Record volume demonstrates the ongoing flight to quality in the capital.

LONDON, 19 December 2024: Leading commercial real estate developer and operator, Brookfield Properties, has announced a series of new lettings across its London office portfolio, surpassing 800,000 sq ft of leasing transactions in 2024. 

This record volume of activity, together with strong rental growth for prime office space, has seen new benchmark rents achieved at 100 Bishopsgate, One Leadenhall, 30 Fenchurch Street and Citypoint and office occupancy across Brookfield Properties’ 5M sq ft portfolio nearing 98%.

New lettings in the quarter included global recruitment specialists Phaidon International at Citypoint (42,000 sq ft), British gas distribution company SGN at Nexus (15,000 sq ft) and the Association of British Insurers at 30 Fenchurch Street (14,000 sq ft).

Alongside this, Brookfield Properties have had great success retaining and accommodating additional term and growth opportunities for its existing occupiers. Almost 185,000 sq ft of expansion has been accommodated for existing occupiers in 2024, including Fried Frank, Royal Bank of Canada, and Pilsbury Winthrop Shaw Pittman LLP at 100 Bishopsgate, Latham & Watkins at One Leadenhall, Simpson Thacher & Bartlett and Squarepoint at Citypoint, and Uber at Aldgate Tower.

These deals illustrate Brookfield Properties’ track record of retaining long-term tenants, reflecting the high quality of its properties, it’s leading engagement programmes – Activatedand Accelerate ESG – and the strength of its relationships with occupiers across its London office portfolio. 

Martin Wallace, Head of Leasing at Brookfield Properties UK, said: “From these deals it’s clear that there remains strong appetite for high quality buildings in the right locations. We’re especially pleased to be continuing our relationship with established, long-term tenants. Repeat business is something that the team at Brookfield Properties takes a lot of pride in as we continually work to deliver the best possible experience to our tenants.”

Building retrofit programmes to improve energy efficiency must also have appropriate ventilation to provide healthier, safer indoor environments, according to a new report published today by the National Engineering Policy Centre (NEPC).

The UK has set ambitious legal targets for reducing greenhouse gas emissions and achieving net zero by 2050. With the heating and cooling of buildings contributing 17% to national emissions, retrofit schemes are an essential step towards the UK achieving net-zero by 2050, to mitigate the threats of climate change. As 80% of our existing buildings will still be in use by 2050, making them energy efficient is a key part of any net zero plan.

The government’s Warm Homes Plan presents an ideal opportunity to future-proof buildings and embed health outcomes in retrofit schemes, as well as improving energy efficiency, through insulation and airtightness, ventilation and air cleaning, and low-carbon heating.

Led by CIBSE, the Royal Academy of Engineering and the Institution of Mechanical Engineers, this is the final report in a major programme of work by the NEPC on infection resilient environments. It makes five key recommendations to help embed health outcomes in building retrofit programmes; enable specialist training for retrofit professionals and trial digital records for building performance and maintenance. 

Recommendations:

1. Health-Based Outcomes: Embed health outcomes in retrofit programmes, supported by public information campaigns.
2. Public Buildings Assessment: Large-scale assessment of health risks in public buildings to inform retrofit delivery.
3. Digital Passports for Buildings: Trial digital records for building performance and maintenance to support long-term management.
4. Training and Skills Development: Incorporate health into training for retrofit professionals.
5. Research and Development: Address knowledge gaps on long-term health impacts of indoor environments and integrate findings into policy and practice.

An opportunity ‘to improve the nation’s health’

Retrofit schemes deliver many benefits, through the process of upgrading buildings. This includes:

·       Structural change: installing insulation, upgrading windows, improving airtightness to reduce heat loss and energy demand, and provision of appropriate ventilation

·       Changes to building services: such as switching to low-carbon heating

·       Monitoring and control tools: installation of monitoring and control tools for energy use to empower users to adapt user-behaviour

Professor Peter Guthrie OBE FREng, Chair of the Royal Academy of Engineering’s Infection Resilient Environments Working Group, says:

“There are many ways to improve the nation’s health and improving homes is a key one. Setting out clear definitions and targets of what healthy homes and buildings look and feel like, sets out a roadmap to get us to that destination. Finally, training in the art and science of healthy homes, by building professionals who do this work, will be fundamental to the long-term success of retrofit schemes.”

