24.11.2014
Speaking to Bdaily, Rob Kerrigan of Kempton Carr Croft said the trend for landlords to convert above-shop office space into residential property has led to a shortage of smaller office units, which could soon lead to demand outstripping supply.
However, the amount of office space a typical business needs is also generally becoming smaller, with cloud computing and portable technology driving down space requirements.
"Clients who would previously come to us for office accommodation of 20,000 sq ft are now looking for space half that size," said Mr Kerrigan.
"It's not the size of their business which has changed, but more that the dynamic of how they occupy office space is changing."
Kempton Carr Croft believes a new build model in which market requirements are met through multi-use development schemes including small, high-quality office spaces, would help to address the supply challenge in the years to come.
Consultancy Calls For More Mixed-Use Development To Address Office Space Need
A change in Permitted Development Rights has seen a large amount of office space removed from the UK market in the past 18 months, and developers need to catch up with the demands of business, a chartered surveyors' firm has said.Speaking to Bdaily, Rob Kerrigan of Kempton Carr Croft said the trend for landlords to convert above-shop office space into residential property has led to a shortage of smaller office units, which could soon lead to demand outstripping supply.
However, the amount of office space a typical business needs is also generally becoming smaller, with cloud computing and portable technology driving down space requirements.
"Clients who would previously come to us for office accommodation of 20,000 sq ft are now looking for space half that size," said Mr Kerrigan.
"It's not the size of their business which has changed, but more that the dynamic of how they occupy office space is changing."
Kempton Carr Croft believes a new build model in which market requirements are met through multi-use development schemes including small, high-quality office spaces, would help to address the supply challenge in the years to come.
Expert Opinion
Over the last 12 months there has been a significant increase in the number of developers and owners of office buildings using permitted development to change use to residential. Whilst some of the office space has been redundant, this is not always the case. The comparatively high residential values make it an attractive proposition for owners of office space. <br/> <br/>"Owners of officer space are making the most of the opportunity given the possibility that a change in Government may result in restrictions on the ability to use permitted development to change from office to residential use."
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