Future-proofing workspaces for tomorrow’s talent
According to market research:
• 60% of the 2019 workforce comprised Baby Boomers and Generation X
• 80% of the 2034 workforce will comprise Millennials, Gen Z and Gen Alpha
This evolving demographic change has had a profound impact on occupiers’ future proofing strategies for their workplaces.
It is also influencing landlords’ asset strategies mix. The implications of employees’ changing profile are many, but perhaps the key elements from an occupational planning perspective are:
The workplace has already evolved from the ‘factory-office’ environment (rows of desks flanked by private offices for bosses), to a more employee-centric philosophy epitomised by features such as ergonomic furniture, biophilic ‘natural’ workplaces (comprising flowing water, decorative stones, slate wood, etc) and circadian lighting.
The current wisdom of creating wellbeing oriented (work) environments feature designed-in elements such as:
• Wellness areas in the office footprint
• Collaboration zones (not just meeting rooms)
• Sensory rooms (a refuge for employees with neurodiversity needs)
• Easy access to outdoor spaces (be it balconies or rooftop areas)
• Specialist areas (such as prayer rooms and mothers’ room)
Recognising and accommodating diversity, in all its guises, is now part of most employee retention and productivity strategies.
“Future-proofing offices becomes more than a strategic imperative”
Green offices is another critical criteria for occupiers (a response to a combination of legislation, occupiers’ corporate strategies, their customers’ and stakeholders’ expectations and their people/talent strategies).
There is an onus on landlords to adopt energy efficient designs (be it new build or retrofit), install energy optimisation building management systems, create amenity rich workplaces (such as gyms, coffee shops, gaming rooms, etc) and consider ambient issues such as lighting and air quality.
Constructing best-in-class buildings which meet blue ribbon standards such as LEED and BREEAM is now the norm not the exception. In 2000 there were 34 successful BREEAM assessments, in 2024 there were over 2.3m registered (BREEAM) buildings in 102 countries.
The good news for landlords is that this pursuit of excellence has resulted in Grade A, Prime and Ultra Prime assets commanding significant rent premiums (anywhere between 15%-20%).
Location has always and will always be one of the most critical determinants of yields (for landlords) and perceived value (for occupiers). Amenity rich buildings in amenity rich Central Business Districts (CBD) are able to command significant (rent) premiums because tenants are willing to pay for the perceived value (ranging from status/brand values to underpinning talent attraction/retention strategies). Hence the noticeable migration from fringe areas to CBDs.
Hybrid working was, until quite recently, thought to be normal workplace practice. However, the ‘Back-to-Office’ (BTO) movement, led by corporate blue bloods such as JPMorgan Chase, Goldman Sachs, Amazon
and Dell, are pushing back on something many believed was the new way of working.
Working in an office five days a week, is something many Millennials and Gen Z employees now find unappealing. Ironically recent research concluded that Gen Z’s spend 12% more time working in the office than their older peers.
Futurologists will cite the Metaverse as the next frontier for the workplace, as tomorrow’s workplace will be populated by Generation Alpha (2013-2024) and Generation Beta (2025-2039) employees, who were practically born wearing a headset. They will live in an AR-enhanced world, where work will probably be viewed as a game played solus, or as part of a virtual team, located in the same town, or in a different time zone.
Given the fact that 80% of current buildings will still be in use in 2050 and people born this year will be entering work in 2042, future-proofing offices becomes more than a strategic imperative.
It is a financial necessity.
New rating legislation set to impact prime office occupiers
The Non-Domestic Rating (Multipliers and Private Schools) Act 2025 received Royal Assent on 3 April 2025, introducing a significant change for occupiers of highvalue commercial property. From 1 April 2026, properties in England with a Rateable Value over £500,000 will be subject to a higher business rates multiplier, with the exact figure to be confirmed in the Autumn 2025 Budget.
This change is particularly relevant to occupiers of large, prime Grade A office space, who are the most likely to be affected by the new threshold.
This change in legislation is coupled with 2026 Rating Revaluation which comes into effect on the same date, based on rental values as of 1 April 2024. With the ongoing ‘flight to quality’ in the office market in recent years, at the expense of secondary stock, prime, new Grade A stock have seen rising rental values meaning occupiers could face a double hit, higher rateable vales and a steeper multiplier and are therefore likely to see their liabilities similarly increase.
It’s more important than ever to ensure your property’s assessment is accurate when the draft Rating List is published later this year.
Manchester commercial agency team success with major office deal in Leeds
Our commercial transactional agency team at our Manchester office has recently provided expert advice to an international education firm around acquiring new space in Leeds in one of the biggest office deals in the city this year.
We acted on behalf of Study Group, advising the tenant around taking a new lease and acquiring 19,000 sq ft of high-spec office space on 8 Park Row in a five-year lease following a move from Wellington Place.
It will now become the new home of The Leeds International Study Centre (ISC), where international students can progress on to the University of Leeds.
8 Park Row had undergone a significant programme of works, including the creation
David Laws 0161 214 4661 david.laws@fishergerman.co.uk
Marcus Baumber 0161 214 4694
marcus.baumber@fishergerman.co.uk
of a business lounge and upgraded end-ofjourney amenities, bike storage and showers.
The Study Group is an international education specialist and strategic partner to more than 50 universities around the world and is working with Leeds Beckett University to provide additional education resource for students at the university.
The site’s location and easy accessibility for students made it desirable and provides the type and size of accommodation needed to meet the university’s requirements.
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Ben Stanley 020 7747 3141
ben.stanley@fishergerman.co.uk
Charles Warrack 0121 561 7885
charles.warrack@fishergerman.co.uk
Don’t hesitate to contact a member of the team: