"After years of assuming hybrid working would permanently shrink their need for desks, bosses are increasingly bringing staff back more regularly. The result is a surge in demand for bigger, modern offices that has caught many firms short. One national consulting executive admitted he had misjudged the future of working life: "In lockdown I had to look into a crystal ball and predict our future ways of working and got it wrong.""
"Deloitte, the Big Four accountancy firm, was among those to cut too far, he suggested. "They probably downsized too much, as did some of the banks, and they have some of the biggest office requirements in the market just now," Inglis said. "Most businesses want to be in the very best space. But we've run out. There is little to no 'prime' space available in regional cities.""
Businesses that reduced office footprints during the pandemic now face a surge in demand for larger premises as more employees return. Many firms assumed hybrid working would permanently cut desk needs but are now bringing staff back more regularly, creating pressure for modern, spacious offices. A pandemic-era pause in speculative construction reduced new supply, while a flight to quality has increased demand for newer, eco-friendly buildings. As prime regional space tightens, companies are refurbishing secondary offices and deferring disposals to accommodate tenant interest and immediate accommodation needs.
Read at Business Matters
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