Flexible Workspaces rehearsal space shared and private on our offices for start-up businesses High Streets

desk space shared kitchen space maker space

bookable meeting rooms

lab space

recording studios printers and artist framers studios community health and wellbeing hub

00 1 Foreword by Simon Pitkeathley Foreword by Jules Pipe

The pandemic has significant ramifications for role in the post-COVID world. High streets The last few months have seen numerous Existing workspace operators, landlords and the future of how workspaces will be serving will benefit from a customised meanwhile debates reflecting on the potential impact of developers have already started exploring entrepreneurs and businesses post Covid. As- use approach, and as CEO of the Camden the pandemic in the future use of office spaces. how to reconfigure or redesign their surplus Co-Chair of the Mayor’s Workspace Advisory Collective co-working space, I know that such With the vaccine being rolled out across the or empty premises by converting some of it Group (WAG), I and my fellow co-Chair Sarah projects have the agility to respond to struggling UK and with expectations that the summer into flexible offices. It is expected that over Ellis, and all members of the Group, have been local economies with imaginative installations will see the situation improve, we will start the coming months, new flexible workspaces focusing on how the sector could adapt to that fill vacant spots with an energetic understanding how offices will be used in a will be opening across outer and inner London this new landscape. I believe that in its various community of entrepreneurs. post-pandemic world. locations. forms, workspace could be a vital tool in helping London to recover from the impact of vacancy This pamphlet identifies where and how these In parallel, employers of all sizes are exploring This pamphlet proposes a range of scenarios rates, from small units on local neighbourhood new types of flexible workspace models could how to adapt their working patterns to that can be adapted to the needs of private and high streets, to towering office blocks within the flourish and help London to recover quicker combine use of central headquarters, with public sector landlords thinking of repurposing CAZ. whilst building its resilience as a flexible and employees both working from home and using their premises. The conversion of surplus space responsive city. Uncertain times lie ahead, flexible workspaces in offices local to their into flexible workspaces could ensure our high We must explore new concepts such as ‘deep but this package of ideas poses some thought neighbourhood. streets are more vibrant and sustainable, while work’ – repurposing traditional office space provoking and ambitious possibilities for the providing the right type of working spaces to for the temporary use of remotely based building of our future city. These new ways of working will change how small, medium and large businesses. companies for periods of intense, in-person we perceive, design and use both London as a work. This could give London’s CAZ a unique Simon Pitkeathley global city and our local neighbourhoods within Jules Pipe CBE Co-Chair Workspace Advisory Group it. This is an opportunity to use the recovery Deputy Mayor for Planning, Regeneration and from the pandemic to transform our city, to Skills make it a more people-friendly place with more self-sufficient neighbourhoods where Londoners can access everything they need within a short walk or bike ride away. In this new type of city, the flexible workspace sector could play a significant role in achieving this objective.

2 Introduction

This pamphlet has been commissioned by the We are grateful to the members of the Workspace Greater London Authority and the London Economic Advisory Group, GLA officers, and all those who gave Action Partnership (LEAP) following the advice of their time to contribute to our research and the Mayor of London’s Workspace Advisory Group development of proposals: to provide propositional guidance on how new flexible workspace can be brought forward through Alastair Parvin, Open Systems Lab Martyn Saunders, Avison Young the repurposing of existing high street buildings. The Alex Woolf, Romulus Matthew Rust, LB Croydon changing economies for the retail sector, alongside Alison Partridge, Capital Enterprise Michael Davis, JLL the shifting patterns of how and where people choose Andrew Catcheside, LB Enfield Mike Nisbet, Landsec to work, highlight significant opportunities to bring Anisha Jogani, LB Croydon Nimrod Vardi, Arbeit back into use vacant retail spaces, while providing Ashleigh Watkins, LB Barnet Ojay McDonald, Association of Town Centre flexible workspaces closer to where people live. Ben Oliver, KLM Retail Management Benjamin Carew, Othership Olly Olsen, The Office Group This pamphlet provides practical guidance and Blossom Young, Poplar HARCA Paul Hammond, Hammond Associates propositions for a reimagination of the relationships Charlotte Healy, LB Westminster Paul Hodgson, GLA Data between landlords, tenants, operators, and local David Conboy, Newsteer Philip Bier, CEO Bier Retail Ltd authorities, with the purpose of reducing the risk Duncan Ray, Remarkable City Rebbeca Trevalyan, Library of Things profile of vacant units, while ensuring that high Emily Berwyn, Meanwhile Space Richard Pestell, Stantec street assets create social value by making space Gabriela Spangenthal, LB Brent Sally Williams, Retail Revival accessible for local business and enterprise. Four George McCullough, LB Sutton Sara Turnbull, WorkWild scenarios presented focus on how large public-sector Gerard Burgess, GLA Sarah Musgrove, Urban Land Institute owned assets, empty shopping centre units, large Gordon Innes, Bloomberg Associates Shamim Akhter, LB Redbridge retail space in the Central Activities Zone (CAZ), and Hannah Clayton-Peck, Ashford Council Simon Pitkeathley, Camden Town Unlimited small units on a high street, can be repurposed for Indy Johar, Dark Matter Labs Siobhan Jared, TFL flexible workspace. The scenarios present different Ion Fletcher, British Property Foundation Vanessa Hale, Urban Land Institute ownership, delivery and operational methods, outline James Child, Estates Gazette the benefits from different stakeholder perspectives, James Sheppard, Kadans Science Partners and showcase existing examples of how such Jayne Smith, Hammond Associates innovations are already coming forward. Je Ahn, Studio Weave John Desmond, BWA Julie Khan, LB Redbridge Marcel Baettig, Bow Arts Mark Bourgeois, Hammerson 00 3 A call to action The scale of opportunity

Shake-ups to the retail sector, predominantly as a This pamphlet sets out the scale of opportunity result of fast growing e-commerce and the experience that London faces in addressing these interlocking What is happening now A new way forward economy, have challenged traditional assumptions of challenges to kickstart high street recovery, namely: anchor retail tenants, and resulted in a domino effect Testing uses of high street vacancy. The compounding impact • Alleviate landlords of liability costs from empty Workspace lost to land and alternative Develop flexible of coronavirus on high street retail has been well units E-commerce pressure & Permited Fragmented Stakeholder management & affordable Curation documented, with a growing number of high profile • Create and share new contractual models for growth Development Rights Ownership partnership models workspace administrations and record numbers of store closures flexible leasing and job losses. • Secure space for entrepreneurship and build a £ pipeline of local business The reductions in high street market yields • Build new multi-stakeholder partnerships to (documented by Savills and Knight Frank) also support high street curation and manage risk Immediate risks Understanding impact challenge the valuation process, as there is increasing • Ensure asset resilience, with long-term quality of difficulty in putting a value on assets where rents may tenants and income Access to Increased enterprise & not have been paid for many months. Closures of Retail Lack of local Difficult to anchor units Vacancy access to space curate footfall Local jobs community space

Alongside rising vacancy in retail spaces, London is experiencing shortages of flexible workspace Who this pamphlet is for (and in particular artist workspaces) as a result of development pressure, rising land values, and Reimagining vacant and underused spaces on high Long term risks Beneficiaries Permitted Development policies. This trend has streets requires deep collaboration and participation (direct/indirect) meant that neighbourhoods are lacking access to by all stakeholders across the public, private and affordable, secure, long-term space for business and community sectors. The scenarios explore the roles Long term community enterprise start-up and growth. of public and private landowners on high streets and vacancy and Liability Costs shopping centres, the agents and advisors involved in Job Loss growth in hard Weak local Sustainable Alievated Strong local Diversified to let units to Landlord economy Tenantship costs economy high street While initiatives around affordable workspace policy, letting and managing units, the workspace operators £ £ provision, and meanwhile activation of vacant retail and organisations supporting businesses to access £ £ stores have achieved some improvements in high workspace, and the local interest groups such as BIDs streets, the underlying conditions of fragmented and community businesses. land ownership, risk aversion, as well as the lack of coordination in governance and curation, continue The scenarios focus on contexts where the traditional to challenge any long-term, sustainable high street commercial model is no longer viable, and therefore recovery. not looking to replicate the existing workspace provision.

