Almost half of employees believe that their employer values office lease obligations over employee retention

Almost half of UK employees (42%) believe that their employer values office lease obligations over employee retention.

That’s according to NearU, the tech scaleup that connects employees to flexible office space, which surveyed 1,000 employees across the UK.

With office lease agreements expected to rise by 5-10% this year alone and 85.5 million square feet of leases coming up for renewal in 2025, NearU research showcases the rising cost of return to office (RTO) policies for employers.

The data shows that the cost per employee for a leased office can reach as much as £2,000 per month, reducing to only £100 for on-demand options.

2025 research from NearU on the cost per employee, per month based on workspace type.

Taking a flexible approach

In addition to the financial benefits, the research underscores the positive impact of flexible work on productivity and wellbeing.

NearU’s study found that 78% of employees believe flexible or hybrid work options enhance their productivity, with younger workers leading the way. Among 18-30-year-olds, 85% said flexible work improves their output. Additionally, 74% of UK workers believe a shorter commute would boost their productivity.

Dan Murray, CEO and founder of NearU, said, “CFOs who need to cut costs are facing tough choices with office leases and employee mandates. Asking staff to return means committing to more expensive leases and tightening budgets, which leads to layoffs. A flexible approach offers a clear solution—empowering businesses to cut costs without long-term lease commitments while giving employees the flexibility they need. It’s time for the c-suite to rethink RTO mandates.”

The influence of media trends

Over half (54%) of UK employees report noticing a pro-office bias in the mainstream media. The majority (66%) of UK employees also feel that media coverage on flexible working does not reflect their current situation and is underrepresented in terms of the flexibility many employees are seeking.

Dan added, “When it comes to media perceptions, most employees report a pro-office bias. A key but often overlooked factor driving this is longer commute times. Employees who spend significant time commuting are more likely to engage with different types of media, such as newspapers.

“This dynamic therefore benefits mainstream media, as longer commutes increase the opportunity for people to interact with publications, giving media outlets more exposure. The importance of choice should be amplified as much as return to office mandates.”