Construction cost price inflation is continuing to impact and constrain landlords looking to physically alter the built environment to reinvent or placemake destinations. We are seeing projects put on hold or scaled back due to high build costs and this issue is also impacting occupiers in the context of limiting fit out works or scale of expansion. Finding ways to economically adapt and re-use buildings and the physical environment, rather than demolish and re-build, will be key in 2024.
The return of staff back to the workplace continues to gather pace. Many of the city and major town centre retail and leisure destinations we advise on are back to 2019 levels of footfall, if not in excess. As office space providers put more emphasis on staff wellness and quality of workspace conditions, employers are attracting their staff back to the city core and the added footfall / spend is a badly needed boost for the hospitality sector in particular.
The integration of new buildings with their surrounding community needs further focus next year. We believe locations and places work best when they are fully integrated. Having new office or residential focused developments gated from the surrounding communities does little to integrate people. In fact, it further segregates and divides the neighborhoods they are situated in.
Developments which are sustainable and have a low environmental impact on their surroundings are gradually becoming more important to occupiers and investors. We hope this current momentum builds to force industry change over the next twelve months.”
Nick Hartwell
Nick Hartwell is Leasing Director at Lunson Mitchenall.
