Office Tenancy Demand Increases
Demand for tenancy occupation of office space surges
This month (January 2022), Shepherd Commercial have received an influx of enquiries from our network of clients seeking office space opportunities. As the COVID-19 pandemic seems to be coming to a close (again), restrictions are once again being eased and Boris Johnsons urge to promote workers back to their desks has boosted the demand for office space.
As companies move towards a different future, with many pursuing hybrid working conditions, they are looking for the correct office space to settle in. Many are downsizing as hybrid working allows less staff in the office at once and few are entering the office sector for the first time. The demand is surged and we’re receiving plentiful queries for leasehold space. The freehold market remains strong and few landlords are looking for disposal of their assets. Instead, they seek tenants to occupy their space and demand is meeting supply for the time being.
After a slow few quarters in 2021 for the office leasehold market, it seems the sector is improving and the supply is being snatched up by organisations looking to get the ball rolling with their businesses. At Shepherd Commercial, we’ve been facilitating this demand and continue to seek landlords looking to potentially lease their current empty office space as we have a growing list of clientele searching for new premise.
The commercial market has remained a stable industry throughout the pandemic despite many businesses being forced to close in the early stages and WFH becoming the norm. Office space has increased and rental yields have dipped slightly which was inevitable with the restrictions and pandemic, however as a whole the market has remained fairly stable. We expect the surge for freehold to continue as it has done over the past decade or so, with office and retail to keep the demand high over the next 12 months.
With COVID, hopefully, behind us we can truly expect the commercial market to kick on.