As real estate emerges from the coronavirus pandemic, office landlords are scanning the horizon of a drastically different landscape. This report, based on a survey of UK occupiers, provides a snapshot of what exactly tenants want from their landlords, both now and in the future.
The world of work and physical office space has changed irrevocably. But the story is far from the apocalyptic narrative many expected at the beginning of the pandemic: nearly no-one is planning to reduce their office space to zero. Offices are still needed and wanted – just in a different form.
Trends that were gathering pace prior to the pandemic, including an increasing focus on sustainability and wellness as well as agile working and flexible workspaces, have accelerated. At the same time, occupiers are reassessing their space requirements as attitudes to work change. Digital transformation is underpinning every type of business.
GDP Will grow
It has been a difficult year for many occupiers, but in 2021 there is a distinct sense of optimism in the air. The IMF expects UK GDP to grow by 5.3% in 2021, the fastest growth rate since 1987. And while vacancy rates continue to rise, and landlords try to entice new occupiers on more favourable terms, existing tenants are using the opportunity to renegotiate new lease terms with their landlords.
Our research shows there is still clear and continued demand for office space, but the battle for the hearts and minds of tenants will be won not with premium postcodes or upgraded offices, but with strong connectivity and adaptability.
Tenants want their landlords to help them meet their security, sustainability and health and well-being goals by providing space that incorporates smart technology. Landlords who are aware of this changing landscape and able to provide both adaptable and flexible space are likely to reap the benefits of doing so, by finding and keeping the best tenants.
The office is by no means dead, but it is changing. There is a clear demand for sustainability, flexible space and well-being, and connectivity is driving this.
Download the report today and find out more.
Download the report today
Connecting the Dots
This report provides a snapshot of what exactly tenants want from their landlords, both now and in the future.