Your Office Isn’t a Line Item. It’s A Culture Strategy in Disguise

By Chris Rohrer, Broker & Pete Kostroski, Broker | Rokos Advisors

For years, real estate has been treated like any other line item on the P&L—a fixed cost to be minimized, negotiated, and largely ignored once the ink the lease dries. But forward-thinking leaders are beginning to see it differently.

Because office space isn’t just about square footage. It’s a reflection of who you are as a company, how you lead, and why people choose to stay.

The Soft Costs That Impact the Hard Numbers

When executives look to control expenses, office space is often one of the first places they turn. On paper, the logic makes sense: reduce your footprint, reduce your cost. But in reality, the ripple effects can be far more expensive.

The wrong side – whether too large, too small, poorly designed, or simply uninspiring – doesn’t just inconvenience teams. It undermines productivity, weakens culture, and contributes to employee turnover. Those are the real costs. They just don’t show up directly under “occupancy".”

The questions isn’t just how much are we spending on space?

It’s what kind of return are we getting on it?

Space Is a Strategic Tool, Not Just an Overhead Cost

The workplace has become more than where work happens. It now plays a key role in how companies retain talent, collaborate effectively, and drive innovation. Whether hybrid or fully in-person, the quality and intentionality of your space sends a message. It tells employees what matters. It shapes how people feel about coming to work. And it determines whether that time in-office adds value or feels like a chore.

Smart companies are asking: does our space support our people, our goals, and our future, or is it simply something we pay for?

Executive Leadership Is Reframing the Conversation

Leading organizations are no longer thinking of real estate as an expense to be minimized. They’re approaching it as an asset to be optimized.

This shift looks like:

  • Aligning space strategy with talent and business goals

  • Designing for flexibility, collaboration, and culture alignment

  • Treating office decisions as long-term strategic investments – not short-term budget wins

The result? Workplaces that help attract, engage, and retain top talent while supporting business objectives with clarity and purpose.

Is Your Office Working as Hard as Your Team?

If you haven’t reevaluated what your office is doing for your business, not just to your budget, now’s the time.

Interested in how to align your real estate strategy with your culture and long-term goals? Connect with Rokos Advisors today.

Rokos Advisors is an award-winning Minneapolis - St. Paul based commercial real estate/tenant representation firm specializing in helping businesses find the perfect office or industrial space for their company.

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The Lease That Looked Good on Paper – Until It Crushed the Budget

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How Rising Twin Cities Buildout Costs Are Impacting Today’s Space Leasing Strategies