More firms are looking to rent office space than at any time since before the pandemic, new Rightmove research has found.

Its Quarterly Commercial Insights Tracker reveals that demand to lease office space is 19% higher than the same time last year as many more firms consider how often employees should be back in the office.

Rightmove’s snap poll also shed some light on what could attract British employees to spend more time together.

These include a shorter commute at 51%, and free or discounted food at 39%.

Greater flexibility with working hours was also among some of the top priorities.

Demand for commercial property

It reports that demand to invest in all types of commercial property continues to grow as the interest rate environment improves and is now 19% ahead of the first quarter of 2024. This quarter, demand to invest in offices has outpaced the industrial sector and is up by 75% versus the same period last year.

A recent NRLA poll found that 40% of landlords have either bought or are thinking of buying commercial property and of these, 35% said it was likely to become more important in their portfolio.

Modern, well-positioned office space with great amenities and services is being used as an added incentive to attract top talent, according to Andy Miles, Rightmove’s MD of commercial real estate, encouraging them into city centres.

Meanwhile, older, energy-inefficient and less comfortable office spaces are struggling to meet office workers’ expectations.

“Post-pandemic, modern offices have become lifestyle spaces rather than just somewhere that people spend the hours of nine to five,” according to Stephen Page, partner at Anton Page in London.

“There is also greater demand from medium-sized businesses for offices that are fully furnished and ready-to-go, rather than needing the time and upfront costs for businesses to fit themselves. Landlords have responded to this by offering turnkey solutions across their portfolios.”

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