New office footfall data reveals how Brits’ relationship with the office has changed
New office and workspace footfall data has unveiled significant changes in how, when and where Brits use the office. These changes are particularly marked in the latest two years as companies of all sizes embrace the hybrid model for the long-term.
Footfall in suburban and commuter town office booms
IWG’s data, taken from more than 400 locations across the UK, shows that over the past two years workers have significantly increased their use of office workspaces in rural, suburban and commuter town locations, choosing to forgo lengthy daily commutes and work closer to home.
Flexible workspaces in former commuter towns such as Maidenhead (+171%), High Wycombe (+158%), Uxbridge (+134%), Milton Keynes (+79%) and Amersham (+76%) have seen some of the largest increases in demand and office footfall across IWG’s network. After rail fares rose again this month by 4.9%, employee desire to reduce time and money spent on long daily commutes has been central to the growing popularity of local working.
Top 10 rural, suburban and town office locations for footfall growth since 2022:
- Maidenhead (+171%)
- High Wycombe (+158%)
- Uxbridge (+134%)
- Milton Keynes (+79%)
- Amersham (+77%)
- Reading (+75%)
- Slough (+68%)
- Chertsey (+64%)
- Chelmsford (+63%)
- Preston (+49%)
Demise of the 9-5
Research by IWG among more than 2,000 workers has also revealed that the once traditional 9-5 working day is no longer a reality for millions. It found that three quarters (75%) of hybrid workers are choosing their own hours and now almost two thirds (64%) say they now rarely work a 9-5 day as a result.
The mass adoption of hybrid working means that than four in five (83%) workers now have more freedom to tailor their own schedules and as a result, millions are choosing to start their day earlier or later to take advantage of their most productive hours, facilitated by working from offices closer to where they live.
Early starts have become the norm for many, as 43% now start their day at 0800 or earlier as a result of having a shorter morning commute. One in five also choose to work later, with 19% logging off at 1830 or later.
Allowing hybrid workers to tailor their working hours to their lifestyles is also making them more productive. On average they are working one hour a week fewer than they would have done when based in a central office five days a week, allowing for a better work/life balance.
Businesses adopt hybrid model to cut costs
Last week Boots revealed that it has asked all administrative staff to return to their Beeston HQ full time, but countless studies have shown that the vast majority of companies are not following this approach.*** IWG’s latest CEO study highlights that just 6% of CEOs said they still expect their employees to spend more than 3 days a week in a city centre office, while 82% of have reconfigured their office footprints to better suit hybrid working.
Taking on more flexible workspace closer to where their workforces live has been the priority for CEOs. More than half (54%) of businesses now have office or coworking space outside of city centres, while 38% have opted for secondary locations in the heart of commuter towns. As a result, 73% say they have reduced the cost of their office footprint.
This is supported by academic research from Professor Nicholas Bloom, a Stanford economics professor and world-renowned expert on hybrid working, who says that companies that offer this kind local workspaces can expect to see quit rates decline by as much as 35%.
IWG expands network to meet local working demand
To help meet the rapidly growing need for local workspaces, IWG added 867 new locations to its global network in 2023 – almost doubling the number of new locations compared to the previous year- including more than 50 in the UK. The vast majority of these have been in rural, suburban and commuter town locations, giving employees the option to work in a collaborative office environment without commuting to a city centre HQ.
IWG founder and CEO Mark Dixon commented: “The working world has transformed over the past few years, with businesses and employees showing continued enthusiasm for the hybrid model. It is not hard to see why. Enabling businesses to save money amid rising costs while giving employees an improved work-life balance and significantly reducing their expenditure on long commutes is a no-brainer
“Our data and research show that the office is not dead, it’s just moved to a more convenient location closer to where people live. Gone are the days when people were willing to accept long, expensive daily commutes to work in an office environment, when they know they can still work collaboratively in flexible workspaces closer to home.”
