Conclusion

Our survey shows that rising costs and inflation are impacting decision making. As reducing unnecessary expenditure becomes a key corporate objective, businesses need to make their properties work harder, enabling them to get the best out of their office space, to attract employees in and improve productivity.

To do this they need office space that can both accommodate increasing numbers of staff coming back into the office to work, but also one that can satisfy internal stakeholders’ needs and wishes.

Attitudes towards environmental considerations continue to shift from the “nice to have” to “necessary” as the cost and associated benefits are becoming clearer for all to see. It is now understood that more environmentally focused premises will help to drive down operational costs, whilst also supporting the demands of the internal stakeholders, and enabling a company to avail itself of greater financing options.

Businesses looking to increase their space and improve their ESG credentials now have three main choices. They may move to more expensive, but high-spec and ESG compliant space, in which they may have to fund costly fit outs. Or due to the dearth of such space may choose a lesser option – if the price is right – and work with their new landlords to improve standards, despite the disruption both a move and refurbishment might cause.

The third, and perhaps the least expensive option could be to work closely with their current landlord to rework their existing office property and possibly also add in an element of flex, to give themselves time to think about where they want to be more permanently. Our survey indicates that businesses appear more prepared now to stay in situ and work with their landlords to improve their existing space and its ESG credentials (and their own) in the process.

In making the decision to stay vs go, businesses seem to be leaning towards staying.