4 “It’s all about flexibility”

Shifts in retail property The future of work

The major shifts in the retail sector over the last • Vacancy monitors show the rise in retail vacancy Coronavirus has also accelerated the trends towards equipment, on-site childcare, or recording studios, decade have been well documented, with coronavirus across London, as it follows: more flexible working arrangements with a likely rise can fill a gap currently in traditional office provision, amplifying many pre-existing trends, and necessitating a in demand for working closer to home for part of the and make workspaces more accessible. repurposing of high streets beyond shopping. vacancy end of week. Large tech-sector companies are announcing 2020 new “work from anywhere” policies, and “distributed • We have seen a number of high profile retailers first” models, which signal towards a trend of rising going into administration and liquidation (Deloitte), demand for facilities which enable collaboration for challenging the reliance on anchor tenants for many shopping a distributed workforce. New working patterns will high streets and shopping centres, as well as what shops CAZ centre not only lead to new partnerships between landlords, constitutes a strong covenant for granting leases. 13,7% 47% 17,1% operators and tenants, but will also need to be “We are starting to reinforced by a more careful curation of the high • Increases in the online shares of sales, which street. see people who say food & precede coronavirus, continue to change the other beverage business models for retailers, and reduce the need 46% for large retail units for a single business. 54% The announcements from employers of “home they need a desk for office allowances” for their workers, and the already • An overhall of traditional retail leases, (20+ years established models of corporate memberships to a couple of days a facilities, gives rise to the viability of the ‘hub and and income-driven rent agreements) is already chains independent underway, with many landlords adopting flexible 83% 17% spoke’ flexible workspace hubs across the city. Outer week as their home lengths and turnover rent agreements. These shifts London’s high streets can benefit from this latent will inevitably lead to changes in how valuations are demand, with the end of line stations in particular Data source circumstances mean set, as a set market rent for retail is replaced by more Shops & Shopping Centres: BRC and Local Data Company being able to serve their residential neighbourhoods, flexible contractual agreements and appreciation of Central Activities Zone: as well as their wider commuter catchments. broader tenant outputs. a. vacancy: Local Data Company they need a different b. footfall: Springboard The CAZ, on the other hand, has the additional opportunity to capture the demand for “deep work” environment” - where newly distributed teams and decentralised “The words ‘Landlords and Tenants’ are archaic terms that set the tone for hostile companies, wanting to gather for a series of days in an relationships. Retailers and Owners need to work in partnership because only when easily accessible location, can collaborate and access Blossom Young specialist facilities. Including ancillary facilities as they BOTH succeed will the retail industry as whole become successful” part of the flexible workspace offer, such as meeting Poplar HARCA spaces, exhibition spaces, video conferencing Philip Bier 5 CEO Bier Retail Ltd Recovery strategies Planning changes A Green New Deal The London Recovery Board has developed nine The Government’s changes to the Use Classes Order ‘missions’ for the city’s social and economic recovery, which came into effect in September 2020, have A Robust Safety Building Strong which have emerged following close collaboration significant impacts in terms of granting new flexibility Net Communities between local authorities, health and care bodies, for landlords to change between retail and workspace business groups, trade unions, the voluntary sector, uses, and the abilities of councils to plan the activity academia, national Government and other bodies. mix on high streets. The missions aim to restore confidence in the city, minimise the impact on London’s communities and There is an opportunity for high street retail units build back better the capital’s economy and society. to switch to workspace and other (former) B1 employment activities with greater flexibility and High Streets Healthy Food, The ‘High Street for All’ mission advocates for the room for hybrid models that combine retail and for All Healthy Weight diversification of the high street offer, the bringing workspace functions. into use of vacant and underused buildings, and introducing new types of business and civic A challenge however, for Local Authorities and organisations. The emphasis on repurposing existing landlords of vacant units in town centres, is that the infrastructure is an integral part of responding to new changes provide a means to circumvent the Recovery the declared climate emergency and meeting the sequential test and move away from the principle of UK’s carbon zero targets, as further outlined in JLL’s ‘town centre first’ for main town centre uses. This will, Missions A New Deal for Digital Access research report. in some locations, make vacant units within centres Young People more difficult to fill as shops and restaurants are for All Using meanwhile use coworking spaces (such as encouraged to proliferate elsewhere. the Camden Collective precedents) can contribute to boosting the local economy by injecting a new community of entrepreneurs, with their every Good Work Mental Health & day spend and socialising supporting the trading for All Wellbeing environment, and building up local supply chains.

6 High Street Large estate owner Larger-stake owner Fragmented ownership + Fragmented ownership governance vehicle Governance A single owner of a large estate across one A high street with one or two owners who have A high street with fragmented ownership, but A high street with fragmented ownership, but geographical area a larger stake with a number of units with a governance body in place such as a no governance body in place Different configurations of high street ownership Business Improvement District and governance impact on the capacity to curate and coordinate activity on high streets. While large estate owners are able to manage commercial assets as a portfolio and cross subsidise their income, the more common fragmented ownership on high streets is often a cause of vacancy and oversaturation of homogenous retail.

High streets across the city also vary in the “attention per square foot” that they receive, with some high streets benefiting from the programming and investment by Business Improvement Districts, landlord forums, Local Authority regeneration teams, and active civic sector, while others lack any coordination or strategic investment (reflecting the baseline Source: Clem Rutter (CC BY-SA 4.0) Source: Architecture 00 Source: Carron Brown (CC BY-NC 2.0) Source: Architecture 00 of only 10% of town centres and high streets in London that have a strategy). + Pros + Pros + Pros + Pros • Able to pool resources and have • Portfolio of different types of units • BID or landlord forum takes on • Successful landlord may secure key large stakehold in governance to offer promotion role + coordinating tenant which anchors the high street 17.3% 21.4% Overseas • Able to cross subsidise income • Tuned into local governance maintenance services, events and and drives footfall UK REITS & Propcos Investors across the portfolio place marketing • Wider curation potential Cons • BIDs can facilitate public-private Cons Other 3.9% - - 16.6% • Rely on agents for promotion relationships which make innovative • No coordination, relying on council’s 5.3% Public Retail & Leisure Sector Occupiers - Cons • Typically traditional lease meanwhile use possible capacity to fund improvements 5.8% 13.3% • Too large to be nimble and agreements • Each landlord looking to extract Traditional Investment 7.5% Estates, Church & experiemental and tuned into hyper • Vitality of high street depends Cons highest income from individual unit Management Private 8.9% Charity - Schemes Institutions Organisations local talent and potential on interest of landlord who may • Some BIDs are limited in pooling • Health of high street is dependent prioritise profits (not always to large resource on success of estate portfolio benefit of diversity and offer) • Lack of landlord presence in Ownership of top UK high streets by investor type Source: Radius Data Exchange, Land Registry, governance limits coordination 7 Scottish Assessors Association Types of workspace Types of facilities Affordability While the 2021 London Plan policy E3 defines Definitions of ‘Flexible Meeting room Cafe affordable workspace as rents maintained below Co-working Creative/artist studios Workspace’ vary across the market rent for a period of at least 15 years, there industry and by sector. General Open plan, informal spaces Managed by an operator are a number of other factors that contribute to principles of a flexible workspace combining workstations and and offers space for artistic affordability for end users: include having an easy in-out supporting facilities such as activity, typically in self- Event / exhibition space Creche lease, tenancy or membership meeting room contained studio units. Low/ agreements, and a strong Peppercorn rent wraparound community offer. £ Incubator Creative co-working New builds The following categories of Mixed facilities. Desk space; often with through S106 space, operation, and activity are Specialist equipment Parking agreements Provides business support shared amenities. Typically, Sector provided as an outline, and can be no creative or technical specific Often have relationships workspaces co-located within a workspace to Finished to with universities facilities for making on site. (Hubs) enable hybrid business models. basic fit-out Good to minimise Transport Creative facilities capital Recording studio Showers Accessibility Business Managed Offices expenditure Technical, creative facilities Rate Basic amenaties with no Relief (eg. recording studio, Shared Kitchen furnishing, business support darkroom, workshop) often Long Lease or dedicated meeting Lenght Individuals or businesses alongside a desk space or rooms. Strong internet Business support prepare value added food studio Factors mentioned by Workspace Operators as attractors to + products and meals. Serviced Offices deliver affordable workspaces Makerspace Lab Workspace Furnished and usually Rent Discount available with instant Shared technical or Kitchen space Lockers Business Lease Controlled conditions for occupation. Shared meeting workspace facilities Rates Incentives scientific or technological rooms, business equipment for physical making or research and experiments. ‘All in’ and other resources production of goods. Often Meanwhile Use rent Accelerator with supporting technicians Storage Outdoor space onsite to assist and manage Business access specialised Use the workspace Rent Intensifica- support to accelerate growth Structure tion Support lasts for a short, fixed

period. Bike storage Host Shared Fit Facilities Out Right Sizing

Defining/Achieving Affordability Source: Avison Young/00 8 Suitable Areas The city scale Structural conditions

