Office Space Advisory: Hybrid Work Models and Saudi Corporate Real Estate

In recent years, Saudi Arabia has emerged as a dynamic player in the global economy, driven by the Vision 2030 initiative and a bold ambition to diversify beyond oil. Among the most transformative shifts within the kingdom is the evolution of corporate real estate, shaped significantly by the rise of hybrid work models. As businesses in Saudi Arabia rethink how and where work gets done, the role of real estate consultancy has become more crucial than ever.

The Changing Face of Work in Saudi Arabia

The COVID-19 pandemic served as a global catalyst for workplace transformation. In Saudi Arabia, as in much of the world, organizations quickly adopted remote work to maintain operations. Post-pandemic, rather than reverting to traditional office setups, many companies have embraced hybrid work models, allowing employees to split their time between home and the office.

This shift is not merely about flexibility it fundamentally alters the demand and design of corporate real estate. Offices are no longer simply places where employees report daily; they are evolving into collaboration hubs, innovation spaces, and brand experience centers.

Hybrid Works Impact on Office Demand

One of the primary challenges hybrid work presents to Saudi corporations is right-sizing their office footprint. Companies are increasingly evaluating how much space they truly need, which has led to:

• Downsizing in some sectors: Especially in tech and professional services, where remote work is highly feasible.

• Expansion in others: Healthcare, logistics, and certain government entities still require more traditional or purpose-built office space.

• Flex space adoption: Co-working and flexible office providers have seen growing interest, particularly in Riyadh and Jeddah.
  
  

Real estate consultancies play a vital role in helping organizations assess these needs through space utilization studies, workplace strategy assessments, and occupancy analytics.

The Role of Real Estate Consultancy in Saudi Arabia

The landscape of corporate real estate in Saudi Arabia is unique shaped by local cultural expectations, regulatory frameworks, and rapid economic development. As businesses navigate this environment, they turn to real estate consultants for expertise in:

1. Strategic Planning
   Real estate consultants assist companies in developing long-term space strategies aligned with their hybrid work policies. This includes location analysis, lease versus buy decisions, and portfolio optimization.

2. Workplace Transformation
   Consultants help design workspaces that foster collaboration, employee well-being, and productivity. In a hybrid model, this often includes hot-desking, shared amenities, and technology integration.

3. Market Intelligence
   With access to market data and trends, consultancies provide insights into pricing, availability, and emerging hotspots essential for making informed investment decisions in cities like Riyadh, Dammam, and NEOM.

4. Sustainability and ESG Goals
   As sustainability becomes a cornerstone of Saudi Arabias development, companies seek to align real estate decisions with environmental, social, and governance (ESG) principles. Real estate consultants help implement green building standards, reduce carbon footprints, and achieve certifications like LEED.
   
   

Key Trends in Saudi Corporate Real Estate

Real estate consultancy firms are observing several key trends reshaping office advisory in the kingdom:

• Rise of Mixed-Use Developments: Projects like King Abdullah Financial District (KAFD) and Qiddiya are redefining what office space looks like, blending commercial, residential, and leisure zones.

• Increased Smart Office Integration: IoT, AI, and advanced access controls are becoming standard in new developments, especially those tailored for hybrid operations.

• Localized Flexibility: While international firms push global hybrid policies, Saudi companies are adapting them to suit national work cultures, often favoring structured hybrid models (e.g., 3 days in office).

• Government-Driven Urban Planning: The Saudi governments role as both regulator and investor means that real estate consultants must remain closely attuned to public-sector agendas, especially in megaproject zones like NEOM and The Line.
  
  

Challenges in Advisory for Hybrid Workspaces

Despite the exciting transformation, advisory in this area is not without its challenges. Real estate consultants often face:

• Cultural Adaptation: Hybrid work requires a cultural shift. Consultants must help organizations align office design with both productivity goals and local work habits.

• Uncertainty in Long-Term Demand: As hybrid policies evolve, predicting space requirements remains a moving target.

• Talent Retention and Experience Design: Workspaces must now be designed to attract and retain talent. Real estate advisors are working more closely with HR and IT departments to deliver holistic experiences.

How Corporations are Responding

Forward-thinking companies in Saudi Arabia are actively partnering with real estate consultancies to build future-ready offices. For instance:

• Saudi Aramco and STC have invested in smart campuses that prioritize collaboration and agility.

• Multinational firms like PwC and Deloitte are redesigning their Riyadh offices with flexible, tech-enabled layouts.

• Startups are embracing co-working environments in business hubs like Misk City and Jeddahs Creative Hub.
  
  

These examples underline the growing convergence between corporate strategy, workplace design, and real estate consultancy.

The Future Outlook

As hybrid work becomes a long-term norm rather than a temporary fix, the demand for specialized office space advisory will only grow. Real estate consultancy firms in Saudi Arabia must continue to evolve integrating data analytics, workplace psychology, and design thinking into their services.

Moreover, as Vision 2030 accelerates the creation of smart cities, the role of real estate advisors will expand to include not just office planning but broader urban ecosystem advisory. Office space will be one node in a larger network of interconnected, digitally enabled environments.

Conclusion

Saudi Arabias corporate real estate sector is undergoing a profound transformation, driven by the dual forces of hybrid work and national economic reform. This creates both opportunity and complexity for organizations managing office portfolios. In this context, real estate consultancy is no longer just about leasing or buying office space its about shaping how, where, and why people work.

As businesses reimagine their office environments to accommodate hybrid models, those that engage with strategic, forward-looking real estate advisors will be best positioned to thrive in this evolving landscape.

Read More

Real Estate Asset Management Advisory for Sovereign Wealth Fund Portfolios

Land Acquisition Advisory for Major Infrastructure Development Projects

Real Estate Finance and Mortgage Advisory for Saudi Banking Sector