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AUTUMN 2019OFFICES & WORKPLACE - TRENDS & INSIGHTS

Copyright John Sturrock

COMMUNITY IS THE NEW CORPORATEAn interview with Kay Chaston, creator of Enjoy-Work, Chiswick Park

NOT A SMARTER WORKPLACE, BUT A SMARTER WORKERCould allowing employees to design their own surroundings make them more intelligent? Dr Craig Knight, explains

FEATURE: KING’S CROSSA look into the transformation of this great estate over the last decade

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CORE

We know what it means to

WORK WELLWelcome to our first issue of CORE magazine, a Savills produced annual magazine focused on office and workplace trends in the UK and beyond, giving you an in-depth insight into what’s going on in the sector right now, and where it’s heading.

THANK YOU TO OUR EXTERNAL CONTRIBUTORS:

KAY CHASTON PATRICK MCCRAE

DR CRAIG KNIGHT

FRONT COVER: FOUR PANCRAS SQUARE, KING’S CROSS, LONDON

BACK COVER: CHISWICK PARK, LONDON

BEN CHANNON

Previous CEO of Chiswick Park Enjoy-Work and Managing Director of the Television Centre OpCo, Stanhope. All round expert in culture and placemaking.

CEO, ARTIQ - one of the UK’s leading art consultancies. ARTIQ was founded in 2009 to bridge the gap between the art and business worlds to embed creativity into their culture and to harness the great power of art.

Dr. Craig Knight is a chartered psychologist and Director of Identity Realization, a commercial organisation with strong connections to blue chip industry. Dr Knight is also an Honorary Research Fellow at The University of Exeter, retaining research links with global universities.

Author of ‘Happy by Design: A Guide to Architecture and Mental Wellbeing’ and Associate at Assael Architecture.

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Savills Offices & Workplace

IT’S THE PEOPLE, STUPID

WHY EVERYONE IS TALKING ABOUT MADRID

OUR TOP 10 WORKPLACES ACROSS THE UK

MIXING BUSINESS WITH PLEASURE

NO TECH, NO TALENT

KING’S CROSS: REGENERATE, REDEVELOP, REBIRTH

NOT A SMARTER WORKPLACE, BUT A SMARTER WORKER

COMMUNITY IS THE NEW CORPORATE

THE MINDFUL ARCHITECT

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10WHY ART IN THE WORKPLACE IS THE WAY TO GOGH

WHAT MAKES YOUR BUILDING SO SPECIAL?

DIVERSITY: NOT JUST A TICK BOX

WHAT DO YOU WANT FROM A WORKPLACE?

MY CITY: CARDIFF

KEY CONTACTS: OFFICES & WORKPLACE

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Savills Offices & Workplace CORE

At some point in the last 20 years, the balance of power between employer and employee shifted from ‘why should you work for us?’ to ‘why should I work for you?’. The notion that you joined a company and stayed for life disappeared back in the recession of the early 1990s and the dot-com boom that followed undoubtedly changed the landscape for good. The tech companies that emerged proved that no matter your age, or even your experience, you could be successful (or indeed fail, like many did) in any business and didn’t need to ‘serve your time’ to make it to Partner or find yourself on the Board.

The world had suddenly become a greater meritocracy with more instant recognition and an unparalleled opportunity to excel. These ‘re-born’ companies also created new open working environments, the first wave of what is now considered standard today, and a buzz which made people feel part of this journey to success.

The global financial crisis of 2008 actually only heightened this desire by employers to feel fulfilled by their work. The long-term promise of riches in the twilight of their career no longer held the same allure as it once did. As a result, companies started to realise that in order to attract the next generation they would have to work harder to sell their business. This didn’t just mean better pay, perks and holidays, but the workplace itself.

It’s the people,

STUPIDDesigning or choosing a new office space? Don’t forget who you are

doing it for, says Jon Gardiner, Head of National Office Agency, Savills

‘It’s the economy, stupid’, the now famous phrase coined as part of Bill Clinton’s 1992 US presidential campaign, encapsulated an era where money and financial gain was the pinnacle of all decision making regardless of geography or sector. However, fast forward 27 years and it would appear that this is no longer the case. Today, it is in fact all about the people, stupid.

To put this into a real estate context, a company’s most prized asset is its workforce. According to the BCO Guide 2016, salaries account for up to 55% of a company’s overheads compared to just 15% for real estate costs.

If there has been one noticeable change during this time period, particularly within the occupational office market, it is how every key

decision when it comes to delivering office space now concerns the impact on the people who will ultimately work there.

If we look back 20, 30 or even 40 years ago, the selection of a new office building was often an ego-driven project led by the ‘boss’. The main requirement was to find somewhere suitable for staff to do their job for the benefit of shareholders and a decent commute back to the home counties.

Today, a company’s workplace is instead an outward reflection of its culture. Whilst kerb appeal is still important, the internal environment now needs to be a bespoke, multi-purpose forum where people can undertake a diverse range of activities that provides comfort, practices wellness and ultimately encourages productivity.

SO WHAT CHANGED? Two things: choice and culture.

When designing office buildings today, it’s becoming increasingly common to employ both a main architect as well as an interior architect or designer. These creative geniuses focus on the fundamental tenets of a ‘well building’, namely air, water, nourishment, light, fitness, comfort and mind. Get these right, and you are talking the language of modern companies and the modern worker.

Last year, the chief executive of a large global telecoms company stood in the middle of an office floor within a new development in Reading and openly declared to her colleagues: ‘we can recruit from here.’ Her comment was not meant literally – she was saying ‘this space is so cool, people will want to come and work for us’. After having inspected dozens of other buildings, many of which were similarly new, none of them quite had that ‘X’ factor.

Going the extra mile, attention to detail and creating a truly stunning and unique environment is now what landlords, developers, architects and investors are having to think about when creating new workspace.

So the next time you are sitting down to design your latest project, just remember what it’s all about: the people!

Austen Fraser, Thames Tower, Reading

80-100 Victoria Street, Westminster, London White City Place, London

AT SOME POINT IN THE LAST 20 YEARS, THE BALANCE OF POWER BETWEEN EMPLOYER AND EMPLOYEE SHIFTED FROM ‘WHY SHOULD YOU WORK FOR US?’ TO ‘WHY SHOULD I WORK FOR YOU?’

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Agile working, wellbeing and biophilia have all helped to change today’s workspace, tapping in to our innate need to seek connections with other forms of life. For example, ‘well buildings’ have increased the focus on good quality air and light, temperature, glare control and greenery, all of which are important wellness tools. Whilst this has all helped to contribute to individual workplace culture, art also has an integral role to play. This provides a profound and cost-effective way of achieving the complex changes needed for positive forward momentum.

National charity Anxiety UK states that a good employer ‘values, supports and invests in its staff, not simply because of the impact sickness absence has on the business and brand’ but because ‘creating a mentally healthy workplace improves productivity and profits...and reduces significant costs relating to staff turnover, under-performance and untapped potential.’

According to Anxiety UK, one of the keys to combatting anxiety is distraction. At ARTIQ we believe that art is one of the best ways for employers to achieve this. Not only can art create a positive, cognitive distraction, but also reduce stress

and impact on productivity by creating spaces that are both active and connective.

We’ve long known about the key relationship between art and wellbeing, after all, as Florence Nightingale once said ‘little as we know about the way in which we are affected by form, by colour, and light, we do know this, that they have an actual physical effect. Variety of form and brilliancy of colour in the

objects presented to patients, are actual means of recovery.’

As Oshin Vartanian, Adjunct Assistant Professor in the Department of Psychology at the University of Toronto, explains, art activates ‘the brain’s default mode network – the area associated with internally orientated thinking like daydreaming, retrieving memories or thinking about the future.’

