A NEW European study has shown that more than half the tenants surveyed had changed the way they utilise office space with both desk sharing and flexible working becoming increasingly popular.
The study by Lisney’s international partners Cushman Wakefield shows that the average floor space per worker in Europe has fallen from 12.8 to 12.4sq m (133sq ft).
Financial services occupiers are leading this trend, with more than half already having reduced their space per person over the last 12 months.
The agency says that both landlords and tenants are considering using property to counteract the impact of the economic downturn. In fact, only 9 per cent of landlords and 26 per cent of tenants do not anticipate using their property in this manner.
Landlords are considering initiatives, such as property swaps, the disposal of under-performing properties and incentivising tenants.
In expectation of falling rents, almost half of tenants in the survey are planning to renegotiate their existing leases to reduce rental commitment, while a further one-third expect to sub-let surplus space. The sub-letting option is particularly appealing to UK firms.
Effective rents are falling and, according to the survey, are likely to drop further, with over half of landlords expecting to increase the incentives on offer while only 37 per cent anticipate reducing headline rents.
Peter Stapleton, managing director of Lisney, predicts that consolidating and staff cutbacks will be major drivers affecting demand for space in the next 12 months as the downturn influences tenant behaviour and property is increasingly being analysed so as to maximise efficiencies and minimise costs.
