CBRE reports strong demand for premium office space and record data centre growth in the UK

CBRE reports strong demand for premium office space and record data centre growth in the UK

the office market is benefiting from strong demand for premium office space and renewed overseas investment, the life sciences sector is seeing steady growth in funding but slower movement in transactions. At the same time, the data centre market is entering a period of exceptional expansionThe UK’s commercial property market is showing sharply contrasting performances across key sectors at the midpoint of 2025, according to CBRE’s latest UK Real Estate Market Outlook Mid-Year Review. While the office market is benefiting from strong demand for premium office space and renewed overseas investment, the life sciences sector is seeing steady growth in funding but slower movement in transactions.

At the same time, the data centre market is entering a period of exceptional expansion, with record levels of take up forecast and new developments extending beyond traditional hubs. The findings highlight how underlying supply constraints, shifting occupier needs and targeted government support are reshaping investment priorities across the country.

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Growing number of businesses want people back in the office, but not in all sectors

Growing number of businesses want people back in the office, but not in all sectors

Over two fifths (41 percent) of businesses have emphasised the need for people to work in a physical workspace such as an office over the past year, according to a new pollOver two fifths (41 percent) of businesses have emphasised the need for people to work in a physical workspace such as an office over the past year, according to a new poll from the British Chambers of Commerce (BCC). While most of the firms (67 percent) who require onsite working say it hasn’t impacted recruitment or retention, one in ten relevant businesses (9 percent) have seen staff leave in response. (more…)

Leadership teams are struggling to cope with the pace of change

Leadership teams are struggling to cope with the pace of change

Executive teams are failing to keep pace with the demands of a world defined by constant disruption, according to a new report.Executive teams are failing to keep pace with the demands of a world defined by constant disruption, according to a new report. The study, from  consultancy Waldencroft, claims that most senior teams remain fragmented and reactive, with only a small proportion taking a strategic, enterprise-wide view. The report, The Executive Readiness Gap, draws on insights from 20 in-depth interviews and 40 surveys with Chief People Officers across a range of complex and international organisations. It suggests that disruption has become a permanent fixture in the business environment, but many leadership teams continue to treat it as episodic—responding only when necessary before trying to return to a previous norm. (more…)

HNI Corp to acquire Steelcase in $2.2 billion deal

HNI Corp to acquire Steelcase in $2.2 billion deal

HNI Corporation, whose brands include HON and Allsteel, has agreed to acquire Steelcase in a cash and stock transaction valued at approximately $2.2 billionHNI Corporation, whose brands include HON and Allsteel, has agreed to acquire Steelcase in a cash and stock transaction valued at approximately $2.2 billion, according to a report from Rob Kirkbride of office insight. The deal brings together two of the US office furniture sector’s largest players and will create a combined company with annual revenue of around $5.8 billion. Under the terms of the agreement, Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock for each Steelcase share they hold. Based on HNI’s closing price of $50.62 on August 1, 2025, the deal implies a purchase price of $18.30 per share for Steelcase. Once the acquisition is completed, HNI shareholders will hold 64 percent of the merged entity, with Steelcase shareholders owning the remaining 36 percent. (more…)

Employers face flexible working challenge to meet demands of new employment bill

Employers face flexible working challenge to meet demands of new employment bill

A survey by HR software provider Ciphr suggests that improved access to flexible working is likely to be the most difficult provision to manage.Employers are expected to face major implementation hurdles as the government’s new Employment Rights Bill begins to reshape workplace practices. A survey by HR software provider Ciphr suggests that improved access to flexible working is likely to be the most difficult provision to manage. In a poll of 300 HR decision-makers across the UK, 22 percent said that changes to flexible working arrangements—making it the default where practical—would present the biggest challenge in terms of time, resources and cost. Respondents also raised concerns about stronger legal protections for workers involved in industrial action (21 percent) and the extension of the employment tribunal claim window from three to six months (17 percent). (more…)

Workers switch off early on Fridays as hybrid working continues to reshape the week

Workers switch off early on Fridays as hybrid working continues to reshape the week

