Episode Summary:
In this episode of The Cashflow Show Podcast, host Clayton M. Coke sits down with Will Scott, Real Estate Disputes Partner at Irwin Mitchell, to explore the resurgence of office demand as UK businesses adapt to staff returning to the workplace. With 45% of UK businesses planning to expand office space in the next 12-18 months, Will unpacks the drivers behind this trend, the challenges of limited Grade A office supply, and the strategic considerations for corporate occupiers. From hybrid working to cost pressures and environmental goals, this episode offers actionable insights for business leaders navigating the evolving commercial property landscape.
Key Discussion Points:
- Return-to-Office Trends: 72% of surveyed businesses report increased office attendance, with 74% expecting further rises in the next 12-18 months, driven by the need for collaboration and social capital.
- Office Space Demand: 45% of UK businesses plan to expand office space, but 49% prefer reconfiguring existing spaces due to high relocation costs.
- Post-Pandemic Lessons: 64% of businesses admit to over-downsizing during COVID-19, highlighting the need for strategic, long-term property planning.
- Hybrid Working Challenges: Younger employees accustomed to remote work need incentives like flexible hours, better amenities, and inclusive environments to return to the office.
- Sustainability and Costs: Businesses face a shortage of environmentally friendly, BREAM-certified office spaces, with rising costs posing barriers to office alterations.
- HR and Property Strategy Alignment: Integrating HR and property strategies is critical to designing workspaces that boost engagement and retention.
Key Takeaways:
- Corporate occupiers are prioritizing collaboration and brand identity, driving the return-to-office movement.
- Reconfiguring existing office spaces is often more cost-effective than relocating, but businesses must plan for hybrid working needs.
- A clear property strategy aligned with business goals is essential to navigate rising costs and limited supply.
- Incentivizing employees with flexible hours, improved IT, and inclusive environments can boost office attendance.
Notable Quotes:
- “It’s by being together that you can really drive your brand and drive your profit.” – Will Scott
- “The key for all corporate occupiers is strategy. The strategy must be driven by the business needs.” – Will Scott
- “One of the best things you can do is take a breath and step back… don’t make any big decision now because you don’t know what it’s going to be in the future.” – Will Scott
Actionable Insights for Businesses:
- Develop a Property Strategy: Assess your business’s long-term needs (e.g., hybrid or flexible working) and evaluate whether your current space can adapt or if relocation is necessary.
- Align HR and Property Goals: Collaborate with HR to design workspaces that support employee engagement, retention, and new working practices like collaboration and quiet zones.
- Explore Cost-Effective Solutions: Consider reconfiguring existing spaces to accommodate hybrid working rather than incurring high relocation costs.
- Incentivize Office Attendance: Offer flexible hours, free amenities (e.g., breakfast), and inclusive environments to encourage employees, especially younger workers, to return.
- Prioritize Sustainability: Explore ESG-related financing options to fund environmentally friendly office upgrades, potentially securing lower interest rates.
Resources:
- Full Irwin Mitchell Corporate Occupiers Report: www.irwinmitchell.com
- Connect with Will Scott: Contact details available in the report.
- Listen to The Cashflow Show Podcast for more business insights.
The Cashflow Show can be reached here:
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Clayton M Coke can be found here:
LinkedIn: https://uk.linkedin.com/in/claytoncoke
Website: https://www.prmsltd.co.uk
Email: info@prmsltd.co.uk
Twitter: https://twitter.com/prmsltd
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