August 22, 2017
Regional office market remains strong and embraces the co-working revolution
The creative industries sector accounted for over a third 35 percent) of take-up in the regional office market in the first half of the year, with this sector in particular driving the co-working revolution and the provision of flexible office space. Latest figures in CBRE’s H1 2017 Property Perspective, which monitors the performance of ten regional cities, overall, the UK’s regional office markets saw continued demand in the first half of 2017, with office take-up reaching 2.8 million sq ft, only slightly lower than the five-year average. For the first half of 2017, several cities witnessed improved levels of take-up when compared with the first half of 2016, these include Aberdeen, Edinburgh, Leeds and Manchester. Select locations such as Reading, Maidenhead and Watford also saw a continuation of record rents being set during the first half of the year, which has largely been driven by the delivery of new developments.
Commercial property occupiers remain cautious about the future, and hard data indicates that demand has, so far, been largely unaffected by Brexit, claims a new report from the British Council for Offices (BCO) . ‘Brexit and its Potential Impact on Office Demand’, examines how Brexit might impact on demand for office space on a national and regional basis through to 2022. According to the report, almost one year on from the Brexit vote the situation is one of uncertainty, feeding through to slower growth, with ‘an almost palpable sense that choppy waters lie ahead, particularly with regard to trade and movement of labour’. However, businesses continue to make long-term investments in the national economy and even in the City, some large investment banks have committed to large new office buildings. There is much variation in the relative performance of the UK’s major office centres, though, with some expanding and others apparently in decline.
A majority of workers (65 percent) now feel comfortable requesting to work from home, while a third (33 percent) of UK employees would decline a job offer if they weren’t able to work flexibly. This is according to a new study from Maintel which claims that today’s multi-generational workforce prefers flexible working to traditional office hours and location; with flexible work policies perceived as an important workplace benefit. Nearly three quarters (73 percent) of respondents say the company they work for has good flexible work policies in place, 64 percent of remote workers don’t feel micromanaged, and 58 percent would take the opportunity to spend even less time in an office, if it were available. Well over half (60 percent) of respondents believe technology can replace in-person interaction in the workplace. Yet there remain challenges with flexible work, including indifference regarding the security of company data (66 percent) and distractions at home (31 percent).