The need and approach to repurposing vacant A series of urban conditions can support the development of flexible workspace on Layers of underlying contractual agreements, governance structures, and and underused high street units will differ high streets. The illustrative map shows some of the characteristics which could help infrastructre underpin the activities and users on a high street: across London’s boroughs and zones, as the local authorities, developers or landlords prioritise intervention. An overlap of three land values, high street character, and severity or more of these parameters, for example an area undertaking large scale housing of impact from the pandemic have varied growth where there is an end-of-the-line/outer Zone station and a retail dominated across the capital. high street, could signal a latent opportunity. Actors Various actors hold a stake on the high street As documented in the CAZ Economic - such as Business Futures Research, Central London’s and Community consumer economy, as well as its social and Improvement Districts, cultural fabric, are facing a deeper and more landlords, Local Authorities, businesses, protracted crisis than other parts of the city. public sector services Regardless of which ‘back to work’ predictions such as the NHS, materialise following the pandemic, the CAZ social enterpises, and will undoubtedly experience post-pandemic community leaders High Streets period of vacancy and under-use. There is Governance therefore a need to explore how the CAZ can CAZ The organisations active shape its recovery and repurpose its vacant Inner London Boroughs in the custodianship Policy and regulation and curation of a high Workspace and ground-floor assets towards broader strategic End-of-line stations street represent the employment land, town aims. “attention per sq ft” that centre mix, and use class an area has access to, policies, as well as social Outer London by contrast, is experiencing and thus its ability to value requirements, access funds, coordinate set the incentives and a different set of challenges and new-found improvements, or controls for the activity demand. Outer London’s towns have a Area considerations programme activity mix on high streets wealth of existing amenities, good transport Financial connections, and wide residential and Areas of housing growth Retail dominated high street commuter catchments, but, however, vastly The investor and shareholder model and Infrastructure Areas with a higher demand for office High Vacancy Rates differ in terms of infrastructure, governance, financial terms can be Fast fibre optic internet and resident demographics. Areas witha higher demand for flexible Flats as dominant residential typology both an enabler, and and transport links

workspace £ severly restrict the are a key viability High Land Values power of the landlord, consideration for Areas with a higher demand for artist studios operator, or tenant to Areas of rising house prices and rents workspace operators and adapt their operations businesses - B1c Areas with a significant loss of B1c space Fast fibre optic internet or adopt a longer-term strategy

9 capacity to engage

Stakeholders The Public Sector

• Premises belonging to Local Authorities, Network Rail, Central Government, TfL, NHS, etc. Strategically curating and repurposing • Varying access to capital and capacities for engaging in high street Low land ownership, Asset management Developer and investor in own High Street landlord curation low capex availability seporated into Property and assets; affordable workspace engagement; provides underused high street assets requires more • Varying priorities and political landscapes for Local Authorities - Regen portfolios; reliance on policy incentives through enterprise systemic intervention, which goes beyond employment, sector growth, supply chain localness, placemaking, etc external grant funding funds the physical redesign and unlocking capital expenditure, to ongoing collaboration, The Landowner agreements, and inputs by various stakeholders. • From the owner of a single asset to an asset portfolio holder Stakeholders can vary significantly even within • Potential restrictions in terms of shareholder, or bank agreements, Bank covenant Landowner engaged in Owner of a larger asset base Long-term investment focused, the groupings of ‘landlord’ or ‘Local Authority’, as impacting on risk appetite and ability to engage in repurposing model • Varying levels of management and agents in charge of asset restricted, one-off local governance and managed as a portfolio with providing business support to individual organisations will have differing access • Long-term investment and business support focus vs income- owner, many layers of partnerships between different lease models incubate and grow tenants to finance, organisational makeup, missions, generating focus management public/private sector and experience in delivery and operations. The Business Improvement District model, for example, emerged in North America, where The Agents and Advisors due to the particular property tax system, embedded landowners within its membership. • While agents provide strategic advice on properties, the responsibility The extent to which a high street governance for decision making often lies squarely with the building owners Soley traditional retail White boxing of units; Tuned into local governance Introducing simplified leasing • Different extents of engagement with local networks in tenant focus, chain store supporting pop-up and broader tenant pool; and contracting models for and ownership model has representation of recruitment tenant pool activation engaging with untested lower risk for tenant; tenant landlords, businesses, community leaders, and • Willingness to engage with community businesses and un-tested business models to support incubation business models incubation public and private organisations, determines its • Presentation of vacant units, and engagement in activation initiatives ‘attention per square foot’. The Operator Here we outline the characteristics of the • Variety of operational models and access to capital expenditure different typical stakeholder groups involved • Some have specific geographical scope Needs quantum of Socio-economic output Brining into use vacant and Wider community give-back, in high street governance, and highlight their • Vary in terms of lease length and level of rental return and social space for viability, driven, able to invest capital unused spaces, building up local ownership and capacity various conditions and capacities which need to giveback commitments cannot invest capital with longer lease offer local supply chains building offer • Vary in terms of specialism or sectoral focus be acknowledged when tailoring the approach to • Vary in amount of minimum floorspace operationally viable collaboration. The Local Interest (BID, local community organisation)

• From no high street custodian, to a mix of local stakeholders with active engagement in curating the high street uses and activities. Local Authority as sole Active BID with Landlords active in local Capacity for project • Representation within local governance from landowners, businesses, custodian placemaking or governance, collaboration delivery and maintenance and community leaders operation function with Local Authority responsibility, developing • Varying capacities to invest and deliver improvements or operations funding pots 10 Glossary of tactics

Throughout conversations with landlords, Services contracts and SLAs Corporate sponsorship Flexible lease length local authorities, agents and operators, a number of tactics have been highlighted • Negotiate terms which form part of the • Opportunity for flexible and shared • Low-risk leases for tenants, allowing start- which demonstrate some of the innovations in lease and outline the social value, services, workspace to be in part subsidised by large up businesses to fail and grow repurposing and letting of spaces. This is by no and programming that the operator or end employers and corporates, allowing their means an exhaustive list, but provides a scan of tenant will provide, often in return for lower staff access to professional workspaces the types of tools that are starting to be applied rent obligations closer to home Customer networks in various contexts, and can support greater • Haringey’s Community Wealth Building • A landlord or operator can partner with flexibility, risk mitigation, and collaboration Lease is an example of this approach Business Rate strategy organisations that have access to networks between stakeholders. of potential users, such as the network • Some councils have been taking an Meanwhile activation around Othership Further research by the Local Government approach to discretionary Business Rate Association, outlines the powers available to • Window of opportunity for a number of relief for ‘Open Workspaces’ and meanwhile Local Authorities in tackling vacancy - such as years before a redevelopment comes uses in pre-development sites. Since 2018, Turnover rents Planning tools, asset management, targeted forward, or future use is established LB Waltham Forest have offered ‘Targeted • Meanwhile activation should be a window of investment, enforcement and licensing. Relief’ for workspace providers who are • Rent agreement between landlord and opportunity to test, prototype, and capacity not-for-profit, reinvest surpluses into tenant based on turnover of tenant - build a future use or activity affordable workspace within the borough, landlord has a stake in the longevity and • There is potential for very shoort and achieve ‘local social, economic and success of the business occupation of space, typically enabled by cultural benefits’ • Savills research has found that 33% of tech, through platforms such as Sook • Rates relief can also target specific sectors retailers undergoing a Company Voluntary in need or stimulate economic activity in a Open call out Platform location (LB Brent Affordable Workspace Agreement in 2020 have requested some Strategy) form of turnover rents compared with 0% • Landlord(s) advertise their vacant units in previous years, highlighting the growth on a shared online platform, with an open Multi-use and hybrid spaces of this form of lease structure callout for tenants to propose uses and activities within the available spaces • Multi-Use Buildings providing a startup • Spaces available on flexible terms, and the ecosystem where free space is cross- Consortium asset platform makes the process transparent, subsidised by rented spaces; provision of management lowering the barriers for local entrepreneurs on-site business support; providing a mix of to access space production, office, and point of sale space • A vehicle by which multiple landowners or • This was an approach launched in the to enable hybrid business models; and small units in high streets can partner with Open Poplar platform, and recently multiple users based in same unit to relieve an operator to manage their vacant assets recommended in the Meanwhile Use report pressure on small businesses to commit to long-term. 11 Culture in identity making Curation Strategy + scoring matrix • Providing a platform for the arts and cultural production activities can embed • A co-developed curation strategy with a local identity and nurture local talent key stakeholders, identifying types of activities and services that high streets need, and the types of businesses and organisations in need of space. Enterprise funds • An allocations policy to select tenants, including local-giveback commitments • Councils and local stakeholders developing a fund for enterprises to start- up and grow, as well as funds towards improving high street units and shop White boxing fronts • Presenting a vacant unit as a white box, ready for occupation by tenant who can ‘Every town centre’ policy more easily imprint their own identify and fitout. • A policy of a flexible workspace hub in every town centre (as adopted by Barnet Council) • Provision may be is generic or specialist, Community business and to support clustering, knowledge ownership networks, and developing a town centres • The Power to Change guide on niche Community Businesses demonstrates the capacity of this locally-rooted sector Empty property tax to generate income while meeting the key aim of providing local services and social • The Belgian city of Roeselare is widely value cited as an example of an effective, locally implemented taxation system for empty properties that, combined with business grants and a pop-up matching platform, has succeeded in reducing growing vacancy 59 Great Portland Street, Westminster 12 Source: Retail Revival Scenarios Public Sector Assets Shopping Centres Conversion of large underutilised public sector Creation of flexible workspace in empty shopping assets centre units

To illustrate the scales and diversity of opportunities for repurposing existing, underused assets into flexible workspace, we delve into four scenarios. The scenarios are designed to be widely applicable, and explore a spectrum of conditions in terms of: • ownership - private and public sector owned • scale - small high street units to larger multi-storey assets • location - Outer London high streets and within the CAZ • longevity - meanwhile window of opportunity to long-term agreement Retail in the Central Activities Zone High Street Units Conversion of a retail space, owned by a private Conversion of space in high street units landowner, within the Central Activities Zone Flexible workspace here includes a broad range of activity - from desk-based, to workshop and artist space. Focusing on units which are hard to let long term, we explore new operational models and the introduction of ‘deep work’ activities. Each scenario also presents different ambitions of intervention, with some backed by existing precedents of operational schemes elsewhere, while others may have some ingredients of partnerships and funding availability, but will require new models of management and ownership to be viable and impactful.

