More than half of North West businesses say they “over-downsized” during the pandemic, a new study has shown – and many bosses say they plan to expand their offices as more hybrid workers are spending more time in the office.
Law firm Irwin Mitchell’s latest Office Occupiers Report 2025 shows firms are more likely to reconfigure existing space than acquire new space as they look to welcome more employees back to their premises.
The survey showed 49% of North West firms are looking to expand their office space in the next 12 to 18 months, with just 8% looking to reduce it.
Some. 56% of those polled said they had downsized their space too much following the Covid pandemic.
Of those planning to expand, 47% said they would prefer to reconfigure existing premises, with just 20% saying they would relocate. Meanwhile half of respondents said they would consider adding flexible workspace options to their property portfolios.
Some 70% of North West employers said they had seen office attendance increase recently, and 71% expected further growth in the next 18 months.
Those polled have also moved back to mostly office-based working. Some 46% of respondents require employees in the office three to four days a week, while 40% have returned to a full five-day requirement – with 76% of those polled saying they were either monitoring individual office attendance or planning to do so.
Employers said the main drivers for increased office attendance were enhanced collaboration and team-building efforts (50% of those polled), “opportunities for client engagement and networking” (33%), a better working environment than home (29%) and better IT support (26%).Meanwhile a fifth of respondents said being “visible” in the office was important for career progression.
Businesses are also looking more closely at sustainability when looking to expand or acquire office space, with energy efficiency (38%) and adaptability (38%) among the top criteria they consider. More than half “56%” of businesses said they would pay a higher rent for eco-friendly offices, though only if that came with equivalent reductions in service charges or energy bills.
Will Scott, real estates disputes partner at Irwin Mitchell said, “Our survey shows that the office and its place in the world of work continues to evolve, particularly as working patterns change.
“As rising costs and inflation impact corporate decision making and in line with the need to reduce unnecessary expenditure, businesses across the Ƶ appreciate they need to improve the productivity of their current office space so that it can both accommodate increasing numbers of staff coming back in to work, but also one that can satisfy internal stakeholders’ needs and wishes.
“Environmental considerations play a part in this, but attitudes continue to shift away from the “nice to have” towards that “what is necessary” as the costs and associated benefits become clearer to see. Businesses are leaning towards more environmentally focused premises that help to drive down operational costs, whilst also supporting the demands of employees and those they do business with, whilst enabling the company to avail itself of greater financing options.”
He added: “In tight office market conditions, more North West businesses are now considering what is probably the least expensive option for expansion - to work closely with their current landlord to rework their existing office property and possibly add in an element of flex space as and when needed, giving themselves a breathing space to think about where they want to be more permanently.”
