Business

Deloitte reverses Covid cuts by expanding office space in London

Increasing attendance by staff in the office leads to decision on taking on new space

Deloitte is expanding office space.

Simon Foy
Tue Apr 2 2024 - 10:49

Deloitte has taken on extra office space in central London less than two years after making cutbacks, in an about-turn that indicates staff in professional services are returning to the workplace more regularly.

The Big Four accounting and consulting firm took on about 70,000 sq ft of space near its New Street Square headquarters in February, people familiar with the details told the Financial Times, increasing the size of its central London estate by almost a fifth.

Deloitte sharply reduced its office space because of the pandemic and the shift to working from home, closing two of its buildings in central London in 2021 and 2022. At the time, the firm said the move reflected its “ways of working” and “sustainability objectives”.

However, the decision to expand into 66 Shoe Lane, near the firm’s headquarters and opposite Goldman Sachs’ main London office, follows a rise in office attendance.

READ MORE

In 2021, Deloitte told its employees they could decide for themselves how often they worked from home. However, a person briefed on office attendance rates said a “steady increase in occupancy in the last two years” had occurred with teams spending more days together in person.

Some large employers have altered their flexible-working guidelines in an attempt to persuade staff back to the office more regularly.

Last year, Lloyds Banking Group and HSBC UK both announced stricter homeworking policies, while Citigroup and Deloitte’s rival EY have started monitoring UK employees’ office attendance to ensure compliance with guidelines.

Deloitte’s leases on the two largest buildings at its New Street Square headquarters run until 2036. It has been based there since 2007 and currently occupies around 485,000 sq ft.

The firm previously had staff at 66 Shoe Lane but vacated the building in 2018. Its new lease on the building runs until September 2035, according to a person familiar with the details.

Deloitte said it was “always monitoring” how it used its office space.

“In February we opened three floors in 66 Shoe Lane, with a fourth to follow later in the year — they are a mix of workspace and client space and increase our overall London campus space by 18 per cent to support our growing business and ways of working.”

Copyright The Financial Times Limited 2024

LATEST STORIES