New British Council for Offices report tells employers and office designers to treat office workers like customers that need to be acquired and retained, and to find out what they want by means including experimentation and analysing metrics
A new British Council for Offices (BCO) report says staff must be treated like customers if employers want them back in the office. This means making the office a place that gives them the experiences they want.
Towards Experience Utopia provides the ultimate guide to creating ideal working environments that blend the best aspects of remote and in-office work. Commissioned by the BCO Occupiers Group, which comprises representatives of leading employers such as NatWest, PwC, Deloitte, Hines, Goldman Sachs, Gilead, BT and Citi, the ‘state of the nation’ report sets out the latest thinking on the implications of rise of hybrid working and the profound transformation in the office sector.
Just as consumer behaviour has changed in recent years, so too have the preferences of office workers. Expectations of what the office should offer are soaring, particularly from Gen Z, who value flexibility and work-life balance highly. The absolute focus for top employers should become designing and delivering enjoyable and inspiring places to work, as they compete with the comfort of home environments.
Previous BCO reports have implored building owners to treat their occupiers as customers to support revenue, retention, and reputation. This new research emphasises that this is no longer enough; the employee has become the ultimate arbiter of value, necessitating a paradigm shift in the design and operation of office buildings.
Metrics such as occupancy rates, badge swipes, meeting room use, and employee surveys can support in making data-driven decisions, in a similar way to how brands use insights on their customers to deliver personalised experiences and identify new opportunities.
The report provides practical guidance for occupiers, investors, developers, agents, architects and designers, engineers, technology experts, and property managers through strategies and checklists, as well as best practice case studies from the likes of Legal & General and the Government Property Agency.
The report makes the following recommendations:
- Develop customer experience strategies
A well-researched and effectively implemented strategy that prioritises employee satisfaction and wellbeing is key to meeting the diverse needs of today’s workforce.
- Think consumer first
The value of offices as assets is ultimately determined by employees. Buildings that no longer attract people to the office will depreciate at speed.
- Make data-driven decisions
Leverage insights into space utilisation, employee preferences and operational efficiency to continuously improve property development, product, and service design.
- Lead cultural transformation
Invest in training to equip leaders with the skills to manage change and deliver exceptional customer experience, while promoting inclusivity and innovation.
- Promote flexible leasing models
As well as allowing occupiers to optimise costs and resources, ready-fitted spaces that combine lease flexibility with location, design and amenities achieve premium margins.
- Innovate and learn fast
Invest in research, product and service design. Experimentation will be key but prepare to fail and to share lessons learned.
- Focus on operational excellence
Maintain efficient, sustainable buildings and provide top-tier amenities and services to attract high quality occupiers, improve brand reputation and asset performance.
- Think ‘ESG as a service’
Rather than imposing targets and time-consuming requests for data, understand occupiers’ ESG goals and find ways to collaborate on mutual ambitions.
- Redesign processes
How a workplace is experienced is shaped by thousands of interactions daily. Radically rethink property processes, especially those designed in another era.
Andy McBain, BCO Junior Vice President, Chair of the BCO Occupiers Group, and Head of Future of Workspace & Design at NatWest, said: “Employees must now be treated like customers, with their experience and satisfaction as the top priority if their loyalty to the office is to be earnt. Rising generations have different expectations of the workplace and combined with advancements in tech, this has brought about a tectonic shift in ways of working – and consequently how offices should be managed and serviced.”
Dr. Danielle Sanderson, Associate Professor of Real Estate at UCL and Senior Consultant at RealService, added: “For many of us, the office remains the central hub of our professional lives but today, the ability to work flexibly or remotely is not just a perk but an expectation. Hybrid working has challenged everything that we previously understood about the purpose of the office. Employers and workspace providers should be trying to ‘sell’ time in the office, gather insights into what their ‘customers’ want, and design customer journeys to deliver an excellent customer experience. Such a Customer Experience strategy offers real commercial benefits, as my research has repeatedly shown.”
This new research and the launch of the new BCO Customer Experience Award in early 2025 will foster debate about what the best practice looks like for different occupiers, drive improvements and recognise achievements in delivering brilliant customer experiences.
ENDS
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About the BCO
The British Council for Offices’ (BCO) mission is to research, develop and communicate best practice in all aspects of the office sector. It delivers this by providing a forum for the discussion and debate of relevant issues.
Established in 1990, the BCO is the UK’s leading forum for the discussion and debate of issues affecting the office sector.
Its members are all organisations involved in creating, acquiring, or occupying office space, whether architects, lawyers, surveyors, financial institutions, or public agencies. The BCO works to advance the collective understanding of its members, enabling them to work together to create more effective office space.
Look out for the winner announcement on Thursday, 6 June!
Northern Ireland’s Farrans Construction completed the BREEAM ‘Excellent’ building, which is part of the broader City Quays regeneration scheme – a £275 million, office-led project located on former docklands within Belfast city centre.
