AI-First Workspace Strategy UK (2026)
AI has made commercial rent the most questionable line item on any balance sheet. When AI handles customer service, marketing, admin, and half your operations, how many desks do you actually need? The businesses still paying for pre-AI office capacity are paying rent on space that AI has made redundant. Every AI tool you deploy reduces your physical footprint.
Penny's take
Every AI deployment reduces your workspace needs. AI customer service = fewer support desks. AI marketing = fewer marketing seats. AI admin = fewer back-office stations. Map your AI adoption against your desk usage. If AI has replaced 30% of your in-office work, you're overpaying on rent by 30%. Your premises cost should shrink as your AI adoption grows.
From my notebook
“A digital agency was paying £7,500/month for a Manchester city centre office. Desk occupancy averaged 45% — half the team worked from home 3+ days per week. But the real insight was AI: they'd deployed AI for copywriting, design drafts, and project management, making 5 of their 20 desks permanently unnecessary. We moved to a co-working space with 12 hot desks. New cost: £3,200/month. AI freed the space, and the space freed £51,600/year.”
“UK office occupancy rates average just 47% since the shift to hybrid working, yet rent costs remain at pre-2020 levels.”
— British Council for Offices Workspace Survey, 2024
What affects the cost — and can AI replace it?
- •AI adoption level (reduces needed space)
- •Location (London vs regions)
- •Hybrid working policy
- •Property type
- •Lease length and terms
What Penny says
Penny calculates your rent as a percentage of revenue and maps it against your AI adoption. As AI replaces more work, your physical footprint should shrink proportionally. If you're above the 5–15% benchmark, Penny challenges you to downsize, sublet, or switch to co-working.
Ask Penny about AI alternatives →Frequently asked questions
How does AI affect office space needs?
Every AI tool that replaces an in-office function reduces your desk requirement. AI customer service, AI marketing, AI admin — each reduces headcount or enables remote work. Businesses with mature AI adoption typically need 30–50% less office space than pre-AI levels.
What percentage of revenue should rent be?
Target 5–10% for office-based businesses, 8–15% for retail. With AI reducing workspace needs, most businesses should aim for the lower end. If rent exceeds 15% of revenue, AI adoption + hybrid working can typically bring it down to 8–10%.