NEWS & ANALYSIS FMJ.CO.UK
ASSOCIATION NEWS
HAS THE ‘DEATH OF THE OFFICE’ BEEN CALLED FAR
TOO PREMATURELY?
Paul Bagust - Global Property
Standards Director, RICS
BUILDING SAFETY: CHANGE IS COMING - BE PREPARED
8 SEPTEMBER 2020
The Government’s
upcoming
campaign to persuade
people to come
back to the o ices,
reflects a continuing
reluctance by
employers and their
sta to return to the
traditional workplace.
According to RICS latest Global Commercial
Property Monitor, which gauges the sentiment of
occupiers and investors, the economic impact of
COVID-19 has weighed on demand for commercial
o ices with requirements for city centre space
in decline. According to RICS Chief Economist
Simon Rubinsohn: “As the economic impact of
COVID-19 has deepened, so too has the impact
on commercial real estate. Sentiment among
investors and occupiers has naturally weakened,
with broad acceptance that rental and capital
values will fall over the next year.”
The results suggest however that o ices
face three global key additional or accelerated
structural changes: organisations reducing their
overall footprint, a notable shi in location from
urban to suburban, and a greater premium placed
on the health and wellbeing of workers.
Real estate professionals tell us they expect o ice
footprints to shrink; more than half indicated that
o ice footprints would likely shrink by up to 10 per
cent over the next two years. With around one-third
suggesting that it would be greater than this, just
14 per cent judged there would be no change.
Respondents also envisaged a shi in o ice
space from urban to suburban locations as another
aspect of the fallout from COVID-19. One in 10
view this as a strong trend, while half (50 per cent)
believe it will take place to some extent.
Greater emphasis will also be placed on health
and wellbeing in the workplace in a post-pandemic
world, pointing to further changes to existing
and new o ice space. Eighty nine per cent of
respondents agreed this enhanced focus was likely.
Questions remain over how improvements will
be funded, however, as only around one-third of
respondents felt that tenants would be willing or
able to shoulder the cost of enhancements.
What these figures suggest is that while the
commercial o ice sector is under pressure,
the ‘death of the o ice’ has been called far too
prematurely. Yes, many organisations are rethinking
their footprints, and questioning the need
for such large spaces in city centres – especially
in the current economic climate and with the
proven e icacy of remote working. But rather
than disappear, o ice use will evolve. Property
strategies will be increasingly data-led, based
around the performance of buildings, and how
they add value to and support the productivity
of employees.
The good news is that the health and wellbeing
of workforces has rightly moved to the top of
the agenda for occupiers too, and this will drive
significant change for commercial property and
support business performance. It is vital that
enhancements are not limited to flagship o ice
spaces, but filter through all types of commercial
property. We need to see a new collaborative,
flexible relationship model emerge between
tenants and landlords to realise this, helping share
both the responsibility and cost.
For more details visit
www.rics.org
When the
dra
Building
Safety Bill was
published in July,
the UK took another
important step
towards ensuring
we can prevent
another tragedy like
we saw at Grenfell
Tower from ever happening again. However,
last month’s report from the Industry Safety
Steering Group (ISSG), which is led by Dame
Judith Hackitt, highlighted both the sector’s
lack of leadership on building safety and the
huge challenge of meeting the new competency
requirements.
With this legislation due to come into force next
year, there is no time to waste: it is crucial that the
industry starts to prepare for the changes now. Our
profession will be on the front line of implementing
those changes, not least when the new statutory
role of Building Safety Manager (BSM) is
introduced, and we must be ready to act.
If you are not already familiar with the building
and fire safety reforms incorporated in the dra
bill, the BSM will be a named individual responsible
for: day-to-day management of fire and structural
safety in a building; ensuring residents have a
clear point of contact for any issues relating to
safety. For many years, FMs have played a critical
role in creating safe and healthy spaces for people
to live and work in, and already take on many of
the responsibilities that will sit within the BSM’s
scope; it is therefore clear that this new role will be
a natural fit for our profession and that, in many
cases, the BSM will come from an FM background.
However, it will not be a straightforward
transition from one role to the next: the BSM role
carries with it new and extended competencies that
will require upskilling, training and investment.
Although the range of buildings to which the dra
bill applies mostly covers higher risk residential
buildings, including student accommodation,
the language is such that its scope can be
quickly expanded to other types of buildings,
such as: hospitals, care homes, residential
institutions (prisons, for example), and temporary
accommodation including hotels and guest
houses. This dra bill’s fundamental importance
is its acknowledgement that the occupation and
management of a building - ensuring its standards
are maintained accountably, responsibly and
competently - are equally as important as the
construction phase.
Whilst the bill represents a high-level overview
of what to expect, further clarity on the detail is
necessary and we stand ready to help articulate
this further, as well as to help develop the BSM
Publicly Available Standard (PAS). At the same
time, we urge our profession to prepare to enhance
their capability and put the necessary measures
and upskilling in place so that these roles can be
understood and undertaken e ectively.
We therefore urge the industry to engage with
the dra bill’s content as a priority. It is critical
that our profession understands its importance
and implications for the future, and begin to take
the necessary steps to implement it, thereby
ensuring the future safety of our buildings and
their occupants.
IWFM CEO, Linda Hausmanis
/www.rics.org
