Future office demand set to wane

The long-term demand for office space is set to shrink, the director of commercial research at property agent Savills has claimed.

Mat Oakley said his firm's current research indicated that less than 10% of office development in central London was driven by expansion. Speaking at the British Council for Offices annual conference, Oakley said: "It's quite scary really. The vast majority of businesses are contracting. Businesses are getting so good at managing their office space, which means they need less of it rather than more."

Oakley predicted that offices will be designed more like shopping centres or hotels in the future to encourage office workers to socialise more and be more creative. "The cubicle farm is dead. Offices will feel more like hotels and shopping malls."