The full NLA Expert Panel on Work met on 21 January 2022.  The sub-groups met separately to discuss three key questions relating to the post-Covid future workplace.  

Hybrid working is with doubt here to stay and now the question is what impact does that have on physical and spatial requirements and how will the new occupier demands being accommodated by landlords?  

 

NLA Expert Panel on WORK Chair Katrina Kostic Samen welcomed everyone and invited each group to summarise their thoughts on each question.

The panel agreed that Covid has changed everything.  The challenge is now defining the hybrid workspace and what does it look like.  The occupier is seeking greater quality and flexibility.  As landlords, Landsec have identified three pillars to define their future approach:  Partnership; Experience (internally and externally) and Sustainability and Wellbeing.

 

People vacated cities during the pandemic and need to re-engage with more than just the office, also culture, hospitality and retail to reinvigorate the city infrastructure. Transportation will be key.  The UK as a whole are unique in the commute distances they travel and therefore it is not guaranteed that London will be everyone’s destination in the future.

 

Broadly businesses are debating two to three days in the office.  Hybrid is what people want but what that means for future work environments is not clear, it is an evolving picture.  Additionally, the social aspect needs consideration in the perception that women have more flexible roles.  The imbalance of career progression based on presenteeism needs to be addressed to provide a platform of equality for men and women.  Can the real estate play a part in achieving parity? 

 

From a user perspective small businesses have been disproportionally affected and there has been a significant drop in affordable office leasing activity.  High on the agenda are business rate relief and rates reform.  Co-working space operators have made changes to their offer but people are shopping around. Affordability is important however amenities are gaining in importance.

 

There is potential  tensions emerging, occupiers are certainly looking for high quality office space but with flexibility; in leases, in amenities coupled with Landlord's wanting certainty with longer leases.  

Before the pandemic, people were talking about ESG, Covid has jet propelled this to the top of the list and people want to do more than talk about it.  The group agreed that there are very ambitious net zero ambitions emerging which may be challenging to meet.  

 

Work from home falls short human connection, mentoring, training and community and had made organisations revisit their real estate strategies.  People do care that the building they occupy is high performance, they care about the social aspects of their lives and the impact on mental health.  Equally ethical organisations gain greater traction with attraction and retention of talent.  Smart technologies can play a key role in the evolution of the building, moving forwards with savings and efficiencies based on evidence and data.

 

The third spaces, the spaces between and around buildings, are important and greater collaboration is required with local authorities to ensure that the maximum benefit can be achieved for the whole community.  

 

The panel discussed the balance between what people ‘want’ and what people ‘care about’ and determined that they are more fluid and getting closer to each other, less about commerciality and more about aligning values.  

The group believe that there will be three key aspects which will impact how buildings will look in the future - climate change; materiality and new ways of working.

 

The architectural press ‘retro first’ drive has taken hold but the group believe a pragmatic approach is what is needed with a blended approach to retained and new construction.  Retaining existing stock, whilst offering sustainable benefits, may not meet the wider goals.  The debate around the waste generated by Cat A continues and alternative solutions are emerging, such as the use of AI, to demonstrate the Cat A design without construction.  The challenges around valuation of part retained and part new was noted.

 

The materials employed should reflect the pragmatic approach, using concrete and steel appropriately and natural material in lieu where applicable and maximising circular economy in construction.

 

Further discussion was had around the physical appearance of the workplace to support hybrid working, certainly furniture will be vital for the different settings that people will need in the office but will it begin to resemble ‘home’ and should it?  There should be a clear definition between the two.

 

Future proofing the buildings for changes that may come for new M&E services by increasing the overall height was discussed, challenging in predicting the future and potentially meeting resistance from local authorities for planning.  There is a flight to quality which will include access to outdoor spaces to meet occupier demand.

 

Occupiers are looking for greater service provision from their landlord’s, going beyond the office space to the wider provision of amenities and services to support them in times of growth or retraction and maximising their real estate for core business needs.  Equally tenants appear to be prepared to pay for increased flexibility.

 

The next full panel meeting will be held on 25 April 2022 and Katrina thanked the panel and requested that each group meet prior to the meeting and come prepared with a presentation for their specific question.