The number of enquiries to lease office space is at its highest point since before the pandemic, signalling that more businesses are increasing their office presence despite the growth of home-working.
Demand to lease office space is 19% higher than the same period a year ago, Rightmove’s Quarterly Commercial Insights Tracker has found.
Demand is measured by enquiries to commercial agents about listings for lease, or to invest in via Rightmove.
A snap poll of 350 workers found that a shorter commute (51%), free or discounted food (39%), greater flexibility with working hours (34%) and better facilities (29%) were factors which would draw most employees back to the office.
Andy Miles, Rightmove’s managing director of commercial real estate, said: “Post-pandemic, modern offices have become lifestyle spaces rather than just somewhere that people spend the hours of nine to five.
“Businesses want to be near good transport links, particularly key Elizabeth Line stations, and in a building which has the kind of amenities which excites top talent.
“The higher-end of the market, the best-in-class office buildings, are doing well and seeing strong demand.
“There is also greater demand from medium-sized businesses for offices that are fully furnished and ready-to-go, rather than needing the time and upfront costs for businesses to fit themselves.
“Landlords have responded to this by offering turnkey solutions across their portfolios. It’s becoming much more par for the course.”
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%).
Industry experts suggest a desire from employees to work in top class office spaces near good transport routes, particularly the Elizabeth Line, is driving business decision making.
This 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.