75 PER CENT OF OUR WORKSPACES HAVE NO ART. BIG MISTAKE, SAYS PATRICK MCCRAE, CEO OF ART CONSULTANCY, ARTIQ

WHY ART IN THE WORKPLACE

5 Savile Row, Mayfair, London

‘Thoughtworks’ - an art wall voted for by staff, which changes every six months

Memery Crystal offices - natural or abstract imagery helps denote a more relaxed feel

ART HAS AN INTEGRAL ROLE TO PLAY AS A PROFOUND AND COST-EFFECTIVE WAY OF ACHIEVING THE COMPLEX CHANGES NEEDED FOR POSITIVE FORWARD MOMENTUM

Patrick McCrae

Such creative thinking promotes cultures that push the boundaries of innovation, helping companies remain unique and competitive. Yet Dr Jenny Thomas’ PhD thesis on the impact of the workplace environment found that 70 per cent of workplaces had no artwork installed and 95 per cent of employees could not see any art from their workstation, while the Leesman Index’s survey of 100,000+ people revealed 85 per cent were between ‘neutral’ and ‘dissatisfied’ with the artwork provision in their offices.

Artwork in a flexible working environment engages, distracts and de-stresses, as well as helping demarcate space and suggest its true purpose, promoting thought and discussion beyond the four walls. Art creates links with the outside world and feeds into the importance of culture in the workplace, improving employee wellbeing and subtly aiding the flexibility of purpose business owners and office managers must now achieve.

ARTIQ was founded in 2009 with an original vision to bring great art into great spaces and to make sure artists are fairly recompensed for their work. They now represent some of the most dynamic, exciting and relevant artists and global art collections in the world and occupy a unique market position on the cusp of the business, design and art worlds.

ARTWORK IN A FLEXIBLE WORKING ENVIRONMENT ENGAGES, DISTRACTS AND DE-STRESSES

CORESavills Offices & Workplace

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Cannon Place, 78 Cannon Street, London

70 PER CENT OF WORKPLACES HAD NO ARTWORK INSTALLED AND 95 PER CENT OF EMPLOYEES COULD NOT SEE ANY ART FROM THEIR WORKSTATION

Kay ChastonJon Gardiner, Head of National Office Agency, Savills talks to

Kay Chaston became CEO of Chiswick Park in 2000, where she launched and established this UK market-leading 33 acre business park, which is differentiated by its innovative brand proposition, Enjoy-Work. The project earned over 30 national and international awards for product, culture and performance excellence. Chiswick Park received the Queen’s Award for Sustainable Development and is ranked consistently by the Financial Times as a Top 50 UK Best Workplace. It became an operating model sought after internationally and a top performing asset of Blackstone.

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You started your career in the hospitality sector in the late 1980s before moving across to real estate. How have you seen the two sectors approach customer service and experience over the last 20 years?

Back then customer service within the hospitality sector was already a key differentiator between properties and brand. It would be fair to say it was still a fledgling concept for UK property. However, property moved quickly and I believe the credit is due to UK visionaries who took bold, all-in approaches and fast-tracked this shift.

Who would you say those visionaries were?

From my perspective, Sir Stuart Lipton, founder of Stanhope PLC. He is only ever interested in cutting-edge quality and he championed this hospitality crossover. Now we see service experience as a lead story in property brand and product differentiation.

We’ve also seen a proliferation in the subcontracting of services such as concierge, events and placemaking to enhance customer experience. These are all well knitted into property operating models now.

As an example, it is not typical to subcontract a front desk team in the hospitality industry – they’re in–house employees. The obvious benefits are that it provides direct control and high brand ownership. Subcontracting can bring subject matter expertise and offloads risk and operating administration. There’s value to both yet they’re diametrically opposed. It will be interesting to see how the two sectors evolve.

Where have you seen that in-house model work in real estate?

It’s the same model we moved toward at Chiswick Park. It caused a bit of industry whiplash, to be sure. We were very focused on our company culture so that required a dedicated team and absolute alignment by contractors to our operating values. For me the driver was around being able to own the brand, own the service levels. We originated the one team philosophy.

What do you see as the most important aspects of delivering successful customer engagement in real estate?

My answer to that would be two words – create community. Community is a well-used term, much traded on in the property context, but it’s incredibly powerful where it truly exists. Here’s why: what community does is it creates affinity, it creates the ever-elusive sense of belonging.

Creating emotive customer affinity with your brand and product, that’s the Holy Grail. Because it’s not the product, it’s the bi-product that’s where the magic is.

The ‘ever-elusive sense of belonging’ is a fascinating concept

It is. We are deeply social creatures. We can lose sight of that core dynamic of who we are. So it’s a mind-set shift. We are no longer creating a place, we are creating an experience.

Does that warrant or require a level of scale?

You can do it with two people, because this is about how we make people feel. How we make people feel matters, it matters a lot, possibly it matters most of all. Create that belonging within your team and it will ripple out.

Do occupiers properly recognise customer engagement strategies by real estate owners and if not, what can be done to improve them?

It needs to be done well and customer engagement strategies need to be integral to the vision. That’s where we get into trouble typically, as we have a lot of examples of what I call ‘customer engagement bolt ons’.

As examples, enlivenments and events are often less strategic and more bolt ons. When we consider value propositions for customer engagement it is important to be clear on why, who are the customers, what do they want, what matters to them. So often strategies are not rooted in what really matters to people.

Also, if what we do is not integral to the vision and brand it will lack traction; it will lack relevance and it will fail.

That means you need to understand who your customer is; you need to dig deeper, know who works in that building, park or campus

We can spend a lot of time sitting around a boardroom table working up what the value proposition will be and at the end of the day there has never been a customer at that table. There is massive value in staying close to your customer.

How did this level of engagement work at Chiswick Park?

Our team was sitting with employees, HR heads, senior execs, monthly. We would survey the park once a year, across every company; every employee was asked to tell us how it was going. We had a significant response rate and it came from every company. We had a tonne of data and knew what people valued.

To what extent does technology improve customer engagement in real estate and how does it compare with more people focused strategies with, for example, regular face to face meetings like you did at Chiswick Park?

Tech delivers efficiencies, we all value that for the service and the cost benefits and in a quality environment we now rightfully consider that the price of admission, but tech only gets you so far. If we think about places we frequent by choice, it’s generally about more than the efficiencies. It will be more about the experience.

To give a personal example, I live in Wimbledon and our high street boasts excellent retailers; a lot of high end brands. However, in many, the staff turns over every few months. I have lived there over a decade and as a long-term customer I have no relationship with anyone; I walk in and out of these environments with complete anonymity. This is versus a little deli in the centre of town which is owner operated. There, I am recognised, greeted, it’s personal – so who do you think gets the trade?

Moving the needle from good to great, happens through human connections.

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COMMUNITY IS THE NEW CORPORATE


CREATING EMOTIVE CUSTOMER AFFINITY WITH YOUR BRAND AND PRODUCT, THAT’S THE HOLY GRAIL. BECAUSE IT’S NOT THE PRODUCT, IT’S THE BI-PRODUCT, THAT’S WHERE THE MAGIC IS

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We’ve talked a lot about Chiswick Park, which created its own distinctive and unique brand in the form of Enjoy-Work. How important do you think a brand is in helping to underpin a particular service or culture?

A great brand is simple, it inspires, it captures purpose and has the flexibility to grow over time. My view is that great brands are a powerful asset, but the reality is that a brand is only as relevant as you make it.

Alternatively if not made relevant, it’s just a logo. Enjoy-Work was a brilliant brand, it linked everything: the physical environment with the operating ethos, the customer interface, our structure even our language. It was bold and it risked criticism so we needed to get it right.

How do you see the wellness agenda growing and evolving in the workplace?

It’s interesting because when we reflect back a decade or more, the buzz was around work-life balance and now it’s wellness. The vernacular has changed but the trend is consistent and so in answer to your question, I would maintain that as long as employee engagement is a recognised business driver, wellbeing in the workplace is here to stay.

The evidence is fairly irrefutable on this. When we consider the impact on productivity and employee retention, wellbeing is a key component to healthy, high-performing cultures.

Is wellness the new sustainability or are they one and the same?

Wellbeing touches on the physical, psychological and the spiritual so sustainability factors into that in a big way especially with millennials. These folks are not interested in an organisation that is not aligned to some greater purpose and sustainability is a big issue for them.

With all that said, an integrated wellbeing agenda in a workplace isn’t without its challenges. We need to make it authentic and relevant. This is not a small challenge because if you were to ask 10 people what they consider priorities in wellbeing, you are going to get 10 different answers. The solution ultimately is that it cannot be prescriptive.

So in a real estate context, do you have to be all things to all people?

