76% of U.K. Businesses Are Seeking New Workspaces This Year

The majority of U.K. businesses say they are seeking new workspaces. 

A recent NCG survey, which included responses from 1,002 senior decision-makers across U.K. businesses, shows 76% of businesses are now actively seeking new workspaces or planning to do so within the year.  

The data reflects the growing emphasis placed on flexibility in modern work environments and its impact on the workforce. 70% of respondents in the survey said they currently utilize office or workspace on either a hybrid (46%) or full-time (24%) basis.  

“In Europe, workspace occupancy rates are currently at around 57%, still significantly below prepandemic levels of 70%,” according to the report. “As a result, businesses have more choice than ever when it comes to choosing a workspace, becoming increasingly discerning as they simultaneously navigate challenging economic conditions and an evolving working culture.” 

Serviced offices emerged in the survey as the most popular type of workspace, which is reportedly used by 37% of businesses. Following closely are office and meeting spaces hired by the hour or day (36%), private offices (35%), and flexible or coworking spaces (32%). However, many businesses are reported to be mixing these options to suit their unique needs. 

The survey also revealed that over half, or 59%, of companies using flexible or coworking spaces find them most suitable for their needs — with 45% unlikely to return to private offices.  

This apparent movement towards flexible workspace solutions reflects the transformation of the commercial real estate sector. 

“Driven by a demand for flexibility, a move away from traditional private offices, and a greater variety of workspace types to suit diverse business needs, the workspace market is visibly undergoing an evolution,” according to the report. “With this has come a heightened readiness from businesses to change workspaces and explore better, alternative options. This can lead to high turnover, so workspace providers and landlords must ensure spaces are flexible, adaptable and of the highest quality to improve retention.” 

As businesses adjust to new work strategies and norms this year, the demand for versatile and collaborative spaces is expected to grow, and this will drive further innovation in how office spaces are designed and used.