A new report from the Royal Institution of Chartered Surveyors (RICS) has indicated that nationwide demand for commercial property has now exceeded pre-pandemic levels. In its Q4 2021 commercial property survey, the RICS noted a shift in demand to office space, suggesting that fears of long-term repercussions from the Covid-19 pandemic are beginning to wane.

Nevertheless, the survey did show that business owners are adjusting the amount of space allocated per desk, with employers thinking carefully about futureproofing their work environments.

Almost 90% of survey respondents confirmed they are repurposing their office space in some shape or form, with 15% stating this is occurring in “significant volumes”. More than two-thirds (69%) of business owners have ring-fenced more space per desk for the post-pandemic era, with a view to futureproofing the workplace for future crises.

With Covid-19 restrictions continuing to be lifted, two-thirds (66%) of respondents said that office space was still an “essential” requirement for their business to operate fully. The RICS outlook on office values is positive, with 24% of respondents anticipating a rise in prime office values this year.

It’s an even brighter story for prime industrial values, with 84% of respondents anticipating light industrial units to increase throughout 2022.

Tarrant Parsons, economist at RICS, said: “Sentiment appears to have largely weathered the uncertainty brought on by the rapid spread of the Omicron variant in recent weeks, although the green shoots of recovery that appeared to be emerging in office tenant demand seem to have been put on hold for now.

“Longer term though, a strong majority of respondents still consider office space in some form to be essential for businesses to operate successfully.

“That said, it appears more flexible or local spaces are very much in favour which could well prove to be a lasting legacy of the pandemic.”

Secure high-value, low-cost business space in thriving local economies at Pall Mall Estates

For more than 30 years, Pall Mall Estates has owned and managed prime-grade commercial property that delivers value for money for tenants nationwide. Our current portfolio of 4 million sq. ft of workspace consists of hundreds of properties in towns and cities across the UK.

We don’t just let offices and industrial units in major cities like London and Birmingham either. We see tremendous value in workspaces in smaller towns and cities with excellent transport links that can provide a smarter, cost-effective alternatives for businesses.

We also accept the need for businesses to be agile to thrive in contemporary markets. That’s why we’re committed to being equally as flexible, with our short-term lets proving ideal for businesses experiencing rapid expansion or those seeking a strategic satellite office to cover the lifespan of a one-off project.

We’re equally passionate about giving businesses a base they can be proud of for the long term too. That’s why we offer turnkey fit-out services that can tailor the floorspace to your business’ exacting needs. This will prove particularly beneficial in the post-pandemic economy.

To enquire about any of our available units across the country, please don’t hesitate to contact our friendly and experienced agents today on 020 8023 8192 or drop us a line using our online enquiry form.

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