The number of businesses looking for office space has jumped to levels not seen since before the pandemic, industry research showed on Wednesday.
According to Rightmove, the number of company owners enquiring about leasing office space in January was up 54% on the same month a year earlier, and 15% on January 2020.
Rightmove said some companies were downsizing, while others were looking to upgrade offices to take into account hybrid working policies. Annual growth in demand for office space outperformed all other sectors, including industrial, retail and leisure, and hospitality.
Across the UK, demand for office space in the UK’s ten biggest cities was only 8% behind January 2020, and up 62% on January 2021.
Alex Solomon, director of Rightmove Commercial, said: “The office sector has taken a knock since the pandemic started, with businesses cancelling their contracts or downsizing, and there has been much talk of working from home becoming a permanent fixture for many companies.
“Although some businesses have decided to move to full remote working, there are a large number introducing a hybrid policy, and others who would prefer their employees to be in five days a week.
“Many business owners adopted a wait and see approach, but we’re now seeing many taking action to try settle into a new routine.”
Lee Elliott, head of global occupier research at Knight Frank, said: “Momentum built in London’s occupational market during 2021, with the market seeing five consecutive quarters of improving take up.
“Business sentiment in terms of headcount and revenue growth is now well beyond pre-pandemic levels. There is a sense of both an imminent shift from pandemic to endemic, and so a more progressive agenda is emerging.”
