The Secret to Post-Lockdown Office Lettings

By Naomi Lucas
Thoughts • News
30th September 21

The great reopening is here, and after a quiet summer in London, the place feels busier. Now we have to stand on the train, and there is even an occasional queue in Pret. More importantly, the team here have been doing lettings. We’re not the only ones. Agents across London are reporting that more deals are being done. 

What is the secret to success?

Here’s what’s leasing post-lockdown and why:

 

1. Newly built or newly refurbished

The obvious point is that people like shiny new space, because it’s just better. The less obvious factor is sustainability, which is becoming so important that customers will pay much more for it. New space comes with high EPC and BREEAM ratings; must-have credentials that aren’t possible on older spaces. 


2. Great Location

I was working with an environmental company a few years ago. We surveyed the staff to ask if they would travel further to a more sustainable building. 50% said no! This showed me that no matter how great a space is, location still rules over most other factors. 

The huge recent lettings to TikTok, Snapchat and Depop show that the City Fringe is still the go-to for tech firms. In our managed portfolio Kings Cross has been popular, with recent lettings to fintech firms Nate and Oodle. 


3. Flexible and Fitted

We’re finding it harder to agree longer leases for clients, especially on smaller spaces. Our most recent letting is 18 months long. Where clients are comfortable with this, it’s a brilliant way to increase rents and decrease voids. Where the product is strong enough, clients have less anxiety over these shorter leases. The spaces will easily re-let. 

Fitted spaces make this flexibility possible. We can complete lettings and move-ins more quickly, giving customers immediate access.


4. Not Serviced

Serviced offices were a great stopgap earlier in the year, but they’re too expensive in the long term. Many of the companies now leasing space from us say that they were unhappy with the environment and the cost. They also wanted something to make their own. We’ve been able to help them make the transition quickly, without losing out on the service they’re used to.  


5. Vibe

Companies are buying into more than just office space. Community is important; there must be something beyond the office door. It doesn’t need to be a full-on events schedule, but it should be meaningful and add value. Creating a cafe and lively communal spaces at one office helped us take it from 45% to 90% occupied in three months.


 

 

 

In summary: Good quality, well-located space is letting well. This has always been true. Now we’re seeing customer needs evolve. It’s less B2B and more B2C. Those customers are more demanding, but they offer landlords that ‘get it’ the opportunity to fill up their buildings with high quality companies. 

 

Featured Stories & Insights

29th November 24

5 Things Landlords Need to Watch for in 2025

The commercial property landscape is evolving fast, and 2025 is set to bring new challenges...

Read More
29th November 24

Why Managed Space Will Dominate in 2025

Managed office spaces are redefining the landlord-tenant relationship by combining the flexibility of serviced offices...

Read More

29th November 24

Traditional, Flex, and Managed Office Spaces: What’s the Difference?

The office space market has evolved significantly over the years, offering businesses more options than...

Read More
3rd October 24

TSP’s Abigail Burt shortlisted for Property Week’s 2024 Inspiring Women in Property Awards

LONDON – October 2024 – TSP Director & Head of Property Management, Abigail Burt, has...

Read More
2nd October 24

Why We Need to Fall in Love with Offices Again

Appetites and attitudes for offices have drastically shifted. Pre-pandemic, commuting to work five days a...

Read More
27th September 24

The next chapter for UK commercial property

Setting the scene The UK commercial property market – once known for its stability, has been...

Read More

View all

Ready to Elevate your Asset?

You’ve come to the right place.

Fill in the details below, and our team will aim to get back you within 24hrs.

    Sign up to our newsletter

    For updates on commercial property news and events.