After two years of home and flexible working, you can be forgiven for thinking that the days of 'going to the office' are numbered. However, what we've seen is the opposite; the latest value statistics from the UK commercial property market are suggesting that the concept of the office isn't going away anytime soon.

This is undoubtedly good news for firms with pre-existing office spaces; essentially, an increase in value shows that there is an appetite for commercial premises as occupancy levels return to the levels seen pre-COVID.

So, if you've been thinking about an office refurbishment – whether you're the landlord, looking to get a better return on your investment, or a tenant wanting to improve the effectiveness of your workplace on your employees – NOW is definitely a good time to think about it.

The Increase In UK Commercial Property Values

In December 2021, UK commercial property values increased by 3.7%, according to the latest index by real estate adviser, CBRE. This represents the largest monthly increase in values for all commercial properties in the history of the index, taking the all-property capital growth for the year to 13.8%. December also saw property rental values continue to increase, rising by 0.8%, taking the annual growth to 2.5%.

In the office sector, capital values increased by 0.6% in December, with the total annual capital growth amounting to 4.3% (the strongest annual performance since 2017). The rental values for office facilities increased by 0.2% in December, contributing to a 0.7% for the year.

CBRE say that '2021 was a year that exceeded expectations', with the office sector experiencing a significant recovery in capital values following the decline sustained during the pandemic. They note that 'although neither [industrial and commercial] sector has yet to reach their pre-pandemic values, the milestone is close for the office sector'. All property values have surpassed the levels that were recorded in February 2020 (the start of the pandemic), by 5.5%.

What these numbers show, is that the idea of 'the office' isn't going anywhere anytime soon. While some predicted the end of the office in favour of permanent home working, statistics have shown that people are keen to return. The difference is that the layout of the workplace may be different – moving from the 5-day-a-week setup to more flexible, hybrid or agile working arrangements.

Ultimately, it's finding the right balance with an office refurbishment that will be key; if a business can understand which arrangements best suit their workforce, they will be able to produce an environment that will create the best products.

So, whether you're a business looking to rent an office or a property owner seeking to let, it's well worth your while in thinking about ways to get the best value from your investment – and this is where we can help.

Active – The Ideal Workplace Solution For Your Business

Throughout the last two years, the team here at Active have been helping a wide range of businesses to ready themselves for what's to come. Whether that's been helping them to redesign their current spaces, building completely new interiors, fitting them out with new technological infrastructure or simply offering advice; we can offer a complete range of workplace solutions to get everyone safely back in the office.

With flexible and agile working practices becoming the 'new normal', it's important your workplace can roll with the changes to continue to operate at its best. Not only is there an existing workforce to think about, but future employees too – it will become somewhat expected that the 'best' workplaces will have environments unique to the teams that work for them. So now IS the perfect time to think about an officer refurbishment.

Create Your Ideal Post-COVID Office Design With Us

For over two decades, our team have been designing and building workplaces for a wide variety of businesses. No matter their industry or personal requirements, we have built up a strong portfolio of office design, relocation, furniture procurement and storage solutions – the whole package. Why not take a look for yourself to see how they match your own ideas?

To learn more about how our team can create your ideal post-COVID office refurbishment, feel free to get in touch with us today. Give us a call on 0845 130 9066or send an e-mail to info@activeworkplacesolutions.co.uk and we'll be in touch as soon as we can.

Where to find us

Active Workplace Solutions, a trading name of Active Facilities Management Ltd

Unit 4 Headley Park 10 Headley Road East Woodley, Reading Berkshire RG5 4SW

+44 (0)845 130 9066

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