Rightmove says unique enquiries to lease office space are at their highest since before the pandemic.
Demand to lease office space is 19% higher than the same period a year ago at a time when many businesses are continuing to consider how often employees should be in an office together.
Rightmove’s Quarterly Commercial Insights Tracker analyses millions of data points to track supply and demand over time.
Demand is measured by enquiries to commercial agents about listings for lease, or to invest in via Rightmove.
A snap poll in Rightmove’s research panel, Living Room, also shed some light on what could attract UK employees to spend more time in an office.
Amongst more than 350 office workers, a shorter commute (51%), free or discounted food (39%), greater flexibility with working hours (34%) and better facilities (29%) were some of the top priorities employees said would make them want to go to the office more.
The things that people found most frustrating about working in an office were the commute (61%), the office temperature (27%) and poor office facilities (24%).
In other trends, demand to invest in commercial property of all types continues to grow as the interest rate environment becomes more favourable. Demand to invest in commercial property is now 19% ahead of Q1 2024.
This most recent quarter, demand to invest in offices has outpaced the industrial sector, which had been leading the way.
Demand to invest in the office sector is up by 75% versus the same period last year (a low base), compared with 70% for industrial.
In the leasing sector, demand to lease leisure and hospitality spaces is up by 37% versus the same period last year. Demand to lease industrial space is also up 37% as the growth of e-commerce continues to fuel demand for warehouses.
“Modern, well-positioned office space with great amenities and service is being used as an added incentive to attract top talent, to encourage them into city centres more, and is seeing strong demand. Older, energy-inefficient and less comfortable office spaces are struggling to meet expectations from office workers” explains a Rightmove spokesperson.
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