_Shaping office spaces for gaming companies
As gaming companies scale and diversify, their office space requirements have become more complex and tailored to their specific operational needs. Jamie Phillips outlines key insights and trends shaping office spaces for gaming companies, providing practical advice for occupiers and landlords.
Labour's first budget announcement
With the Starmer-led government having announced the first labour budget in 14 years, outlining its economic and fiscal plans and setting the tone for the first part of this parliament, as you would expect with most ‘new’ governments, there’s a front loading of challenges, presumably in the hope that stronger growth and easier times will come as the next election approaches. All tax rises are challenging, but a focus on growth is to be welcomed, and a more productive economy should, you would hope, support UK-listed companies from all sectors.
With respect to the budget and the impact on the video games industry day to day, the announcements will require further review and analysis over the next few months. This includes changes to national insurance, new investment funding, the increase in employment allowance, the increase in the basic rate capital gains tax on profits from selling shares (which employees and owners in the sector can, and will, benefit from). The impact these interventions will have on hiring new staff, wages, growth of companies and the ability to successfully ‘start’ a new venture, etc will also become more evident in time. Although it would have been nice to see an increase in the Video Games Expenditure Credit (VGEC) rate from its current 34%, especially given recent messages about the need for more tax revenue, it’s encouraging that this tax break has remained mostly unchanged, aside from a few minor clarifications. This stability is similar to the 5% increase applied to Visual Effects (VFX) through adjustments to the AVEC relief.
The 3 Ps: people, place and performance
When evaluating office space, gaming companies must prioritise the "3 Ps": people, place, and performance.
- People
Established hubs like Leamington Spa, Guildford, and Manchester have developed ecosystems of gaming talent, providing a steady supply of skilled professionals. Proximity to universities that offer programs in mathematics and computer science is a major draw, as gaming companies often seek math graduates for coding roles. The location must also appeal to talent, taking into account factors such as cost of living, quality of life, transportation links, and the availability of local amenities. Therefore, occupiers should carefully assess the local talent pipeline and community when choosing a location. - Place
When selecting locations, priority should be placed on established gaming hubs and clusters that encourage continued growth. These vibrant clusters emerge when high-performing gaming companies serve as anchors, attracting talent, driving innovation, and supporting the creation of new startups by former employees. Moreover, gaming companies should focus on regions where local governments actively nurture the broader creative economy. - Performance
Power demands are often overlooked, yet they are critical for gaming companies. Studios may require enhanced power provisions to support their operations, which involve high-energy consumption for servers, computers, and testing equipment. Many office buildings are designed to meet standard commercial specifications, which may not suffice for gaming studios. Occupiers must consult with their IT teams and ensure that the power infrastructure can support future growth. Without these provisions, companies risk costly retrofits after the lease is signed.
Tailored fit-outs to balance creativity and functionality
Fit-out requirements for gaming companies can vary widely, but the common thread is the need for spaces that promote both creativity and productivity. Gaming companies often need flexible environments with areas for collaboration and quiet work. While some companies opt for fun, unique design elements—like arcade zones, influencer-ready merchandise floors, and even secret tunnels—it’s crucial to avoid prioritising style over substance.
A successful fit-out should focus on the essentials: natural light where necessary, comfortable breakout areas, and zones for focused work. Occupiers should work closely with their fit-out teams to ensure a balanced approach that fosters creativity without compromising on the core functionalities that gaming teams require and aligns with the business's needs.
Attracting and retaining talent through workspace and location
Gaming companies are in fierce competition for employees. Location plays a pivotal role in talent attraction and retention, with major gaming hubs like Brighton, Leamington Spa, and Guildford continuing to draw skilled professionals. These towns offer more than just office space; they provide a lifestyle that appeals to the gaming demographic—vibrant social scenes, proximity to major cities, and access to multiple gaming companies.
The quality of office space itself is equally important. Creating an appealing office environment—both in terms of design and location—can make all the difference in a company’s ability to hire and retain the right people.
New-generation trends: influencers and streaming spaces
Emerging digital platforms like TikTok, YouTube, and Twitch are revolutionising how gaming companies engage with their audience and promote their products. Influencers now play a significant role in the success of new game releases, and some studios are building dedicated spaces within their offices to accommodate influencer events and live streaming. These spaces can range from small broadcasting areas to larger "town hall" style rooms designed to host influencers, streamers, and even industry events.
The gaming and film industries are increasingly overlapping. Many gaming studios now utilise advanced technologies such as motion capture, augmented reality, and virtual reality—techniques traditionally associated with film production. A major gaming brand in the UK is doing this already. They operate much like a film studio to support these developments. As gaming and film continue to blend, we see video games crossing into cinema, as evidenced by projects like the upcoming Minecraft movie and the success of the Super Mario Bros. movie. This is leading some gaming companies to consider following the path of Marvel, retaining creative control by producing their own films rather than licensing their content to third parties.
While these trends are still developing, the intersection of these areas are likely to become even more prominent, requiring occupiers to consider how their real estate needs might evolve in the future. Studios may increasingly require flexible spaces that can be adapted for live streams, influencer engagements, or community events.
Landlord considerations: catering to gaming occupiers
As highlighted in our guide to real estate decision-making for gaming companies, understanding the unique needs of gaming companies can present a significant opportunity for landlords. Those who can provide enhanced power capabilities, reliable IT infrastructure, and flexible spaces designed for gaming operations are more likely to attract premium rents. Many gaming studios begin as small, independent ventures, but their potential for rapid growth means landlords should be prepared to accommodate both startups and established industry giants.
It’s essential for landlords to collaborate with gaming tenants early in the leasing process to ensure that their power, data, and space needs are met. Failing to address these issues upfront can lead to costly retrofits later, which may diminish the appeal of a property for future occupiers.
Incorporating gaming-friendly elements such as high ceilings, exposed brick, and open, warehouse-style spaces can also appeal to this creative demographic. A balance between modern, stylish office spaces and the technical requirements of a gaming studio is key to long-term tenant satisfaction.
A forward-thinking approach to gaming office space
The gaming industry’s real estate needs are evolving rapidly, driven by technological advancements, creative demands, and the race for top talent. By prioritising the 3 Ps—their immediate needs but also support future growth. At the same time, landlords who proactively address the sector’s unique requirements stand to benefit from long-term, lucrative leases.
For both sides, a future-ready approach to office space—one that combines functionality with creativity—will be essential as the gaming industry continues to expand and redefine the commercial real estate market.
How can we support you?
Discover more about the latest gaming industry trends and how they affect real estate decision-making in the sector in our guide to real estate decision-making for gaming companies. You can also watch the authors of the guide, Jennifer Townsend, Partner and sector research lead, and Jamie Phillips, delve into this more in the video below.