Last month’s announcement at London Technology Week that the number of companies in the capital’s digital technology sector has grown by 46% since 2010 hit headlines around the world.
Research from London & Partners shows there are 40,000 digital technology businesses in London employing 200,000 people, and tech clusters are springing up across the capital.
For developers the prospects are exciting; conservative estimates predict there will be 50,000 digital technology companies operating in London within a decade. But the rise of tech also challenges established norms in the property community, as we have found at British Land.
In 2012 we launched a future-proofing programme across the British Land portfolio. This was triggered by the rise of technology impacting occupiers and consumers alike, and sought to understand its impact on our existing assets, but also look at how we should be adapting designs on our new developments.
In retail the changes being wrought by online retailing are profound. These have led us to implement changes to enhance the customer experience, by adding a greater mix of uses, improving the food and beverage offer and enhancing customer facilities including features like free WiFi.
In offices the challenges were just as acute, with a whole wave of new occupiers wanting different types of space, leading us to reassess how we design our buildings and estates.
These considerations include floor-to-ceiling heights, the technology backbone we provide, an increased need for sub-divisibility and connectivity, increased shower and cycle facilities and the integration of greater retail and leisure uses. Offering increased flexibility of tenure also goes with the territory of leasing to start-ups and to small and medium-sized enterprises.
Entering into a agreement with the City of London to develop the 2.2-acre Blossom Street site on the eastern side of Bishopsgate, where Shoreditch and Spitalfields meet, has been our most demonstrable move to attract these new occupiers and help diversify our customer base.
Many fast-growing telecoms, media and technology businesses occupy buildings that have character but are inefficient. This is largely borne out of necessity because there is little alternative at the right price point and with the lease flexibility they are looking for.
What they want is space and an environment that has character, is well served, efficient, flexible and that allows them to grow.
So, at Blossom Street, we aren’t delivering glass and steel boxes, but mixing old with new, refurbishing and retaining older warehouse buildings, respecting the Elder Street Conservation Area and retaining the traditional character of the area. We are also introducing good-quality flexible office space with independent restaurants and retailers, and loft-style residential units.
Last November’s Tech City/City Fringe Opportunity Area Planning Framework Property Market Appraisal said available space was limited and that its provision was important for retaining businesses as they grew.
With space for SMEs in the area at an all-time low, Blossom Street will provide incubator space, co-working environments, small offices through to “grow-on” spaces for business that no longer qualify as SMEs. Around 60% of the floors will be less than 3,500 sq ft.
But it is important to understand it is not simply a case of one size fits all. Well-designed modern efficient glass and steel office buildings can appeal to the larger established TMT companies. At our Regent’s Place development, Facebook has become one of the biggest occupiers because it wanted offices the it can adapt to its own requirements.
The growth in the tech and creative sectors is also informing the way we are evolving the Broadgate Estate. Last month we secured consent for a Hopkins Architects-designed refurbishment and extension of 100 Liverpool Street, EC2, which will lead to the building being stripped back to its frame with new floors, improved cores to increase flexibility and sub-divisibility aimed at attracting a wider range of occupiers. The building will also provide amenities including additional retail space.
With finite resources and increasing focus on whole life cost of buildings, the property industry can’t keep knocking buildings down every 15 to 20 years. We have to ensure our buildings of the future are more able to adapt to changing trends.
Put simply, office buildings will need to be managed more like shopping centres, flexible enough to adapt to changing occupier needs, with the developer creating the stage set within which the occupiers deliver the fit-out “scenery” that can be changed on a frequent basis.
Nigel Webb is head of developments at British Land
