The future of the office building lies in building everything else

Much has been said of a flight to quality in London office lettings, but in the battle for occupiers to attract workers back into the office, it’s not just about having amazing facilities.

New evidence has emerged about the importance of creating or being part of a destination. Occupiers pay on average 24.7% more rent for a mixed-use scheme, according to JLL research, and data shows footfall in neighbourhoods with a balance of offices, leisure, and retail have been the quickest to recover to pre-pandemic levels.

By contrast, areas that offer one use and very little else are falling out of favour. High-street shopping centres, out-of-town office parks and residential estates lack vibrancy and excitement. They also fall down from a sustainability perspective. Whereas mixed-use areas provide both environmental and economic sustainability through a virtuous circle, one dimensional areas rely on travel to function.

But areas that are dominated by one use do not have to accept their fate. Indeed, many areas – and even assets – are transitioning to offer a range of uses, recognising the benefits that this brings for everyone. The former John Lewis in Birmingham is set to become flexible workspace, while Michael Gove’s recent speech on the long-term plan for housing opens the door for areas that were dominated by retail to offer more places to live.

One of the principal complaints levelled at the Canary Wharf estate is that it is monocultural. But what seems to have been missed is that in 2022, footfall on the estate reached 54 million, the highest in its history and higher than 2019, pre-pandemic. Furthermore, visitor numbers up to the end of June this year were 40% higher than in the first half of last year.

The reality is at odds with the ongoing perception that it remains purely a business destination, stuffed with suited and booted bankers, as it was in the 1980s, when the first phases of Canary Wharf were delivered .

Canary Wharf has led the charge to become a mixed-use destination and today is one of London’s best. With over 300 shops, bars and cafes, gyms and an ever-increasing year-round events programme. 3,500 people already call it home, and it is soon to have an extra 3,600 homes and a new linear park down the spine of Canary Wharf that is being created in partnership with the Eden Project.

YY London, our transformation of the former Reuters Building in Canary Wharf, provides 415,000 sq ft of highly sustainable office space, complete with a juice bar, restaurants, yoga studio/event space, and a rooftop garden with exceptional London views. This mixed-use approach, combined with an offer of leisure attractions in the wider area, appeals to occupiers and office workers.

People want to work where there are places for them to dine, drink and socialise with friends and colleagues, play sports and exercise, or be entertained.

However, all these attractions would be totally wasted without convenient transport. The Elizabeth Line has revolutionised Canary Wharf’s connectivity and early this year reached the milestone of 100 million journeys in less than a year, making it the UK’s busiest rail line. This has boosted Canary Wharf’s credentials as a destination, bringing it closer to the rest of London.

According to the flight to quality mantra, only Grade A workspaces with world class amenities in well-connected locations can attract the most sought after tenants. Although this statement is not entirely inaccurate, the battle for occupiers is more complex, and the significance of what the area surrounding an office scheme also has to offer is often overlooked.

In a world where experience is key, employees are demanding more than a high spec office with breakout spaces and somewhere to store their bikes – these features have become the norm in any high-quality office. What attracts people into the office is workspaces that are part of buzzing neighbourhoods where they might also be able to live, socialise, exercise, shop or even enjoy a spot of open water swimming after work, as they now can at Canary Wharf.

Successful offices are not only about brilliant space and facilities but also being part of a wider community. With many people now enjoying hybrid working arrangements, going to the office is also a day out that might see work meetings combined with shopping and seeing friends. As such, workplaces need to provide vibrancy and experience, both within and outside of the four walls of the office.