For real value you have to provide choice, so again it’s about getting to know your customer. The bottom line is we live in a time when physical, psychological and spiritual wellbeing has become a business and societal imperative. We should be legitimately proud of that.

Moving on to marketing and promotion – to what extent has traditional real estate evolved its marketing language and channels to appeal more to the workers and wider HR function and do you see any obvious areas of how it could improve in that regard?

There has been a huge shift, no question. The effectiveness of HR marketing is in direct relation to the culture of the organisation – where do they place their priority value? Is it on their people? More and more, we are seeing the chief executive and HR leadership teams prioritising wellbeing, thus the benefit of greater emphasis on marketing around the core HR principles and values.

As for improving the impact, we have cultivated a savvy, cynical audience. Are we putting people at the centre of our decisions for real? How serious are we about it? What are we measuring? What are we monitoring? Are we listening, responding and staying connected?

Is there a need for real estate investors and developers to upskill and create new roles for people who can deliver these levels of customer service and engagement?

That is absolutely the case. Let’s take a look at a completely different sector: do you know that there is a Professor of Happiness at both Yale and Harvard University? Did you know that they are the most over-subscribed courses? As more developers and investors recognise the values we are talking about here, we’re in for some exciting changes.

Looking back on your career, what were your most challenging and rewarding projects in real estate and why?

Chiswick Park. Firstly the challenge; there was no prototype. No roadmap. In fact that was a big attraction for me and the vision hugely resonated. We were creating a common culture of employee engagement and wellbeing and I believe there were three pillars to our success.

Firstly, the vision and the brand were brave. We believed we were going to stand for something different. We took the approach that we were not a workplace, that we were a lifestyle

and that was a game changer. The question was of course how to go about delivering it.

The second pillar was alignment. There was an absolute partnership between the stunning physical environment and the operating culture and those built on each other becoming greater than the sum of its parts. Furthermore, the Enjoy-Work proposition was vital to the asset as the stakeholders saw it. This was not a bolt on, they were in it for the long game.

The third pillar was bold decisions. Even the decision they took on me, somebody from overseas and without direct property sector experience, they tossed me the keys to run the place. We broke a lot of new ground and our operating team was allowed to challenge convention and we did. When I handed back the keys it wasn’t just to one person. Ownership of Chiswick Park was held by a team, an extended family of 150 employees. We had ownership at team level and as a result Chiswick Park and the Enjoy-Work brand reverberated within every company located there, from employees through to the CEOs. You asked me what made for a rewarding project? It doesn’t get better than that.

Kay holds a degree in psychology and is currently focused on NGO international development and NED roles.

She re-joined the Stanhope team in 2014 as Managing Director, Television Centre OpCo. This diverse and iconic mixed-use project includes premium residential, commercial, the Soho House Hotel, broadcast studios and critically-acclaimed retail.

Globally oriented and having worked with executive teams in North America, Europe and Asia, Kay’s specialties include leading innovative concepts, strategic B to C differentiation, brand building and creating high performing customer facing organisations.

In terms of how workplaces should serve the bottom line, what is more important and influential in maximising productivity: the physical working environment or the community?

This is the ‘talent vs ambition: which matters more’ debate, right? Well first of all, industry leaders do both. Secondly there will always be a baseline requirement in a physical environment. In other words, if you put people in the basement with bad light and bad air, those are compromises that a community culture is not going to compensate for. Research for decades has validated that physical environments affect focus and behaviour.

The flip side is this: the greatest impactor on employee retention and engagement is their boss, followed regularly by sense of purpose, their colleagues and team. These are social psychological factors, not physical environment. I come down on the side of company culture and business community on this one.

THE GREATEST IMPACTOR ON EMPLOYEE RETENTION AND ENGAGEMENT IS THEIR BOSS, FOLLOWED REGULARLY BY SENSE OF PURPOSE, THEIR COLLEAGUES AND TEAM.

MILLENIALS ARE NOT INTERESTED IN AN ORGANISATION THAT IS NOT ALIGNED TO SOME GREATER PURPOSE AND SUSTAINABILITY IS A BIG ISSUE FOR THEM

Chiswick Park, home of Enjoy-Work

CHISWICK PARK WAS HELD BY

A TEAM, AN EXTENDED

FAMILY OF 150 EMPLOYEES

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MAN IS NOT KING All employees need to feel accepted and valued. A workplace that promotes inclusion and tolerance will help improve job performance, job satisfaction and creativity. The modern office needs to be built on the bonds that unite us rather than the differences that divide us. This means that occupiers need to re-think the workplace and the way in which it works. Many offices are still designed around the principle that men are the main breadwinners, with their wives staying at home. Long inflexible hours and a culture that frowns upon part-time, agile working alienates females, who make up 47 per cent of the workforce.

THE HEAT IS ON FOR CHANGEEmployees also want greater control of their office. Lighting and temperature are of key importance and there is increased demand for technology that allows these to be controlled at desk level. This is easily achievable up front but is usually expensive to retrofit.

Historically, office buildings have set the temperature based on a decades-old formula that uses the metabolic rates of men. Now that almost half the workforce is female, it’s imperative for occupiers to ensure that comfort is optimised for each employee’s work areas during the fit-out process.

The location and design of a place, its facilities and equipment often fail to take into account minority cultural or religious requirements. The impact of bad design is more likely to be felt by disabled people, older people, people from minority cultures and faiths and carers with young children.

There is a considerable amount of research and good-practice advice about designing environments to be inclusive. Despite this, physical access and usability remain vital design issues. Sadly, many buildings are still difficult for disabled people to use with dignity and ease - a wholly unacceptable state of affairs in 2019.

NOT JUST A TICK B X EXERCISE

It’s time to re-think the workplace so that all employees feel accepted and valued, says Clare Bailey, Associate Director, Commercial Research, Savills

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THE MODERN OFFICE NEEDS TO BE BUILT ON THE BONDS THAT UNITE US RATHER THAN THE DIFFERENCES THAT DIVIDE US

A productive workplace is vital if you want to keep your organisation efficient and enhance the bottom line. A workplace that’s culturally diverse is likely to be more creative and able to devise a wider set of solutions to specific problems.

In 2017, millennials became the largest generation in the UK workforce. More millennials identify as multicultural than any other generation and they are most willing to stick with companies that have diverse management teams and flexible work environments, according to a recent survey by Deloitte.

It is time for companies to take note. Today’s diverse workforce demands flexibility and choice about where and when they work. A critical factor for the success of any company is an ability to attract top talent while retaining existing staff. With this in mind, workforce diversity is now a business necessity.

The stats speak for themselves. A McKinsey report found that a company with diverse staffing outperforms a non-diverse one by 15 per cent (gender diverse) and 35 pe rcent (ethnically diverse) respectively.

A COMPANY WITH DIVERSE STAFFING OUTPERFORMS A NON-DIVERSE COMPANY BY 15 PER CENT (GENDER) AND 35 PER CENT (ETHNICITY)

It isn’t just the physical environment that’s changing, but when and where we work as well. In July this year, Conservative MP Helen Whately introduced a bill to Parliament requiring employers to offer flexible working as the default position to all staff.

PwC is one big company that has already embraced the gig economy. It carried out a study showing that almost 46 per cent of 2,000 respondents said flexible working hours and a good work-life balance were their most important priorities when choosing a job.

Consequently, it has launched a Flexible Talent Network offering people the chance to work for the company without a formal contract in a bid to attract more diverse talent. More than 2,000 people registered with the new initiative in the first two weeks.

The Wellcome Trust also considered moving all of its 800 head-office staff to a four-day week, but dropped the plan because it found it too complex to implement. However, studies have shown that a four-day week does improve productivity as well as wellbeing, so there are possible rewards for any company that is able introduce it successfully.

Matter, a forward thinking, innovative design studio who has been integral in shaping office buildings for the 21st century workforce agrees with these changes. The firm’s co-owner Ross McGinn believes that “to attract and retain talent, companies need to provide environments that foster wellbeing; work-life balance; somewhere to feel at home, and an inclusive social environment. Creating a truly inclusive workforce will not only address some of the age-old challenges in the workplace, it will help promote belonging.”

Co-owner Roger Smith agrees, suggesting that “during the Victorian era, many major industrialists would provide housing, schooling, healthcare, pensions, social and sports clubs, to name a few. Should we look to the past to help guide our future? Having an agenda which promotes community and cultural identity will help foster a collaborative and supportive environment.”

