Flexible workspaces to consume 44% of landlords’ portfolios by 2026, up 11% New research among more than 200 UK commercial landlords has revealed how many are struggling to secure tenants for their office buildings as demands shift during the pandemic. It found: 62% of UK commercial landlords are struggling to attract prospective tenants to fill their traditional office spaces at present 64% have seen a “notable shift” in tenants’ demands during the pandemic At present, landlords dedicate an average of 33% to flexible and co-working spaces – by 2026, this will rise 11% to 44% More than three fifths of the UK’s commercial landlords are struggling to attract tenants to traditional offices as businesses’ workspace demands have changed rapidly during the pandemic, new research by infinitSpace has revealed. The European flexible workspace provider has commissioned an independent survey among 204 UK commercial landlords, all of whom own one or more office buildings in the UK. It found that 62% are currently struggling to attract prospective tenants to fill their traditional office spaces. Almost two thirds (64%) reported having seen a “notable shift” in tenants’ demands during the pandemic, including terms and use of space.  As a result, seven in ten (71%) office landlords plan to increase their flexible workspace offering in the coming five years.  infinitSpace’s research found that UK commercial landlords currently dedicate an average of 33% of their office portfolio to some form of flexible or co-working spaces. By 2026, this is forecast to rise 11% to 44%.  Since the start of 2020, 59% of office landlords have begun offering shorter and more flexible leases. Over half (52%) added new facilities to allow tenants to collaborate when inside the building, such as meeting rooms or breakout areas, while 63% have added facilities to improve the wellbeing of tenants, such as a gym or relaxation space.  Wybo Wijnbergen, CEO of infinitSpace, said: “What businesses want and need from their office has been steadily evolving over the past decade, but the pandemic has kicked the pace of change into overdrive. Our research shows that, as hybrid working becomes commonplace and businesses look for more collaborative and engaging workspaces, many landlords are struggling to attract tenants if they don’t have flexible offerings.  “Encouragingly, most office landlords are responding to this challenge. From the terms of the leases and the facilities on offer, to the ways their workspaces foster innovation and offer a great tenant experience – commercial landlords are evidently looking to transform their buildings to fit the ‘new normal’.  “Our data shows that many traditional offices will be converted into flexible workspaces in the coming years. In many instances, this will involve the landlord themselves entering into a long-term, inflexible lease with an operator, which then runs the flexible workspace in their building. But instead, office landlords should feel empowered to manage their own brands. This will lead to a more diverse and dynamic commercial real estate market.” Founded in late 2020, infinitSpace works with landlords to transform traditional office space into modern, flexible and inspiring workspaces. With its software and app, infinitSpace also ensures maximum traction with tenants as businesses’ demands evolve. 

Bouygues UK has signed the contract with Swansea Council to build the city centre’s new high-tech, carbon zero office development that will provide space for 600 jobs. Bouygues UK will break ground in the coming weeks on the site of the former Oceana nightclub at 71/72 The Kingsway. Set for completion in the summer of 2023, the five-storey development will include 114,000 square feet of commercial floorspace, providing flexible co-working and office opportunities for innovative tech, digital and creative businesses. The carbon zero office development – led by Swansea council – will be worth £32.6 million a year to Swansea’s economy and will also feature state-of-the-art digital connectivity, a roof terrace, greenery and balconies overlooking the city centre and Swansea Bay. The developments will include two underground levels with new links between The Kingsway and Oxford Street. “Bouygues UK is delighted to sign the contract on this landmark building situated in the centre of Swansea city. To work on such an innovative and environmentally-friendly building is going to be really rewarding for our team and we can’t wait to break ground and get going,” said John Boughton, regional Managing Director of Bouygues UK. “We also know that Kingsway is a key part of the history and infrastructure of the city centre, and that there is a need for high quality office accommodation, which this landmark building will certainly supply.” As part of its work on the build, Bouygues UK will be working with and supporting local voluntary organisations, providing training, work placements and opportunities for local people, in addition to significant supply chain opportunities for local businesses. Cllr Rob Stewart, Swansea Council Leader, added: “We know some businesses have had to leave Swansea in the past to find the kind of high-quality office accommodation they need, so the new development at 71/72 The Kingsway will tackle that trend while also meeting significant unmet demand. Our research shows this remains the case despite Covid having led to far more home working in recent times, with this development providing flexible space that’s fit for the modern office environment. “We’re delighted our main contractor for this scheme – Bouygues UK – will soon be establishing a presence on site as we head towards the start of main construction work. Local training and supply chain opportunities also form part this project, with the development, once complete, due to generate more footfall and spending for our city centre businesses. “This development was always part of multi-million pound plans for our transformed Kingsway. A huge amount of work has already taken place there to considerably improve the look and feel of the area for local businesses, local people and visitors the city, while also helping attract private sector investment and more jobs.” The 71/72 Kingsway development is being funded by Swansea Council and the Swansea Bay City Deal.  It is also supported by the European Regional Development Fund through the Welsh Government.

