Demand to lease office space was up by 19% compared to the same quarter last year, Rightmove’s latest commercial insights tracker report revealed.
The report revealed that demand was also up for industrial spaces and leisure, both at 37% year-on-year, while retail leasing demand increased by 14%.
Supply in offices increased by 8%, industrial by 26%, leisure by 1%, but fell slightly in retail by 1%.
In commercial investment, demand volumes for offices surged by 75% and industrial by 70% compared to the previous year.
Additionally, investment demand for leisure was up by 14% and retail by 26%.
Supply for office investment rose 13% and industrial by 22%, while supply in leisure and retail dropped by 12% and 10% respectively.
Andy Miles, managing director of commercial real estate at Rightmove, said: “Modern, well-positioned office space with great amenities and service is being used as an added incentive to attract top talent, to encourage them into city centres more, and is seeing strong demand.
“Older, energy-inefficient and less comfortable office spaces are struggling to meet expectations from office workers.”
Michael Sears, advisory panel member of Propertymark’s NAEA commercial committee, said: “The commercial property sector continues to adapt to ensure many business sectors evolve to keep pace with ever-progressing trends and shifts in demand.
“As many towns and cities embark on substantial regeneration projects, there is huge potential in the medium and long term in delivering prolonged growth across many commercial channels and we are seeing a substantial keenness from investors.
“In the office supply sector, 43% of our commercial member agents forecast an increase in supply and continue to report that the current resurgence comes from the lets we are completing; the increasing number of enquiries and the ever-growing requirement lists from brand surveyors and agents both in-house and not.”