There is no single schedule that is right for everyone, but companies that offer sleeping pods for those who work better after a nap, flexible hours for working parents or provide quiet rooms for their more introvert staff will have the edge and are likely to appeal to the most talented employees. However, these things need to be implemented from the top, with senior managers paving the way for change.

It’s now easier than ever for companies to look at their employees as individuals and devise working environments that accommodate their unique circumstances. It’s the future, and it’s much easier to change than we think.

THE 9-5 MODEL IS DEAD

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CORE

CREATING A TRULY INCLUSIVE WORKFORCE WILL NOT ONLY ADDRESS SOME OF THE AGE-OLD CHALLENGES IN THE WORKPLACE, IT WILL HELP PROMOTE BELONGING

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We talk to Ben Channon, author of ‘Happy by Design’ and Associate at Assael Architecture about designing for wellness and wellbeing.

What initially got you interested in the subject of wellness in the workplace?

It actually started as a more general interest in mental health, following some difficulties I had a few years ago with anxiety. This led me to question why I had experienced this problem, and what some of the key factors might be. I suppose as an architect it was natural for me to consider the impact the built environment was having on how I felt and whether it could have either a positive or negative impact on wellbeing.

Where did the idea to write a book on wellbeing and design come from? What/who were your main inspirations?

Once I developed this interest in the relationship between buildings and mental health, I started to research around the subject. At this point I realised there were a huge number of studies taking place within neuroscience and psychology into how our environment impacts our state of mind, but I couldn’t find anything in the architecture libraries (perhaps with the one exception of Charles Montgomery’s fantastic book ‘Happy City’, although this deals with the issue at more of an urban scale). This led me to start collating the research I was finding into a ‘design guide’, which I originally created for our practice Assael. At a certain point I think I just realised I had enough for a book and started speaking to publishers – luckily for me, RIBA Publishing liked it!

You have just qualified as a WELL AP with the International WELL building institute. Can you tell us a bit about this and how this impacts wellbeing and mental health in the workplace?

The WELL Building Standard was actually one of the first resources I turned to when I started researching the book. For those who aren’t familiar with it, the standard is a way of demonstrating that a building supports positive wellbeing and human health. It actually originated with office buildings in mind, although now it’s expanding to include a wide range of building types. It looks at everything from air and water quality to thermal and acoustic comfort, as well as having a dedicated section on ‘mind’.

I decided to sit the exam as more and more of our clients are becoming interested in WELL. I think as society becomes increasingly aware of the impact buildings have on our health and wellbeing, we are likely to see a real demand for ‘healthier’ buildings, so for me it’s a very important thing to get our heads around.

Do you think office design and wellbeing are becoming the norm or does the UK have a lot further to go?

I definitely think it’s something we’re waking up to and attitudes are moving in the right direction. There’s obviously been a huge amount in the media over recent years on mental health in particular, and for me it was great to see Prince William talking about it right before the FA Cup final this year. This seems to have got people thinking about their health and wellbeing in a way that perhaps they weren’t 10 years ago. I think it’s important to remember that only 13 years ago it was still legal to smoke in UK workplaces, so we’ve already come a very long way since then. The exciting part for me now is how we can create workplaces that really help us to thrive.

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CORE

THE MINDFUL

ARCHITECT100 New Bridge St, Blackfriars, London

THE EXCITING PART FOR ME NOW IS HOW WE CAN CREATE ON WORKPLACES THAT REALLY HELP US TO THRIVE

Have you found any empirical evidence to suggest ‘wellbeing’ contributes to productivity at work?

Absolutely, I think the data speaks for itself really. Deloitte’s 2017 study supporting the Stevenson / Farmer Review found that mental health-related presenteeism alone costs UK businesses roughly £17 billion to £26 billion every year. This is effectively people who are attending work but because of poor wellbeing are underperforming. Respondents reported struggling with concentration, taking longer to do tasks and having difficulty making decisions as some of the key problems.

While there are societal factors at play here (for example recent research connecting smart phones and lower concentration levels), built examples of WELL Certified offices show that buildings can certainly have an impact on staff. Cundall’s One Carter Lane offices achieved Gold certification in 2016, and since occupation they have seen a 27 per cent drop in staff turnover and 50 per cent lower absenteeism.

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What are the best office designs to facilitate collaboration, health and productivity in the workplace?

The Cundall Offices are a great case study, but a healthy office can take many forms. I love the Danish Word ‘Arbejdsglæde’, which loosely translates into English as ‘joyful work’. To me, it’s really important that we work in buildings that make us want to get out of bed every day and go and spend time there. For most people this will mean a building full of light, nature, tactile materials and opportunities to interact with colleagues. However, it’s also important to remember that everybody is different and for that reason we also need to offer a range of spaces and environments, as autonomy over how we work is also key to happy working.

The reality is that many landlords won’t have the budget to implement some of these initiatives. What would you class as an ‘easy win’ in terms of design and wellness?

There are a few ‘easy wins’ that I often point to. As mentioned, nature is a great one. The physical and mental health benefits of interacting with nature are huge and have been demonstrated in too many studies to mention – and what’s more it’s something that doesn’t need to cost a huge amount. Bringing a splash of colour to a space is also something that’s very cost-effective but can have an enormous impact on how it feels. Different colours can have different effects and even have varying meanings across cultures, so be sure to do some research before painting one side of the office crimson!

Finally - people have mentioned that a ‘posh’ coffee machine in the office definitely improves happiness levels in the mornings - what are the three things which make you happy at work?

Yes, having a great coffee machine definitely does give you something to look forward to on the morning commute! I’m very lucky as we have great offices here at Assael. One of the most popular pieces of furniture in our office is the pool table, which we are actively encouraged to use throughout the working day. It provides a great chance to step away from a busy day and clear your head, as well as socialising with colleagues.

Despite being a large open plan office, we have three acoustically insulated booths downstairs which I really like to go and work in. They’re upholstered with bright fabrics and have comfy seating, so are a very nice space to get away to and work on some quieter tasks – but are also open on one side so you don’t feel completely isolated from the rest of the office.

Ben Channon is an Associate at Assael Architecture, where he has worked since 2012. He is Mental Wellbeing Ambassador at the practice and is an accredited mindfulness practitioner with the Mindfulness Association, and recently qualified as a WELL Accredited Professional.

He has lectured on wellbeing and architecture at Liverpool and Edinburgh University and gave a TEDx talk on the subject in 2018.

His first book ‘Happy by Design: A Guide to Architecture and Mental Wellbeing’ was published in September 2018.

Last but not least, although I know it’s a corny answer, my team are probably the thing that makes me happiest at work. We have a young and vibrant group of staff here at Assael, who all understand the value of working hard, playing hard and having fun. I think this demonstrates the holistic nature of wellbeing very well. Well-designed offices are a very important part of the puzzle, but they must also be supported by a strong culture, good policies and great people.

WELL-DESIGNED OFFICES ARE A VERY IMPORTANT PART OF THE PUZZLE, BUT THEY MUST ALSO BE SUPPORTED BY A STRONG CULTURE, GOOD POLICIES AND GREAT PEOPLE

80-100 Victoria Street, Westminster, London

Assael Architecture’s London offices

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Looking for flexible office space?

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Savills has launched RISE - a service which sets out to transform the delivery of services to the office sector and the creation of bespoke customer experience.

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EVOLUTION THE RISE PROCESS

25

CORE

The flexible, co-working and serviced office sector has seen somewhat of a renaissance over the last five years, particularly in the UK, with London now quoted as the largest serviced office market in the world. Inevitably, as a result of this increased popularity, we continue to see new providers entering the market on a regular basis, some offering a niche or independent product, some aimed at the budget end of the spectrum and some focussing on providing an all–encompassing high-end product. It is this latter group that has sparked a new concept in the market that combines the luxury of a private members’ club with shared working and meeting space.

Traditionally, private members’ clubs have been a place for socialising and networking but where laptops and phones have been discouraged and, in many instances, prohibited. However, with the increasingly blurred lines between work and play, we are seeing the emergence of a number of spaces designed for both. Places where members can work during the day as well as network and socialise, with the space being used for entertaining clients or friends in the evening.