13 Employment Density Power Supply Traffic Impact Approximate number of Rules of thumb daily goods vehicles / 1,075 sqft

Created by shashank singh from the Noun Project

Created by Valeriy Across the four scenarios, there are from the Noun Project office convenience some general rules of thumb which General office: 10-13 sqm/job Level of power supply is dependent on store can be used as guidance on the R&D space: 40-60 sqm/job workspace requirements, subdivision of units 1 10 Created by creative outlet and user occupancy rates. Non office based from the Noun Project typical considerations and metrics Light industrial: 47 sqm/job which support viability in existing may need to consider 3 phase power higher Storage & distribution: 70-96 sqm/job than average office requirement for small power industrial projects. These considerations may of unit supermarket Incubator: 30-60 sqm/job supply. Co Working Spaces may need a higher 2 2.5 course vary across different contexts Maker spaces: 15-40 sqm/job than average office requirement for small power. retail park and depending on the project delivery Studio: 20-40 sqm/job 1.5 route, but can support the scoping Co-working: 10-15 sqm/job phase. Managed workspace: 12-47 sqm/job

Source: Homes and Communities Agency, Employment Source: Urban Flow Density Guide 3rd Edition (2015)

Ceiling Height Retrofit Cost Fit-Out Micro Sites £ Created by Adrien Coquet from the Noun Project Created by iconbox89 Created by Shovy Rahman from the Noun Project Tenants on a long lease (10from the years Noun Project plus) will likely want to fit out the space from shell and core condition to Typical costs for ‘making usuable’ (cleaning, design the space bespoke to their needs in return for Some workspace types require clear electrics, checking certify services, but no struc- a rent free period or cost contribution from landlord. ceiling height of 2.7m and above. 1.5 tural changes or new building systems installa- Micro sites (less than 150-200sqm) Most tenants would prefer a Cat A fit out ie with storey conditions should be considered tion) a 1960/70s former office block ranges be- would typically require more significant ceilings, carpet , power etc but without partitions or for some workspace types. tween £3.5 to £11/sqft depending on condition. operational overhead and management. any other customisation to allow them to personal- The cost for CAT A fitout ranges between ise the space to suit their own requirements. £75-100/sqft. Some tenants prefer for landlords to provide a “turn key” space and would therefore be more suited to a Cat B fit out provision. 14 Location Context Public Sector Assets A outer London high street in which the Local Authority owns a large office block which is becoming surplus to requirement End of line tube station on a high as the organisation consolidates its office space into the new Conversion of large underutilised public sector assets street in Zone 4 Civic Centre. This move creates a long-term redevelopment opportunity for the council, and a temporary opportunity to Predominantly fragmented repurpose the aging office block to provide flexible workspace. ownership, with local authority owning two large civic assets This may be a high street which has suffered from a large loss of office space as a result of Permitted Development Rights, Repurposing of underused Local Authority owned assets, such as former Residential catchment consisting of and therefore lacking in space for early business start up and council offices, or underused spaces within Libraries. high portion of flatted development incubation, as well as grow-on space in larger high street units.

This scenario considers a spectrum of opportunities from: +

Former multi-storey council office • Repurposing underused spaces within libraries and other service centres building - Local Authorities and service providers have brought underused basements, former storage areas, and underused rooms into use for The council office sits within a workspace of various types wider site which presents a long- term mixed-use development opportunity, planned to come • Bringing into use large former council office buildings - as Councils forward in 5 to 10 years modernise their civic centres and consolidate their office requirements, impact a number of former offices and large assets can be repurposed for various types of workspace and innovative offers tailored to local A council-owned library with underused former storage or communities basement spaces

The high street is dominated by retail +++ and food and beverage units, with lack of flexible workspace provision to support business start up and incubation

council assets residential high street station 15 Delivery Considerations Scoping Design Activity Leasing Outcomes Landlord to: Operator & Advisors to: Operator & Local Interest Group to: Landlord & Operator to: • Remove empty unit liability costs for • Survey the building condition • Explore potential of retaining • Explore potential space for local • Agree lease option of 3-5 year landlord internal layouts to save on custodian group to engage with the Interim period before future • Aim for Cat A fitout - the more the repurposing cost community from - ie BID office, or development comes forward (less • Provide space for innovation and landlord does in fitout, the more Regen team outreach operator capital commitment), invest in developing a strategically affordable/attractive the offer is to the or 5-20 year period investing to important sector or skills base operator/tenant • Potential for local groups to lever in extend the life of the building (more external funding to deliver services operator capital investment) • Bringing an underused building into • Factor in power upgrade use for an interim period before requirements and internet speeds • Ensure affordability for end user redevelopment, or investing in Generic through terms with the operator - ie extending the life of the building • Develop priorities around which a profit share agreement instead of sectors to support locally based on set rent • Support the development of a sector growth analysis, wider London pipeline of businesses and enable industrial strategy, and engagement • Potential for subsidised the provision of grow on space with key institutions and stakeholders, memberships for local groups or soft market testing with workspace residents • Support the council’s aims in operators responding to local workspace need

• Secure space to grow the local custodian role

Operator & Advisors to consider: • Access alongside Library function Landlord & Operators to: (entrances and hours of operation) Operator, Local Authority & Local Interest • Support the core service function • Engage in soft maket testing Group to: - such as through operations to of operational models and fitout • Separation between the private and • Explore opportunities for enable the library to have longer Space In Library requirements public facing workspace offers community programming and opening hours services alongside workspace offer • Ensuring noiseproofing and mitigating disturbance to Library function

Landlord & Advisors: Operator to: !• Floors can have multiple • Maintaining a civic use for the • Procure advice with experienced • Negotiate hours of operation with workspace functions and leasing vacant ex-council office building knoweldge of end of life buildings Planning and potential for evening/ models to enable diversity of Ex-Council Office night-time uses on ground floor or occupants, and cross subsidy roof model

16 Ex-Council Office 1 Community & Start up Space 2 Flexible workspace (3,575 sqft) 3 Studio/Office space (10,725 sqft) (3,575 sqft) £ Cost & Returns Uses: Uses: Uses: • individual businesses Ex-council office which is vacant • desk space - Costs • community room • meeting rooms • grow-on space once the council moves into a new Fitout Costs (approx. £130,000 exc.VAT) • pop-up/testing space • satellite office Civic Centre building. 1970s block • shared facilities (50% is covered by the Local Authority and the • building management & operations • artist studios that is coming to end of life and in • business support remaining half is amortised over 10 years) office Lease: short flexible leases at need of some urgent repairs by the Lease: membership (£150/mo) Lease: half of the space is let to a £18/sqft (all up) • Minimal strip out landlord before operator can take on community-focused organisation at a • Clean/repair WC’s the building and prioritise fitout and capped end-user rate of £4/sqft. The • Clean/repair carpets any modernising works. Site is a future remaining half is let at £40/day or £10/ • Decorations to perimeter walls development opportunity, and there hour for pop-up uses and meeting potential for the roof to be • Repair ceiling (20% assumed) is an interim period of 5-7 years before spaces. let if occupier (bar/cafe) is • Tidy up reception the redevelopment comes forward. found and the works costs • New furniture are covered by them • Check certify services, lift,etc If the asset is not developed the • Urgent fabric repairs yearly costs would need to cover empty business rates, security and 3 CAT A fit-out could be Running Costs maintainance, adding up to £150,000. considered for the market (approx. £210,000/ p.a.) units. • Rent *This has not been considered in • Business Rates (assumed 20% as charity) the adjacent list of costs Operation • Utility costs

Created by Nithinan Tatah from the Noun Project • Cleaning • Council enters into lease • Maintenance with workspace operator 2 maintain most of the existing • Amortised fitting out costs (10 y) to manage and sub-let the layout to reduce cost & • Building management spaces ensure an affordable offer • Some spaces are let to + Returns tenants with own dedicated (approx. £214,000/ p.a.) space, requiring less operation strip back & install flexible • Community & Start up Space than areas that need more partitions to match approx. £10,000 curation with multiple users or operator specifications • Co-working Space 1 hot-desking spaces approx. £45,000 • Ground floor can be activated • Studio/Office Space for events and programming approx. £156,000 @ 80% uptake of activities • Events: approx. £3,000

signage 17 “Libraries already have the infrastructure & conditions suitable for work”

Olly Olsen The Office Group

Wimbletech, Wimbledon Old Manor Park Library, Newham Ujima House, Brent Source: coworkinglondon.com Source: Bow Arts Source: Meanwhile Space

“To encourage more diversity in the high street it is critical all landlords engage and consider alternate futures for their assets. “Sutton’s strategy for leveraging Many will view change as a high risk strategy, council assets, creating partnerships particularly if their assets are small. The has unlocked regeneration public sector should help overcome this opportunities for Sutton High Street barrier by aggregating these small spaces into a portfolio, either directly or through a and will help in maximising social SPV they back. The public sector covenant value benefits for our community.” can de-risk the proposition for landlords and, through scale, create sustainable returns to George McCullough the SPV to maintain its operation” London Borough of Sutton

Martyn Saunders Avison Young 18 International House, Lambeth Ingestre Court - Huckletree, Camden Source: GLA Source: JLL Inspiration: Ujima House

Meanwhile project showcasing how local authorities can activate an underused public asset which sits in the development pipeline.

