_Values matter: Why a shared culture defines the office of the future

The office market has undergone a shift, inconsistently but noticeably, away from focusing on leasing space as quickly and efficiently as possible and toward a ‘space as a service’ model that prioritises user experience and amenity provision. New-build offices in prime locations now typically devote as much as 30% of the gross internal area (GIA) to amenity space.

The shift is apparent in occupiers too, who are willing to pay higher rents and service charges in exchange for best-in-class, amenity-rich real estate, which helps them generate a more compelling workplace experience. This is critical in the new, flexible world of work in which employees have a higher degree of choice over where, when and how they work. Occupiers are seeking buildings with the best local amenities to enhance their employees’ experience in line with the next generation of talent’s prioritisation of workplace wellbeing.

These trends were forming pre-Covid, but the pandemic crucially increased the adoption of workplace technologies which enable workers to perform important workplace functions from home. With the historical role of the office called into question as a result, landlords and occupiers are reassessing the purpose of their workspace and striving to delineate their office offer from employees’ home working environments.

How can culture be embedded into the office environment?

The solution to the office’s post-pandemic identity crisis centres around designing spaces which embody occupiers’ corporate identity and foster a shared culture which reflects their business objectives. Occupiers see the value in reorienting their spaces as ‘cultural hubs’ dedicated to giving staff the freedom and comfort to be creative and share ideas.

Landlords and managing agents can facilitate this by delivering a first-rate occupier experience and a strong working environment, creating spaces that reflect brands’ corporate identities and values and making employees feel respected for their convictions.

Though amenity space is important in this equation, the fact that bike parks, EV charging points, gyms and shower facilities are now commonplace among Grade A offices means landlords must go a step further if they are to differentiate themselves from peers. Best-in-class landlords are more clearly defining their own cultural and corporate values in spaces such as ESG and workplace wellbeing and ensuring these values and the spaces they deliver speak to the priorities of the brands they are seeking to attract.

How can landlords and organisations offer a best-in-class experience?

The embedding of cultural values in office provision will only grow in importance as office boundaries continue to blur and workplaces continue to incorporate more leisure and wellbeing facilities. Prospective occupiers will increasingly scrutinise potential office space for landlords’ shared commitment to net zero targets and workplace wellbeing, favouring those workspaces where they can see their own values mirrored to induce workers to return to, and remain in, their offices. Partnerships between occupiers and landlords may also become more commonplace as employers seek a more bespoke workplace experience.

From the early design stages of a new office, landlords will need to engage property managers to consider their ideal occupier mix and integrate these brands’ cultural identities into the physical structure of the building. Technology will play an important role in this, linking employees together in their shared urban habitat and facilitating more direct communication between managing agents, landlords and occupiers.

Flexibility will also be crucial. The era of static, sedentary office work is over, meaning occupiers are seeking flexible, dynamic space which maximises the provision of communal areas and facilitates hybrid meetings. With office occupancy fluctuating more than ever before from day to day, landlords must engage property managers to optimise airflow and energy usage according to physical occupancy, leveraging PropTech and remaining agile to reduce waste and increase assets’ sustainability performance.

The office is clearly here to stay, but the functions it has to perform have diversified. Creating and curating a welcoming and exciting workplace experience has risen to the top of many occupiers’ agendas. The link between occupiers’ corporate image, the facilities landlords can offer and the wider service they can provide is closer than ever and continues to strengthen. Landlords and property managers stand to gain from these trends, provided they are alive to the priorities of their occupiers and willing to embrace new technologies and techniques to create diverse communities which hinge on the curation of a vibrant office culture.

Written by Andrew Child, Head of Central London Property Management at Knight Frank.