This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Office space shortage resulting in growing FM challenges

29 May 2018

Lack of regional office space is placing pressure on FMs to keep them in the best working order, due to the shortage of alternative facilities in many areas.

Bristol has been identified as one of the areas illustrating this trend, with just 0.5% of its total office space identified as vacant.

Local businesses wishing to rent office space in cities including Birmingham, Cardiff, Edinburgh and Manchester are able to choose from less than 2% of the total space in these areas, according to JLL.

The shortage is attributed to lack of development finance, higher construction costs and "a wave of conversion projects", turning offices into accommodation or leisure facilities, according to Kames Capital.

The company has also identified the trend for increasing rents, driven by the shortage of available space, with returns on investment reaching 4.93% for those investing in regional offices, compared with a figure of 3.16% for returns from offices in London.

According to Knight Frank, demand for commercial office space is at its highest for 18 years, placing further pressure on the market.

FMs seeking to relocate their office facilities are advised to plan well in advance to identify the options available in their chosen area.

Although mixed-use development has become more prominent in recent years, typically including office, accommodation and retail premises in a single development, this has not been sufficient to meet the current demand.

The shortage is therefore seen as increasingly likely to drive the move for offices to create more agile working environments, reducing the total area of desking by allowing workers to choose from a number of options, including working from home more regularly.

Print this page | E-mail this page


Article image Queen's birthday honour success recorded by two leading FM sector players

Two of those named in the Queen's Birthday Honours List will be known to many in the FM sector.Full Story...

Article image 5 security tips for managing challenging and high-risk environments

When managing a vulnerable or high-risk site, such as those often found in the utilities sector, security is paramount.Full Story...

Managing confidential waste is more important than ever thanks to GDPR

Why the Law Says You Need a Nappy Bin Disposal Service

Finalists announced for the PFM Partnership Awards 2018