The Vacant Office Problem in Central London: A Creative Solution

A rise in the high-rise offices which have been left empty since remote working was introduced in 2020, has had some landlords changing some areas of the city in a rather unexpected way. The last time we talked about this was in 2022, when it was reported the vacant office figures were the highest on record.

Availability was close to 31 million square feet in August 2022. That’s the equivalent of about 60 Gherkin skyscrapers, and is up 51% from the 20 million square feet that was available at the end of 2019. Roughly 5 million square feet is marketed by tenants for sublease. Are you wondering which architect to hire or which firm of contractors to invite to bid for your next office refurbishment tender? Chat with Tim using the online contact form or by calling 020 8938 3893 today.

A lot of London properties are rented by tenants, some figures have been crunched to estimate around 5,000,000 square feet will now be sublet. Those old enough to remember the financial crash of 2009, the area back then was estimates at 28,000,000 square feet.

The last time this happened, office values decreased sharply, the plunge being attributed to the global financial crisis. Some financial forecasts and predictions warn that the amount of square footage available in London city will continue to rise into early 2023.

Office Refurbishment Contractors in London

Initial Interiors was founded by Tim Griffiths back in 2001, demonstrating London’s office refurbishment success for over 20 years. The recent figures above are likely to worry London employers who have been demanding their employees return back to the office and forcing the Work From Home to end. Initial Interiors has seen a dramatic increase of office/property owners investing in the morale of the staff with re fitting the break out rooms, installing green living walls and creating open spaces with an atrium. Additionally, the welcome aspect of the company reception areas should not be overlooked.

Two years after the first covid lockdown, around 50% of the UK’s banking sector commute into the company offices each day, with a less than 1/5 of the insurance and financial industry employees doing so, according to an Advanced Workplace Associates survey in 2022.

The COVID-19 pandemic has dramatically shifted work patterns towards remote and hybrid models, resulting in a significant increase in vacant office space in central London. This has led to concerns about economic stagnation and the potential for a decline in property values.

While the situation presents challenges, it also offers prime opportunities for innovative and creative solutions. Here’s what we found from london.gov.uk – two ideas for transforming vacant office spaces into something new and exciting

Communal, Cohabiting Living Spaces – the future of 2025?

Convert vacant office buildings into cohabiting shared living spaces, including communal areas like kitchens, lounges, and co-working spaces, as well as private bedrooms or studios. These spaces could be particularly appealing to young professionals, students, and digital nomads seeking affordable and flexible housing options.

Architects transform office buildings into vertical farms, like green living walls, but on a larger scale. This involves using hydroponic or aeroponic techniques to grow crops indoors, taking advantage of the controlled environment and ample space. These farms could produce fresh, locally grown food for nearby restaurants, grocery stores, and even directly to consumers.

Housing Plans for 2025: While specific housing plans for 2025 may vary, the London Plan, the city’s strategic planning document, outlines a number of initiatives aimed at addressing housing shortages and promoting sustainable development. These initiatives include:

Building more homes on existing sites, such as brownfield land and infill sites will increase density on available locations. Encouraging mixed-use development could include combining residential, commercial, and community uses in the same development. As a planet-friendly approach will be used for protecting green spaces, which means ensuring that new development is compatible with London’s green infrastructure.