Space, the final frontier: research predicts firms will pay a premium for quality offices fit for the future

By Chris Wheal

July 03, 2024

Report: 59% think flexible/co-working spaces are the best fit for their needs

The office is back, but not as we know it. That’s the evidence presented by research from digital services firm NCG. 

It found that 70% of businesses are considering moving to a new workspace within the next year. But 45% expect never to rent their own private office again. And 59% think flexible/co-working spaces are the best fit for their needs.

Tenant sentiment

The report, Understanding tenant sentiment towards tech-driven workspaces, involved a sample of 1,002 senior decision-makers in UK businesses, surveyed by market research agency Censuswide between 1 and 9 May 2024. It found 59% are assessing the choice of different workspaces to see which best fits their needs.

In Europe, workspace occupancy rates are currently at around 57%, still significantly below prepandemic levels of 70%. But the good news from the data is that 55% confirmed their readiness to pay a premium for top-quality workspaces. This was defined as “having superior technology, facilities and décor”.

The report says: “This assertion is in line with current market trends, with recent data from Knight Frank indicating that lettings of the best quality offices accounted for 55.8% of all London take-up in Q1 of 2024.”

Flexible space

NCG chief executive Thomas Proctor told Fit Out News that the office of the future must be different. Hybrid working and only staff spending only certain days of the week in the office will change demands.

“Offices are no longer rented on a full-time basis. Spaces need to be flexible to ensure the highest uptake. Using a booking app, mobile first access control and videoconferencing technology, a room that was used a couple of times between 9am and. 5pm becomes an out-of-hours classroom, meeting room to dial-in remote workers and event space for roundtables,” Proctor said.

But that means rethinking even simple things, such as enabling people to charge phones and laptops in different office environments, Proctor claimed. 

“Offices are no longer a necessity, so to ensure utilisation it’s important to provide what people are looking for – which, according to our survey, is technology. It's not just the big shiny tech like screens and access control. Companies need to consider the usage of technology around a space, down to conveniently positioned plugs – because it's great to have a breakout area for meetings but if you can't charge a laptop whilst sitting there then it won't get fully used.”

Survey statistics 

The survey found:

· 31% want a workspace with events and networking opportunities 

· 28% value aesthetically pleasing, well-designed workspaces that foster community

· 31% say the technology in a workspace is the most important and 78% say it is important (50% reported regular failures of the technology within their workspace)

· 55% of businesses would pay a premium for a top-quality workspace. Just 25% said price was the most important factor.

Only 10% of respondents rated the tech in their workspace as ‘very good’, while 20% rated it as ‘poor;

Businesses want their workspace provider to improve or offer:

· 36% AI-driven smart infrastructure

· 35% extended reality

· 35% sustainable technologies

Wi-Fi improvements were the next priority

No gimmicks

Proctor told Fit Out News: “It’s not about having the latest tech, it's about having functioning tech. Audiovisual is often overlooked in offices in favour of baristas, beer taps or events but when the vast majority of employees (83%) spend one third of their working week in virtual meetings, having the technology to facilitate these is important.”

But with the drive to sustainability, Proctor suggested refurbished tech kit would be appreciated and not scorned. “Many landlords shy away from refurbished tech with the view that ‘brand new is better’. Refurbished tech is a great way to not only bring costs down but is also more sustainable as it lessens the demand for the latest model and stops existing equipment heading to landfill,” he said.

Tell us your prediction for the office of the future?