If you're anything like me, any news for optimism is welcome in these first few days of back to work in January, when the festive cheer has concluded and the days are still long and dark. Well, it appears that on the office leasing front in the UK in 2025 (at least), there is significant room for optimism. 

While industry insiders were of the view that office-based employment growth didn't materially increase in 2024 (following a substantial bounce the previous year), given most companies who wanted to decrease their office space post COVID have already done so, according to CBRE in its UK Real Estate Outlook 2025 report, they are of the view that “the [office leasing] market has right-sized going into 2025”. 

Furthermore (and I have added interest in this given being located in one of the ‘Big Six’ UK markets outside of London) Savills, in their blog from last month, state that “the outlook going into 2025 for the regional office market is also positive, with an increase in occupier requirements for new space”, with “traditional” sectors continuing to drive the regional office market space, with the legal sector accounting for 34% of this last year. 

With this in mind, and to paraphrase Hemmingway, it seems that reports of the death of office-based working are indeed greatly exaggerated and, while hybrid working is undoubtedly here to stay to some degree, indications are that there will be a return to growth this year for office-based employment in the UK. 

As such, we can be hopeful of a continued uptick in Corporate Real Estate transactions in this space where investors will, one hopes, look to capitalise on acquiring Grade A office stock (in London and elsewhere across the country) given supply still appears to be relatively constrained. 

If you would like to discuss any aspect of this article with myself, or other members of our Corporate or Real Estate teams, please get in touch.