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Big boost for offices – and for dogs too

Friday 12 March 2021

David Taylor

David Taylor

Editor, NLQ and New London Weekly

Leading experts in the office development arena have given an upbeat assessment of the London market based on a spurt in demand from end users for space. But the success of drawing people back to the office, probably towards the end of this year, will rely on creating facilities with enough pull – and perhaps even space for workers’ pet dogs.

Those were just some of the sentiments to emerge from a fascinating exploration into the future office demands in London, focusing on three main factors: how much? What kind? And where?

Charles Begley of the London Property Alliance said that while it was ‘not all roses’ he was ‘surprisingly optimistic’ about the office market, particularly longer-term, and building on the ‘sea-change’ that took place with Soho’s al fresco dining and ‘huge changes’ in the way that the City is using its streets. 

‘Our members seem to be really positive. There are challenges and there does need to be policy support but we are well placed to adapt; most businesses are’. 

Landsec’s Harry Foster added that if the ‘roadmap’ plays out as PM Boris Johnson says it should, people will start to return to offices in summer but will need to ‘unwind’ before returning in earnest in a ‘steady state’ toward the end of the year. ‘But I would say positively is, coming out of the pandemic, we are being inundated by existing customers needing more space, which is a positive surprise’. 

Much of this is to do with firms which have been busy on merger and acquisitions, Foster said, with others working out what their space plans will look like to determine how most of their staff will work, Foster being ‘bowled over’ by those asking for more space. ‘There is optimism out there’.
At 22 Bishopsgate, said Grace Gibson of AXA Real Estate, the scheme is just over 50% let but they project ‘a genuine return to the office’ in Q4, albeit with some wanting 10-15% less space. The project has around 200,000 sq ft of amenity space in the building, which may have a bearing on this, she added. 

Climbing wall at 22 Bishopsgate © PLP Architecture for AXA IM - Real Assets and Lipton Rogers Developments
Derwent London’s Benjamin Lesser, meanwhile, reported ‘surprisingly strong active demand’ for space from tech and media sectors, and ‘definitely the yearning for flight to quality’. To attract employees back to the office, a high-quality environment was necessary, said Lesser, with the ‘experiment’ of working from home ‘near its end’, and far from the death of the office. ‘I think a year on, people are very much of the belief that was just an aberration and really the importance of offices has shot up in people’s understanding of what it takes to run a successful organisation with identity and culture and trust and relationships. You can’t do that for a prolonged period of time, like this’. Derwent, he added, strongly believes in the city, and London in particular, with technology to help deliver in the city centre in a sustainable, long-term way.

Sascha Lewin of W.RE said it was ‘really encouraging’ the number of people knocking on the door to have conversations about workspaces, with ‘extremely strong interest’ being shown, the office likely to remain at the core of business identity as places for collaboration, training, building culture and nurturing business growth.

‘So for us this actually has been a really exciting time to see that shift come back and the ability to hopefully create something better going forward’.
 
China, said Jose Merino of WeWork, is at 90% occupancy, a path he felt the UK would likely follow, but only if built on ‘purpose’ to entice employees back, in tandem with being offered flexibility by employers. ‘We’re seeing an increased demand into our spaces, mainly from enterprise clients’, he said. ‘There will be a return to the office’. 
Part of what they want, said Gensler’s Jane Clay, is ‘experience’ with culture being king. ‘So, it is all about design for culture and the experiences they want to have’, she said. ‘It’s around quality, not necessarily quantity, which has always been a truism – but I think now more than ever’.
The City’s Bruce McVean said it remained to be seen whether people will start to return to work only in the office from Tuesday to Thursday, but many forms are shifting, added Merino, from an HQ to spreading space across satellite offices, ‘de-densifying’ in the process. AECOM’s June Koh said the pandemic had thrown all our differences into the open but that one of the biggest challenges for the development industry was that the years spent on building up benchmarks and averages on workplace were now dependent on what organisations discover their structures will be. Added to this mixture, said Keith Priest of Fletcher Priest, there was not just the effects of the pandemic but an AI revolution and Brexit to contend with too. But to the practice’s many Asian clients, Covid was ‘less of an event’ given its experience with SARS and London was a unique case amongst its European rivals, not least on scale. Trends are being accelerated, yes, he added on issues like transport, air quality and density, but also on dealing with vast quantities of data. Foster and Partners’ Grant Brooker agreed that it was a fast-changing environment, with guidelines ‘over’ as a result but with ‘special’ office environments likely to succeed. ‘I think generic is really going to struggle’, he said. ‘You really don’t want to lose teams to the coffee shop’.

Sustainability, of course, has come to the forefront too, said Lewin, with a concern for adaptability and longevity built in. But attracting staff back to their desks will also perhaps mean having to deal with a rise in bicycle use, perhaps leading to more storage space for fold-up bikes said Foster. More unusually, it may also mean having to look to dog ownership having ‘shot up’ too, he added, with a resultant call on landlords or occupiers to try to come up with creative solutions to cater for those wanting their pets at work – or resort to a higher demand for dog walkers in the suburbs at night.

22 Bishopsgate is also seeing more tenants wanting to bring their dogs in – so much so that they are allowed if they are well-behaved and owners sign a waiver. But the pitch to prospective occupiers is more about why they would want to be there rather than physical specification.

There is a broader point about placemaking here, said Kimberley West of Westminster, and viewing not just the building in isolation but the place that is created around them. ‘One of the things we’ve learnt over the last year is how valuable outside space is’, she said, pointing to the growth in walking meetings or just having somewhere nice for lunch.
The prestige of having a central London address, though, will always be there, she added, even if some de-densification will take place. In the City there have been as many if not more applications coming through for major developments, said McVean, and given that the Square Mile added 100,000 jobs between 2015 and 2019, it may not take long post-pandemic to get similar numbers up. The Corporation is looking to support coffee shops and other amenities in the meantime, while e-scooters will add another potential big change to the streets. The West End, meanwhile, will be about a mix of leisure and culture, protecting the CAZ, but, said Priest, has ‘authenticity and culture coming out of its ears’, something which has meant a lack of nervousness about London or the urban condition. “Everyone is desperate to get back to it and get on with it’.

Ultimately, what we are seeing now is ‘just the beginning’, said Merino, with WeWork and others trying to anticipate the needs of companies engaging with their employees ‘in a meaningful way’ so they are able to return to the office to do what they can’t today, rather than just because they are tired of the last year. ‘We’re just seeing the first beginning of this’, he said. ‘I think there will be changes and I think we’re going to be in a much better place’. 


David Taylor

David Taylor

Editor, NLQ and New London Weekly


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WRK/LDN: Office revolution? Deadline 17 March

As part of our upcoming report, we are accepting submissions of exemplar projects that push the bar of office design and advance workspaces contributing to London’s post-pandemic recovery.

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