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In this three-part series, we’re digging into the current landscape for commercial real estate landlords. We’re examining changing occupier needs, looking more closely at updates to minimum standard requirements and other legal compliance measures that affect building features, from energy efficiency to accessibility. Beyond this, we’re interrogating the new societal expectations that affect the future of commercial office assets. Ultimately, we’re aiming to shed some light on how commercial landlords can optimise their assets today, and prepare them for the future.
We’ve talked about discovering your real estate’s purpose – or finding your ‘Why’ – which is the first step to achieving this. The next consideration is to explore ‘how’ you put this into practice and create the blueprint for success. This is where Peldon Rose’s Landlord team are already supporting many of our clients.
In today’s climate, occupiers are moving quickly to enhance their offering as employees demand more value and purpose from their workplace. Landlords understand that to retain their occupiers and build loyalty, a building needs to be able to compete in a highly competitive market. So how do you turn these goals into reality?
Whereas occupier workspace projects cater to a single business, landlords rarely lead with a single prospective occupier in mind. Any one asset may have a handful of unique goals and requirements based on its purpose and target market, so exploring all available options will help you to understand what’s feasible. Naturally, there will be variables that affect what your options look like.
Those variables could be:
Assessing your variables highlights whether it makes more sense for you to make smaller optimisations or hold your asset’s redevelopment until it becomes vacant, and you can conduct a Cat A, Cat A+ or full refit. Answering these questions creates a blueprint from which you can understand the timescale and scope of your project.
At this point, you’ll need an understanding of how to achieve each of the goals you set out to deliver with your building, based on the core market you’re looking to attract. Peldon Rose’s dedicated Landlord team approaches this by presenting you with all the options and helping you to identify which one will deliver the best space possible for your goals and your audience, considering your budget, timescale and ESG goals. It’s one of the many reasons we have a team committed to the landlord landscape, ensuring that we are aligned, well-informed and knowledgeable going into any commercial opportunity.
In line with the RIBA Plan of Work, we look to the base asset as the best and most important starting point. We interrogate the building against your aspirations and ensure all options provided give you the precise information needed to make design decisions, and we’ll help you to create a space that reflects your mission by modifying the design until it’s perfected.
Occupiers are adjusting their priorities and new competition is on the market. As a result, the commercial property sector has shifted its focus to amenity-rich spaces, with receptions, common areas and end-of-journey facilities being key influencers in decision-making, design and scope. What’s most important, though, is that these works don’t affect existing occupiers, both in net internal area (NIA) and in their existing lease agreements, and improves the wellbeing and enjoyment they receive whilst there, help them to attract new talent, and increase the likelihood of them extending their leases when the time comes. Alongside this, we can start to understand the building strategy with regards to services, wherever possible targeting a more efficient approach with longevity and costs in focus.
A considered and purpose-driven refurbishment of your asset will increase the potential yield and overall value that you provide, and we work hard to ensure that your asset’s strategy aligns with and compliments your wider purpose. Stay tuned for part three of this series, where we’ll share actionable learnings from both the ‘why’s and ‘how’s of real-life projects. To be the first to hear about it, you can sign up for our newsletter below. If you would like to know more, please reach out here.