Technology advancements are allowing companies to become more flexible, agile and support cross-team collaboration – the latter being particularly important for those adopting the hybrid working model (where employees spend at least 2-3 days/week in the office) where physical daily contact may be more limited. Rather than this reducing productivity, we’re seeing how investment in IT can support employees wherever they are based and enable seamless co-working.

Offices are being reconfigured to promote and support the new ways of working. Demand is rising for offices that are smaller, to accommodate a lower headcount at any one time, and more flexible, and companies are prioritising more face-to-face contact through initiatives such as creating more communal spaces in office buildings.

But that’s not the only trend. Recognising that offices are inevitably being compared to ‘home comforts’ for those used to working in their home office, many companies are improving on-site leisure, health, and well-being facilities, as well as investing in smarter decor.

In major financial centres, such as London, this is being taken a step further. Smaller offices means there has been more money to spend on luxury office accommodation - or, as The Economist reports - we’re seeing the rise of the uber-luxurious office.

Is this a long-term trend? It may be one that is at the mercy of macro-economic trends - recessions and downturns have a habit of reining in any spending deemed to be non-critical. But there is little doubt that younger generations are more attracted to companies that focus on employee well-being, and talent will out.

For many businesses, sustainability is as important as an improved employee experience with great emphasis placed on minimising environmental impact, waste reduction, and the use of lower carbon materials in construction.

However, while new build standards are mandated, most offices are housed in ageing buildings which were built at a time when energy efficiency standards were considerably below where they are now.

According to a report published by Carter Jonas: Offices: Past, Present, Future in April 2023, around a fifth of the UK office space fails to achieve current energy efficiency ratings that allows them to be let – that’s an Energy Performance Certification of at least E – although the report indicates that this figure may need to be treated with caution because some buildings will be exempt, and others may be being modified. Oxford, Cardiff and Edinburgh were reported as having the largest percentage of low rating offices, while only 28 per cent of the country’s office stock was rated high quality – which is, as we’ve discussed, where the demand is currently highest.

As the report’s authors note: “Occupiers are demanding office space that meets increasingly high sustainability criteria. This is partly being driven by legislation such as the minimum energy efficiency standards (MEES) legislation.

“Increasingly, however, the drive towards sustainable space is being driven by occupier preferences, with many corporates placing this high on their list of property selection criteria.

“In the current competitive labour market, providing a vibrant, attractive, and sustainable work environment is increasingly important for the recruitment and retention of talent, encouraging working from the office, and promoting the well-being of employees. In addition, high energy prices have made the benefits of an energy-efficient building all the more apparent.”