Office space costs can be a major headache for businesses of all sizes. Traditional office spaces, typically with long leases and many unavoidable fixed costs, have historically been one of the most significant lines on a company’s balance sheet. However, over the past few years, working patterns and workspaces have been undergoing an unprecedented revolution. So, in 2024, what can the UK expect to see in terms of trends in these costs, and what strategies can organisations use to find the best space to balance both the books and the needs of their business? Read on to learn about current trends in UK office spaces and advice on maximising your return on investment in this area without sacrificing on features.

The rising cost of UK office space

High demand for top-notch office space has played a significant role in the increasing rental prices in different office markets across the UK. In 2023, several cities experienced unprecedented high rents, and this upward trend looks set to continue in 2024, with an estimated average growth of around 3% in most UK markets.

With more traditional leasing arrangements, the fit-out costs also have to be factored in when considering a new office. When adding up potential budget lines like AV, IT, furniture, and construction work, the cost can vary depending on requirements and location but could add up to more than £200 per square foot on top of the cost of leasing the space.

Beyond the balance sheet – Considerations when finding a new workspace

Choosing a suitable space for your organisation isn’t just about cost. The changing expectations of employees mean that offices are no longer just seen as places to turn up and work; they are hubs to collaborate and network, prioritising flexibility and promoting wellbeing through design and sustainability.

Sustainability

More and more businesses are looking to achieve net zero carbon targets and improve their overall ESG metrics. Unfortunately, a significant percentage of office space in the UK still does not meet the minimum energy efficiency standards, known as an EPC rating, which means landlords or companies that own their space face costly upgrades. These factors put more environmentally efficient offices at a premium in the rental market and add compliance headaches for tenants and landlords in traditional lease arrangements.

At Clockwise, two of our four key goals in our Corporate Social Responsibility strategy – Climate Change and Circular Economy – are designed to ensure carbon neutrality by 2025 and provide products and services to our members that minimise waste and maximise the use of sustainable materials.

Flexibility

For many desk-based roles, the model of a lengthy commute to an uninspiring office five days a week is no longer acceptable to employees. The CIPD’s 2023 survey on flexible and hybrid working showed a 10% increase in the number of organisations that believe it is essential to provide flexible working options to attract and retain staff, meaning that two-thirds of all respondents now value flexibility. This trend will continue into 2024 and beyond. With the growth in hybrid working models, businesses are seeking ways to couple this trend by streamlining office costs and time managing office spaces.

Technology

Strategic use of technology is critical to achieving both optimal business performance and successful flexible working arrangements. Fast, secure WiFi is a must in any office space, and optimised video conferencing technology that allows colleagues to connect seamlessly makes hybrid working arrangements stress-free. All Clockwise locations provide this, alongside top-notch IT support, printing facilities, and spaces to make private calls. We are also proud to offer Clockwise Campus. The first-ever workspace in the metaverse provides an exciting digital platform to connect, collaborate and interact.

Cost-Effective

Businesses can cut the hefty expenses associated with traditional office leases by moving to flexible workspace. Take a look at our cost calculator to see what you could save.

Adaptable and Scalable

Flexible workspaces offer the adaptability to accommodate your business’s and your team’s changing needs. From hot desking areas to private offices, Clockwise can provide a range of options that can support these evolving needs.

Building business communities

Flexible workspaces nurture a community of like-minded professionals. We offer all our members access to an exclusive portal for networking to help foster new connections.

Top-notch services in fantastic locations

The right flexible workspace should offer high-quality facilities in locations that support your organisational goals. With 15 locations across the UK and Europe, Clockwise has the beautiful, functional spaces you need in locations that can boost your business.

Looking for more information on flexible workspaces, boosting productivity and other hot workplace topics? Take a look at our Community pages for further inspiration and advice.