International real estate advisor Savills highlighted in its recent panel presentation at MIPIM UK on 'the change in occupational office demand and what the market can deliver', that offices must be viewed as a value creator rather than just a cost.

The firm notes that the diminishing levels of quality office stock across the UK, combined with robust levels of demand, will result in a significant supply shortage that will inevitably place upward pressure on rents and property costs. However, Savills underlines the importance for occupiers to view their office property as an investment rather than a pure cost.

Jeremy Bates, national head of agency at Savills, comments: "It is crucial as the market moves forward that businesses prioritise creating value by investing in staff and their office infrastructure rather than focussing purely on cost reduction. Property costs must and will rise in line with the market supply and demand imbalance, particularly with a cautious approach from many developers to speculative development.

"We are seeing a gradual evolution in demand trends from office occupiers with businesses needing to create a work environment that is productive and flexible combining both traditional and modern aspects. People and property are any company's most valuable assets, but only by developing them both in tandem can you unlock their true value."

With regards to the overall UK office market Savills confirms that with a positive economic outlook, an increase in employment levels, rising values as well as an optimistic outlook for demand, rents and viability, there are good opportunities looking forward for higher levels of take up, particularly within the leading sectors of pharma, energy, finance and tech.

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