Property is moving up the corporate agenda as businesses focus on cutting costs in the tougher economic climate, according to Jones Lang LaSalle.
The strongest occupier drivers in choosing space remained access to employees and transport, however property is becoming more important, the research found.
Occupiers are also likely to be affected by a slowdown in development pipelines as developers struggle to press the button on new schemes, JLL said.
It highlighted towns such as Nottingham and Coventry as areas where demand outstripped supply, while in the North East, supply outstrips demand.
Rent packages are also likely to improve for occupiers, the report – In Search of Value? What market conditions are office occupiers facing? – said.
‘Looking ahead, we see headline rents outside the South East to feature improving incentive packages.
'This is partly in response to a softening in demand due to economic conditions and also as landlords fight for tenants to avoid paying business rates on empty buildings.
‘Going forward, we expect to see some tail off in demand, with market conditions swinging more in favour of the occupier,’ the report said.
