For many office occupiers, the last two years have been shaped and dictated by working from home guidance, social distance restrictions and flexible working arrangements. As we emerge from the recent government advice to work from home and with the vaccination programme creating greater confidence across all aspects of our work life, what does 2022 hold in store for the office occupier market?
More data, less friction – technology a key driver for offices
Establishing an office environment that entices staff in and is an improvement on their working from home arrangement will be key for businesses this year. It will also be fundamental in supporting hybrid working, which has become the new norm, allowing collaboration between the home and office. As part of this, we will see technology forming an important foundation of office fit-outs, in both new and refurbished space.
The future is green
It will come as no surprise to see sustainability and ESG on the key themes for occupiers in 2022 given the significant and vital importance of both. However, what is interesting to note is that the priorities in terms of sustainability and ESG are varied and bespoke between occupiers depending on sector. For some the environmental and net zero aspects are of significance, while for others it is the social value element. However, what is clear is that sustainability and ESG are not passing trends for office occupiers but factors that hold increasing importance.
Post pandemic ventilation
Predominantly as a direct result of the pandemic, office ventilation has rocketed up the priority level and established itself as a key factor for both staff and employers. This reprioritisation is driven by the focus the pandemic has put on tackling airborne infection in the working environment which has been a barrier for some in the return to the office. Alongside improved ventilation inside, outside areas are also growing in importance and will continue to do so as we move forward. Terrace areas, courtyards and gardens have become evermore desired features and occupiers are prepared to pay extra to secure spaces with an outside areas.
Flight to quality
Occupier requirements are increasingly expanding in terms of wanting more than just office space, but also taking into account criteria around wellbeing, sustainability, ESG and different ways of working. As a result, we are seeing a substantial flight to quality among office occupiers who are prepared to invest more in terms of rent and lease terms to be able to secure a building that has grater ‘future proofing’ potential. This could also be the effect of HR departments having a greater role in the decision making process, particularly in larger firms.
Covid rent moratorium
The rent moratorium put in place by the Government in 2020 to support occupiers is due to come to an end on 25 March 2022. With no further extensions currently planned, the onus will be on occupiers to pay their rent within the agreed time period. Landlords will also be able to chase rent arrears and evict tenants should agreements not be upheld. As a result we could see more occupier space coming back to the market as a result of lease breaches.
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