A new report from Leesman claims that the sharp reductions in office space seen in last five years may now be levelling off. According to the Focus Forward study, which draws on data from 132 senior corporate real estate (CRE) leaders worldwide, the majority of organisations have already reduced their real estate footprint – but the pace of office downsizing is slowing. The report states that 68 percent of organisations surveyed had downsized over the previous 18 months. However, only 49 percent said they intended to reduce space in the next 18 months. Of those, just 11 percent anticipated what the report refers to as “considerable” reductions. (more…)

A growing mismatch between supply and demand in the housing and life sciences sectors is fuelling a wave of office conversions across the UK, as developers seek to repurpose outdated vacant offices to meet changing needs, according to a new report from CBRE. According to the real estate firm, the rise in hybrid and remote working has left a significant volume of secondary office space vacant, with many buildings no longer fit for modern corporate requirements. Rather than invest in costly retrofitting, landlords and investors are increasingly exploring conversion opportunities – particularly into residential units and life sciences laboratories. (more…)

A new cross-regional partnership known as The Great North has been launched by the metropolitan mayors in the North of England, aiming to unlock economic growth, create jobs, and attract investment across the region. The initiative was unveiled at the UK Real Estate Investment & Infrastructure Forum (UKREiiF) in Leeds, and marks what its founders call a new era of collaboration and locally driven prosperity. Chaired by North East Mayor Kim McGuinness and supported by the UK Government, the body brings together northern leaders to focus on shared priorities such as clean energy, advanced manufacturing, defence, and the creative industries. The initiative has been endorsed by Deputy Prime Minister Angela Rayner, who described it as central to the government’s ambition to shift power from Whitehall into the hands of local communities. (more…)

Rental growth for prime office space around the world accelerated in the first quarter of 2025, increasing on average by 0.6 percent, following a 0.3 percent increase in Q4 2024, says Savills. Fit out costs also rose by 0.7 percent in the first quarter, following a 0.2 percent increase in Q4, as demand for top quality office space continues unabated. According to Savills Q1 2025 Prime Office Costs report, in the first quarter average ‘all-in’ net effective costs (rent plus fit-out costs) rose by 0.5 percent, with 21 of the 40 locations monitored recording an increase, continuing a moderate upwards trend of 3.3 percent over the last year. (more…)

There has been a significant surge in demand for commercial property investment, reflecting a marked recovery in the sector, according to a new report from Rightmove. The platform attributes this rise to recent interest rate reductions by the Bank of England, which have made investment opportunities more affordable and appealing. Rightmove’s Quarterly Commercial Insights Tracker, which monitors supply and demand trends among the UK’s largest commercial property audience, revealed that overall demand for commercial property investment increased by 28 percent year-on-year in the final quarter of 2024. The office market also witnessed a notable increase, with demand for office space investment climbing by 57 percent year-on-year. (more…)