Location Ujima House is a five storey building owned

Created by Barracuda Wembley, LB Brent by London Borough of Brent and it has been from the Noun Project made available for meanwhile use, pending Finance longer term redevelopment. The tenants have Capital costs: £22,400 been a mix of shared community maker space, £ Potential revenue: subsidised boxing gym, community learning £105,000 (full occupancy) center, football academy school, youth club. Rent: 50-80% market rate dependant on duration of lease and condition of property. Mixed-use spaces offer opportunity for a Key Learnings mixed affordability / mixed tenure model • It has been challenging finding a Lease replacement tenant for the available floor Meanwhile Space has a peppercorn lease. earlier in the year. This was primarily due Tenants are responsible for the business rates to remaining lease length and fit-out works themselves. The council have committed to required for the prospective tenants needs reimburse any maintenance costs over £500. • The spaces had to be brought back into a usable state. This included electric, Activities gas and fire safety, new access control, office space fibre broadband, health and safety, pest maker space, control, intercom repair, lift repair and community training, maintenance, asbestos surveys, and football academy, repair of the car park barrier. community boxing club • The business rates team were crucial to reducing the risk for this project. They Spatial Provision undertook the VOA split by floors so each kitchenette on every floor, secure 24/7 fob tenant is responsible for their own rates. access, high speed internet, access to private Moreover, they also ensured the rate relief Created by Ezgi Nazlı from the Noun carProject parking, office spaces between 12 and 115 to Meanwhile Space on vacant periods. sqm Ujima House, Brent 19 Source: Meanwhile Space Shopping Centres Location Context An outer London location with a 1970s-era shopping centre In proximity to an end of line tube located on a pedestrianised high street. The high street is Creation of a flexible workspace in empty shopping centre units station on a high street in Zone 5 dominated by chain retail businesses, and increasingly high vacancy, with the shopping centre itself suffering from former Fragmented ownership, with high street anchor tenants going into administration. BID in place The high street has a large residential catchment, and a lack of This scenario focuses on the opportunities for repurposing retail units when Residential catchment with a formerlly civic assets that can enable vibrant gathering spaces for the community. the model of an anchor tenant driving footfall is at risk, there is increasing large commuter base into central London vacancy, or potential for future redevelopment. Changes to lease models and design can enable hybrid activities to activate vacant units (such as workspace, leisure, and community uses) alongside the existing retail.

+ Options presented explore: Shopping centre with existing food court and large former anchor tenant unit • Repurposing individual retail units on a temporary basis to provide workspace for makers and artists on flexible terms, to alleviate vacant unit costs, animate the centre and provide a flexible offer to tenants Retail dominated pedestrianised high street, with predominantly chain F&B businesses • Long lease agreement scenario which allows the operator and occupiers to raise higher investment and enable more specialist workspace impact

• Repurposing existing infrastructure within shopping centres to provide A vocational college drawing a large student base into the high street workspace and trial business concepts - ie food courts into kitchen workspace; as well as former retail units into retail incubator models +++

shopping centre residential high street educational 20 Delivery Scoping Design Activity Leasing Outcomes Considerations • Service charges can vary Operator & Advisors to: ! considerably depending on • Consider access arrangements the shopping centre - need to during and outside of opening hours ensure that service charges of the shopping centre Generic are not prohibitive to end user affordability

Landlord, Operator & Advisors to: Landowner & Advisors to: Operator to: Landlord, Operator & Advisors to: • Remove landlord liability for vacant • Explore light-touch fitout to make • Identify organisations/charities that • Consider how to - temporary, unit space flexible for various activities cater to various • Agree lease terms can take on management to fill units needs for production, point of sale, rolling break, option to cover costs on a exhibition, events and gathering with peppercorn rent, or turnover • Activate the shopping centre and temporary flexible basis • Explore suitability for artists, rent if centre can support through support existing retail tenants makers; equipment that can be Meanwhile footfall and promotion accommodated - less suited to office • Provide low-risk flexible space to work due to lack of natural light trial a business idea, gain access to new customer base, or access to • Window display and opportunities a production site in a convenient to animate the shopping centre location

Landlord, Operator & Advisors to: Landowner & Operator to: Landlord, Operator & Advisors to: • Operator and businesses have long • Agree long lease with operator - 10 • Identify partnerships to explore more • Identify the neccessary investments term security and can raise larger years and up will allow operator to specialist workspace provision in extending the life of the investment into asset and local area raise the capital for specialist fitout which requires higher initial capital building (energy performance etc) and equipment Long Lease costs that are made viable by a longer • Enables more specialist workspace lease (engage with STEM workspace • Opportunity for a phased fitout of types, and destination facilities • Agree Service Level Agreement operators, specialist making or digital space to test the model and grow the - to define the operator’s agreed arts spaces etc). user base • Extends the life of the building outputs Operator to explore: Landlord, Operator & Advisors to: • Utilise existing infrastructure to Landowner & Operator to: Landlord, Operator & Advisors to: • Providing self contained and shared • Agree 3-10 year interim before enable more dense employment • Explore opportunities and fitout costs • Agree model of kitchen units facilities managed thorugh a co-working redevelopment, or long-term uses involved in adapting existing Food shared kitchen membership model, investment in the asset & Beverage business units to Repurpose existing • Dinning area as former food court, • Supporting the food and retail kitchen workspace and food business or largely self-managed direct let to and enabling supper club events • If capital expenditure is required sectors infrastructure incubator offer single tenants from operator then 8+ year lease • Access arrangements for delivery • Explore opportunity to may be required depending on • Providing more experiential • Soft market test with kitchen space repurpose bikes to enable takeaway operator customer offer of food court and operators vacant retail units into temporary or longer term retail incubators retail function but with more locally • Option for turnover rent model rooted and curated offer 21 1.a Food production units 1.b Shared kitchen space 2 Vacant anchor unit Repurpose existing The carpark can be open and free (3,750 sqft total) (1,100 sqft) (10,000+ sqft) of charge for food and drink delivery Investment: potential to push back Investment: new work stations Large, multi-story vacant infrastructure workers. This would allow food businesses the front wall line to reduce the size might be required unit could be developed into to take on orders, contributing to the of the units under the business rates Rates: £25/hour hybrid models which combine Shopping centre on an outer London units’ marketability and ensures the threshold Uses: leisure, retail and workspace pedestrianised high street. The centre shopping centre reflects current trends in Rates: £25-30/sqft(all up) • food production facilities. Given the deep plan has seen a decrease in footfall and many food production. Size Range: 270-700 sqft • culinary workshops and lack of natural ventilation small units are vacant, including former Uses: • community kitchen and light, suitable uses food & beverage business units which There is an opportunity to explore the • grow on space for businesses which Lease: long lease to operator at include, but are not limited have the required infrastructure for such potential for multi-use activation, such might start in the shared kitchen an affordable rate to, recording studios, dry- uses. With current rates for a 590 sqft as Peckham Levels in London Borough of space labs and video production food production unit at around £80/sqft Southwark • pop-up businesses - trial & error facilities. (rent, business rates and service charge), • food pop-up businesses these are too high for independent and Lease: longer term leases with a 3 start up businesses. As such, our proposal months rent-free period as well as is focused on mitigating end user costs short term lettings with no reduction with minimal physical intervention and an aim of achieving all inclusive rates of under Allow after-hours £50/sqft, in line with market values. access to the food hall area 2 1.a 1.b 1.a Operation Do-nothing cost Intervention £ Created by Nithinan Tatah Created by mikicon from the Noun Project from the Noun Project Benefits 1.a 1.a • Landlord enters into lease with The open area Financial • Shopping Centre Independent workspace operator to manage • Empty Business Rates surrounding the and sub-let the spaces - a charity Identity Larger units can be (approx. £17/sqft) units could be or CIC operator would reduce the • Grow-on potential for business subdivided to fall • Service Charge repurposed into a end user costs moving to larger unit under the rateable (approx. £10/sqft) community food hall • Independent kitchen spaces • Footfall increase value threshold for are let through the operator to business rates Other negative outputs & costs • Sole trader moving to tenants • Reduced footfall registered business • Vacant retail units can be • Further vacancy & delapidation • Employment creation let to start-up businesses or • Security (min. 1FTE/unit) community groups for pop-up • Maintainance • Local supply chain and meanwhile activation • Large ‘anchor units’ to be let to a specialist operator or

institutional tenant 22 “There is a huge opportunity for Local Authorities and developers who own shopping centres to quickly re-animate them by bringing interesting and innovate workspaces into these units, creating attractive weatherproof ‘villages’ and help stimulate sustainable footfall into the future.”