Building work has begun at Worcester Six Business Park for a new unit for a global supplier of materials testing machines. Leading commercial developer Stoford is bringing forward the bespoke office unit for ZwickRoell, a world-leading supplier of static materials testing machines, which will move its UK headquarters to the business park from Leominster, Herefordshire. Stoford has appointed Benniman to complete the build of a 19,849 sq ft office, from where ZwickRoell will base its office functions. Work is expected to be completed in Q3 2022. The manufacturer plans to build a 10,000 sq ft assembly unit at a later date, after which it hopes to provide further opportunities to create jobs and expand as a business. Edward Peel, Development Manager at Stoford, said: “It’s always an exciting time when we begin construction works and it’s especially gratifying that it is for yet another globally renowned, high-tech business, which sees its future at Worcester Six. “Since we launched the business park in 2017, it has established itself as a first-class location for ambitious companies that recognise its strengths – not just quality units, but also its strategic location, excellent transport links and environmental infrastructure.” Benno Sadowski, Managing Director for ZwickRoell, said: “We are very happy moving to Worcester Six Business Park, with its excellent strategic location in the UK. Our customers are facing new challenges globally and locally every day, developing and improving all kinds of materials for the future requirements. “With our experience of more than 160 years in the material testing business, we offer our support and solutions at our new Customer Experience Centre here at Worcester Six Business Park. I’m looking forward to having many interesting discussions with our customers and working together on solutions to making this place a better world, step by step.” Councillor Marc Bayliss, Worcestershire County Council Cabinet Member with Responsibility for Economy and Skills said “It’s fantastic news that yet another leading business in their field, ZwickRoell has chosen Worcestershire, as the place to expand its facilities in the UK. This potential development would see a new headquarter and customer experience centre to Worcester Six Business Park. A global leader in materials testing, ZwickRoell is a real success story.” Shawn Riley, Head of Economic Development at Wychavon District Council, added: “ZwickRoell’s relocation to Worcester Six is another great example of an international company offering first class products and good quality employment choosing Wychavon for its UK base. We welcome and value this investment and look forward to a long and productive relationship with them. “As a result of ZwickRoell’s investments, the new state-of-the-art office building has an additional 8,000 sq ft capacity to accommodate other businesses seeking new office accommodation in a first-class location. Interested businesses can contact Wychavon District Council for information on this excellent opportunity.” In the past three years, Stoford has announced the arrival of Marmon Food and Beverage Equipment, Siemens, Spire Healthcare, Kimal, Kohler Mira and IONOS at Worcester Six. Once fully developed, Worcester Six, which is located just off junction six of the M5, will provide 1.5 million sq ft of accommodation. For more details about Worcester Six, visit www.worcester6.co.uk.  Photograph (left to right): Stephen Butterworth, inward investment manager, Worcestershire County Council; Shawn Riley, head of economic development, Wychavon District Council; Edward Peel, Stoford; Benno Sadowski, managing director, ZwickRoell; Bev Smith, director at ZwickRoell.

Multi award-winning industrial and logistics commercial property practice, M1 Agency LLP, has launched a new East Midlands office based in Nottingham.  M1 is a niche commercial agency practice, with offices in London and Birmingham, offering specialist business space agency advice across the UK and Europe. They were recognised with investment transaction of the year in 2019 and best industrial development scheme of the year in 2018, along with various other credits from Costar for leading transactional volumes. The business continues to perform well having recently sold a site recently for £92 million on the M1 and advised on a £310 million development funding in the West Midlands, reinforcing their strong market position  Its new East Midlands office will be led by local team of Matthew Smith and James Keeton, who have both left JLL to join M1 Agency at a very exciting time for the business.  The agency’s new East Midlands office will operate across a range of commercial sectors with key instructions within industrial and logistics across the region including HBD’s 39-acre New Horizon scheme, Verdant Regeneration’s 200-acre site, as well as advising on major office schemes.  M1 in Nottingham will also support student and strategic development   alongside unrivalled development funding and investment expertise.   Matthew has left his role as Head of the JLL Nottingham office, while James leaves his position as a Director in its Agency team, to lead M1’s new East Midlands offering.   Richard Moffitt, Partner at M1 Agency, comments: “We have been looking to expand the operational coverage and expertise within the East Midlands and further north following a period of highly successful growth. Matthew and James are two of the highest profile agents with a proven track record within that market place and with the opening of a new office now it will give us the ideal platform to strengthen our position and drive forward our continued growth within these markets.”  Matthew said: “We’re thrilled to be joining M1 at such a pivotal time for the business, opening a new office to enhance and expand the strength of advice the agency is known for nationally.  “This is a really exciting new venture for James and I. M1 Agency are a recognised agency and consultancy practice with an excellent client base. They bring together a powerful brand and team that we are delighted to now be part of.”  James added: “With a focus on leasing, development funding and investment, M1 Agency are a highly successful and agile business that deliver both the platform and expertise to grow. We will be combining our respective clients bases to create a new and successful East Midlands office for the business. Having worked together for over 15 years, Mat and I are now raring to go on this next career chapter.”    M1 Agency East Midlands will operate from a new Nottingham office, building on a great business, offering agency services, development funding and investment advice across the East Midlands and North.  

Isio, one of the country’s leading independent pensions advisory firms, has signed a lease for 9,183 sq ft of offices at Royal London’s 3 Hardman Square office building in Spinningfields, Manchester. CBRE and Colliers International represented Royal London and Cushman & Wakefield acted for Isio. Isio was formed following the sale of KPMG UK’s Pension Practice to a private equity firm in March 2020 and the firm has around 500 staff working from eight regional offices. At 3 Hardman Square, Isio will occupy part of the fourth floor. Royal London has undertaken a comprehensive investment programme at 3 Hardman Square to upgrade the ground floor reception area with the addition of a two-tiered business lounge, providing occupants of the building with informal meeting space and coffee making facilities. In addition, an impressive shower and cycle hub has been provided in the basement, which incorporates cycle racks, a drying room, lockers and shower facilities. Isio will join existing tenants the General Medical Council (GMC) and In-Touch Networks who occupy the 8th and 3rd floors respectively at 3 Hardman Square. Neil Mort, Senior Director at CBRE Manchester, commented; “Royal London’s investment into 3 Hardman Square has attracted yet another high-profile organisation to the refurbished building. To have concluded this deal during lockdown is a great result and we are confident that this will be an excellent base for Isio’s Manchester team.”