COMMENT The Square Mile’s offices have sprung back to life in the past month, and nowhere is this more evident than in the growing queues for a morning coffee or to grab a bite for lunch.
Central London was one of the areas worst hit by the pandemic, but new data from TfL has shown a continued growth in commuting since the removal of Plan B restrictions. Journeys on the Underground are now regularly at around 60% of pre-pandemic levels, with stations that service popular business areas – such as Mansion House and Aldgate – experiencing almost double the number of journeys during the morning rush hour than when work from home advice was in place.
At the City of London Corporation, our long-term perspective has always been that the Covid-19 restrictions and immediate challenges were serious but temporary. At the same time, there are likely to be longer-term shifts in working patterns that will have an impact on the wider Square Mile. We have used this period to fundamentally reassess what we do, and we will continue to evolve to meet the needs of a modern City of London. How we work with the property, architecture and construction worlds going forward will continue to be crucial to that.
Confidence boost
Confidence in the Square Mile from developers has continued to be strong, showing that the fundamentals of the City – transport links, time zone and the use of the English language – continue to be desirable. In 2021, the planning and transportation committee resolved to approve almost 70% more office floorspace than it did the year before. This shows that the central office is here to stay, despite what many predicted. But it is clear the pandemic has been the catalyst for some fundamental changes to the way office space will be used.
Hybrid working too is here to stay, but business owners and City workers want a central space in which to collaborate, innovate and upskill with colleagues. Health and wellbeing considerations are also a central component to new development plans.
It isn’t just confidence from developers that is reassuring news for the City, but also the continued strong demand for real estate within the Square Mile. The City was the most active submarket within London throughout 2021 in terms of square footage let, accounting for 35% of central London take-up. Some 40% of approved office space within the City is prelet, with Allen & Overy, Kirkman & Ellis, T Rowe Price and JLL among the organisations to make big commitments during the pandemic.
These organisations – and other large firms across finance, tech and media, plus thousands of SMEs – recognise that the City has a strong future, with one key metric being that 61% of Square Mile workers are aged between 22 and 39. It is these people who are driving the return to work, recognising that a career spent working within the confines of their own home is a grim prospect. For younger City workers in particular, missing out on the City’s social life is a far cry from their expectations.
Renovate or rip down?
In saying that, we know we can go further to increase the City’s appeal. Sustainability is an area we are keenly focusing on. We want to see more developers following British Land’s lead at Broadgate’s 100 Liverpool Street – the company’s first net-zero carbon development, which has really raised the bar on what is possible within new developments.
Our radical Climate Action Strategy has set a target of a net-zero City by 2040 – 10 years ahead of the goal for the UK as a whole – and it paves the way for us to do that. The vast majority of work undertaken by the City’s built environment team is “below-the-radar” refurbishment and retrofitting work. This includes maintaining our mix of approximately 600 listed buildings, our vast conservation areas and our many world-class new developments.
As an area known for a unique blend of ancient and modern structures, it is crucial for us to play a part in the debate over embedded carbon and whole-life carbon. We always fully weigh up the benefits of retaining and extending or renovating buildings against the occasional need to demolish and build new. Ultimately, a thorough understanding of how new development can play a big role in reducing emissions in the medium term is needed. We have found there are instances where an old building is simply not able to be brought up to the sustainability standards rightly expected by society.
This year, the Corporation will deliver a resurgent Square Mile based on sustainability and culture, emerging in a stronger position than when we entered the pandemic two years ago.
Alastair Moss is chair of the planning and transportation committee at the City of London Corporation
