Key findings
More businesses (45%) are looking to expand their office space in the next 12 months than to reduce it (10%)
More businesses (49%) are choosing to re-gear existing space rather than relocate (23%), with many planning to supplement existing space with some type of flex (44%) in their portfolio.
In a vote for the office, more people are going back into the office to work, with numbers expected to grow further. The five-day-in-office working week is now gaining strong momentum.
Social capital is a key driver for office attendance, to collaborate with colleagues and for team building. “Being seen” and to help career progression is an important driver too.
In the current economic climate, cost is a primary factor in defining a property strategy, including implementing change to reduce the environmental impact of the office.
Attaining net zero is not a goal in its own – this pathway is linked to cost reduction.
Businesses are not concerned about current EPC legislation, with 72% saying they would enter a lease that expires in 2030 or later if the building had a better location or rental level.
79% of businesses say they are currently or will be considering issues of embodied carbon in their property strategy. Interest in green finance is growing for all sizes of business.
The Background
Increasing costs and the impact on property decisions.
To set the scene, we asked about the main threats to business in the next 12 months. The overwhelming response was the growing cost of conducting business, with 43% saying inflation and higher interest rates are the greatest threats, particularly since these would push up the cost of borrowing and other costs.
Rising employment costs and risks, including increasing employer national insurance and employee rights and tax policies make up the top three threats.
Further concerns cited include rising property costs, including energy, rent, business rates and insurance, the need to attract and retain staff and the impact of the global economic downturn.
What, if anything, do you think will be the biggest threats to your business in the next 12 months? (Select up to 3)