Michael.P Davis Head of London Unlimited Small food production unit JLL Ten87 Studios, Haringey Shared Kitchen Space Source : Snappy Goat Source: Ten87 Source : Mission Kitchen

“Activating unused space “We begin with the number reduces our liability and rates on the ‘To Let’ board, we just costs, offers community want agents to let their clients benefits and in some cases know these schemes exist contributes to reducing and are beneficial. We also anti-social behaviour” need Local Authorities to get on board.”

Blossom Young Poplar Harca Hammond & Associates Property Management Revitalizing empty commercial property through art Hammond & Associates Ltd; Lab Space 23 Source: Micah Haynes Source: Queen Mary Bio Enterprises

Inspiration: Croydon Arts Store Inspiration: Park Mall Project which tests the role of arts & culture in large scale redevelopments, Local Authority taking a proactive stake in the town centre through reduces the liability costs and mediates the impact of footfall reduction in ownership and curation of the high street offer. the pre-development stage. The four floor arts space provides a collaborative and participatory visual arts and events Location programme with a focus on youth engagement Location Council purchased the 1970s shopping centre

Created by Barracuda Whitgift Centre,Croydon, Ashford, Kent 5 years ago with the long-term aim of realising from the Noun Project Created by Barracuda and learning. It acts as an action research space from the Noun Project London to test the role of arts and culture in a shopping the development opportunity on site. The centre, and aims to inform how the visual arts £ Funding centre is let to a mix of high street chains £ Funding can be integrated in to future developments and The council’s purchase of the site is alongside predominantly independent local Delivered by the Croydon Placemaking Team recovery in Croydon. The store is a collaboration through a mixture of borrowing, leveraging businesses, with the aim of providing low- as part of the Croydon Growth Zone, a £500m between Croydon Council; Turf Projects, a commercial income, and grant funding for risk start-up space. The centre has seeded programme of works in partnership with TfL Croydon-based artist-run contemporary art smaller projects a number of successful and diverse local and GLA.Jointly funded by Croydon’s Cultural space that hosts free exhibitions, workshops and businesses, a number of which function as Partnership Fund events; Art Halo, an award-winning organisation Lease social enterprises, providing retail alongside

Created by Nithinan Tatah Leases to tenants are flexible - most of them community services. working towards the vision of making high-quality from the Noun Project Operational Model art activity available to all; and Kingston School of are at least 1 year and flexible as they are The long-term intention is that businesses

Created by Nithinan Tatah Operated by a consortium of organisations: mostly to start-up businesses. seeded in the centre can grow to occupy retail from the Noun Project Art. The space was taken over with the support of • Turf Projects the Croydon Partnership, a joint venture between units on the high street and contribute to • Kingston University (now no longer part of Hammerson and Westfield. While service charges are largely set, the regenerating other parts of the town centre. the consortium) flexibility is within the rent arrangement with • First Floor Space each tenant, which take each case on its • Croydon Council (founding partner) regeneration potential and impact for the town centre holistically. Lease short term lease

Activities GF & 1st floor: Turf Projects 3rd floor: Art Halo Research Space 4th floor: The Loft Source: LB Croydon Source: Ashford 24 Retail in CAZ Location Context A secondary street within the Central Activities Zone, with a large portion of take away food and beverage retail, previously Busy high street in Zone 1 Conversion of a retail space, owned by a private landowner, supported by a large office worker population. Land values and high rental expectations are prohibitive for independent A mix of large estate ownership and within the Central Activities Zone and start-up businesses to locate here beyond pop-up individual oweners, with BID in place opportunities. Large commuter base makes up The surrounding office provision is made up of dedicated This scenario explores how landlords within the CAZ can respond following majority of the footfall, with low footfall corporate offices, with little opportunity for flexible space in the evening and on weekends the initial shock after Covid lockdown is lifted, to bring visitors back into to dock down for the day or access specialist facilities for Central London, and diversify the flexibility of the offer to be resilient against collaboration. further decline in retail, to support the hospitality sector after a significant + shock, and respond to future work trends.

This scenario considers a spectrum of opportunities from: Large food and beverage retail units with a number of businesses recently going into administration • Activating underused spaces within hospitality or food and beverage venues to provide flexible workspace, and facilities to meet the demand for ‘deep work’ collaboration activities. Corporate offices

impact • A year-long programme for culture-led recovery, which offers vacant retail units within the CAZ for cultural production ‘residencies’, in partnership with cultural institutions, educational bodies, BIDs and the creative sector. This idea builds on the Centre for London proposals for a recovery for the West End.

New theatre as part of resi +++ development, but lack of rehersal space

hospitality offices vacant venues units retail cultural station institution 25 Delivery Scoping Design Activity Leasing Outcomes Considerations

Landlord & Local Interest Groups to: Operator, Advisors & Local Interest Operator, Advisors & Local Interest • Supporting hospitality venues Landlord & Operator to: • Engage organsiations with Groups to: Groups to: through a difficult recovery phase, • Explore flexible membership customer networks of desk- • Guide on optimum layouts and • Provide opportunity for flexible and testing the co-location with model and corporate based freelancers types of space for both freelancers desk-based work workspace for the long-term memberships as part of hub and and types of facilities to enable business model spoke models Workspace in • Target venues (such as hotels, teams to collaborate • Provide facilities responding cafes and restaurants) with surplus to need for deep work and • Providing access to workspace and hospitality venues space due to reduced operations • Identify types of facilities and collaboration, with opportunity facilities for deep collaboration since the pandemic their usage (meeting and phone for residencies throughout various locations booths, charging points, security of • Scoping available budgets for equipment, etc) • Enable a host at the venue enabling workspaces or types of to welcome users and provide deep work facilities • Explore positioning of workspace support and networking by a window to signal the opportunity

Landlords, Local Authorities, Landlord, Operator, Advisors & Local Operators & Local Interest Groups to: Landlord, Operator, Advisors & Local Landlord, Operator, Advisors & Local • Supporting the CAZ to recover and Interest Groups to: • Target units with businesses Interest Groups to: Interest Groups to: bring visitors back • Activate windows to animate the going into administration • Repurpose and programme units • Open callout for ideas, with street, engage the public, and across the CAZ to provide for Open Poplar-style online platform • Provide affordable space and showcase cultural activities • Partner with cultural different cultural activities advertising opportunities capacity building to cultural organisations to develop a 1 year - rehersal space for theatre producers, with potential that they • White boxing of units to allow programme for CAZ post-covid companies, production and • Provide flexible leases, with become long-term future tenants occupants to adapt for their needs Cultural Recovery recovery fabrication, performance, tenants covering own costs exhibition and point of sale/public • Identify potential for grants and engagement funds to support unit fitout and programme delivery

26 Workspace in The scale of services and returns Operation

Created by Nithinan Tatah from the Noun Project hospitality venues The level of return is relative to the services and facilities which the • An operator with a customer A large scale unit on a high street hospitality venue is able to provide, base is brought on board to with previously good level of footfall as illustrated below. assess the space and offer supporting other retail and leisure guidance on the spatial uses, occupied by a restaurant and Wi-Fi & Plug Free of charge Designated workspace arrangement and service offer cafe business. Due to the impact of No investment is required While there are no area (85 sqm) based on the scale of space and COVID-19, the business has seen a on behalf of the tenant. financial returns in this Space designated to tenant ambition high reduction in customers and has Instead, members of staff scenario, the tenant workspace members with are trained to host the will see an increase of • The tenant is trained and decided to dedicate some of its space space for freelance and customers during quiet facilities such as shared advised by the operator on to flexible workspace. remote workers. periods. work desks, private booths workspace management and meeting rooms procedures and client The ‘do nothing’ scenario risk is that Booths shared between Free coffee and Membership interaction the F&B business is unable to meet discounts the wider public and (£20/week) • The tenant is charged £1 its rent and rates obligations without No investment is required, The affordable workspace members the customer base that the model yet the tenant can increase membership ensures a per booking or 10% of the previously replied upon. desirability by offering base return and has the transaction, whichever one is affordable packages for potential of creating a the greatest food and drink. regular customer base. Host model Printers, access to Membership + meeting room (£75/week) benefits The tenant can share or The membership plus invest in printing facilities ensures a base return, as • Increased customer base and as well as dedicate part well as a varied income Cultural Recovery potential increase in sales of the space to bookable from one off bookings. during ‘quiet periods’ such as meeting rooms which Moreover, these facilities Parts of the basement could be can be used during quiter can attract a wider range hired for larger events or cultural during weekday work hours hours. of workers. • By hosting flexible workers, uses (eg. rehearsal space) Collaboration space Deep work facilities meetings, and events, the Investment required in (£100/day) Benefits: business is able to diversify its dedicated work areas to Deep work facilities • animated ground floor unit service offer provide the necessary audio- will generate letting • Street presence and a ‘busy visual and other facilities income, with potential for • time limited support to cultur- required by collaborative venue’ appearance corporate sponsorship, secondary street within the al institutions to re-open and working. Tenant should work as well as periodic large core commercial area reactivate the CAZ closesly with the service groups of people which provider to ensure best spend money on food and • charitable status to mitigate return on investment. beverages. empty rates

27 “The property industry can use this opportunity of a new way forward to ensure their portfolios are on a firm footing and support diverse, thriving high streets with tenants new and old.”

