 (Microsoft, 2022), is now fully integrated into the work ethic of 2025. Organizations that do not pay attention to employee wellbeing have great difficulty attracting and retaining talent.

The Leadership Perspective: From Distrust to New Leadership

One of the most striking changes in the past four years has been the shift in leadership perspective. In 2022, 85% of leaders struggled with trusting the productivity of employees in a hybrid work environment, despite 87% of employees considering themselves productive (Microsoft, 2022). Microsoft called this phenomenon "productivity paranoia."

By 2025, this paranoia has given way to a more mature approach to hybrid leadership. Organizations that have become successful in the new work landscape have shifted their focus from measuring activity to measuring results. This change was already signaled in 2022 by Microsoft, who changed their own approach from measuring 'employee engagement' to 'employee thriving' (Harvard Business Review, 2022).

Yet challenges remain for leaders in 2025:

1. Unequal technological capabilities: Not all leaders are equally proficient in using digital tools for hybrid collaboration, resulting in persistent differences in how effectively teams are led remotely.
2. Finding the right balance: Determining the optimal mix between mandatory and flexible office days remains a challenge, with different solutions for different teams and sectors.
3. Inclusive decision-making: Ensuring that both remote and office employees are equally involved in decision-making processes requires ongoing attention.

Implications for the Real Estate Sector in 2025

The long-term impact of hybrid work on the real estate sector cannot be underestimated. The traditional concept of 'one employee, one desk' has largely disappeared in 2025, with far-reaching consequences for how office spaces are designed, used, and leased.

Office Design

Offices that are successful in 2025 have redesigned their spaces to serve three main purposes:

1. Collaboration and socialization: Since individual work is often done at home, offices are now primarily designed for interaction. In 2021, 84% of employees already indicated they were motivated to come to the office for social time with colleagues (Microsoft, 2021). This trend has led to more open spaces, innovative meeting facilities, and informal meeting places.
2. Hybrid meeting spaces: Meeting rooms have been transformed to treat remote and on-site participants equally, with advanced audio-visual technology providing a seamless experience for everyone.
3. Flexible work zones: Instead of fixed desks, modern offices now offer a variety of work zones tailored to different activities, from quiet zones for concentrated work to brainstorming spaces for creative sessions.

Rise of Flexible Workspaces

The demand for flexible workspaces has grown explosively between 2021 and 2025. Recent figures from the Instant Group's "The Future of Flex" report from 2022 already showed that 74% of flexible workspace operators had plans to expand, with 39% of them focusing on city centers and 28% on suburban areas. In 2025, this prediction has come true with strong growth in both urban and suburban flexible workspaces.

Cushman & Wakefield's 2023 report, "Obsolescence Equals Opportunity," indicated a trifurcation in demand for office space:

1. The top segment: Newly built offices with premium amenities, which make up only 15% of the market but have the highest occupancy rate.
2. The middle segment: About 60% of office space falls into this category, which is further subdivided into 'good enough', 'value-driven', and 'potentially obsolete' spaces.
3. The bottom segment: About 25% of office space is outdated and needs repositioning or repurposing.

In 2025, we see that this prediction has largely come true, with a clear shift towards high-quality, flexible spaces and a decrease in demand for traditional, outdated office buildings.

The Future of Hybrid Work Beyond 2025

As we look ahead to the second half of this decade, it's clear that hybrid work is not just a temporary trend, but a lasting transformation in how we approach work. However, several factors will determine the future evolution of hybrid work:

1. Technological developments: The rise of VR/AR for virtual collaboration, AI assistants for workflow optimization, and new collaboration tools continue to shape the hybrid work landscape.
2. Economic factors: Economic pressure can lead to shifts in how organizations manage their real estate portfolio, with potential consequences for hybrid work models.
3. Sustainability considerations: The reduction in commuting has positive effects on CO₂ emissions, and organizations are increasingly integrating this into their ESG objectives.
4. Changing employee expectations: New generations entering the job market have different expectations of work and workplaces, causing hybrid models to evolve further.

Conclusion

The hybrid work revolution that was announced in 2021 has become fully established in 2025. What began as a response to a crisis has evolved into a sustainable and preferred work model that offers benefits for both employees and employers.

For HR professionals and real estate experts, this new reality offers both challenges and opportunities. Organizations that are flexible and innovative in their approach to workplace strategy, personnel policy, and technology implementation will be best positioned for success in this new world of work.

In the coming years, the hybrid work revolution will continue to evolve, but one thing is certain: we are not going back to the 'old normal'. The new normal is here to stay, and it is hybrid.

Sources

Microsoft. (2021). Work Trend Index 2021: The Next Great Disruption Is Hybrid Work—Are We Ready?

Microsoft. (2022). Work Trend Index 2022: Great Expectations: Making Hybrid Work Work.

Harvard Business Review, Klinghoffer, D., & McCune, E. (2022). Why Microsoft Measures Employee Thriving, Not Engagement.

Instant Group. (2022). The Future of Flex: Trends, challenges, and opportunities faced by flexible workspace providers.

Cushman & Wakefield. (2023). Obsolescence Equals Opportunity: The Next Evolution of Office and How Repositioning and Repurposing Will Shape the Future.

WeWork. (2022). The future of work is hybrid: Here's what that will look like.

McKinsey & Company. (2022). Workplace real estate in the COVID-19 era: From cost center to competitive advantage.

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