Corporate real estate is on a 'cliff edge' as firms race to rethink communal spaces writes Alex Christian for the BBC.
Over the following decade, writes Christian, vacated commercial buildings are set to be updated, transforming areas formerly packed with office workers during workweeks, and nearly deserted over weekends, into "hybrid destinations" filled with greater green spaces, pedestrianised areas and leisure options that keep a more consistent weekly footfall.
Furthermore, businesses are also being more selective over where to base their headquarters, says Duncan Swinhoe at design and architecture firm Gensler, in London. A traditional tenant in the city's central Mayfair district, such as a hedge fund, may now be more inclined to relocate to "edgier" neighbourhoods that appeal to more employees, he adds. "The proximity to amenities, coffee shops, bars and good transport links is a much more significant factor in location now – employers want to attract their people to the office."
Tim Oldman believes creative developments could be the blueprint for regenerating districts struck by empty offices. "'Mixed use' once meant areas laden with offices, some residential space and a smattering of retail," he says. "Now, we could see these parts of cities become pockets of creativity, filled with community-centred businesses, specialist services and experiential spaces in a more shared environment."
More immediately, cities may face an office exodus. Much of this is determined by lease length: for example, while Oldman says the average London lease length is 12 years, some major business hubs have only five years, such as Zürich. Some city centres are already experiencing the phenomenon: since the pandemic, Manhattan lease lengths have slumped below 10 years, and iconic buildings such as the Flatiron have remained vacant as companies downsize.
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Ex-Blackstone , Ex-Shapoorji Pallonji , PG-NICMAR Pune Project Management , Advisory and Strategy Professional .
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