Stay or go: how occupiers are rethinking location decisions

Do you stay and retrofit your existing space or move in search of something that better meets future needs? That was the clear thread running through JLL’s latest Occupier Insights Breakfast, which explored how businesses are making real estate decisions in a more constrained environment.

For companies approaching the end of an office lease in 2025, the decision to stay or go is no longer just about cost. Sustainability targets, flexibility, talent attraction and persistent economic uncertainty are all reshaping how they approach location strategy.

“In terms of priorities for occupiers in the current environment I think the initial answer is very much that they're looking for best-in-class office space,” said Flo Rawoo, Director, City Agency, JLL.

“They want space that encourages innovation and collaboration, motivates people back to the office, and they want a space that's better than someone's home environment, however, that directly contrasts with another key priority which is cost management.”

Rising rents, business rates and broader cost pressures are forcing difficult decisions and, for many, trade-offs.

“You might be looking for best-in-class space but you're really looking for the best space that meets your requirements at your price point,” Rawoo added.

For some, the temptation to remain in existing space is understandable; lease events create an opportunity to re-evaluate, but many are choosing to delay the decision altogether because of macroeconomic uncertainty.

Phil Putman, Head of London Project Management at JLL, said: “We are seeing more clients kicking the can down the road for another five years with a short-term lease extension because they just haven't got the time or the information to take that challenge on at the moment.”

Some organisations are taking a more definitive approach. One major legal firm, for example, is using lease breaks to reduce space across the UK by half as they adopt a fully hybrid working strategy. The company now operates on a three to one people to desk ratio and three days per week in the office, including on client sites.

Yet finding high-quality, sustainable, space to meet their requirements has been a challenge, particularly in London

In a ‘go’ scenario, early engagement with landlords can overcome some of these constraints. In the City, one major consulting firm’s rumoured decision to remain in its existing office is an example of what can be achieved with the right landlord relationship.

Rawoo says: “They had a really early start to the process, discussions with their landlord about electrifying the building, completely removing the gas. It’s meant they hadn’t even had to go to market.”

But staying put brings its own risks. Occupying a building during major upgrades can disrupt operations and swing space – often needed to decant staff during refurbishment – can be a hidden cost. “It looks cheaper on paper,” added Putman. “It's not easy, and it comes with a lot of complaints when they’re [senior stakeholders] not happy.”

Yet, despite the complexity, there are signs of progress and the panellists spoke of behavioural shifts such as more collaboration, earlier contractor involvement and a growing appetite for flexibility.

“Some of the projects now build in flexibility and that used to be considered a luxury,” said Augustin Dufour, Managing Director at Tétris Design and Build, UK. “We’re not designing for day one anymore, we’re designing for the whole lease term.”

This is often reflected in technology rollouts, with smart systems, BMS integration and workplace analytics now standard. Many are launched iteratively with software releases rolling out months after the office opens.

Ultimately, the success of any stay-or-go decision hinges less on the outcome than on process where timing, alignment and a clear understanding of priorities are what matter most.

Would you like to discuss stay-or-go decisions and strategies? Reach out to our experts.