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Landlords must adapt workplaces to new tenant realities

by | Jun 2, 2021

Golden Oldie

Landlords must adapt workplaces to new tenant realities

by | Jun 2, 2021

Originally published in April 2021.

Needless to say, covid-19 has caused significant dislocations in all aspects of our daily lives. One of these has been a major shift in working practices. Almost overnight, those of us who were primarily office-based were forced to uproot and adapt to the realities of home-working, with all the distractions and comforts that come with it.

The initial argument that the pandemic would spell the end for the office seems to have subsided. There is now a general consensus that a balanced approach to working should prevail, leading to a hybrid model split between home and office. For many, the frustrations around a lack of social contact, growing digital fatigue and the inability to effectively collaborate will probably ensure that there is significant appetite to return to an office environment – even if only for a few days a week.

The question that employers, and the property industry, must now answer is how office space should be recalibrated in order to stay relevant post pandemic. This means not only providing the right kind of space to support the sorts of interactions that cannot happen remotely, but also ensuring a safe environment for employees that is appealing enough to lure them away from the comfort of their homes.

Health and safety will be paramount

Health and safety will be the primary concern for occupiers and their employees. Landlords will need to demonstrate that they have taken, and will continue to take, every precaution in preventing the spread of the virus before they can encourage staff back in larger numbers.

Technology will play a key role here, by enabling solutions like hands-free access points and separate ventilation systems for different companies. A number of Clearbell’s recently refurbished office buildings in London are good examples of this.

At Brownlow Yard in Bloomsbury, a dedicated building app allows employees to access their office from the street simply by scanning a QR code, and without touching any surfaces. There are also hand-sanitising stations throughout the common areas to help tenants feel secure. Both Brownlow Yard and Kodak House on Kingsway have enhanced air quality inside the buildings since the start of the pandemic, ensuring a fresh air supply is circulating at all times.  

Well-being and collaboration are priorities for tenants

Given how accustomed we have become to working from home and the benefits it brings, it is likely than only fit-for-purpose, category A space with excellent amenities will be able to tempt more reluctant employees back.

A focus on well-being will be important – this means communal areas where people can collaborate and share ideas, as well as well-fitted kitchens, ample outdoor space and bike storage for those who wish to avoid public transport.

Of course, digital facilities will have to be fairly advanced and readily available to all, in order to facilitate communication with colleagues and clients who are still remote working.

At Brownlow Yard, 8% of the total space is dedicated to outdoor amenity space, and spacious shower and changing room facilities have been installed. Booth seating and breakout areas can be found in the offices themselves. Kingsway features a roof terrace with plenty of space for socialising, and a ‘smart spaces’ app will be in use that allows all occupiers to communicate, fostering a sense of community and improving engagement.

Occupiers will demand flexibility

Last but not least, flexibility will be crucial when it comes to office space. With the new hybrid working model, office space will need to flex in response to employee preferences. This means that landlords will need to be flexible when negotiating leases, to consider provision for expanding or reducing space. They will need to be able to offer more options to potential tenants, by providing both long- and medium-term leases, with the possibility of some short-term agreements for businesses whose needs may change more suddenly. This will allow tenants to have core accommodation that is still reactive and flexible to the changing working climate.

There is a lot of opportunity to be had in the office market if landlords are able to cater to these new demands. They need to understand this new reality and adapt existing space in order to stay relevant.

About Manish Chande

About Manish Chande

Manish is a senior partner of Clearbell Capital LLP and is Chairman of the Investment Committee. With over 30 years of real estate experience, he is involved in all aspects of the business.

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