As the lines between work and play become more blurred, business clubs that are designed for both are emerging, says Cal Lee, Head of Workthere

Entirely new concepts have entered this hybrid market. New arrivals, such as Mortimer House or The Ministry, are very much focused on creating a members’ club-like feel to their space. It’s not just about a 9-5 office, it is somewhere their members can use to socialise before, after or during work.

Mortimer House includes a gym, library and lounge areas as well as private office space and a restaurant open to both members and the public. The Ministry boasts one of the longest bars in London for its members to entertain their guests, while 12 Hay Hill in Mayfair is a popular private club combining luxury office space with a restaurant and meeting room space for its members.

Clubhouse is another brand that offers meeting, lounge and workspace across four locations in London. It was established after its founder identified a need for inspiring and productive locations around the capital to meet with clients. Clubhouse is positioned as a business club and seeks to fill the gap between co-working spaces and members’ clubs or coffee shops.

The growing trend for more exclusive member-style space was further cemented when existing serviced office provider IWG committed to open a 40,000 sq ft private club called No. 18 at Battersea Power Station.

One thing all these hybrid spaces have in common, as well as more typical

private members’ clubs, is their focus on events. They all make a big effort to curate a diversified and exciting events calendar for their members (and guests) in order to bring them together to network and discuss current topics or business interests.

Offering an ideal combination of a luxurious setting with the opportunity to network in the right circles, these hybrid members’ club and co-working spaces can provide the perfect flexible workspace solution, particularly for those individuals or businesses who don’t need to occupy an office all day every day, but can use space effectively for a few hours on an ad hoc basis for meetings or client entertainment. It won’t be long before the hoteliers take note too.

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12 Hay Hill, Mayfair, London

12 Hay Hill, Mayfair, London

IT’S NOT JUST ABOUT A 9-5 OFFICE, IT IS SOMEWHERE THEIR MEMBERS CAN USE TO SOCIALISE BEFORE, AFTER OR DURING WORK

Workthere launched in early 2017, a venture powered by Savills and introduced to help growing businesses find flexible, co-working and serviced office space in the key global cities.

Workthere is now active across the UK, Ireland, Germany, The Netherlands, France, Singapore and the U.S.

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THE CLUBHOUSE, MAYFAIR, LONDON

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In today’s increasingly demanding tenant market, landlords need to ensure their office buildings stand out from the crowd, says Jack Pugh, Project Manager, Savills

The age-old question of how to differentiate your building from that of your neighbour has long plagued landlords looking to attract occupiers. No longer will a swanky reception desk or a token coffee concession pull in the crowds. In today’s competitive fight for tenants, yesterday’s ‘wow’ is now a lacklustre ‘wait, is that it?’. With this in mind, what will landlords do next?

A building can no longer just be a building. Gone are the days of bland office space. Instead landlords and developers are creating full ecosystems where people not only work, but can also jog round a running track on a rooftop, take an on-site yoga class or eat lunch in the new library where there was once a grand marble entrance lobby.

SPECIAL?5 Hanover Square, Mayfair, London Verde SW1, Victoria, London

Verde SW1, Victoria, London

30 31

CORE

However, while the benefit of practicing wellbeing within your building is undisputable and can act as a true differentiator, is it commercially viable? Doing some rudimental maths, you can quickly see why landlords are taking that leap of faith, and, on the whole, investing on improving their assets.

Take, for example, a relatively standard office in the City. You may expect rents of £70 per sq ft, plus another £15 per sq ft in service charge. If this same building is six storeys tall, with 15,000 sq ft floor plates, that’s an annual gross income per floor of £1.275 million, or £7.6 million for the building. Therefore, if you could spend £1-2 million to both increase your headline rent by a pound or two, plus capture the imagination of the viewing tenants with a communal technology hub or pay-as-you-go A-grade meeting suites, it’s surely a compelling argument for improvements that benefits both occupier and landlord. Often, it doesn’t take long for void periods to outweigh capital expenditure improvements.

The growing trend of creating a community or offering exclusive membership status has already been put into practice by a number of serviced office operators. As a result, many of the large institutional landlords are now looking to emulate this by offering their tenants the same type of collaborative atmosphere. It has been done both online via apps and physically through communal services across their portfolios. You are no longer just buying into a building, but rather a culture and a certain way of life.

Admittedly this model only currently works for landlords with some critical mass, however there is nothing to stop smaller or individual owners from coming together to share a coherent ‘look and feel’ within their office space, or even a single online hosting platform. Technology will be key to unlocking this potential.

Wellness aside, there are of course other things you can do to try and differentiate. These ideas, which in isolation often appear like questionable investments, are actually very effective marketing tools. Derwent’s White Collar Factory’s rooftop running track is one example; the 18,000 gallon fish tank installed in 110 Bishopsgate (formerly Heron Tower) is another.

The tangible success of these installs is hard to quantify, but the free column inches, Tweets and Instagram posts ultimately speak for themselves. Social media’s ability to market just about anything is a tool worth harnessing and slowly but surely has started to infiltrate the world of real estate.

Yes, the basics are important, the square footage, ceiling heights and floor plates, but this is clearly no longer enough to get tenants to sign on the dotted line in an age where everyone is asking ‘what’s next?’

YOU ARE NO LONGER JUST BUYING INTO A BUILDING, BUT RATHER A CULTURE AND A CERTAIN WAY OF DOING THINGS

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Huckletree West, White City, London

Moor Place, Finsbury, London

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Mike IrvineDirector, Office Agency, Edinburgh

My favourite workplace in Edinburgh has to be Cirrus Logic’s offices within the Quartermile 4 building. The truly innovative fit out, designed by Michael Laird Architects, brings a unique and creative edge to the office space, combining functional workspace with imaginatively designed break out areas, jam rooms (!), gym facilities and on-site catering. The fit out works all the better as it perfectly complements the Foster & Partners’ designed building, and mirrors the spirit of the wider Quartermile development. Essentially, a successful modern workplace needs to cater to the wider needs and wellbeing of the workforce, not just provide a seat and a desk.

Paul FairhurstDirector, Office Agency & Head of Office, Leeds

My favourite workplace in Leeds has to be Wellington Place. The development has created a fantastic space where offices and leisure intermingle and create a destination rather than somewhere visited purely by those going to work. There’s no better place in the city to enjoy a sunny lunchtime or an after work drink.

James EvansDirector, Office Agency & Head of Office, Manchester

XYZ set a new benchmark in Manchester. It was the first new build that truly embraced activation of ground floor. Its interesting reception design combines significant co-working and break out space along with a restaurant unit, all of which creates a really strong first impression. In addition, the unique “slab cut aways” in the reception provides views into the gym at basement level. The workspace itself provides a contemporary specification with exposed concrete throughout whilst also ensuring excellent natural light. All in all, XYZ has a real buzz about it. We are proud to have acquired space in the building, bought the investment for clients and now ultimately manage it.

Hunter BoothDirector & Co-Head of West End Office Agency

The White Collar Factory is a fantastic example of how industrial buildings of the past can be converted to high quality office space. The combination of natural daylight, high ceilings and good ventilation, along with an innovative cooling system, creates an inspiring place to work and relax.

Quartermile 4, Quartermile, Edinburgh Qmile Group/M&G/Foster & Partners

XYZ, Spinningfields, ManchesterAllied London/Union Investment/Cartwright Pickard

Wellington Place, Leeds MEPC/Canadian Pension Plan/Hermes/Sheppard Robson

White Collar Factory, Old Street Roundabout, LondonDerwent

34 35

CORE

Dan SmithDirector, Office Agency & Head of Office, Aberdeen

Marischal Square is a mixed use development which comprises hotel, office, retail and leisure space on the site of the former Council HQ building (St Nicholas House). Located in the heart of the city, this was a key regeneration project which brought activity to an area which was in need of a real boost. The development sits directly opposite the impressive Marischal College, the second largest granite building in Europe, offering unrivalled views.