Commercial design and build specialist, Design Tonic, has been appointed as the communal interiors fit-out partner for No.1 St. Michael’s, one of Manchester’s most prestigious new office developments.

Established in Yorkshire in 2018, Design Tonic specialises in creative interior design and project management for the hospitality, office, retail, and leisure sectors. The company is known for its straightforward approach to delivering design excellence.

The building is part of the £400m St. Michael’s mixed-use scheme, which is being delivered by Gary Neville’s Relentless Developments, and comprises offices, apartments, hotels, shops, a public square, and rooftop restaurant in the heart of Manchester.

Design Tonic will be responsible for creating multiple common spaces throughout the £150m, 200,000 sq ft office building, which is spread across nine-floors and aims to achieve world-leading standards in sustainability. Once compete, it is expected to be the first fully Net Zero Carbon commercial development in the city.

Office space at No.1 St. Michael’s has already been pre-let to several high-profile tenants including US financial firm, S&P Global; international law firms, Pinsent Masons and Hill Dickinson; media company, Channel 4; and global computing firm, Arm.

Anthony Kilbride, director of Relentless Developments, said: “No.1 St. Michael’s is attracting an extremely high calibre tenant, and we’re committed to providing the highest standards throughout all areas of the building. This extends to the design and fit out of all shared spaces to offer our occupiers an unrivalled experience in functionality and comfort.

“The team at Design Tonic impressed us with their extensive experience delivering outstanding office interiors. We’re thrilled to be partnering with them as we bring to life our vision for the communal areas of No.1 St. Michael’s.”

Design Tonic co-founder Amanda Cook said: “No.1 St Michael’s is a truly impressive project, and we are delighted to have been appointed on such a high-profile scheme. The team will be creating spaces that balance contemporary elegance with practicality and accessibility, to provide an environment for employees and visitors that is focused on productivity, wellbeing and the creation of a world class workplace.”

As Chief Technology Officer (CTO) of Moneypenny, the leading outsourced communications company, Pete Hanlon believes we are reaching a pivotal milestone, especially with Artificial Intelligence (AI). Here’s his take on the next year, highlighting the obvious shifts and deeper changes that could redefine how we work in every sector- from facilities management to professional services.

Open Source Is Coming for the Crown

The most exciting battle in AI isn’t unfolding in corporate labs; it’s happening in the open-source community. By mid-2025, we’ll see open-source models going head-to-head with industry leaders such as GPT-4o and Claud-Sonnet-3.5. This isn’t just about matching performance metrics. It’s about making AI accessible to sectors that have been held back by data privacy concerns, opening doors for industries that have struggled to leverage this technology. The result? A new era where AI is democratised, accessible to all, and no longer controlled by closed-source businesses.

Forget AI Replacing Workers – Think AI as Your Digital Colleague

Remember when everyone thought AI would replace us all overnight? That’s not how it’s playing out. Instead, we’re witnessing the emergence of hybrid teams where AI takes on the repetitive tasks, leaving people free to handle more complex challenges. It’s less about replacing jobs and more about using AI to superpower people and using data to enable smarter decision-making. Moneypenny, for example, delivers outsourced communication solutions that blend the efficiency of AI with the personal touch of real people.

Integration: The Real Challenge Nobody’s Talking About

The next phase isn’t about building brand new AI systems, it’s about weaving them seamlessly into existing business processes and infrastructure. Picture Customer Relation Management (CRM) systems that can predict what customers need, knowledge bases that update themselves, conversations that flow naturally between voice and text, and customer support that breaks language barriers. Our clients can effortlessly embed our customer service systems powered by AI directly into their back office with minimal effort and maximum impact.

