Prepared by Brady Mick, Strategic Design Leader, American Structurepoint

At the recent CoreNet Global Indiana/Kentucky/Ohio (IKO) Chapter event, industry leaders gathered to discuss one of the most pressing challenges facing corporate real estate today: the reality of hybrid work on corporate and civic identity. While the pandemic may have initially forced companies to reconsider how and where employees work, the long-term effects are only beginning to take shape. The panelists explored how corporations like** CNO Financial, Humana, and Cummins** are adapting their real estate strategies to accommodate a more flexible, distributed workforce, leading to a fundamental reshaping of urban centers.

The dialogue revealed unexpected insights about the future of corporate real estate, making it clear that flexibility is no longer a choice—it is an imperative for survival in the post-pandemic world.

The Downsizing Dilemma: Traditional Office Footprints Shrink as Hybrid Work Expands

The pandemic catalyzed a shift that had been slowly brewing for years—the rise of distributed teams, a work process term that involves people working from various locations using technology to produce results. No longer tethered to a single office, employees now have the flexibility to work from various locations, whether from home, coworking spaces, or even coffee shops. As Matthew Woodruff, vice president of facilities at CNO Financial Group noted, this shift has drastically reduced the need for large corporate office spaces.

“We went from occupying 600,000 square feet of office space to about 125,000 square feet,” Woodruff shared. “That’s a massive reduction, and it leaves behind significant voids in the urban landscape. We’re working closely with our city and others to determine what comes next for our prior campus.”

This downsizing trend is not unique to CNO. Other companies, like Humana, are grappling with similar issues. Chad Babin, director of space and occupancy strategy at Humana, explained how the company has embraced hybrid work, with around 65% of its workforce now remote, compared to just 40% pre-pandemic.

“Our office space strategy had to change,” Babin said. “We no longer need all that square footage, but at the same time, we still need a physical presence for collaboration, meetings, and team engagement.”

This reduction in office demand is leading to a ripple effect throughout urban centers. Vacant offices translate to empty streets, fewer lunch spots, and storefronts struggling to stay open. The hybrid work model is fundamentally reshaping the relationship between companies and the cities they inhabit.

The Impact on Urban Centers: A Void That Needs Rethinking

One of the panel’s most immediate insights was how swiftly the changing work processes reshaped corporate real estate, reducing demand for large office spaces and accelerating the transformation of urban environments. Matthew Woodruff highlighted how a scaled-down office footprint is impacting CNO Financials’ strategy.

“We’ve reduced our footprint,” Woodruff said. “And in doing this we’re not only reducing our expenses—we’re also rethinking and redesigning the workspaces we have to be more flexible and functional, creating environments that suit both remote workers and in-person collaboration. The key is finding the right balance between maintaining a presence and adapting to new work habits.”

This rapid reduction in office space demand is forcing cities to rethink how urban centers function, especially as hybrid work becomes more entrenched. Andrew Urban from Colliers emphasized that cities would have to reconsider their approach, not just from a real estate perspective but from an economic and social one.

“It’s not just about fewer office workers—it’s about what’s missing from the streets: the daily energy, the transactions, and the culture,” Urban said. “Cities need to adapt to attract new uses for these spaces.”
The panelists agreed that cities and corporations must embrace adaptability and innovation in their real estate strategies to address these emerging voids. The traditional office space model is shifting, and cities have the chance to reimagine urban areas as multiuse spaces that integrate remote work setups, residential living, and leisure activities.

A striking example came from Chad Babin, director of space occupancy strategy at Humana, who discussed the company’s decision to consolidate its Louisville offices into one building.

“We’re vacating around 640,000 square feet and consolidating into our other downtown buildings,” Babin explained. “It’s not just about saving on costs; we’re working closely with the city to ensure the vacated space isn’t a dead zone in the downtown area.”

This pivot demonstrates how companies and cities are collaborating to ensure that once-empty offices can be repurposed for vibrant community use, blending business with urban renewal.

Hybrid Work: Not a One-Size-Fits-All Model

Another key takeaway from the event was that there is no single blueprint for how corporations should manage their real estate in the era of hybrid work. Each company must adapt its strategy based on its specific needs, workforce, and community context.

Matthew Woodruff underscored this point, noting that while CNO Financial has reduced its office footprint, the company continues to explore ways to support the company culture and a more flexible work environment, even for employees who prefer to work remotely but occasionally need a collaborative space.

“We’ve implemented a ‘hoteling’ system where employees can reserve workstations when they need to come into the office, to provide certainty,” Woodruff said, “and CNO has focused on what we call the 4Cs. Connection, Collaboration, Concentration, and Celebration to establish the purpose for in-office use.”

This hybrid work model has created a demand for spaces that are more dynamic and adaptable than traditional offices. Rather than sprawling floors of cubicles, companies now require smaller, more flexible spaces that can be easily reconfigured for meetings, team collaboration, or individual work.

“The challenge is finding a balance between remote flexibility and maintaining a physical space that fosters culture and collaboration,” Babin explained. “It’s not just about where people work, but how they work together.”

Reimagining Office Spaces: From Workstations to Multiuse Hubs

The conversation at the CoreNet event highlighted that the traditional concept of the office is being upended. Rather than closing offices or downsizing, companies recognize the need to repurpose their real estate to serve multiple functions, supporting in-person and remote workforces. The panelists called for a creative approach to solving the problem of vacant office spaces.

“These voids present an opportunity,” Urban said. “We can’t fill them the way we used to, but we can reimagine them. Think mixed-use developments—spaces that combine office, residential, and retail in a way that makes sense for today’s work-life balance.”

For companies like Cummins, this means thinking beyond corporate interests and considering how their real estate can serve the broader community. Converting vacated spaces into residential and retail developments is one way to breathe new life into urban centers.

Errazuriz continued. “We need to think about how these spaces can contribute to the community as a whole, providing places for people to live, shop, and relax, in addition to working.”

The New Corporate Real Estate Imperative: Flexibility, Community, and Innovation

The CoreNet Global IKO Chapter event made it clear that the future of corporate real estate is no longer defined by square footage and occupancy rates. Instead, it is about adaptability, flexibility, and innovation. Companies must embrace the changing nature of work by rethinking their real estate strategies and finding ways to contribute to the vitality of the urban areas they call home.

For real estate professionals, architects, and corporate leaders, the key takeaway is simple: Flexibility is the new currency of success. To thrive in this new era, businesses must be willing to adapt their office spaces into dynamic, multiuser environments that meet the evolving needs of their workforce and their communities.

As the panelists demonstrated, the post-pandemic world has accelerated a shift that had already begun, forcing companies to rethink not only how they use office space but what role they play in the urban context. By embracing this change, businesses can help revitalize cities and create spaces that enhance the quality of life for everyone.