London Offices Remodelled: The Rise of Local Lifestyle Spaces

The pandemic has been a catalyst for companies to embrace digital transformation due to remote working, which has for many, meant investment in improved technological infrastructure, cloud services and enhanced digitised systems, which have streamlined outdated business practices. Seismic changes in the remote workforce have impacted how organisations perceive security functions, the scope of investment in security budgets, and the demand for a workforce with more digitised focus.

Traditional companies have seen the merits in virtual offerings. For example, in law firms virtual appointments are a progressive concept which has seen little change over the past decade. However, the adoption of ‘virtual offices’ will increase competition within the talent pool. As a result, some companies will see the opportunity to achieve significant lateral growth.

Celebrating a Vibrant Workspace and Localised Hubs

Sanitised office blocks look set to become superseded by local office hubs that foster social experiences, creating unique experiences for both work and play.

Paul Welch, CEO of largemortgageloans.com anticipates the emergence of flexible, local offices across towns and city centres worldwide,``We expect that offices will be remodelled. We have already had enquiries for developers looking for local offices hubs that will become an amalgamation of cafes, gyms, meeting spaces and social areas. These co-working spaces will incorporate a sense of lifestyle. We are innately sociable animals, and while we would like to benefit from the flexibility and convenience of working close to home, there is also a desire to have a dedicated working environment separate from home.”

A remodelled version of the office will allow for more fluidity in the lifestyle set-up. Developers are looking to place coffee stations, meeting rooms, and breakout spaces to encourage locals to socialise and build relationships. The rise of co-working spaces mirrors the build-to-rent market, where people are buying into an experience and community that you might not get with a standalone home. Quality tech and connectivity is fundamental as a driver: lockdown showed how much we underestimated the importance of good connectivity.

In Leeds investors looking to capitalise on commercial property developments have already acted quickly.

The multi-functional space will feature 342 desks, private offices, meeting rooms and event spaces that are available to access 24/7. It will also house a kitchen, bicycle storage, shower areas and a fitness suite and two outdoor terraces. largemortgageloans.com foresees a demand for these mixed-use developments allowing them an opportunity to move to a different environment away from home during the day, while benefiting from working locally.

Paul Welch, CEO of largemortgageloans.com comments, “It’s a great time to invest in local lifestyle office hubs, – especially near towns and on the periphery of cities. There is a burgeoning demand for flexible working spaces close to home. Investing before anybody else could result in a high return.”

Historically, investors and developers concentrated their investment on city centre tower blocks but the emergence of localised hubs which require a more comprehensive geographic focus. Where historically, private investors preferred to keep their real estate investments in the city centre, it is time to look at data or speak to real estate specialists like ourselves to see which location could provide a fruitful return.

Investors and developers will also need to adapt to consider broader property types. A typical tower block in Canary wharf may have been a safe bet ten years ago, but now the commercial landscape has changed.

Yields for commercial property are typically much higher than residential property. They typically range anywhere between 5% to 7.5%. Meanwhile, residential property throughout the UK yields 3.5% on average, although the appreciation may vary depending on the location.

While historically lots of employees would not have been prepared to take up mixed-use developments due to the tight regulatory restrictions, as a result of lockdown, business operations have metamorphosed, becoming more interconnected and mobile than ever. Some industries quickly adapted to a remote set up, and to avoid being exposed to security threats, companies improved security measures by sourcing resilient IT equipment in high quantities within a very short time frame.

Working in localised hubs would foster a much needed social aspect to the working day as workers from numerous professions cross paths in the same office space. Employees can take advantage of fitness facilities to improve their health and the office day could become more flexible and less stressful, improving employees' state of wellbeing for the national workforce. WeWork’s success was largely due to the fact that workers didn’t feel ‘penned in' because there was a social element to it too.

Get in Touch

If you are interested in pursuing a localised office hub development, get in touch with one of the real estate advisors to discuss your options. largemortgageloans.com provides financing for residential and commercial developments.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes