The Cost of Inertia: Why waiting could cost occupiers millions
In today’s office market, waiting comes at a price. With prime rents climbing, fit-out costs rising, and high-quality supply being snapped up, indecision can mean added costs running into the millions - or missing out on the right space entirely.
Key findings from the report include:
- Occupiers who delay a 10-year lease on 25,000 sq ft until 2028 could face cost increases of up to £11.7m in London’s West End, £3.2m in the City, and £2.2m in Bristol and Birmingham.
- Nearly 40% of the development pipeline across the UK’s major cities is already pre-let – rising higher in constrained markets such as Leeds, Cardiff, Newcastle and Edinburgh.
- The significant capital expenditure required for fit-outs adds another layer of resistance, with rising all in fit-out costs ranging from £250 to £500+ per sq ft depending on quality and requirements.
- Flexible workspace has matured, moving from a “backup” to a boardroom strategy.
“The risks of inaction outweigh the risks of acting. We’re not just talking about higher rents but rather about a fundamental shift in occupier dynamics. There’s a shrinking pool of future-ready office space in core locations, and it’s being snapped up fast.” - Tom Bolland, Head of Occupier Solutions
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