British Council for Offices - General - Tall Buildings in London
Date: 28 Mar 2002
London has a vital business need for tall buildings according to new research undertaken by the British Council for Offices (BCO).
Two complimentary reports (Giving Occupiers a Voice and The Economic Realities) present important new evidence supporting the case for tall buildings. Giving Occupiers a Voice seeks the views, for the first time, of the people who pay to be in tall buildings – the occupiers, while The Economic Realities refutes the findings of the 1998 London Planning Advisory Committee (LPAC) report which claimed there was no need for them. Participating occupiers in the research work included: Citigroup, Lehman Brothers, Barclays Bank, BT, Clifford Chance, Deutsche Group, Munich Reinsurance and PricewaterhouseCoopers.
Richard Kauntze, Chief Executive of the BCO says, “Over recent months, the debate on tall buildings in London has resembled megaphone diplomacy. These two BCO research reports provide important new evidence to enable all concerned to have a more intelligent, constructive debate”.
Kauntze continued, “Missing from the debate so far has been the most important single element – the views of the occupiers of London’s tall buildings. Large occupiers tell us that these buildings satisfy a vital business need because their spatial requirements for locating thousands of people in one building in London cannot be met by any other means. Tall buildings are also highly popular with
smaller occupiers, who are often prepared to pay the higher rents which these buildings can command”.
The Economic Realities sets out a detailed critique of the strategic advice offered by LPAC which has, until now, developed an almost “untouchable” status among some commentators. The BCO believes that it is absurd to suggest (as LPAC’s work has) that, because there is no clear evidence to show that occupiers have left London in frustration at not finding the “right space”, there is no need for tall buildings in Central London.
“Our report on The Economic Realities uses London’s transport system as an analogy”, says Kauntze. “Can we identify any companies which have relocated from London to Frankfurt because of the state of London’s transport system? If not, do we conclude that no improvements need to be made?”
For big occupiers the research shows that there are currently fifty organisations occupying over 400,000 square feet in a number of buildings with approximately sixteen of these wanting to move into a single “large” building in the next three to four years. Because of the shortage of large sites in Central London it is inevitable – if this business need is to be satisfied – that some of these buildings are tall.
The report shows that from the occupier’s point of view, the key findings include:
Large occupiers may not have a strategic goal of being based in a tall building, but see tall buildings as satisfying a business need because their spatial requirements for locating thousands of people in one building in London cannot be met by any other means.
Big buildings, which may also be tall buildings, enable businesses to create strong corporate identities and cultures inside that space.
Most people like being in tall buildings; they enjoy the views.
Fully serviced tall office space is popular with small and medium sized occupiers. These occupiers are not shy of increased service charges in tall buildings because of the better quality infrastructure, front of house services, and the building’s visible prestige reflecting well on its occupiers
Some small and medium size tenants are prepared to pay extra to be on a higher level within a tall building.
Occupiers are increasingly frustrated by the planning delays associated with office developments in London. The occupation of some tall buildings in London has been attractive because these buildings offer planning certainty.
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