Realizing Potential in Office Portugal 2025

The European office markets are undergoing a structural transformation driven by hybrid work, cost optimization, and a strong preference for quality. Prime rents have continued to rise across major cities, while simultaneously, stock levels and vacancy rates have increased. In Portugal, Lisbon and Porto are showing robust leasing activity and a rebound in investment after the slowdown in 2023 and 2024.

Occupier behavior reflects a clear push for flexibility and efficiency. Companies are adopting desk-sharing and flexible office models to optimize space and reduce capital expenditure, while hybrid work is driving portfolio downsizing for more than half of organizations. However, as occupiers increasingly prioritize well-located, high-quality spaces—a trend known as the “flight to quality”—not all buildings or locations meet these criteria, raising concerns about availability for companies facing stay-or-go decisions. In this context, particularly in the Portuguese market, there appears to be a case for a more agile solution beyond traditional flex offices. CBRE has explored the potential of ‘plug-and-play’ models and the conditions under which they could be a viable investment option.