We recently submitted our planning application for 68-71 Newman Street.
We recently submitted our planning application for 68-71 Newman Street.
We recently submitted our planning application for 68-71 Newman Street.
We recently submitted our planning application for 68-71 Newman Street.
Insights | 03.02.24
Written by Ben White
Striking the Right Balance: Light Touch Versus Full Refurb
When considering the demand of the modern occupier and the latest building and energy regulations the viability of a light touch refurbishment doesn't seem to stack up.
There are a number of factors a landlord has to consider when embarking on the refurbishment of an office. Many landlords find themselves at a crossroads, torn between the desire for a fresh, modern workspace and the constraints of budget and time. The allure of a light touch office refurbishment presents itself as an appealing compromise, but can one truly “get away” with it in the ever-changing marketplace?
Given the already high standard of office space within the core markets, the competition to attract the best tenants is already a challenge. Tenant demand for contemporary, flexible work environments that foster collaboration and creativity is ever-increasing. The expectations of the new workforce, in an employment market where talent is competitive, is constantly evolving and is being influenced by changes in work culture, technology, and societal trends. Below are what we see as “what a tenant wants” and are the key factors that decision makers look for when businesses are looking for their ideal office space:
Location: Proximity to public transportation, amenities, and vibrant neighbourhoods.
Amenities and Services: On-site amenities, such as cafes, fitness centres, communal outdoor spaces and concierge services.
Sustainable Design: Tenants are prioritising environmentally friendly and sustainable buildings to meet their own corporate targets. Green building certifications and energy-efficient features are seen as a must for most occupiers.
Wellness Initiatives: Offices that prioritise employee well-being, with features like ergonomic furniture, natural light, indoor plants, and spaces for relaxation and recreation are in high demand.
Technology & Infrastructure: A robust and advanced technology infrastructure, including high-speed internet, efficient communication tools, and smart building features.
Brand and Image: The office space a tenant occupies contributes to their wider business's brand and image. Tenants will seek spaces that align with their corporate identity and values, helping to attract clients, partners, and the best talent.
Health and Safety Measures: Post COVID-19, tenants want to ensure that their offices maintain good and healthy air quality, requiring modern M&E. Moreover, compliance with building regulations and health and safety standards is a non-negotiable.
Community and Networking Opportunities: Shared workspaces that offer networking events, community-building activities, and opportunities to connect with other tenants within the building are increasingly popular.
Understanding and catering to these preferences can make an office space more attractive to potential tenants. For an occupier, the office environment can significantly impact employee satisfaction and retention. As the workplace landscape continues to evolve, staying attuned to emerging trends and adapting office spaces accordingly will be key for property owners and managers. Trying to incorporate all of the above when looking to refurbish and reposition office assets requires more than a quick “light touch” and unfortunately assets that don’t provide these will see far longer and even permanent voids, this is supported by research from Savills which confirms grade A take up accounts for 90% of leasing activity across central London.
In conclusion, when considering the demand of the modern occupier and the latest building and energy regulations the viability of a light touch refurbishment really starts to fall. While it can appear to be a pragmatic solution for landlords seeking to reduce capex a light touch refurb can end up costing more in the long run.