The three new City Quays buildings represent Belfast Harbour’s response to ongoing demand by inward investors and local firms for new Grade A office space in Belfast.
City Quays 3 is now home to global blue-chip businesses and local companies, which have access to collaboration and client interface spaces, plus on-floor terrace areas.
The BCO Northern Ireland Talk & Tour was hosted by Tim Boyle, Development Manager for Belfast Harbour, alongside Harry McConnell, Director of RPP Architects.
Following a welcome by Ruairi Dempsey, MEP director for HDR and BCO Northern Ireland Committee chairperson, Tim and Harry offered guests an in-depth look at the building, including its design features and sustainability credentials.
Attendees were then given guided tours of spaces occupied by two high-profile companies: global bank, Investec and life sciences company, B-Secur.
The tour showcased the fit-outs and high specification finishes that capture the corporate identity of each tenant, with guests enjoying the magnificent views of Belfast’s key landmarks both within the city and surrounding area.
Ruairi Dempsey, BCO Northern Ireland Committee chairperson, commented: “In the wake of the emergence of a functioning executive in Stormont, the commercial office market in Northern Ireland continues to develop and offer best-in-class office spaces, which can be seen in the quality of development and fit-out demonstrated in City Quays 3.
“Northern Ireland requires a nuanced and unique approach to development, and the strong leadership clearly demonstrated by Belfast Harbour, coupled with the intimate local knowledge of their team is showing others the way forward.
“Developing dynamic and resilient businesses coupled with attracting and retaining global players to our shores is a key aspiration in our development as an economy. Providing employers and organisations with high performing, low-energy and sustainable Grade A workplaces, whether through new development or retrofit of existing buildings, is a key part of this aspiration.”
Tim Boyle added: “We’d like to thank all attendees for joining us on tour of City Quays 3, a flagship development at the heart of Belfast Harbour’s regeneration into a place where global companies can call home.
“The fact that City Quays 3 is over 50% let – well above market norms – demonstrates the continued relevance of commercial space of this kind to local and FDI occupiers. We invite prospective occupiers to contact us for more information.
“Many thanks to our hosts, Investec and B-Secur, as well as Rhianna Harrup from the BCO events teams for her support in arranging the tour and on the day.”
The BCO Northern Ireland Talk & Tour event was sponsored by Belfast Harbour Commissioners and RPP Architects Ltd.
The next BCO Northern Ireland event is a NextGen quiz to be held in the Gallagher Lounge (above the Duke of York pub) in Belfast on 30 May 2024, in partnership with RICS. Although focused on bringing together the next generation of leaders, innovators, experts and industry leaders, it is open to all. The committee and local membership would very much like to welcome you there.
British Council for Offices researches, develops and communicates best practice in all aspects of the office sector. It delivers this by providing a forum for the discussion and debate of relevant issues. Membership is drawn from those who occupy office space, and those professional organisations and people who design, build, and manage office space. For more information on becoming a BCO member, visit this page.
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In this blog, David Porter – Head of the Manchester Commercial Office for Knight Frank and Vice Chair of British Council for Offices in the North – offers the lowdown on the region’s thriving office market.
2023: a mixed bag
According to Knight Frank’s UK Cities 2024, different factors, including economic difficulties, high costs, and conflict overseas, challenged office market activity in 2023. The result was a broad decline in office take-up, with investment volumes falling below average.
However, looking at the North on a city-by-city basis, there were some significant stand-outs last year:
- Despite the second half of the year showing improvement, office take-up in Manchester fell short of the 1m sq. ft. mark, finishing at 942,000 sq ft. – which is 14% below the five-year annual average. Manchester saw 221 deals completed against an average of 213; above the five-year average.
- Compare this to Leeds, which experienced strong occupier demand in 2023, with the city registering the highest level of annual take-up in four years. A total of 651,461 sq. ft. was acquired, 10% above the five-year annual average and a 9% year-on-year increase. The number of deals rose slightly from the previous year: 127 completed, which was 17% above the five-year annual average.
- In Sheffield, occupier activity increased in 2023, with take-up of 374,120 sq ft. – a 21% increase on the previous year that was 6% above the 10-year annual average. Despite above average levels of take-up, just 40% was for grade A space, owing to the lack of suitable space available in the city.
So, while the overall outlook for the UK in 2023 wasn’t exceptional, there was definite cause for optimism, especially in the North – a huge growth area for commercial development.
It’s now time to turn our attention to this year, and look forward to a successful year for the office market.
What’s in store for 2024?
Businesses will continue to look through a ‘green lens’ when it comes to achieving environmental goals through their investment in commercial spaces.
ESG standards, including energy-efficient upgrades and green certifications, are vital for investors, occupiers and lenders. But according to Knight Frank’s latest research, approximately 79% of office spaces in the UK fall short of an EPC B rating, requiring upgrade work to avoid depreciation or obsolescence.
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