Welcome to the topic “The Amazon Effect: The Corporate Shift to ‘Return-to-Office’”
The commercial real estate (CRE) office market is witnessing a significant change, and it started a year ago with a single, deliberate move from one of the nation’s largest employers: Amazon.
Amazon’s decision to call employees back for a full workweek has proven to be a pivotal moment, setting off a chain reaction of escalating attendance demands from employers across the United States.
Now this top-down mandate is translating into the market boost in office leasing activity that landlords have been eagerly awaiting, signaling a major turning point in the national office recovery.
The Stricter Stance: Policy and Culture Shift
Corporate America is aggressively pushing back against the pandemic-era flexibility, either by eliminating fully remote privileges, increasing the minimum in-office days, or even asking employees to relocate closer to corporate hubs.
The number of Fortune 100 companies now requiring a five-day workweek has ballooned to approximately 55%, a dramatic increase from the 5% reported two years ago, according to JLL. The presence of fully remote policies has essentially vanished, remaining at only 1% of companies surveyed.
As BXP CEO Owen Thomas noted, “The primary drivers of leasing activity are corporate confidence and the in-person work behavior of our clients.” He added that as in-person work behaviors “continue to improve, material shifts have undoubtedly augmented leasing activity.”
While 35% of employees currently work from home at least one day a week (University of Pittsburgh School of Business), this number is expected to drop as new, stricter mandates roll out from companies.
From Demand to Deals: The Market Response
Although the nation’s office vacancy rate remains historically high at 14.1%, the market is beginning to show positive signs:
Companies leased more office space in the first three months of 2025 than in any quarter since 2019.
CoStar’s National Director of Office Analytics, Phil Mobley, highlights the potential for larger spatial requirements as previously remote workers are recalled:
“If employees already have a seat, there may not be much incremental upside to demand… But there have been some caveats to that, which is something we’ve seen with companies like Amazon that have had to find space for workers that are now expected to show up to an office.”
This return-to-office push is creating a new type of demand—a hunt for space to accommodate employees now expected to show up, often leading to a Flight to Quality for modern spaces with top-tier amenities.
The Business Case for the Office Shift
The push for mandatory in-office attendance is more than just a matter of management preference; it’s a strategic move companies believe is essential for business acceleration and culture.
Corporate leaders consistently cite the benefits of in-person work—namely, the ability to spark innovation, promote creativity, and build stronger connections that are difficult to replicate remotely.
For tech companies like Microsoft, the shift is directly tied to the need for intense, co-located collaboration. As Amy Coleman, Microsoft’s chief people officer, stated, their data shows teams thrive when they work together in person, and they need that “energy and momentum” to successfully build the new artificial intelligence (AI) products that will define the era.
Similarly, for Starbucks, a company “built on human connection,” CEO Brian Niccol believes the increased mandate is the “right path” to support the scale of the company’s needed turnaround.
The pharmaceutical giant Novo Nordisk intends its mandatory five-day week to “foster a stronger sense of belonging, strengthen relationships, enhance collaboration and accelerate decision-making processes.”
In short, the return to office is viewed as a vital step for companies to achieve competitive advantage and organizational agility.
Major Corporations Joining the Office Mandate Bandwagon
In the wake of Amazon’s office mandate, several major corporations have recently implemented or announced significantly stricter return-to-office policies as well.
The New York-based entertainment conglomerate NBC Universal told employees that, starting January 2026, all hybrid workers must commute to the office at least four days a week, an escalation from their previous three-day minimum.
Those unwilling to adhere can choose a “voluntary exit assistance package.” According to COO Adam Miller, “It has become increasingly clear that we are better when we are together.”
In the aftermath of its merger, Paramount Skydance (with hubs in New York City and Los Angeles) is demanding most of its workforce show up five days a week starting in January as well.
CEO David Ellison framed the mandate as necessary to “make meaningful changes that position us for long-term success,” offering an “opt-in severance program” for those disinclined to follow.
Microsoft has issued a phased policy requiring employees living within 50 miles of an office to be on-site at least three days a week. This requirement will kick off in February 2026 for its Washington headquarters and later for other hubs.
Novo Nordisk announced to its global workforce earlier this month that in-office work will be mandatory five days a week at the start of next year, with some individual flexibility.
Starbucks recently bumped its corporate office requirement from three days up to a minimum of four days starting in October. Alongside this, many remote workers in its support center division have been told they must relocate to Seattle or Toronto within the next year.
Finally, Target is asking employees across its merchandising division to return to its Minneapolis headquarters at least three days a week. A spokesperson for the company said, “Team members tell us they see the benefit from the in-person connection and collaboration that’s a part of being in the office.”
Conclusion: The Office CRE Market’s Pivot Point
The corporate upper hand, exemplified by major players like Amazon and Microsoft, is undeniably leading the return-to-office push to drive employees back to physical spaces.
This changing dynamic is proving to be the catalyst the CRE office market needed to rally.
For Investors and Landlords, the focus must remain on the Flight to Quality: offering the top-tier amenities, modern infrastructure, and flexible, engaging spaces that companies need to successfully execute their attendance mandates.
The future of the office is no longer defined by full remote flexibility, but by the pursuit of value, connection, and high-quality space.
Also Read: Is the CRE Office Market Back? NYC Says “What Pandemic?”
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