Landsec Warns Central London Offices Without Sustainability Credentials and Transport Connectivity Could Become Obsolete

Landsec, one of the biggest commercial property development and investment companies in the UK, has recently highlighted the importance of sustainability credentials and transport connectivity for central London offices. In a statement, the company emphasized that offices that do not meet these criteria run the risk of becoming obsolete, regardless of price.

This focus on sustainability and connectivity comes as occupiers are increasingly demanding higher quality office spaces that align with their environmental goals and provide convenient access to transportation and amenities. With customer demand continuing to prioritize sustainability, Landsec noted that the pricing of office spaces with these credentials is on the rise, while spaces that do not meet these standards may struggle to attract tenants.

The shift towards sustainable and well-connected office spaces reflects a broader trend in the commercial real estate market. Tony McCurley of Deloitte previously highlighted that occupiers are seeking grade A spaces to meet ESG targets, attract talent, and promote a positive workplace environment. As a result, lower quality grade B spaces are facing challenges in finding tenants, categorizing them as “stranded assets.”

To address these changing demands, Landsec has increased its focus on multi-let clusters in key London areas such as the West End and Southwark. By prioritizing locations with strong amenities and transport links, the company aims to create appealing workspaces that attract tenants and support employee well-being.

Furthermore, Landsec’s ongoing projects, such as the Hill House development and Timber Square project, demonstrate the company’s commitment to creating modern, sustainable office spaces. The redevelopment of Portland House and the upcoming project at Bankside in Southwark are also poised to enhance the city’s commercial real estate landscape with innovative designs and amenities.

With a positive outlook for the future and a focus on high-quality, sustainable office spaces, Landsec aims to meet the evolving needs of occupiers and contribute to the vibrant commercial real estate market in central London. As the demand for premium office spaces continues to grow, companies like Landsec are paving the way for a more sustainable and connected workplace environment.