Welcome
The business landscape has changed since we last surveyed office-based businesses in 2022.
The pandemic appears to have receded, but we have now had a period of political and economic uncertainty. The war in Ukraine, escalating energy costs, and the rise of inflation all bring new concerns around the overall cost of doing business.
New forms of working, including the move to hybrid working, appear to have become established. In some industries, a four-day working week is being trialled in response to employee demand for a greater work-life balance. Conversely, we’re also seeing growing concerns about levels of productivity and businesses looking at innovative ways to attract workers back into the office.
These impacts are changing the way in which landlords and tenants view their office space. Our survey suggests that the office’s purpose is being re-evaluated to reflect current and future business needs. The type of space businesses need is changing. There appears to be a real flight to quality and to flexibility, reflective of businesses prioritising recruitment and retention in a competitive job market.
There’s also an acknowledgement that environmental concerns need to be high on the agenda. However, many companies still appear unaware of what this means in practice, or don’t have the data to make sure they’re putting this into practice successfully.
We’ve teamed up with Markettiers to survey more than 500 senior decision makers with a responsibility for office occupancy choices. You can read their thoughts on office requirements, and areas of opportunity and concern. We’ve summarised forthcoming environmental legislation, particularly MEES (Minimum Energy Efficiency Standards) and the potential impact of these changes on your office.
We’ve also spoken to Zoe Ellis-Moore, founder and CEO of Spaces to Places, Miles Gibson, Head of UK Sustainability Research at CBRE and Tim Parkin, Director of Building Consultancy & Head of Offices at Assure Consulting to get their insights on the trends we’re seeing, and how you can create an office space that works for your colleagues and the environment.
I hope you find this report useful. Please do get in touch if you’d like to further discuss any of the issues raised.
Adrian Barlow
Partner and National Head of Real Estate
Key Findings
Over 75% of UK businesses have changed the amount of office space they occupy in the last 12 months or are planning to change it in future.
Among businesses, there’s increasing interest in flex space and reduced interest in long-term leases.
Unsurprisingly, rising costs and inflation are named as two of the main issues businesses are worried about.
Many businesses remain unclear about new environmental legislation (MEES) – despite government deadlines approaching. Just under a third (32%) of businesses said they were concerned that they don’t know whether their office will be MEES compliant from April 2023.
There’s a willingness from occupiers to share with landlords the cost of making environmental improvements – but often this willingness comes with caveats.
There’s desire for greater collaboration between landlords and tenants over sustainability issues.