_How buildings and services need to respond to changing occupier expectations
There has been a clear change in dominant business culture over the last five years. Businesses increasingly compete based on innovation rather than scale. Consequently, workplace design needs to bring people together to support collaborative idea generation and development.
Occupiers are therefore seeking diverse and agile working environments that allow staff to work across functions or departments, often on a temporary basis.
The implications for the supply side of real estate are clear. Think less about a binary distinction between open plan and cellular offices. Instead, focus on the promotion of spaces that support Activity Based Working – spaces that are as varied as the tasks undertaken within them.
The rise of innovation up the corporate agenda also has structural implications. True innovation often requires collaboration with external specialists or even greater connection to those previously regarded as competitors.
No longer is it sufficient to have simply a well-designed building. Instead, best in class offices create compelling workplace experiences by being accessible, amenity rich and service heavy
As such, offices must support interaction between companies – one of the principal drivers of the co-working phenomenon. This will lead to the greater use of public touchdown space within buildings to enable informal interactions with experts and suppliers outside of the secure corporate mothership.
Changing business cultures and structures, when combined with the ongoing and longstanding war for talent, are pushing occupiers towards amenity-rich buildings and environments.
These amenities are a key part of the real estate decision-making process and can, for landlords, be the difference between securing or losing occupiers.
This has been intensified as occupiers have become largely location agnostic. The increased willingness of occupiers to move between sub-markets to secure the best product raises the stakes but increases the opportunity.
No longer is it sufficient to have simply a well-designed building. Instead, best in class offices create compelling workplace experiences by being accessible, amenity rich and service heavy, as well as supporting a culture of innovation and creating a sense of community.
"Changing business cultures and structures, when combined with the ongoing and longstanding war for talent, are pushing occupiers towards amenity-rich buildings and environments."
This has been key to the emergence of attractive new workplaces in sub-markets such as Stratford or White City or the continued competitiveness of sites, such as Chiswick Park, that enliven the experience of work Investors and developers must begin to think of buildings less as simply products and more as solutions for their customers.
As well as affecting the design and servicing of the building, this also has more practical considerations. In an operating environment where business planning cycles are reducing, flexible and shorter-term leases will be in demand. However, occupiers will also be seeking solutions that offer quick and easy access to property, the ability to scale up or scale down on demand, and a more straightforward exit.
Conventional product is often hindered by a legal process that takes too long and is too complicated. Fit-outs, including Wayleave Agreements, are a hassle for the large number of occupiers who do not have dedicated in-house real estate expertise.
Approval of alterations to space during a term can also be tortuous, particularly with a disengaged landlord and management team. Dilapidations are often an unpleasant sting in the tail, creating further uncertainty and cost for the occupier.
What does an office space require to provide the winning working environment?
Expectations
|
Outcomes
|
|
Acoustics |
Flexibility |
Attracting & retaining best talent |
Basebuild information |
Aligning space to need |
Job satisfaction |
Clear water systems |
Community & collaboration |
Lower staff turnover |
Building grid |
Customer service & engagement |
Less staff sickness |
Air & Cooling capacity |
Wellbeing & amenity |
Increased productivity |
Natural light |
Data-driven optimisation |
Boost team ethos and avoid convergence |
Biophilia |
Constraints |
|
Fire strategy |
Cost |
|
Toilets |
No resource to adapt |
|
Technology |
Outdated technology |
|
Security |
IT security |
|
Standby generator |
|
|
Tenants' catering |
|
|
Great building management |
|
|
Knight Frank's nationwide Property Asset Management teams maximise the value of your assets through proactive property management. Our experts provide proactive, bespoke property and asset management services to our domestic and international clients. Find out more.