UK office occupancy levels have hit the highest weekly figure since the start of the pandemic, according to the latest data released by Remit Consulting.
Last week, ending on 8 March, average office occupancy levels reached 35.9%, an increase of 3.8 percentage points on the previous week.
Lorna Landells of Remit Consulting, said in a statement: “The fact that the weekly average occupancy rates reached the highest level since the end of the national lockdown is welcome news for the office market. The fact that this figure reflects of a strong performance in regional cities across the country is very positive.
“This is a significant improvement that will be seen as good news by investors, landlords and those businesses reliant on trade from office workers such as retailers and food and beverage operators,” she added.
Speaking to CoStar News at the Mipim conference in Cannes, Landells added that it was clear that markets outside of London such as Bristol and Cardiff were seeking greater occupancy, as were the leading Scottish cities, which have lagged the rest of the UK.
"Anecdotally, we are hearing that whereas public sector bodies were mandating two days a week in the office in Scotland this has now been moved to three days a week. In London what we have seen is that chicken and egg thing of more office occupiers coming back leading to more F&B opening, and then that encouraging more office occupiers to return."
Landells said its recent survey of workers had found the key reason for returning to the office was to meet people face to face while the commute remained the key factor keeping them away.
She said mandates were not necessarily working. "In the US there is evidence of people voting with their feet and looking elsewhere when they are told to come back to the office."
Research carried out before the pandemic, suggested office occupancy rates ranged between 60% and 80%, influenced by elements such as holidays, employee absences and external meetings.
The Return Report is compiled by Remit Consulting weekly, based on data provided by building managers from office buildings in major cities around the UK, many in central and prime locations. The data is obtained from the buildings’ access control systems, providing an overview of the number of staff and visitors entering a property on weekdays. This is presented as a percentage of the capacity of each building.