More Than A Workplace – How Banks Are Enhancing Their Offices

Banks are at the forefront of the growing movement for employees to return to the office on a more regular basis.

While there is a consensus that face-to-face engagement between colleagues encourages better communication and productivity, if employees are being asked to forgo flexibility for continuity in their working environment, the office now needs to be more than just a place to work. Banks are seeking the highest-grade premises for their offices and are willing to pay for environments that encourage attendance. In this article we'll examine some of the drivers for banks looking to enhance their offices, and the different ways in which banks are creating a more appealing working environment.

Putting wellness front and centre

Corporate occupiers (such as banks) are recognising that protecting the wellness of their employees is one of the keys to maintaining regular office attendance. Facilities such as roof terraces, gyms and wellness areas are fundamental to creating an environment that people want to spend time in. Greater focus is being placed on creating flexible, shared workspaces which recognise that the way in which people work has changed.

Providing collaborative and flexible workspaces encourages increased and more effective communication, which ultimately results in a more productive, profitable workplace. 

It is also not just the immediate office environment that is benefitting from this focus on well-being. There is recognition that sizeable developments typically occupied by large corporate occupiers have a role to play in "place-making" for the wider community. For example, as part of Citigroup's re-development of its premises at Canada Square, the works will create a new walkway between two of the green spaces at Canary Wharf which workers and visitors to the area are free to enjoy. Head of Enterprise Services & Public Affairs at Citigroup, Edward Skyler, summarised the importance of place-making in the bank's redevelopment plans, commenting "Our investment into the Citi Tower is about more than bricks and mortar, it's a direct investment into the heart of the UK economy, supporting regional growth and local businesses while creating jobs. It's a statement to our thousands of colleagues that they deserve best-in-class workspaces and to our communities that they deserve our lasting commitment".

Similarly, Deutsche Bank's new London headquarters at 21 Moorfields includes plentiful new public areas, with over 20% of the site dedicated to bioperse habitats. If banks are committing to a physical presence in key financial districts in the long term, adding to the promotion and redevelopment of the surrounding area is a sensible and responsible approach to take.

Energy efficiency

Whilst wellness facilities are proving fundamental to banks seeking new office space, given that the built environment is responsible for almost 40% of global energy-related carbon emissions, there is also a strong focus among banks (and other corporate occupiers) on the energy performance of the building when looking for alternative premises. The move towards a net zero carbon building is gaining momentum with the introduction of the UK Net Zero Carbon Buildings Standard and banks looking for new office stock are focussing on those assets that have achieved the highest standards in energy efficiency, both during construction and once operational. This might involve a smart management system which monitors occupancy and adjusts energy usage accordingly, prioritising the use of renewable energy and designing spaces that allow for better use of natural light thereby reducing the need for artificial lighting. One such example is the refurbishment being undertaken by Citigroup, with the bank targeting high level Leadership in Energy and Environmental Design (LEED) and Well Building Standard (WELL) certifications, which are independently awarded infrastructure and building ratings that identify highly efficient and cost-saving green buildings.

It is also worth noting that green initiatives, such as roof gardens, electric vehicle charging points and green walls, may be seen positively from an environmental and energy efficiency perspective, but insuring buildings with those attributes may have an increased cost due to the increased fire risk. This is illustrative of the balancing act that corporate occupiers are facing when developing offices that meet the green credentials now expected on any high-grade office development with the traditional costs of occupying and operating an office in central London.

Retrofitting

As evidenced by the wish list of energy efficiency and well-being features that banks are looking for, it is unsurprising that there is a shortage in supply of newly-developed assets that fit these criteria. Instead, some banks are looking to retrofit existing properties to bring them into line with the newly-developed assets on the market. Retrofitting an existing building can bring alternative challenges with regards to developing an asset that is energy efficient and sustainable, but may also have advantages when it comes to repurposing existing materials and reducing carbon footprint.

Citigroup's ongoing refurbishment of their existing Canary Wharf premises is an excellent advertisement for the benefits of retrofitting. Refurbishing the building rather than demolishing it is expected to prevent the release of 100,000 tonnes of embodied carbon. Infrastructure updates will result in the renovated tower being fully electric, and the building's façade has been designed to increase thermal performance.

However, as referred to above, retrofitting presents challenges: contractors may hesitate to accept the risks of using recycled materials, and insurers may require additional information or surveys before offering coverage at reasonable rates due to unfamiliar construction methods.

Conclusion

While the future of the working model for banks is by no means settled, it is clear that the office still has a vital role to play in creating a successful business where employees want to come to work. Striking a balance between maintaining a physical presence that is sufficient to accommodate staff returning to the office more frequently and not overextending on occupancy will be key. Similarly, finding an office environment that meets wellness criteria and energy efficiency now expected by banks and their employees means the demand for prime assets will only continue to grow.

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