Industry-Specific Models: Tailored AI for Specialized Needs
We’re entering an era of industry-specific Large Language Models (LLMs) tailored for fields like finance, healthcare, and law. These models will come pre-loaded with domain-specific knowledge, enabling businesses to deploy AI that understands their unique requirements, language, and regulatory needs. In finance, LLMs could support compliance and offer investment insights. In healthcare, they could assist clinicians with patient histories and treatment guidelines. In law, they could streamline contract review and case law analysis. These specialised models will allow companies to quickly implement AI that’s relevant, compliant, and impactful in their field.

The Reality Check Is Coming

Some companies may soon realise they’ve taken on more than they can handle with AI adoption, facing a range of unexpected challenges. Many will struggle with complex integration issues as they attempt to launch AI initiatives within existing systems. Additionally, there may be difficulties in managing the high expectations around AI’s capabilities, as reality often falls short of the hype surrounding its potential.

Regulation: The Elephant in the Room

Companies should prepare for the growing impact of AI regulations, particularly in customer-facing applications. Forward-thinking organisations are already taking steps to build transparency into their AI systems, overhauling data governance practices to ensure accountability. They are creating detailed audit trails to track AI decision-making and making sure that their systems are both fair and accessible. These proactive measures not only help them stay compliant but also foster trust with their customers.

What This Means for You

The next year won’t just be about AI getting better – it’ll be about AI getting smarter about how it fits into our existing world. Success won’t come from blindly adopting every new AI tool. It’ll come from carefully choosing where AI can genuinely improve how we work.

Workplace design and build specialist ODCreate has reimagined 7,000 sq ft of office space in central London delivering a category A+ project. The offices, at 101 St Martin’s Lane, have been refurbished for landlord KGAL, an independent German Investment and Asset Manager.  The reimagining of the existing space has been undertaken with sustainability and adaptive […]

According to global real estate advisor CBRE, Artificial Intelligence (AI) is poised to transform the landscape of Facilities Management. This technology will enhance efficiency, reduce operational costs and improve the overall occupant experience.

One key use of the technology, uncovered by CBRE, who will be exhibiting at Facilities & Estates Management Live is data analysis. AI can streamline workflows and reduce errors, leading to higher quality outcomes and better overall performance- ultimately delivering greater value to clients and occupants and provide valuable insights that can help in decision-making and strategic planning for FM.

AI gives a simultaneous and holistic view of a building or estate’s performance by linking datasets from many different sources such as asset optimisation, risk and energy performance. Looking at many datasets at the same time, it enables FMs to improve service across a range of indicators such as optimising performance, reducing cost or reducing carbon emissions. 

Additionally, AI has the power to transform the workload of FMs by undertaking repetitive tasks, such as reviewing occupancy data for workplace comfort and adjusting building maintenance systems. Taking advantage of administrative efficiencies could speed-up many processes and deliver faster resolutions for clients, this allows employees to focus on more complex, creative and business-critical tasks, therefore enhancing job satisfaction and productivity.

With the approach of net zero deadlines, there is even more of a focus on what AI can do to accelerate progress. Smart systems that use AI can study patterns in a building’s energy usage and suggest tactics for decreasing consumption; by optimising lighting schedules, heating, ventilation and air conditioning according to occupancy and other external factors, machine learning algorithms can result in substantial energy savings.

Jennet Siebrits, Head of UK Research at CBRE, said, “AI is at the forefront of technological innovation, driving advancements in sustainability and data. Those who can bridge the theoretical knowledge with practical implementation, while managing ongoing risks, will be able to most significantly capitalise on the benefits of AI”.

Furthermore, Ben Taylor, Global Digital & Technology Lead at CBRE Local, stated, “it is not often that a technology arrives with such transformative potential. At CBRE, we will ensure that every space we manage is smarter, more sustainable, and tailored to the evolving needs of the people who use them.” 

