The majority of London’s occupiers expect to retain their office footprint and increase headcount over the coming years, according to research, despite lingering doubt over the future of work brought about by the pandemic.
A survey of more than 100 big-name tenants found that 52% expect to retain their office space in the next three years, while 63% expect their workforce to grow. Some 29% said they would reduce their office space in the capital by 2024.
The survey, carried out by London office developer Co-Re, showed that 61% of tenants expect hybrid working to remain in place over the next three years, while 39% expect to be mostly in office.
Market speculation that occupiers would move en masse to a hub-and-spoke office model appears to be growing more unlikely, with just 7% saying they would try the system in the coming years.
None of the occupiers surveyed believed their organisation would work entirely remotely or entirely in the office five days a week within the next three years.
London outlook
Occupiers remained overwhelmingly positive about London’s place as a leading global business hub in three years’ time, with 71% reporting a positive outlook, 7% negative and 19% anticipating no change.
When asked to rank their top five priorities, more than half of occupiers said transport connectivity was the most important factor to consider when assessing the desirability of an office building.
Digital infrastructure ranked as the second highest priority, while good internal air quality and cycle, shower and changing facilities are emerging trends, ranking higher than amenities such as an on-site gym or café.
Bradley Baker, director at Co-Re, said: “Overwhelming confidence in the stability of London’s status as a leading global city is particularly marked – and welcome – in these uncertain times.
“As we emerge from the pandemic, occupiers look set to embrace a hybrid approach to working from home and in the office in order to maintain their current footprints whilst increasing their headcounts.
“But for most of us our routines have changed, and it is therefore not surprising to see that transport connectivity, digital connectivity and air quality are increasingly important, as companies look to support their staff in their return to the office.”
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