A growing number of remote workers in the UK are ending their week early on Fridays, according to new data that highlights the shifting rhythms of hybrid workingA growing number of remote workers in the UK are ending their week early on Fridays, according to new data that highlights the shifting rhythms of hybrid working. Figures from Virgin Media show that broadband usage among home workers drops by around 8 percent between 3pm and 5pm on summer Fridays compared with winter, suggesting that many employees are logging off ahead of the traditional end of the working day. (more…)

Average length of London flex office agreements reaches a new high

Average length of London flex office agreements reaches a new high

New research from CBRE has found that the average London flex office agreement now stands at 22 months, a record highNew research from CBRE has found that the average London flex office agreement now stands at 22 months, a record high since CBRE started tracking the data in 2020. In addition to longer commitments from occupiers, pricing in the capital has increased in recent years for best-in-class locations, with CBRE’s data showing H1 2025 rents in Mayfair & St James’s achieving an average of £315 per sq ft, and a top rate of £380 per sq ft, the highest in the UK. (more…)

Microsoft study reveals which jobs have been most affected by Generative AI

Microsoft study reveals which jobs have been most affected by Generative AI

Which jobs are most affected by Generative AI?A new large scale study from Microsoft has offered what its authors claim is one of the clearest pictures yet of how Generative AI is being used in real workplaces and which jobs are most exposed to its growing influence. Researchers from Microsoft analysed 200,000 anonymised user conversations with Bing Copilot, Microsoft’s publicly available AI assistant, to determine how AI is assisting or performing work tasks. The study focused on the types of activities people use GenAI for, how successfully AI completes them, and how these activities align with those performed across hundreds of occupations. (more…)

Calls for standardised product assessments address growing concerns about greenwashing

Calls for standardised product assessments address growing concerns about greenwashing

Built Environment Sector Calls for Standardised Product Assessments Amid Growing Concern Over GreenwashingA new industry-wide study has revealed widespread support for the introduction of mandatory Lifecycle Assessments (LCAs) on products used in the UK’s built environment to address widespread concerns about greenwashing. The findings, published in the report Greenhushing: Silence is Costing Credibility, show that 86 percent of professionals surveyed believe that LCAs are essential to reduce confusion and rebuild trust in environmental claims. Produced by Futurebuild in collaboration with The Anti-Greenwash Charter, The Carbon Literacy Project and communications agency Hattrick, the report draws on responses from over 3,000 people, including nearly 300 professionals in the built environment. It provides insight into the sector’s growing demand for standardisation and transparency in sustainability communications. (more…)

Better offices for all as occupiers shift focus away from cost cutting

Better offices for all as occupiers shift focus away from cost cutting

New research suggests a worldwide shift in workplace strategy, with portfolio optimisation (better offices basically) now the top priority for corporate real estate leaders, overtaking cost reduction for the first time.New research suggests a worldwide shift in workplace strategy, with portfolio optimisation and better offices now the top priorities for corporate real estate leaders, overtaking cost reduction for the first time. JLL’s 2025 Occupancy Planning Benchmark Report found that 73 percent of respondents identified portfolio optimisation as their main focus, compared with 70 percent who cited cost reduction and improved reporting. (more…)

More young workers take on second jobs to deal with cost of living

More young workers take on second jobs to deal with cost of living

New research suggests that a growing number of younger workers in the UK are turning to second jobs as they struggle to manage everyday living costs.New research suggests that a growing number of younger workers in the UK are turning to second jobs as they struggle to manage everyday living costs. According to a poll from Boostworks, more than half of Gen Z workers and over 70 percent of Millennials are exploring ways to supplement their income, with many already taking on additional work outside their primary employment. The findings, based on a survey of 5,600 working adults, highlight the scale of financial strain facing the workforce, particularly among younger generations. (more…)

Poorly designed and managed workplaces costing the UK over £70 billion a year, report claims

Poorly designed and managed workplaces costing the UK over £70 billion a year, report claims

A new report suggests that the quality of workplace environments could have a significant impact on the UK’s economic performance.A new report suggests that the quality of workplace environments could have a significant impact on the UK’s economic performance. According to a new report published by facilities management company MITIE, ineffective workspaces may be costing the economy up to £71.4 billion in GDP each year. The study claims to highlight how various physical and environmental workplace factors can affect employee productivity. (more…)