When asked what drives the decision to take space, the most frequently cited factor for occupiers (63%) was ‘growth of existing business’. Expansion into new business lines and footprint consolidation were joint second (both 33%).

While there are no surprises here, it is of note that most occupiers typically identify two to three key factors in their decision-making. A broad range of demand drivers, including network consolidation, technology adoption, resilience, and ESG improvements, will continue to combine to generate new requirements in 2025 and beyond.

Indeed, Savills’ agency team reports anecdotally that much of 2024’s market activity was driven by factors other than net business expansion. This is important for market dynamics.

While demand has been healthy over the past two years, companies are rotating (and often consolidating) into new spaces rather than generating additional requirements. Net absorption has, therefore, been relatively weak. The share of ‘Grade A’ quality stock has started to decline. Consequently, landlords holding prime modern stock are expected to experience lower void rates, while older stock is at risk of remaining unleased for longer.

_{Read the articles within Future Space Report 2025 report below}