Back-to-work mandates see active office occupation rise for Regional REIT
By Josh White
Date: Monday 20 Jan 2025
(Sharecast News) - Regional REIT reported on Monday that active office occupation across its portfolio had surpassed pre-pandemic levels, reflecting a continued return to the office as companies encouraged employees to return to physical workspaces.
The London-listed real estate investment trust said its latest annual tenant survey showed that active office occupation had risen to 75.3%, up from 71.4% last February, exceeding the estimated pre-pandemic level of 70%.
Employee occupation reportedly remained steady at an average of four days per week.
The survey covered Regional REIT's tenants across 112 office buildings in England, Scotland, and Wales, representing a range of business sectors.
It said the findings were based on a response rate of 74.5% by rent, with over 28,000 employees participating.
The results confirmed a positive trend in office attendance, aligning with broader industry studies.
Regional REIT's board noted that a recent Virgin Media O2 Business Movers Index report indicated that the number of companies requiring employees to work from company premises at least three days per week had risen to 75% in 2024 from 67% in the prior year, with 50% now mandating at least four days in the office.
"Our latest annual survey further confirms the significant and increasing role that 'the office' plays in ongoing business life, further building on the positive trends that we observed in our previous tenant surveys," said Regional REIT's asset manager and head of ESR Europe LSPIM, Stephen Inglis.
"An increase in active occupation, in tandem with employees back in the office for an average of four days per week, demonstrates a clear positive trend and an encouraging backdrop for the regional office market.
"This will over time, result in improving demand for office space and with limited supply, will result in improved occupancy in the UK office markets and rental growth."
At 0931 GMT, shares in Regional REIT were down 0.22% at 118.54p.
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN