FM leaders urged to act as costs remain out of step with occupancy

FM is failing to keep pace with how workplaces are used today according to Colliers’ latest Occupier Cost Index (OCI).

The annual cost to keep an employee in the office stands at €9,809 per full-time equivalent (FTE), yet European offices operate at just 30-40 per cent occupancy. If costs were calculated on actual usage, they would soar to €25,000-€33,000 per person. This disconnect, warns Colliers is unsustainable and demands immediate action from facilities and building managers.

While overall FM costs fell by one per cent year-on-year, driven by lower energy prices and deferred refurbishments, soft services costs jumped eight per cent, reflecting inflation and higher demand for security, and IT costs rose six per cent due to rising labour and licensing fees.

These increases, combined with low occupancy, expose inefficiencies that cannot be ignored, states Colliers, adding FM leaders have a clear opportunity to reset their strategies and adopt adaptive, technology-driven models that align services with real-time occupancy. Colliers estimates this could unlock savings of 25 per cent or more without compromising service quality.

Other key findings from OCI 2025, which draws on data from 4,000 buildings across 28 countries, covering 26.3 million sq m show space and infrastructure costs are down four per cent, management cost costs fell nine per cent, and while occupancy remains low, FM delivery models are largely static.

Nicholas Marsh, Head of Enterprise FM Advisory, EMEA Occupier Services at Colliers, said: “The start of the adaptive FM era is moving slowly. Technology exists to align services with real-time occupancy, but adoption is patchy. Those who act now will unlock significant value and efficiency.”

Denise Hoogendoorn, Director of Strategic Consulting, EMEA Occupier Services at Colliers, added: “By embracing technology, FM leaders can deliver flexible, cost-effective services. The time for incremental change is over – this shift needs to accelerate.”

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