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The overall aim of the research was to determine the nature and extent of demand for sustainable offices in the UK. Based on 87 telephone and face-to-face interviews with 50 major corporate occupiers, and detailed analyses of five case study buildings, which were carried out from April to November 2008, the research examined the reasons behind actual office moves made within the previous two years, and assesses the extent to which sustainability played a role in the final choice of office building. The research is important because, for the first time, it analyses actual occupier moves and the choice of office made in relation to sustainability, rather than ‘preferred’ or ‘hypothetical’ choices. The research suggests that there is an emerging and increasing demand for sustainable offices, but location, availability of stock and other factors continue to remain more important in determining occupiers’ final choice of office.

This bulletin looks at how the viability of development has changed over the past two years, how this has affected the level of development activity, how viability and activity are likely to change over the next few years and what the effect on residual land values will be. The historical relationship over the last 20 years between capital value growth, development activity and tender prices is considered, particularly during the last recession.