David CobbanDirector, Office Agency & Head of Office, Glasgow

110 Queen Street is located close to Glasgow’s historically cultural quarter, bustling with lively bars and restaurants perfect for the demands of a workforce. It is adjacent to the city’s civic square and the renowned retail offer along Buchanan Street. Everything an employee needs is on its doorstep meaning the scheme needed to embrace its environment. DWF leased the fourth floor and really maximised its potential by taking into consideration the surrounding historical buildings. For example, the splendid clock tower in the Gallery of Modern Art can now be seen in the background of DWF’s main client facing meeting area. What’s more, the fit out delivered the right quality of client and employee break-out space capable of multiple uses. However, what I liked most was the use of interior finishes and furniture solutions to create the best working environment in a cost effective way, such as movable office and meeting pods. Ultimately, this is a world-class building recognised by the tenant line-up, who were prepared to commit before it was completed.

Ben ThackerDirector, Office Agency, Birmingham

My favourite workspace in Birmingham has to be the Oozells Building in Brindleyplace. The scheme offers an unrivalled sense of community, providing a regular programme of events all year round for both business occupiers and the public. Following a comprehensive refurbishment the building has been transformed inside and out to create a modern working environment that has enabled it to stand the test of time, reinventing itself, whilst still remaining true to its heritage. Most importantly perhaps, it has provided a platform to create a successful 24/7 environment, which incorporates both leisure and business, something that many schemes struggle to achieve. Secure, clean and perfectly managed, the Oozells Building looks as good today as it did 20 years ago.

Charles Rowton-LeeDirector, Office Agency, Oxford

The Foundary is a great example of a re-purposed building. Formerly a comedy club it is now an innovation centre for the university’s many spin-outs. Opened in Q4 2017, the space offers flexible workspace, café facilities, a manned reception and meeting rooms. The centre also runs events including networking and seminars focussed on innovation. The scheme benefits from being located in the city’s West End, providing excellent rail access and surrounding amenities, including Westgate and Oxford Castle.

Chris MeredithDirector, Office Agency, Bristol

Aurora was a real game changer for the Bristol office market, bringing with it a whole host of environmental accolades including a BREEAM 2014 Outstanding rating, LEED Gold rating and an EPC Grade B rating. Alongside this, the building has modelled its interiors to suit a host of occupiers, providing high spec, flexible space with facilities including shower rooms, lockers and cycle storage. Before it had completed Aurora was 85 per cent pre-let on completion testament to the quality of the building.

William ClarkeDirector, Office Agency, Cambridge

My favourite workplace in Cambridge has to be the Maurice Wilkes Building. Speculatively built, the four storey building offers unique architecture, modern office space as well as a roof terrace offering a panoramic view of the south side of the city, which explains why it was almost fully pre-let prior to completion. Located in the heart of Cambridge’s research and development cluster, the building is home to some of the city’s most innovative and exciting occupiers, including Darktrace the cyber security firm. Even the sculpture that sits outside the entrance is a nod to the buildings scientific roots, namely the inventor of the electronic delay storage automatic calculator, Maurice Wilkes.

Marischal Square, Broad St, Aberdeen Muse Developments/Aberdeen City Council/HFM

110 Queen Street, GlasgowBAM/Deutsche Bank/Copper Cromar

The Foundary, Hythe Bridge Street, OxfordNuffield College/Savills Architectural Design

The Maurice Wilkes Building, St John’s Innovation Park, Cambridge Turnstone Estates/BCR Infinity

Oozells Building, BirminghamHines/Argent/Glenn Howells

Aurora, Finzels Reach, BristolCubex land/Palmer Capital/Bush Consultancy

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CORE

How would you measure productivity in an accounts office, an HR office or university admin building? Think for a minute.Since we began our Identity Realization research at The University of Exeter in 2003 we have established specific metrics that explore wellbeing, psychological comfort and productivity. As far as we know this is unique.

Our commercial research uses science rather than a heuristic approach. Impartiality is vital so that we can make informed comments based on evidence. This all may seem obvious written in a university context but when you consider that Mark Dixon, founder of Regus, is one of several senior business leaders on record saying that he hopes that a measure of productivity will be discovered in his lifetime, you may just develop an inkling that it is rule of thumb and precedent – not science – that dominates office design and its management. We are hopefully making some difference.

For example, evidence overwhelmingly suggests that a minimalist, spartan, ‘lean’ office is simply bad news on all counts. Lean is currently the ‘go to’ condition for the majority of low-status office workers. But no animal thrives in a spartan space for long, be that a caterpillar in a five-year-old’s jam jar or a gorilla in a lifeless zoo. We are no different. Every measure of performance and happiness is depressed in a flat, open office where managerial systems and clean desk policies hold sway.

Could allowing employees to design their own surroundings make them more intelligent? Dr Craig Knight, Chartered Psychologist, explains

Published data can demonstrate how a rich design template such as those employed at Google or Microsoft has – over the past 10 years at any rate – always been quantifiably and significantly better than a lean equivalent. However, we can also show that rich, topical design does not provide optimal working conditions.

In short, design does not entirely live up to its promise. Companies spend considerable amounts of money installing slides between floors, planting indoor beer gardens and setting swinging ski gondolas in their canteens, but they really need not bother.

The results are not great for designers and managers. Human beings are not rational. We prefer being given the freedom to develop our own – to the outside observer – less attractive office to any magnificent space imposed through managerial largesse. The published evidence indicates that the best offices recognise elements of our own identity; they should not therefore reflect the stamp of the designer or commissioning director. So if we can see a few plants that we chose, a souvenir from our holiday, or a picture that means something to us, then these are the things that create spaces that are more psychologically comfortable than anything a talented designer can create.

This means that our less-than-perfect space will outperform the Googleplex just as surely as the Googleplex outperforms the stark, lean building. As a participant put it very succinctly ‘Well, of course. I mean, who wants to live in a show home?’

NO ANIMAL THRIVES IN A SPARTAN SPACE FOR LONG, BE THAT A CATERPILLAR IN A JAR OR A GORILLA IN A LIFELESS ZOO

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Dr Craig Knight


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However, we can do better still. Organisations resolutely believe in imperfect ‘design-led office solutions’. Try putting the term into a search engine and check the results. However, the latest research does indicate that ‘led design’ will create the most interesting results. A more submissive approach to office development is paying early dividend.

This psychological application of design may bash a few egos by putting the designer’s cart behind the organisation’s horse power, namely its people. Yet in so doing we seem to be harnessing the latent talent of the design process. Thus rather than seeing aesthetically pleasing spaces as agreeable milestones passed en route to more effective working environments, we are instead finding the benefits of design that have been claimed by its creators but are - as yet - unrealised.

Here is one final nugget. We have worked extensively with older adults in care. In much the same way that better respected office staff tend to work in attractive spaces enriched by others, so older adults tend to live in homes that are well designed but over which they have limited control and into which they have had scant input.

We gave older adults the power to develop at least part of their own living spaces. As a consequence they not only felt better and identified more with the home and its residents, but their cognitive engagement scores increased by 19 per cent. They were 19 per cent cleverer!

It seems only right to take this back into the workspace where continuing research replicates these findings precisely. Currently a smart space is simply one that squeezes 12 people into a room originally developed for eight. But what if it were possible to develop a space that makes people perform at a higher cognitive level; a space where they are effectively cleverer as well as happier and more productive? The initial signs are very promising. We’ll let you know.

Dr. Craig Knight is Founder and Director of Identity Realization Limited (IDR), a commercial organisation with strong connections to the blue chip industry. Dr Knight is also an Honorary Research Fellow at The University of Exeter, retaining research links with global universities.

WHAT IF IT WERE POSSIBLE TO DEVELOP A SPACE THAT MAKES PEOPLE PERFORM AT A HIGHER COGNITIVE LEVEL; A SPACE WHERE THEY ARE EFFECTIVELY CLEVERER AS WELL AS HAPPIER AND MORE PRODUCTIVE?

CORE

Television Centre, White City, London


The digitisation of the worker and the workplace will have profound implications for organisations, including impacts on office location, size and specification. Organisations will also give workers more autonomy and responsibility, as a result. So the question is, how will organisations maintain engagement with, and between, their employees and why does this matter for office space?Organisations will have to plan for the distributed, flexible, but collaborative workforce. Questions have been raised about whether this includes a physical headquarter building. We would say it does, of course, but the specification and fit-out will be different and this will be determined by constant employee feedback and data analysis.