Siobhan Jared Senior Business and Customer Performance Manager at TfL “Busy-venue” appearance Workspace with Childcare, Rehersal Space in basement Expressway Silvertown Third Door-Nurser Camden People’s Theatre Source: Architecture 00 Source: Third Door Source: Rehersal Space Finder

“In a global context, cities are finding their niche or new role in attracting business and employees. Whilst Paris “Having people running it who is building the 15 Minute City, understand the local area is key to London could find its role in being the hosting model” the place for ultra safe deep work in high quality workspaces.” Benjamin Carew Othership Simon Pitkeathley Co-Chair Workspace Advisory Group Work booths Collaboration space Hub Birmingham Hub Brixton 28 Source: Architecture 00 Source: Architecture 00

Inspiration: Othership Inspiration: Appear Here Service providers which link free-lancers and self-employed workers with Landlord dashboard which provides an easy to use platform for landlords member hospitality and community venues providing dedicated workspace to track their lettings and revenue, and discover and match with facilities entrepreneurs.

Location Othership offers its members access to a Across London range of spaces across London where they Location From market stalls to flagship stores, Appear Created by Barracuda from the Noun Project can work, meet and colaborate. These spaces

Created by Barracuda Across London Here lists thousands of spaces on popular from the Noun Project Cost are generally in areas of different hospitality high streets, major shopping centres, local £ Othership charges the venues £1/booking venues which put themselves forward as £ Cost neighbourhoods, outdoor markets and even or 10% of the transaction, or if they provide member-venues. Othership assesses, makes Market stalls from £20 a day, shop units in underground stations. Book by the day, week or members with a discount of >25% or a free recommanddations and trains the future high streets and malls from £100 a day or month. coffee then there is no fee. Venue recieves: hosts to manage the workspace section of a residency from £50 a day. – Dedicated support by phone or email their property. The facilities put forward differ Appear Here, pick your perfect space and pitch – Free advertising for your space between venue but range from a basic offering your idea to the landlord. Once your idea and – Advice and analytics to increase performance such as plugs and free wi-fi, to a more dedicated dates are approved, you can pay for your space one which includes printing and scanning and sign the licence agreement, all online. We Operational Model facilities, meeting rooms, audioo and video also have Additions services where you can The hospitality venue puts forward their equipment and event spaces. Access to these book everything you need to bring your store Created by Nithinan Tatah from the Noun Project space, Othership assesses it, provides fit-out spaces can be free or paid, mostly depending on to life, from the fit out to the final touches recommandations and general advice as well the facilities being offerred by the host. (furniture and staff). as runs through the hosting mechanism. Ultimately, the hospitality tenant operates Whether you want to test a new product, the workspace while Othership provides connect with a new audience or boost your support in deciding the schedule, prices and sales, we’ve created a series of expert How To requirements for workers, as well as markets Guides to ensure your store is successful. the spaces to their members

Facilities Amix of free and paid workspaces (the latter

Created by Ezgibeing Nazlı dedicated coworking spaces mainly from the Noun withProject monthly, daily or hourly passes) as well as team meeting and events spaces. Members are offered a virtual workspace online, weekly events, and partner perks similar to a physical coworking space 29 Location Context High Street Units A long high street in outer London, with rising and persistent Zone 6 vacancy of retail units. Many units are dated and in need of significant tenant fitout. The street benefits from a mix of unit Conversion of space in high street units Fragmented ownership and no high sizes, but some units are in less desirable locations on the high street governance vehicle street, and proving difficult to let long-term.

Large former commuter base into The anchor supermarket has recently vacated, contributing central London who have been a new to further declining footfall. There is no BID, with some custodianship provided by the council through public realm This scneario focuses on how multiple vacant retail units along one high audience on the high street during the pandemic improvements. A number of local entrepreneurs and groups street, or a number of high streets, can be brought back into use in a way that have struggled to access retail units to trial their business stimulates the local economy, gives identity and curation to the high street, ideas as rents and rates are prohibitive. and resolves the current issues of fragmented land ownership.

This scenario explores the options of: +

• Multiple private and public sector landowners developing a management A number vacant units with different agreement with operators to manage the units on their behalf, so that sizes and with various land owners units are occupied, refurbished, and curated to provide locally needed services and activities, workspaces and employment opportunities.

• Multiple private and public sector landowners pool their vacant assets impact Various estate agent boards into creating a High Street Trust that manages the units as a portfolio of advertising vacant units in different assets, let at scales of flexible leases, which enable different activities conditions and in need of significant and types of grow-on space to be provided on high streets. tenant fitout +++

Residential catchment with predominantly large family homes

Long retail-dominated high street

vacant units residential high street station 30 Delivery Scoping Design Activity Leasing Outcomes Considerations Landowners, Operator, Advisors & Landowners, Operator, Advisors & Landowners, Operator, Advisors & • Mitigating security costs, Local Interest Group to: Local Interest Group to: Local Interest Group to: guardianship fees, and anti-social • Survey the offer of the high • Consider suitability of units to • Explore potential for subsidised behaviour street and identify what is missing different uses, and impacts on memberships for local groups or for effective curation. neighbouring residential properties residents. • Reverse perception of a declining Generic high street and boost local trading • Explore potential for local groups environment to lever in external funding to deliver services • Provide access to businesses and community entrepreneurs to start and grow their venture

Landowners, Operator & Local Landlord, Advisors & Operator to: Landowners, Operator, Advisors & • Lower management overheards Interest Group to: • Define operational model - which Local Interest Group to: split across a larger portfolio of • Identify vacant units along high units can be self contained and let to • Agree lease model with operator units street and those with particular indivitual businesses and occupiers, taking a head lease for multiple Management long-term vacancy issues or managed on a membership basis to units, with income from units enabe sharing of facilities covering costs for operator + small Agreement • Engage operators with an profits to landlords operation model that enables management of multiple smaller units across a geographical area

Landowners, Operator, Advisors & ! • Units positioned in areas of higher Landlord, Advisors & Operator to: Landowners, Operator, Advisors & • Provide grow-on space for Local Interest Group to: footfall can suit workspace needs • Define the different types of grow- Local Interest Group to: businesses to build a pipeline of • Identify the factors presenting with more customer facing activity on space needed locally, and target • Create template agreements businesses invested in the area barriers to finding long term (retail incubators and other points occupiers for suitable unit and governance structure for long-term High Street Trust tenants for the units - ie- building of sale), while units in quieter units to be pooled together into condition, celing heights, rent asks, locations on the high street can a High Street Trust to manage • Share risk and profits among service charges, footfall etc accommodate more maker and units and let through a portfolio landowners production-type activities approach • Curate the high street to serve local need

31 ! Incentives High Street Trust 1 Community Health and 2 Artist studios Portfolio Propoerty (tertiary) Wellbeing Hub ( a range of 530 to 1,075 sqft units Light Industrial Units Local authorities can offer A high street with high vacancy, (large 2,550 sqft unit, formally with partial subdivisions ) (1,000-1,600 sqft) incentives in the form of fincancial occupied by a supermarket) Lease: long lease @ £10-15/ close proximity to transport links, and Investment: low level support for businesses which relatively fragmented ownership. sqft; The discounted rent is take up hard-to-let units. Uses: partitions for studio to be provided as part of a Units have historically been hard to • health centre subdivision Service Level Agreement which The Bedminster Business let, experiencing high churn or long- • community room stipulates the provision of 1 local Improvement District is offering term vacancy. There is an opportunity Uses: traineeship/year. • meeting rooms grants of up to £10,000 to for a new governance model for the • studios Uses: Lease: long lease @ • printers regenerate currently underused high street to include landlowners, • pop-up galleries and • framers shops, cafes, artists studios and who pool their assets into an agreed £15/sqft for the whole project spaces • furniture makers offices in strategic locations. management agreement with an space. Tenant to set up Lease: short and medium operator, and a profit share across the and charge£10/h for term leases portfolio. meeting rooms. End User Rate: £10/sqft Area Benefits: (all in) The ‘do nothing’ scenario involves the • public programme Area Benefits: ongoing costs of empty unit libaility, • access to health facilities • street presence and a deepening of high street decline. • increased footfall and • potential for community street presence engagement

2 Operation

Created by Nithinan Tatah from the Noun Project £ Do-nothing cost 2 A High Street Trust is created to manage and operate vacant units on Portfolio Propoerty (prime) the high street. Empty Business Rates Use-Restaurant Lease-Long lease @ £25/sqft • Small (590sqft): N/A Landlords offer their vacant unit in • Medium (860sqft): £8,850/y 3 min return for a minimum assured rent of • Large (2500 sqft): £14,250/y £5/sqft. The surplus of rent from the • Light industrial (1250 sqft): 1 entire portfolio is shared between the £3,450/y different landlords, at their individual units’ rental coeficient (calculated based on location and rental Other negative outputs & costs Long High Street connecting Portfolio Propoerty (secondary) a series of District Centres Use-Barber potential). • Reduced footfall Lease-long lease @£20/sqft • Vacancy & delapidation The High Street Trust combines • Security landlords, Local Authority, businesses • Maintainance and community leaders, as well as workspace operators, ensuring that future occupancy is responsive to local needs, viable, desirable and resilient. 32 Selected Public Private Revenue Social Capital High Street Trust Assets Landlord Assets funds Investment Grants Establishing a High Street Trust which creates an ownership, management, and governance vehicle for activating underused high street units, can take the following steps:

Stakeholders HIGH STREET • Consortium including council and public asset holders, private landlords TRUST and institutional investors • Local stakeholders such as residents, organisations and businesses to Primary Goal WORKSPACE PORTFOLIO support the core team in decision making and the definition of strategic objectives

Mechanism • Begin by establishing a Landlord Forum which brings interested parties Commercial Artist Flexible Community Health around the same table and generates a series of actions to boost the Units Studios Workspace and Wellbeing local economy and improve the high street + • Partner with Workspace Operator or establish management vehicle to GOVERNANCE manage the properties across one or multiple high streets • The High Street Trust forms a portfolio of units which are let at different rates depending on location and affordability for target tenants • Returns on each of the units are put in a shared pot, with share Landlords Local Local businesses/ Community Workspace allocations being distributed based on a coefficient of valuation for Authority BIDs Organisations Operator/ each individual property Prefessionals • Capital grants could be offered for bringing into use long term vacant and hard to let units • Opportunity for Social Investment to be used as a rate relief mechanism by the end tenant • Template leases and to be created and shared amongst the trust members and beyond £ Strategy £ • A strategy to be devised by the High Street trust stakeholders which Access to local Diverse Business Improved Local Sustainable Secure takes into consideration local needs, medium and long term area services High Street Support Economy Tenanthood long-term returns objectives as well as workspace trends • Rent and business rates discounts could be used strategically to attract desired tenants, and support businesses to grow social economic 33 “The reality is most town centres are not owned by anyone. They have many stakeholders, community, businesses, local government, developers, but not owners. Town centre management remains a critical, sometimes overlooked, function geared towards bringing stakeholders together to curate a common vision and purpose for a town centre.”

Market Parade, Leyton Green Testing High Street Uses, Retail Revival & Architecture 00, Pop Up uses Ojay McDonald Arbeit + London College of Fashion Ruislip The WorkShop- by Michael Gozo CEO Association of Town & City Management Source: Theatrum Mundi Source: Arbeit Source: Architecture 00

“The disparate ownership of the high street, as highlighted by EG’s research, goes some way towards explaining why so “To manage change within the high many of the country’s town centres are street, Councils need to develop suffering. Disjointed ownership makes closer relationship with landlords, it difficult to create streamlined and in order to allow them to identify accountable town centre plans, with the commonalities between a very patchwork of proprietorship enabling diverse set of ambitions. ” landlords to focus their concerns on return on their individual investments Marcel Baettig rather than the wider community CEO, Bow Arts landscape.”

James Child 34 Head of Retail & Industrial Research, EG Willesden Green Library Lab Barn the Spoon shop, Hackney Architecture 00 Source: Barn the Spoon

Inspiration: Open Poplar Inspiration: Arbeit

Showcasing an example of public and private assets being pulled together, Showcasing an example of an operational model providing flexible and marketed under the same strategy workspace across a number of sites, and fitting out spaces in various conditions. Location Open Poplar is a programme initiated in

Created by Barracuda Poplar, 2015 and delivered by Poplar HARCA and a from the Noun Project Baring House - Arbeit took on a derelict Arbeit is a workspace operator taking London group of interested partners, not for profit basement of a residential block from Poplar on underused and empty sites in pre- organisations and landlords looking to enliven HARCA on a long lease with peppercorn rent development stages, utilising empty spaces Types of spaces Poplar. The aim of the project is to make the in 2017. With a budget of £30k, the operator and providing affordable workspace for Retail units most of the underused space and facilities Created by Shovy Rahman enabled a workspace with 12 self-contained creatives in London. Provision ranges from from the Noun Project Pram Sheds available in the area by marketing and opening units ranging from 100sq ft to 750sq ft, desk space, shared and individual studio Garages the applications to local businesses and dedicated to a wide range of practitioners. Due spaces, catering to artists, designers, small Community Centres community groups as well as national and more to the nature of the site and its limited light, businesses and start-ups, alongside business Flats established enterprises. The only requirement many of the tenants are those who does not support, event/gallery space and a shared Pubs for applications is that the proposed use must require natural light, such as photographers, environment for innovative collaboration and benefit Poplar and its people, and is supported graphic designers, and film makers. community involvement. Leases by a sustainable business plan. The advertised Flexible and varied, depending on the space spaces range from service centres, garages, Leyton Green - showcasing a flexible and project proposed. On longer leases (10 storage spaces and even flats. These come in a structure to transform an unused retail unit years+) they were able to provide flexible rates range of different sizes and conditions, requiring into a workspace with 13 self-contained units for the first 3 years. different degrees of capital investment. ranging from 100sq ft to 120sq ft, and a gallery space, hosting a wide range of activities. Activities To be put forward by applicants in the application process. Current projects include Baring House, a co-working space, community Baring House (before) Baring House (after) Leyton Green café and pub and many others, accessible here.

35 Recommendations

There is vast opportunity now to

Created by Adiba Taj prototype various iterations of from the Noun Project

Created by Momento Design Created by Daniel Falk the repurposing model, to provide from the Noun Project from the Noun Project much needed flexible workspace, Portfolio approach to asset Practical templates for new Identity making value matrix and support high street recovery. management contractual agreements The following recommendations Prototype the model of private landlords and public As part of future prototype funding for this model, Develop locally specific high street plans, which outline a series of approaches sector asset holders with vacant properties on one develop templates for flexible leases and contractual recognise local identity and develop place marketing for the next steps towards or multiple high streets to partner with an operator to agreements between landowners, operators, and and areas of specialism (build on institutional presence, manage and curate units on their behalf (agree leases + end-users, that can be widely adopted and streamline business clusters, local community capacities and implementing the scenarios in SLA). the process. heritage). A social value charter as part of this can strategic and scalable ways. provide the guidance and support to businesses in providing local give-back through their work.

Created by Wenjie from the Noun Project

Created by fae frey from the Noun Project Shared platform for best High Street Trust approach Forum for relationship Data Partnership practice Develop prototypes of the approach whereby building with landowners The GLA is developing a Data Partnership as landowners pool their assets and set up a local High Establish a shared platform, co-owned by public and part of London’s recovery strategy, to enable Street Trust which manages the assets as a portfolio Develop a programme for partnership building, private sector partners, to showcase emerging best access to data on high streets, to understand - ensuring all are filled with tenants, provide local bringing together key stakeholders to scope out the practice, and including helpful resources such as the trends and share knowledge to inform decisions. benefit, a diversity of business space types (making locally specific barriers and conditions, develop practical templates for new contractual agreements. There is opportunity for public and private sector and production, desk space, retail incubators, etc) policy proposals with Local Authorities and Central The platform is an opportunity for industry leaders, organisations to buy into the data partnership to and flexible lease terms. This approach takes the Government, prototype experiments and incentives both public and private, to showcase their adaptions source insights and ensure this knowledge is shared management agreement model further by pooling the to attract businesses that will have positive impact on to the unprecedented challenge facing landlords, the high street. and inputted into by the civic sector. and to begin the process of mainstreaming those individual assets to share the risk and uplift of each innovations. unit. 36 Further support resources London co-working assembly Networking group for operators of co-working spaces, to access and share support and best practice. Beyond the resources provided throughout the document, there are several more which could Co-working library This project’s goal is to provide an interdisciplinary open online database in which current and former be used to inform the scoping, delivery and research about coworking can be found. operation of workspaces on high streets. Research group on collaborative spaces An independent network and a think tank gathering researchers in the fields of humanities and social sciences, practitioners and activists around the theme of work practices.

Brent Council’s Affordable Workspace Strategy The London Borough of Brent’s (LBB) Affordable Workspace Strategy (AWS) and Action Plan presents the borough’s workspace research and policy development for enabling more affordable workspace.

Better Space, Islington Joint venture between Islington Council and City University, providing 7,000 sqft of affordable co- working and incubation space for digital and creative entrepreneurs.

Wet Lab vs. Dry Lab for Your Life Science Startup Guidance on the characteristics of wet and dry labs.

Crowdfunding Community Investment Toolkit by Nesta A set of activities to facilitate community projects in exploring the potential of crowdfunded community investment tools in their organisation’s next steps.

For further information about this pamphlet, Association of Town & City Management A not-for-profit organisation with members that come from the public, private and third sectors. please feel free to contact us! They include key stakeholders and thought leaders who develop and implement shared visions, strategies and action plans for town and city centres throughout the UK and Ireland. • Greater London Authority - Places of work Open Workspace map Interactive guide to London’s incubators and co-working spaces alongside other start-up • LEAP (The Local Enterprise Partnership workspaces, artists’ studios and maker-spaces. for London) London Data Store A free and open data-sharing portal with access to over 700 datasets relating to the capital • WAG (Workspace Advisory Group) London Connectivity Map Map of estimated coverage of broadband services across London by Postcode, Ward or Borough • London Business Hub

• Architecture 00 Contact Alice Fung at: [email protected] 37