NEW RAIN GARDENS IN CENTRAL LONDON TO IMPROVE TRANSPORT NETWORK AND CLIMATE RESILIENCE 

The new Marylebone Flyover rain gardens are the largest sustainable drainage systems (SuDS) in central London. Equivalent to the size of 10 New Routemaster buses and with more than 3,500 square metres of water collection area, this project will boost biodiversity, improve surface drainage, and make the network more resilient to climate change and flooding. Mete Coban, Deputy Mayor for Environment and Energy said, “addressing the important issue of surface water flooding is one of many ways we are working with partners like TfL to make London more climate resilient, creating a fairer, greener city for all”.

The planted gardens can be seen on three corners of the road within the Marylebone Flyover underpass and are about 300 square metres when combined. They have been planted with 11 trees, 95 shrubs, more than 1,100 perennial plants and almost 2,300 bulbs in total. All have been chosen to support pollinating insects and can thrive in local climate and soil conditions so require minimal maintenance.

Londoners can spot flowering species like pink geraniums, orange-coloured Kniphofia and blue wood-aster in full bloom, adding colour and life to the urban streets. 

Porous rain gardens such as this are vital when significant storms occur by helping to prevent flooding on busy roads. The Marylebone rain garden scheme is a collaboration between TfL, the Greater London Authority (GLA) and Thames Water, with the Marble Arch London BID committed to fund and run the maintenance work on the gardens. It was part funded by Thames Water and the GLA under the Green Infrastructure Fund programme where £1 million was allocated for greening projects on the TfL Road Network. TfL’s most recent Business Plan sets out their plans to invest £6 million, between now and 2027/8, to improve its understanding of the impacts of climate change, as well as help supplement existing projects to add additional green infrastructure and SuDS. 

TfL’s highways-based SuDS will not only reduce flooding risks but also support biodiversity and improve water quality in London’s rivers, supporting the Mayor’s ambition to achieve swimmable rivers in the capital by 2034. More sustainable drainage is a key part of TfL’s plans to make the capital more resilient and biodiverse, and the completed Marylebone Flyover rain gardens have enabled TfL to reach more than 70 per cent of its current annual target.

Craig Boorman, Principal Environmental Engineer at Thames Water stated, “this unique regeneration project shows how sustainable drainage can help our capital city to adapt to the impacts of more intense rainfall, while also being beautiful and enhancing for local communities- the solution is to turn our landscape from grey to green.”

CAN FOOD & DRINK BE THE NEW “SOCIAL GLUE”

The shift to remote work during the pandemic redefined work-life balance and transformed the traditional workplace model. For many it brought flexibility and the ability to balance work and life more effectively, but in turn it has fostered a new level of isolation, where 27% of employees now report feeling lonely at work*. 

Loneliness in the workplace has long been a significant, yet often overlooked issue, and research over the past several decades highlights its profound impact on people’s health and well-being. The absence of in-person interactions means reduced social connections and that sense of community that often comes with a permanent office setting. BMC Public Health states that loneliness carries a mortality risk comparable to that of smoking, alcohol consumption, and physical inactivity, highlighting that social connection isn’t just a nicety—it’s now a necessity.

A recent report titled The Power of Socialisation, initiated by the Global Eating at Work 2023 study, brought home this fact, and has also highlighted how food and drink can play a crucial role as the “social glue” in the modern workplace. Nearly half of employees said they wanted to socialise with their colleagues more often and 92% said workplace events should include food and beverages. With hybrid working models flourishing, employees are increasingly selective about their in-office days, emphasising that these should offer genuine value, especially in fostering social connections.

Bringing it back to the office. 

In this report, employees expressed a desire for more frequent short breaks throughout their working day – wanting to use this time to leverage food and beverage (F&B) facilities to connect with colleagues. There was also a strong preference for a broad selection of culinary options to be provided, to celebrate diversity and encourage inclusivity among coworkers. “Having food and drink facilities at work encourages weekly social lunches for 74% of employees, compared to 48% without F&B amenities”.

(insight piece provided by Restaurant Associates).