The ability to understand the individual needs of employees within office space and receive feedback has historically been low, but as the demand for the best talent increasingly intensifies, having a higher level of employee engagement is vital. Over the last decade, however, the scale of investment into technologies and software to achieve engagement with employees has grown significantly. This is unsurprising given the ‘perfect storm’ of the available technology solutions and the growing importance of employee experience to the corporate agenda.


40

DEMAND FOR THE BEST TALENT INCREASINGLY INTENSIFIES, HAVING A HIGHER LEVEL OF EMPLOYEE ENGAGEMENT IS VITAL

Constant feedback from workers makes for a happier workplace and increased productivity, says Steven Lang, Director, Commercial Research and John Redfern, Director, Property Management, Savills

41

CORE

£80,000

£70,000

£60,000

£40,000

£50,000

£30,000

£20,000

£10,000

£0

200

8

£ m

illio

n

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source: Pitchbook

The types of investment include venture capital and private equity. The appetite for this sector increased substantially last year, posting a 121 per cent growth in corporate investment volumes. Why? The need for employees to control their personal office environment requires a technology solution.

Our research shows a third of employees, who feel like they have ‘no control’, including the ability to provide feedback, say the office has a highly negative effect on their physical and mental health. This is concerning for both landlords and office occupiers, since research recently published by the University of Warwick shows that happy employees are 12 per cent more productive than unhappy workers.

Ability to link employee happiness with the management of the office building is a significant step in the right direction. Within the office property management sphere, the availability of live information on the role of the office, which creates transparency between companies and employee is key. New technology and software solutions will enable the measurement of the office environment to achieve productivity gains through a happier and more engaged workforce.

An interesting aspect of this engagement market is how occupiers and landlords work together, as there is potential for duplication in occupier apps and landlord apps, especially for wellness and community. We will watch with interest.

The industry has come to realise the workplace is a shop front for attracting and retaining talent and as a result office design, and the way we curate and use the buildings we work in, is now much more relevant and the ability to understand the impacts of the office through technology has become far more important.

THE SOLUTIONS ARE COMINGGlobal corporate investment in ‘business/productivity software’ and ‘human capital services’ companies grew substantially last year, 27 per cent per annum during the last 10 years, as the chart below shows.

OUR RESEARCH SHOWS A THIRD OF EMPLOYEES, WHO FEEL LIKE THEY HAVE ‘NO CONTROL’, INCLUDING THE ABILITY TO PROVIDE FEEDBACK, SAY THE OFFICE HAS A HIGHLY NEGATIVE EFFECT ON THEIR PHYSICAL AND MENTAL HEALTH

43


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CORE

THIS ONCE OVERLOOKED SUB-MARKET OF LONDON IS NOW ATTRACTING GLOBAL AND LOCAL OCCUPIERS ALIKE

The changing face of King’s Cross over the last decade has paved the way for a new destination in London that is internationally recognised as one of the world’s exemplar mixed use redevelopments. 67-acres reverberating with history have been transformed into a district alive with homes, shops, offices, galleries, bars, restaurants, schools, and a university. Even the postcode is new; N1C.

Savills was formally appointed on behalf of the developer Argent LLP as preleasing and leasing advisor for the office buildings at King’s Cross in 2008, having provided development consultancy advice since 2000. By the end of 2018 we had advised Argent LLP on the letting of nearly 3.5 million sq ft to occupiers including Havas, Universal Music, Google, Nike, Facebook and Sony Music. This once overlooked sub-market of London is now attracting global and local occupiers alike but much more than that, King’s Cross has become a vibrant mix of buildings and public spaces, used seven days a week, that offer a diverse and dynamic place to work, study and relax.

The public tertiary arts school UAL Central Saint Martins sits central to the site and was important in leading the way to creating an exciting community of mixed occupiers that are active around the clock. On site, students can be seen sitting in cafés side by side with office workers, local residents and visitors.

The creation of a great estate. Mark Gilbart-Smith and Stuart Lawson, directors in central London office agency at Savills, discuss the transformation of King’s Cross.

Four Pancras Square, King’s Cross, London

Argent LLP/King’s Cross Central Limited Partnership

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46 47


King’s Cross has been reinvigorated. Together with its canal side setting, exciting cultural scene, a thriving business community of over 30,000 people, it was further underwritten by Coal Drops Yard (CDY), a new retail destination for the city that opened in November 2018. CDY boasts an exciting tenant mix with the likes of Miller Harris, The Drop, Barrafina, Form & Thread and 18 Montrose and many more. The attraction to the area is underpinned by unrivalled transport connections that makes visiting the area simple and easy.

The success of King’s Cross exemplifies the importance of celebrating a place’s history, while shaping it for the future. There is nowhere else in the world quite like it, but a wish by many to replicate its success.

Copyright Visualisation One Ltd

Canal Reach, King’s Cross, London

Argent LLP/King’s Cross Central Limited Partnership


I want flexibility - the ability to move around the office and work remotely when needed i.e laptops/tablets. I also spend a lot of time on the phone in the post room currently, so phone booths make a huge difference and stop people from using meeting rooms for calls.

A couple of other things are break out meeting spaces and shower facilities. Break out areas are less formal than meeting rooms and are useful in a building’s reception area. You can use the space to meet clients and grab a coffee.

Shower facilities offer gym style functionality to save having to enter the office space in exercise clothing. As a cyclist it’s frustrating having to leave the bike in the basement, go to my desk to pick up clothing then head back to the shower.

I want a warm and friendly entrance that portrays the character of the businesses in the building along with an efficient reception service. It should also have an attractive waiting area with comfortable seating, which is also good for casual meetings.

The individual floorplates should be a regular shape with good sight lines and efficiently designed to maximise flexibility and connectivity. It needs to create a relaxed yet focused feel, enabling staff to use different types of workspace depending on the task at hand. In essence, it needs to create a home from home environment to help prevent frustrated and grumpy staff!

I feel that wellness and the social element associated with this is an important factor in the workplace. Something I have seen work well at Bank of America is a month long step challenge. Not only promoting health by helping to get people more active but also integrating the social element as people enter as teams and are competing together against other teams. It gets people working together on something other than their job helping to build a stronger rapport within your teams.

A good office to me doesn’t adopt a ‘one size fits all’ approach. I like to be in an office which caters for different ways of working – whether this is a quiet space for report writing, a collaborative area for teams to discuss ideas, a comfortable place to work on a laptop or a private room for calls. I think having a range of working environments available increases productivity and encourages new ways of thinking!

For me the workplace has to be welcoming, adaptive and fashionable. It has to represent the business and the staff in the best possible light. This can stem from fit-out design to the overall usability and most importantly the flexibility to suit the movements of the occupying business as it ebbs and flows.

I like to see a twist on a trend, such as exposed services. However, functionality is of course key as business premises still have operations to perform, which can range from client entertaining to general business processing. I also think that internal amenities like breakout spaces and places to eat, drink and relax have to be factored into the core design rather than being an afterthought.

For me, agile working is a must and therefore the technology solutions (the tools of our trade) need to be spot on. Having the ability to work in different settings, yet always having a place to return to with my team is essential.

Good interior design (which should include good lighting design) doesn’t have to come at great expense. A move away from “vanilla” spaces to an interior that is more considered for the setting is important to get the best out of everyone who uses them. I prefer elegant, timeless design, with a bit of “edginess” rather than overtly colourful and playful, which dates too quickly.

Good coffee, social spaces and of course, great facilities to meet, do business and entertain clients is a given.

DAN BARNES

HUGH RUTHERFORD

LAUREN ROTH-BROWN

LIV JONES

PADDY CARTER

SEAN MONIE

INTERNAL AMENITIES...HAVE TO BE FACTORED INTO THE CORE DESIGN RATHER THAN BEING AN AFTERTHOUGHT

4948

From flexibility to interior design, Savills office experts from across the UK discuss.

Transaction Manager, Cross Border Tenant Advisory, London

Associate Director, Office Agency, Manchester

Director, Office Agency, Edinburgh

Director, Office Agency, Leeds

Director, Building & Project Consultancy, London

Surveyor, Office Agency, London

20 Old Bailey, Farringdon, London

50 51


To understand what makes them so successful we have analysed over 100 metrics for each city. This website shows

savills.co.uk/techcities

The Savills PIVOT team offers a fully integrated service dedicated to helping landlords drive ever growing flexible managed workspace

demand into their office buildings.

