Are Green Offices London's Next Workspace Trend?

In first place worldwide, London is home to nearly 3,000 green-rated buildings – making it one of the most advanced cities in terms of ESG adoption. Considering businesses view their office space as a visible, concrete commitment to ESG, will green offices be London’s next workspace trend?

Picture this: You’re in a next-generation workspace of 385,000 sq ft. Above you, a 1.1 acre rooftop forest of over 100 trees and 10,000 plants grows; its water capture and irrigation systems are supporting wildlife and biodiversity in central London. There’s a ‘barn’ meeting space, a potting shed and a seed bank.

Next to your lunch spot is a glass-floored, infinity-edge swimming pool, warmed by the building’s unused heat, and revealing glimpses into the office space below. Community gardens and collaborative local areas including a green atrium, auditorium, a café and retail kiosks bustle with life.

For businesses set to secure office space in Southbank’s ‘Roots In The Sky’, this is soon to be a reality. Led by investment manager and developer Fabrix, Roots In The Sky is one of the latest office developments geared towards the green agenda.

Clive Nichol, CEO of Fabrix explains: “[Roots In The Sky] anticipates the shift in the way people are thinking about their working life post-Covid. It’s designed with generous spaces and natural ventilation, access to nature and a mix of uses that reflects new ways of working and living…It’s a commercial building that aims to be a ‘good citizen’, offering a genuine place for community uses, contributing to the ongoing regeneration of Bankside and to London’s wider greening targets.”

Is this just the beginning of London’s green office trend?

"It’s designed with generous spaces and natural ventilation, access to nature and a mix of uses that reflects new ways of working and living." - Clive Nichol, CEO of Fabrix.

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What’s driving the rise of green offices?

An increased focus on sustainability has certainly been accelerated by Covid-19, but the green office movement, in particular, is underpinned by several factors. Firstly, the climate crisis is critical – the buildings we inhabit are responsible for 40% of global carbon emissions; redeveloping offices to be green and sustainable is a much-needed first step.

Secondly, in a post-Covid world of work, wellness is at the forefront of employers’ and employees’ minds, and we know that biophilic office design can improve mental health, physical health, immunity, happiness and productivity. Plus, green offices can make recreational activities, active commuting and exercising much easier to enjoy, be it with cycle storage, showers, on-site fitness facilities and community-focused initiatives.

Thirdly, we’re beginning to see the supply-side of green real estate pick up as investors have been quick to grasp the value of sustainable investing. In fact, lenders are beginning to offer ‘sustainability-linked loans’, which incentivise the development of green buildings that feature efficient architectural designs, solar power, energy efficiency and even social KPIs linked to the mental health of those in the building.

And finally, as we’ve explored before, the post-Covid war for talent will be won by businesses occupying green, well-appointed, people-centric and tech-savvy offices. Not only do talented employees want to work in engaging environments, but today’s workforce is becoming increasingly green-conscious, and they’re on the hunt for businesses that match up to their values.

Roots In The Sky, for example, ticks many of these boxes. Jonny Lee, a Partner in our London Office Leasing team, explains: “It’s a scheme that will support businesses’ carbon commitments, focus on all ESG services – especially sustainability – and improve employee wellbeing. Plus, real estate is one of the few things that can influence how you retain and attract talent, so in today’s world of work, you need to stand-out. Contemporary office space that aligns with your corporate ethos and that is designed to nurture your teams will create the healthiest and most productive workforce.”

"Real estate is one of the few things that can influence how you retain and attract talent, so in today’s world of work, you need to stand-out. Contemporary office space that aligns with your corporate ethos and that is designed to nurture your teams will create the healthiest and most productive workforce." Jonny Lee, Partner, Knight Frank's London Office Leasing team.

How quickly is the green office trend accelerating?

While 90% of businesses view their office space as a strategic device, few are currently using theirs as a means to achieve their sustainability targets. According to flash findings from our second (Y)OUR SPACE report, published in The London Report, 49% of the businesses surveyed have less than 10% of their global portfolios holding an environmental accreditation such as BREEAM, LEED, DGNB or Green Star.

And while four in 10 businesses surveyed have a publicised net zero carbon emissions target (with 75% aiming to achieve it by 2030), the office’s role in getting there seems unrecognised. When asked: “How influential will sustainability considerations be in determining your real estate strategy and portfolio over the next three years?”, 17% of global businesses said sustainability will have no influence, 72% said it would be somewhat influential, and only 11% said it will be the key influence.

So, while green offices can help businesses achieve many of their goals, “there will be a need to engage and educate [businesses] on the practical and financial benefits of [sustainable] buildings”.

In that light, sustainability might be today’s secret advantage – one that’s adopted by a handful businesses eager to get ahead of the game. As Jonny Lee explains: “Green offices are a vehicle for change that forward-thinking businesses are going to look for and commit to.” You only have to see the jungle-inspired offices of fast-growth tech giants to know why.