Dozens of property professionals discussed the implications of obsolete offices when Lambert Smith Hampton (LSH) hosted the launch of the first report from The British Council for Offices’ (BCO) Investor Committee into the extent of obsolescence within the sector.
Held at LSH’s Birmingham office in Edmund Street, the event was an opportunity to discuss the findings from the BCO Investor Committee report ‘Change for the Good – Identifying Opportunities in Obsolescence’.
It looks at the practical implications of obsolescence for the UK office market. The research for the report was carried out by national commercial property consultancy LSH and the IPD (Investment Property Databank).
The £170 billion UK office sector is known to suffer higher obsolescence than any other asset classes. Obsolescence planning acts as an early warning system and enables properties to be future-proofed.
Guests heard that awareness of obsolescence can be a force for good in maintaining building utility, enhancing capital values and turning around the fortunes of an ageing property portfolio.
The event saw Jenny MacDonnell, of The BCO, welcome guests before the research team, LSH’s Sean Brew and Glenn Corney from IPD, presented the report. Ian Standing, of Associated Architects, and Rupert Young, of Nurton Developments, then gave their responses to the findings.
Sean Brew, Head of Property and Asset Management at LSH, said: “The report seeks to identify the cause of obsolescence and make practical recommendations to mitigate its effects on property portfolios. Guests discussed how an understanding of the drivers of obsolescence is critical to retaining office performance, particularly during a downturn.
“For investors, the focus is on office performance as an investment. They want to understand what makes a building obsolete, how they can best manage this stage in the lifecycle of an office development and, most importantly, if it is avoidable.”
Jenny MacDonnell, Director of Research and Policy at The BCO, said: “The report identifies an opportunity for all those involved in developing and investing in offices to consider how to create or use space more flexibly and efficiently, thereby reducing the proportion of obsolescence within the office market in future. This will not only deliver greater returns on investment, but ensure workspaces have built-in adaptability to remain fit for purpose throughout the lifecycle of the building in which they are situated.
“We’re delighted with the turnout to the event and positive reaction to the research, and hope it will prove a valuable guide for the industry in tackling this important issue.”
LSH is a national commercial property consultancy that works with investors, developers and occupiers across the public and private sectors, and it is single-mindedly focused on UK and Irish property markets.
The BCO’s mission is to research, develop and communicate best practice in all aspects of the office sector. It delivers this by providing a forum for the discussion and debate of relevant issues.
