The 15-minute City: Why Businesses Must Value Walkability

Last year, Transport for London pledged to make London the world’s ‘most walkable city’. In this almost post-pandemic era, an area’s ‘walkability’ is a major factor to consider before selecting a new flexible workspace. But what does it mean? Why is it important for your business? And how might it influence your search for a flexible office space?

Benefits beyond health

It is common knowledge that walking has a positive impact on our physical and mental – not to mention the additional environmental and cost-saving benefits. It’s unsurprising, then, that with usual work and exercise routines disrupted, 57% of Londoners say they now go on more walks or walk for longer than they did before the Covid-19 pandemic. In fact, since the pandemic began, the number of journeys made on foot has risen from 35% to nearly 50%.

But beyond the well-known benefits, close-knit urban areas also facilitate closer business relationships, attract skilled professionals, and enjoy higher GDP per capita as a result. Thanks to these drivers, the concept of the 15-minute city is gathering pace amid a wider re-evaluation about the way we manage and inhabit cities in the years to come.

So, what does this all mean for your business, and how might it influence how you choose your next flexible office space?

Office rental up in residential areas

Knight Frank’s Walkability Index offers unprecedented insights into London’s built environment. It analyses more than 140,000 Ordinance Survey Address base points, identifying 9,000 amenities of interest for walkability, and applying the findings to seven central London sub-markets. These findings are grouped into six sub-categories, including Arts, Culture & Tourism, Green Spaces, and more, generating an overall walkability score based on count.

We found that all of London’s submarkets score well for walkability in isolation, with the West End Core topping our analysis, followed by the City Core, Southbank, and Canary Wharf. However, these high scores often reflect the dominance of a single sub-category, such as retail accounting for 70% of the total walkability score in the West End Core. Other sub-markets – and particularly those with a higher number of homes, such as Southbank – present a more balanced mix of walkability factors.

In the top two submarkets for residential population, office rental growth is twice the average of the overall market. Both markets also maintain below average levels of availability, with substantial gains in property values. As changes in working, shopping, and living habits continue to evolve, it might be worth considering looking for an office space that has a more balanced mix of walkable amenities.

Submarkets with a higher number of homes present a more balanced mix of walkability factors.

Individual needs should lead the way

We know that global working experiences over the past two years have forced a re-evaluation of how and where we work, leading to further discussion surrounding hybrid working. However, this new approach to work does not negate the need for offices. Instead, it calls for flexible office spaces that can entice and inspire employees.

Every business is different, so searching for a collaborative workspace that suits both your business needs and the needs of your people can be a challenge. Trades often become synonymous with specific areas in cities – such as journalism and Fleet Street in London and finance and Wall Street in New York. If there is an existing hub for your sector in the city, walkability in terms of peers and customers for networking and competitive advantages should be a key consideration.

Meanwhile, part of the appeal for many is regaining easy access to restaurants, bars, and retail spaces, especially having been denied it for some time due to restrictions. In fact, The London Report 2022 from Knight Frank found that two thirds of London respondents agree being close to amenities is more important now than pre-pandemic. Meanwhile, 46% of occupiers said they expect a greater amenity offer from their workplace in the next three years. Ensuring this could have a positive impact on motivation and productivity.

The proximity, and walkability, of your next office space to amenities, peers, or customers is a worthwhile consideration.

Action is needed now

Between now and the end of 2025, the London office market has over 24.5 million square feet of lease expiries pending. This presents an opportunity for businesses to not only get back to collaborating in person, but also to handpick the perfect hub for their needs, with walkability factored in where possible.
Meanwhile, The London Report 2022 found that capital’s occupational market gained momentum during 2021 with year-end leasing volumes up 40% compared with 2020. Though this figure is lower than long-term averages, active demand currently stands at 7.6 million square feet, indicating a high flow of future transactions. In addition, property values in the city could jump up by 25% by 2025. Therefore, companies should be cautious about waiting too long to begin their hunt for flexible workspaces.
When it comes to the office search itself, it is worth remembering that the location you choose is as important as the building itself. And ultimately, the significance of location doesn’t just come down to your sector or the local amenities, but rather a holistic view of walkability.

With property values set to rise and demand increasing, businesses shouldn’t delay their search for office space.

The last two years have shown how rapidly things can change across the globe, and the profound impact this can have on people’s expectations. But by identifying and addressing these new needs – from walkability and amenities to collaborative spaces – businesses can find the right offices for them and their people. When you’re ready, Knight Frank is here to help you with your search.

Looking For Office Space?

If you’re currently at step one of our office relocation checklist and searching for office space that meets the particular needs of your business, we can help.

Just tell our office space experts what you’re looking for and we’ll do the hard work for you. We’ll arrange your viewings and accompany you to appointments so you can ask any questions there and then. We can also take care of the negotiations, leveraging our market knowledge to get you the best price. And what’s more, our expertise won’t cost you a penny.

As the world of work evolves, how can you stay competitive?

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