Occupiers favour reconfiguration but relocations rise, according to latest report

UK office occupiers are prioritising reconfiguration and tighter portfolio management over expansion, while a growing proportion are planning to relocate as they weigh cost, building performance, ESG requirements and evolving workplace patterns, according to new research from Irwin Mitchell.

Irwin Mitchell’s latest Office Occupiers Survey of 500 UK-based senior decision-makers responsible for office space shows occupiers are becoming more selective in 2026.

Expansion plans have dropped sharply, but relocation intentions have increased, suggesting more organisations are prepared to move where existing space cannot flex to meet operational and sustainability needs.

Key shifts in occupier strategy from 2025 to 2026

•    Reconfigure existing space stands at 43.4%, down from 49.1%, but remains the most common strategy
•    Take on more office square footage falls to 33.0% from 45.1%
•    Incorporate flex space into portfolios remains prevalent at 37.8%, down from 43.9%
•    Relocate to different office space rises to 31.6% from 23.2%
•    Keeping the same office square footage rises to 27.6% from 17.8%
•    Reduce office square footage rises to 18.8% from 10.2%

The findings indicate that occupiers are not simply retreating from offices, but are taking a more active approach to managing space. Many are investing in fitting out and reworking existing premises, while flexible workspace is being used to manage demand, control costs and introduce optionality into portfolios. At the same time, a growing share are considering relocation where buildings cannot meet evolving operational or sustainability needs.

Demand for offices also remains underpinned by expectations of higher attendance. Around 78% of business leaders expect office attendance to increase in the year ahead, up from 74% last year, creating new challenges around space utilisation, fit-out and building performance.

However, the data suggests a more nuanced picture is emerging. While attendance has increased at one and two-day levels, there has been a decline in employees attending the office three to five days a week, pointing to a shift in how space is used rather than a full return to pre-pandemic patterns.

At the same time, there has been a modest increase in voluntary attendance beyond required levels, indicating that more employees are choosing to be in the office rather than being mandated to do so.

Almost a quarter (24%) now cite accommodating changing working patterns as the top priority for re-evaluating office space, up from 20% in 2025. This shift is reinforcing demand for more flexible workspace models, as occupiers seek to manage more varied and less predictable patterns of use.

The survey also points to more cross-functional decision-making. 90% of occupiers say HR now has input into space strategy decisions, and 78% are incorporating workplace design into their wider employee engagement strategy, or are considering doing so.

ESG and building performance continue to move up the agenda. More than a quarter of occupiers plan to use proptech to manage energy usage as part of ESG targets, and 87% are obtaining or considering ESG or green financing as an alternative to standard debt. Collaboration between occupiers and landlords is also a recurring theme. Occupiers report working with landlords on ESG changes ranging from carbon-related governance and compliance to introducing gyms, cafés and other social areas into buildings.

Will Scott, real estate partner at Irwin Mitchell, said

 

“Occupiers are clearly tightening their approach this year. Fewer are planning to add space, and more are looking at holding steady or reducing, but the rise in relocation is important. It suggests many businesses are weighing whether their existing buildings can realistically deliver the flexibility, performance and sustainability outcomes they now need.

“Reconfiguration remains the most common strategy and flex space is still a meaningful part of portfolios. For landlords and developers, the message is that retaining occupiers increasingly depends on how well buildings can support change, whether through fit-out capability, stronger data on performance, or a more collaborative approach to ESG and operational improvements.

 

“Flex space remains a meaningful part of portfolios. It allows occupiers to respond to changing demand without locking into long-term cost, and that flexibility is becoming increasingly valuable alongside more traditional lease structures.

 

“The attendance data is also telling. While businesses expect greater use of the office, that is not translating into a full return to five-day occupation. Instead, we are seeing more varied patterns of use and a rise in voluntary attendance, which reinforces the need for space that can adapt quickly.

 

“Property strategy is also becoming more joined up across organisations, with HR heavily involved and workplace design tied to engagement. That creates a stronger link between leasing decisions and people strategy, and it raises the stakes for assets that cannot evolve with occupier requirements.”

Irwin Mitchell collaborated with research consultancy Opinion Matters to conduct the survey which underpins this report. Five hundred UK-based senior decision-makers with responsibility for office space within corporate organisations and significant office footprints completed an online survey in April 2026.

Opinion Matters follows the Market Research Society Code of Conduct and ESOMAR principles, and is a member of the British Polling Council.