There was a consistent improvement in office occupancy rates across the UK last year, despite occasional setbacks from factors including train strikes and seasonal dips, according to research published by Remit Consulting.
The management consultant’s latest Return Report shows that the monthly average for November stood at 33.8%, the highest rate since the beginning of the study in May 2021, when COVID-19 lockdown restrictions were eased and the average stood at 9.7%.
London's recovery has been particularly noteworthy, with the West End showing a robust increase. The capital recorded average, monthly occupancy rates at a high of 50.9% in October 2023. The City and Docklands also demonstrated resilience, with the Docklands enjoying occupancy spikes above the national average.
The contrast between London's submarkets underlines the different level of return to the office across the UK and the adaptability of businesses and workers in the face of changing conditions.
Lorna Landells of Remit Consulting says the data illustrates a "promising trajectory" towards pre-pandemic occupancy levels, albeit at a slow pace.
"The resilience of London’s West End is particularly striking, signalling a robust desire for the collaborative and social aspects of office life that this area provides. As businesses and employees strike a balance between remote and office-based work, we are seeing a redefined, more flexible approach to office use emerge."
Landells said the overall upward trend, despite occasional dips due to external influences like the December train strikes, points to a slow but steady normalisation of office attendance.
"This is supported by our Office Worker Survey, where a majority of participants reaffirmed their preference for in-person collaborations."
Remit Consulting's year-end review also points to changes in work patterns. The push for civil servants to return to the office has seen significant compliance, with London-based Whitehall departments hitting an attendance high of 74% in mid-December. This, it said, juxtaposed with the PCS union's survey indicating potential civil service departures due to in-office mandates, captures the complex sentiments surrounding the evolving office landscape.
Remit says that with occupancy rates substantially higher than 2022's averages, there is cautious optimism for continued recovery in 2024.
It says 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 and is 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.