UK employers plan to reduce office space by up to 9m sq ft

In accordance with PwC’s Occupier Study of 258 of the united kingdom largest companies there’s apt to be a sizeable drop in occupied work place as major UK companies intend to reduce their workplace portfolio by around nine million square ft.

The statistics show 1 / 2 of the organisations surveyed be prepared to reduce the dimension of their property portfolio and, of the, 1 / 3 believe they shall reduce their workplace footprint by a lot more than 30 per cent.

For economic services firms, 60 % of respondents stated that they will decrease their footprint with 59 % expecting it to lessen between 21 – 40 %. For organisations within the federal government and public industry, 57 per cent  said they’ll reduce their workplace footprint with 60 % expecting it to lessen between 11 – 30 %. Within the buyer markets sector, only 28 % of businesses stated they intend to reduce their workplace footprint (vs 50 % overall).

Only 10 % of these questioned agreed that the amount of employees working from any office will go back to pre-pandemic amounts. Despite considering mass vaccinations, around 1 / 2 of the senior executives surveyed think employees will work virtually 2-3 days weekly.

The outcomes also display that:

  • 71 % of  respondents intend to increase expense in technology that allows agile working on the next 2 yrs.
  • Appetite for applying ‘(sub)leasing versions’ and exploring partnership versions such as for example occupancy linked leases will be reduced among respondents with almost all having no programs to introduce them later on.
  • For organisations with an increase of than 100 workers, 51% have a genuine estate and workplace technique that considers the future impact of Covid-19.

The Occupier Survey findings furthermore revealed that simply over 1 / 2 of all respondents mentioned virtual working has already established a positive effect on productivity within their organisation.

Nevertheless, within the financial providers sector, fewer companies see digital working as getting a positive effect on productivity (48 % positive impact vs 55 % overall) despite nearly nine in 10 disagreeing that workplace working will go back to pre pandemic ranges. Compared, organisations within the federal government and public field see digital working as getting a positive effect on productivity (70 % positive impact vs 55 % overall).

Over three quarters of respondents stated they are more likely to reconfigure current work place with 43 % of financial services companies stating they are extremely most likely to do so because of the pandemic. Within the buyer markets sector, 62 % of businesses intend to reconfigure room stating collaboration as an integral driver also. Being a lot more agile for upcoming disruption was furthermore cited as an integral reason (60 % vs 47 % overall).

Angus Johnson, UK PROPERTY Leader at PwC United kingdom, mentioned:  “The figures couldn’t become more clear, the change to hybrid working, with section of your time in the home and component in the working workplace, is much embedded in to the working culture of several organisations pretty. So much in order that a substantial proportion of the firms we spoke to are preparing to reduce their workplace portfolio, that could lead to around nine million square foot of vacant area. 

“However, it’s very clear that the function of the office won’t disappear. We might see an elevated demand for flexible room as much businesses operating versions may need that choice if holding dead area is usually to be avoided. It’s furthermore clear that the reason and nature of work place will probably change. 

“As occupiers seek brand new, different room to meet up their accommodation needs, environment aspects will undoubtedly be important increasingly.  If the true estate industry to&nbsp is; succeed as a far more dynamic truly, greener industry it’s essential that creative thinking involves the fore.”