Rethinking Corporate Real Estate: Is Portfolio Consolidation Over?

Over the past five years, workplaces have undergone unprecedented change. The COVID-19 pandemic, combined with rapid technological advancements and shifting generational trends, has prompted companies to rethink how they operate. To explore the resulting trends in portfolio optimisation and footprint reduction, Corenet Global and Cushman & Wakefield | BROLL hosted a panel discussion and networking evening on March 27.

The discussion focused on key questions: What factors are currently driving portfolio optimisation? Have most companies already achieved their consolidation goals, or will the trend continue?

Moderated by Jess Moyer of Cushman & Wakefield | BROLL, the panel featured corporate real estate leaders from three major property owners: Nkosinathi Manzana (Standard Bank), Howard Rauff (Nedbank), and David Pierre-Eugene (Discovery).

Moyer opened by sharing insights from Cushman & Wakefield | BROLL’s client base, drawing on a research sample of ten major property owners covering around three million square metres of real estate, primarily in South Africa. She noted that between March 2020 and March 2025, 90% of these companies had reduced their portfolios. Over half downsized by 10% to 30%, with a median reduction of 21%, releasing approximately 500,000 square metres back into the market.

“The shift from in-office to remote, then hybrid, and now a return to office raises the question: Is this a linear progression or a cyclical one? Have we permanently changed the way we work?” she asked. She highlighted that while portfolio reduction is often seen as the core of optimisation, true optimisation is about aligning space with function, cost, and strategic goals.

The panellists agreed that portfolio consolidation was already underway before COVID-19, primarily focused on reducing leased space and some companies centralising operations into owned hubs. This strategy was largely cost-driven. However, post-pandemic, priorities have evolved.

For Standard Bank and Nedbank, the focus has shifted to supporting hybrid work and adapting to changing business unit mandates. Real estate decisions now hinge on balancing flexibility with predictability, requiring ongoing assessments of space utilisation. Effective change management and leadership direction are seen as crucial to success in this regard.

Discovery’s approach has been somewhat different. Having already embraced hybrid and flexible work, the challenge has been accommodating a constantly growing workforce, particularly with the expansion of Discovery Bank and Discovery Green. Pierre-Eugene emphasised that office presence remains vital to maintaining the company's strong culture of innovation.

Manzana highlighted Standard Bank’s focus on employee wellbeing, noting that staff increasingly expect employers to care about their health. The bank has adopted the International Wellbeing Institute’s WELL Building Standard, committing to implementing it across 15 buildings, with the goal of accrediting its entire portfolio.

At Nedbank, Rauff pointed to the company’s commitment to green buildings, which has not only enhanced workplace wellness but also made office environments more attractive. Between 80% and 90% of Nedbank’s managed space is Green Star SA rated, with a minimum Four Star design and as-built rating required for all new developments. As-built ratings are conducted every three years on existing stock.

Discovery has taken a similar approach, ensuring all its buildings have green credentials, and the organisation also recently achieved a national zero-waste-to-landfill accreditation. The company’s headquarters in Sandton serve as a cultural hub, accommodating all events and activations in-house, thereby reducing external venue costs. Pierre-Eugene added that the workplace should represent the best possible environment for employees, competing with home and third places like coffee shops.

As portfolio strategies evolve, cost reduction remains a factor, but the emphasis has shifted to aligning real estate with business objectives. The panellists shared their perspectives on whether further space reduction is likely.

Manzana noted that Standard Bank’s South African portfolio has largely stabilised, but employee preferences are shaping space utilisation. The Rosebank head office is now at capacity due to its popularity and attractiveness, while under-utilised space remains in Johannesburg’s CBD.

Rauff suggested that future portfolio optimisation at Nedbank will be influenced by business dynamics rather than just space efficiency. Digitalisation and automation are also reshaping real estate needs—for instance, digital concierges will reduce the need for traditional reception areas, and cloud-based systems are minimising storage requirements.

Pierre-Eugene highlighted that Discovery’s growth-oriented culture presents challenges in real estate planning. As the company continually launches new products and services, space needs remain fluid. “Real estate is the third biggest cost after people and technology, so we must constantly optimise while ensuring we don’t constrain growth,” he said.

With workplaces now accommodating five generations, organisations must consider diverse work styles and preferences. Older employees generally favour in-office work, while younger workers seek greater flexibility.

The panel agreed that creating an appealing office environment is key. Amenities like high-quality coffee shops, restaurants, and multi-purpose spaces enhance the workplace experience. Manzana noted the shift away from single-use spaces in favour of adaptable environments that serve different purposes throughout the day. Pierre-Eugene added that modern employees’ expectations have changed - they expect things like green buildings and well-designed workspaces that offer more than just functionality as a baseline. In order to attract top talent, workplaces need to be engaging, enjoyable and even exceptional.

Reflecting on the past few years, Manzana summarised a key takeaway: “Work is not a place, but what we do. The ideal workplace is one that supports that.” The panellists agreed that while remote or hybrid work has its place, long-term innovation, culture, and productivity thrive in a connected environment.

Rauff emphasised that new workplace models take time to mature within organisations and need to be driven from top leadership level. Pierre-Eugene echoed this, stating that real estate leaders must have a voice in strategic decision-making to ensure an optimal workplace strategy. “Understanding the strategic importance of real estate allows for better planning and execution,” he concluded.

Summing up the discussion, Moyer emphasised that portfolio optimisation is not a one-time exercise but an ongoing strategic process. “While many companies have already reduced their footprints, the real challenge is ensuring that space delivers maximum value—whether through efficiency, sustainability, or employee experience,” she noted. As businesses continue to adapt to evolving work models, economic pressures, and technological advancements, corporate real estate strategies will need to remain flexible, data-driven, and aligned with broader business goals.

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As a leader in property, Cushman & Wakefield | BROLL designs, delivers and manages real estate solutions to achieve business goals. We create value across all sectors with expertise, experience and cutting-edge technology. Our proven results in 11 African countries are driven by highly specialised real estate intelligence, a network of skilled professionals, and insight gained from years of delivering success to many of the largest corporates in Africa. As the exclusive African affiliate of Cushman & Wakefield, Broll Property Group combines resources from a global real estate services leader with a market-leading track record of African operations. Our corporate real estate services and end-to-end solutions prepare our clients for what’s next. Visit cwbroll.com for more information. Connect with us on Facebook, LinkedIn and YouTube.

Bronwen Noble

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