The footsteps echo differently now in America's corporate campuses. Vast floors of pristine office space—built for thousands of workers—sit quiet, leaving real estate leaders faced with a daunting question: What happens to all this empty space? At WorkSpaces, three industry veterans pulled back the curtain with moderator Carly Langley, VP of Partnerships at Karlin Real Estate, offering a rare glimpse into how major companies are tackling this challenge.
The Empty Empire Reality Check
The numbers tell a sobering story that most executives hesitate to share. Oracle's Don Watson, who leads their global real estate and facilities management organization, broke that silence by revealing a staggering 10 million square feet of expected vacancy across their 26-million-square-foot portfolio.
At NXP Semiconductors, Global Head of Real Estate Kathy Carr's experience brings these statistics to life. Walking through their vintage Austin campus, surrounded by endless rows of cubicles, she found herself calling out "Hello!" into the emptiness—only to hear her voice echo through vacant halls designed for a workforce that no longer exists.
Three Paths Forward
The Community Connection
Innovation is emerging from the emptiness. Forward-thinking companies are reimagining their campuses as dynamic mixed-use spaces. Oracle is leading this transformation, partnering with local governments to convert vacant towers into community assets. Their vision? Transform traditional office spaces into healthcare facilities and innovation hubs that serve both employees and neighbors.
The Revenue Revolution
Empty space doesn't have to mean lost value. Some companies are turning their excess square footage into revenue generators through creative partnerships. Think short-term housing for traveling executives, curated co-working spaces for complementary businesses, or even specialized lab spaces for startups that could become future acquisition targets.
The Ecosystem Evolution
For manufacturers like Genentech, the solution lies in creating strategic ecosystems. Sara Andersen, Head of Real Estate and Workplace Effectiveness, noted that while 97% of their workforce maintains an onsite presence due to R&D labs and manufacturing needs, they're exploring ways to cluster complementary operations while releasing non-essential space for redevelopment. They're even working with cities to transform some spaces into public amenities that serve both their workforce and the broader community.
The Corner Office Time Machine
Workplace evolution often faces resistance from traditional leadership. As HR leaders candidly shared with Kathy Carr, "Our problem is that the people who run the company are stuck in the past." When NXP transitioned from desk phones to digital communication, the over-45 crowd initially resisted strongly. Yet within three weeks, these same executives had fully embraced the change. "If you put a desk phone in front of a young person now, they wouldn't know how to use it," Carr observes, highlighting how quickly workplace preferences can shift.
Tomorrow's Blueprint
For corporate real estate leaders, the path forward won't be found in traditional playbooks. As this candid discussion revealed, success will come to those willing to reimagine not just how space is used, but why it exists in the first place. The question isn't just what to do with excess space—it's how to transform large corporate campuses into assets that serve the next generation of workers while maintaining operational excellence.
Watch the full discussion below…
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