Office

As sustainability and corporate responsibility become increasingly important to both landlords and tenants, leases are commonly integrating green clauses. This shift reflects a growing commitment to creating environmentally friendly, socially responsible, and well-governed workspaces.

Ongoing fears that the office market would see mass exits and severe downsizing post-Covid have largely not materialised. Instead, focus has shifted towards optimisation of space to support key needs that remote working cannot satisfy alone, including collaboration, connectivity, creativity and culture.

ESG considerations are now at the forefront for many businesses. Corporate occupiers are increasingly looking to their office spaces to support workforce wellbeing and achieve ambitious sustainability and decarbonisation targets. This "flight to quality" for new office spaces is impacting rents and creating greater polarisation in the rental and investment markets.

Flexibility remains crucial, with "space as a service" playing an important role in many occupiers' strategies. Traditional leasing models are evolving, with shorter lease terms and "plug and play" options becoming more prevalent in the office market. The trend towards hyper-flexible solutions is expected to continue to grow in 2025, with occupiers seeking the flexibility to scale up or down quickly to accommodate fluctuating team sizes and flexible working patterns.

Technology continues to drive many trends, including hybrid working, ESG initiatives, and employee wellbeing programs. The collection and sharing of data remain points of interest for both occupiers and owners. As working practices and space requirements evolve, collaboration between owners, occupiers, and workers will be vital in creating office environments that effectively support the new hybrid work model.