Charlie WardroperHead of PIVOT0203 810 [email protected]

Our sole objective is to capture and drive demand from customers seeking flexible managed workspace, thereby minimising letting voids and securing enhanced returns for landlords.

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• Reduced voids

• Direct tenant relationship

• PIVOT is the engine behind the asset

• PIVOT does all the heavy lifting

LANDLORD BENEFITS

• environment

• Fully serviced

• Lease flexibility

• Fixed all inclusive costs

• No upfront cap ex

• Occupation from 6 weeks

• Simple short form lease

• Hedge against headcount fluctuation

CUSTOMER BENEFITS

PIVOT

CORE

Where’s Savills Worldwide Occupier Services?

WHY EVERYONE IS TALKING ABOUT

The office market in the Spanish capital is soaring – and it’s not just down to the city’s enviable climate.

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Despite the fact that figures were slightly down compared with 2017 (-10 per cent), 2018 was in fact the second best year for take-up volumes in the last five years, with a total of 607,500 sq m recorded. Both the services sector and the private sector saw notable increases in take-up volumes (+35 per cent and 3 per cent respectively) alongside the technology and insurance sectors which both boasted 14 per cent of the total rented space.

With a 22 per cent increase across all sectors, it is clear that the strong fundamentals of this city, as well as a booming economy, are some of the main drivers of the occupier market. So what does Madrid have that other capital cities do not?

Although you might think that its status as one of the sunniest cities in Europe would have a lot to do with it, there are plenty of other factors that stand out for companies looking to move to or expand their operations here – the main one being its impressive recovery over the last 10 years.

Economic recovery since the gloomy forecasts of 2008/2009 has been getting stronger by the year and does not show any signs of slowing yet. As a result, the pipeline of office space (312,400 sq m to be exact) is set to grow at a phenomenal rate in the next few years and, representing 78 per cent of total new stock, it’s clearly in response to higher than ever demand. 53 per cent of this new stock will be in or close to the CBD, with other projects such as Caleido and Madrid Nuevo Norte springing up in the north of the city as vacancy rates towards the centre continue to fall.

What can we expect to see from this market in the next five years as these pipeline projects come to fruition? One of the most interesting trends thrown up by this research is the increasing take-up over of office space over 1,000 sq m – volumes have increased by 14 per cent in the last five years and 6 per cent in 2017.

While 51 per cent of operations are still less than 500 sq m, larger offices are definitely catching up when it comes to take-up rates. This trend is largely thought to be down to overall higher business confidence in the city, the growth of large companies in Madrid and new forms of working.

With people spending more time than ever at work and with flexible hours being adopted across the board, it is becoming increasingly common for occupiers to cater for a more ‘rounded’ experience in the office, making that transition from home to work to home again much more fluid. Whether it be an in-built gym, crèche, terrace, events space or more break-out rooms for employees, occupiers are doing all they can to optimise working environments.

Although we are yet to see how wider political changes in Europe will affect Madrid in the coming months and years, with such a positive story to tell at present, Madrid is definitely the city on everyone’s lips.

WITH A 22 PER CENT INCREASE ACROSS ALL SECTORS, IT IS CLEAR THAT THE STRONG FUNDAMENTALS OF THIS CITY, AS WELL AS A BOOMING ECONOMY, ARE SOME OF THE MAIN DRIVERS OF THE OCCUPIER MARKET

Caleido, Madrid, Spain

WHY CARDIFF AND HOW LONG HAVE YOU LIVED THERE?SM: There is always something to do or see in Cardiff, and some of the best nights out to be had, particularly on match days. I’ve lived in Cardiff since I was born (24 years ago) and had three years away in Exeter for University.

GC: I went to University in the area and have stayed ever since – its a capital city with great sporting events, music and retail and I have lived here for 26 years now.

WHERE DO YOU LIVE?SM: Dinas Powys (15 mins outside Cardiff). I was brought up in the area and still know a lot of people around there. It’s really convenient for both the city centre and the surrounding countryside.

GC: In Cyncoed, a suburb of Cardiff. It’s a great place to live and bring up a family as well as being close to Cardiff Golf Club, where I play, and the M4. It’s also a short commute to the city centre.

HOW DO YOU GET TO WORK?SM: Predominantly by car or train, and some days I’ll cycle in.

GC: Mainly by car but I sometimes catch the train. I am trying to be more environmentally friendly.

BEST PLACE TO GRAB A COFFEE?SM: The Plug in Dinas Powys which has a really relaxed feel and does some of the best chocolate tiffins around.

GC: I don’t drink coffee much but like Uncommon Ground in the Morgan Quarter and 200 Degrees in the city centre is also good.

FAVOURITE PUB/BAR?SM: Queens Vaults - a classic Welsh pub a stones throw from the Principality Stadium.

GC: It’s a close one. The bars are getting better in the city with a good range to choose from. My (current) favourites are The City Arms and Bar 44. They are very different with the City Arms being a brilliant traditional boozer and Bar 44 is a tapas bar with great food, lagers and G&T’s!

FAVOURITE RESTAURANT?SM: The Royal India in Dinas Powys is in my opinion the best Indian restaurant in South Wales, and a stumble away from home.

GC: Again, Cardiff is getting better in this respect. My three favourites are Asador, Bully’s and Heaneys. The meat in Asador is superb with a good range of wine as well.

FAVOURITE PART OF THE CITY?SM: Principality (Millennium) Stadium which hosts a fantastic variety of sporting events and is great for the rugby. It also hosts music concerts and exhibitions.

GC: Cardiff Golf Club. I spend a fair amount of time there according to my family!

FAVOURITE OFFICE BUILDING?SM: 2 Kingsway, Cardiff - great looking building, internally and externally with fantastic views over Cardiff Castle and the rest of the city. It also happens to be where our Cardiff office is located.

GC: This is a tricky one. We now have some great office buildings in Cardiff including One and Two Central Square, BBC Wales new HQ, 3 Harbour Drive, home to Attradius, and 3 &4 Capital Quarter, all of which have greatly enhanced our office stock in the city.

Our office in 2 Kingsway is great space with fantastic views onto Cardiff Castle.

WHAT WOULD YOU CHANGE IF YOU WERE FIRST MINISTER OF WALES FOR THE DAY?SM: I would aim to house the rising number of homeless people on the streets of Cardiff.

GC: Build the M4 relief road. Traffic into South Wales is getting worse and it’s a nightmare around Newport.

STEREOPHONICS OR MANIC STREET PREACHERS?SM: Stereophonics.

GC: Stereophonics.

KATHERINE JENKINS OR SHIRLEY BASSEY?SM: Katherine Jenkins.

GC: Katherine Jenkins.

JONATHAN DAVIES OR GARETH BALE?SM: Jonathan Davies.

GC: Jiffy.

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We take a look at two people from one of our national offices and compare answers. Both Gary Carver and Sam Middlemiss work in the Cardiff Office Agency team at Savills; Gary is a Director and Sam is a Surveyor.

CARDIFF

Sam Middlemiss

Gary Carver


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CORE

CAPITAL MARKETSMark [email protected]+44 (0) 20 7409 9944

OCCUPATIONAL MARKETSJonathan GardinerHead of National Office [email protected]+44 (0) 20 7409 8828

GLOBAL OCCUPIER TRENDS

Nicky [email protected]+44 (0) 1223 347 087

DATA & INSIGHTTom SlatorInsight and Data [email protected]+44 (0) 20 7016 3722

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WEBSITE:SAVILLS.CO.UK/CORE2019

SOCIAL MEDIA:@SAVILLS #SAVILLSCORE

PRODUCED & DESIGNED BY:SAVILLS MARKETING

OCCUPIER SERVICESJeremy BatesExecutive [email protected]+44 (0) 20 7409 8813

BUILDING & PROJECT MANAGEMENT

Jack PughProject [email protected]+44 (0) 20 7299 3029

WORKPLACE STRATEGY & DESIGN

Katrina Kostic SamenHead of Workplace Strategy & Design [email protected] +44 (0) 20 7799 8300

RESEARCHSteve [email protected]+44 (0) 20 7409 8738

2 St James’s Market, St James’s, London


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