Nine out of 10 firms expecting to cut back on office space

The overwhelming majority of businesses say they are looking to reduce office space in the near future, as more people switch to home working.

A survey by the Royal Institution of Chartered Surveyors (RICS) found 93% of respondents think their business will scale back office space over the next two years as working habits change in the aftermath of the pandemic.

But almost two thirds (64%) believe offices will increasing move out to the suburbs, which could help boost local high streets.

‘The reduction in demand for office space in some locations could be used to counter demand for housing, something the government has contemplated through recent loosening of Permitted Development Rights,’ said the RICS’ head of UK government relations, Hew Edgar.

‘However, the proposals are not right and have raised concerns around substandard homes, including building and space standards, all of which were highlighted in a 2018 RICS report.

‘It is possible to deliver viable office-to-residential schemes through the more stringent planning permission process, this would maximise the existing asset base in a sustainable way, providing affordable homes in close proximity to pre-existing facilities while contributing towards community and wellbeing,’ he added.

‘New community hubs developed through repurposing and reusing building stock is greener, will support supply chain management in construction, and kick start SME activity; all of which contribute to a stronger and quicker economic recovery.

‘With downturn there can be opportunity, government must also look to replace uncertainty with stability; and fill the middle of the commercial sector polo mint. Offices and shops in city centres need support as people stay away from their normal workplace, and although local shop hubs are benefitting the market must be addressed as a whole.’

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