Developers in the City of London should think “outside the box” and embrace a mixed-use model for the area to help ensure the Square Mile flourishes post-pandemic, according to real estate veteran Gerald Ronson.
The Heron International boss told EG the City must become “a 24-hour destination”, rather than an area where people come solely for work.
Speaking at his Salesforce Tower, EC2, now dubbed 110 Bishopsgate, Ronson said: “The world doesn’t revolve around the City. The world is out there, and the City has to have a part in all the activities so that it can keep up.”
Ronson’s comments come as the City of London Corporation works up plans to diversify the Square Mile’s tenant base and bring in more retail footfall.
Those could include banning traffic on Saturdays or Sundays during the summer, as well as organising all-night “cultural celebrations” designed to attract more tourists and leisure-based income.
The corporation also hopes to bring a renewed focus on residential development in the area, according to documents published earlier this year, although policy chair Catherine McGuinness has since played down this element of the plans.
Pointing to his nearby 36-storey residential block, the Heron, which sits near the Barbican Centre and includes a cinema, a club and the Guildhall School of Music and Drama, Ronson added that developers should get creative to play their part in the transformation. “You have to look outside the box,” he said.
“You also have to move with the times and create a product that people want. People have to want to be there,” he added. “People wanted to be at [the Heron] because we had a vision, and it was the first of its kind.
“Whether enough developers actually look outside the box, I don’t know.”
Ronson was speaking on Wednesday at the launch of 50,000 sq ft of revamped workspace at his flagship office tower, now more than 10 years old, near Liverpool Street station.
Split across four floors, from level eight to 11, the new offering is being jointly marketed by Savills and CBRE and comes to market after a period of significant investment in the building.
That has included creating a digital twin, as well as refurbishments costing more than £10m to improve the building’s environmental standards.
Addressing attendees at the launch, Ronson stressed the importance of sustainability in leasing office space. “No leader of any respectable business is going to sign off a new lease on a building that does not meet the highest environmental standards,” he said.
“Our sector has a major role to play in minimising the impact on the environment… Today, to ensure [the tower] retains its top green credentials and BREEAM Excellent rating, and is working toward achieving net zero, we have invested over £10m in updating its building control systems, enhancing its energy efficiency and upgrading its technology.”
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