Mitigating Office Obsolescence:

This report is the third in a series of guides designed to tackle the issue of office obsolescence. First, it sets out the international scrutiny afforded to office obsolescence in academic literature and practice-based research. It then responds with some practical guidelines on and solutions to office obsolescence alongside an appraisal of the wider socio-economic environment, which must be considered in any office-building change.

There are offices in the UK which are obsolete due to various reasons such as location reasons- the building is in, for example, an inaccessible, out of town location where there is no occupier demand. Some offices can be functionally obsolete as the building is not fit for purpose due to changing technology, new regulation or changing occupier demand, i.e. small, irregular shaped floorplates or cellular design. An office building deemed as physically obsolete means the building’s fabric has deteriorated to the point where the cost of occupation outweighs the benefits accrued by the occupier.

In any response to obsolescence, particularly conversion for new use, it is tempting to focus on the physical aspects of buildings, for example building size, height, depth, structure and servicing arrangements. These factors are certainly important, however our research indicates that the physical building exists within a much wider socio-economic context which influences both the management of the office property and the potential mitigation of its obsolescence. To account for this wider context, a PESTLE analysis was used to scan the contingent environment of office obsolescence. A PESTLE analysis focuses on six key themes namely political, economic, sociological, technological, legal and environmental.

The report also looks at how office landlords and investors can capitalise on the new working environment. Even though office buildings are traditionally designed to last for centuries in the physical sense, they will have multiple tenants and types of use. In the future, office buildings may not be judged only on specification; they should be marketed as a service, rather than as an asset. Under this perspective, investment and management strategies will need to be proactive, with an emphasis on tenant experience. This suggests a change in approach from traditional management strategies based on price signal. Assets may not even be called ‘offices’, but business centres, hubs, communities or hives. What is certain, is that the ability to adapt and change will be a key determinant of success and profit in the future.

For more on Mitigating Office Obsolescence, access the BCO research page and download reports. Become a member, join the debate and help to shape the future of the industry.

What Workers Want

Without income property has little value. It is surprising, therefore, that the industry spends an awful lot of time looking at design, construction and investment, but relatively little on occupation.

What Workers Want has been published by the BCO and Savills twice, in 2013 and 2016. The latest research draws on a survey of more than 1,100 office workers conducted by YouGov. We have found it gives insights you wouldn’t normally get from asking the workers’ representatives at C-suite level. Who’d have thought that smell was so important?

The factors deemed by over 70% to be highly important were: the length of commute; cleanliness; toilet provision; wifi; private space for focussed work and public transport.  Meanwhile, factors affecting wellbeing specifically were comfort; temperature; light; noise; smell and security.

The study also measured the gap between importance and satisfaction. Areas for improvement included the provision of quiet space; wifi; cleanliness and internal design. Perceived productivity in open plan versus private office was also tested, with the (expected?) view that open plan decreases productivity.

We can draw the following inferences:

• There is some disconnect between what workers actually want and what their employers say they want (or maybe just what the office supply industry thinks they want).
• The simple things are important and can be provided easily by facilities management (cleanliness) and specification (toilet provision).
• An engaging façade is nice to have, but makes little difference to occupant satisfaction and, therefore, recruitment and retention. Attention is better spent on:
• Enabling productivity. This is a subject of a whole new workstream but what is evident is that workers value the ability to work in a focussed way but are frustrated by the lack of provision. 

This is not the same as saying “open plan is dead”. There will be no return to private offices and cubicles, but there is no good reason why optionality cannot be provided.

"While wellness has, in some quarters, become the property industry buzzword for 2017, this is one of the most visible examples we have seen in practice and it certainly won’t be the last. Developers are increasingly including these innovative features at design stage, creating the first wave of ‘well buildings’ across the country. This phenomenon is not unique to the office sector; the industrial market is also starting to understand the benefits of putting staff first." -Property Week

-Author: Bill Page, Chairman of the BCO Research Committee.

-For more on 'What workers want' download the full report here.
-Access the BCO research page and download reports. Become a member, join the debate and help to shape the future of the industry