I think most people in this field will agree that it is one of the first departments to be downsized or cut when business is struggling since it does not contribute directly to growth or sales. It's a difficult case to make to management that Facilities areas are a major cost factor and need to be efficiently managed in good times and not-so-good.
I have worked both in-house and as a consultant. What I have observed is that unless a lease term is up and you can generate a project through a relocation for a better deal, then businesses prefer to take the band-aid approach to minimize costs. They will also reconfigure existing space to reduce the occupied area which allows them to "darken" the unoccupied areas to reduce costs.