LREF 2017: Tech companies are still rejecting the City despite efforts by landlords and the City of London Corporation to reposition the Square Mile as the original co-working hub.
Helical chief executive Gerald Kaye said a tech company pulled out of a viewing of one of Helical’s City buildings yesterday because senior management decided it didn’t want to be in the City.
Another potential occupier expressed “a marked reluctance to go to a corporate building in the City”, he said at an LREF talk on the City of London.
However, Kaye conceded that the City is “getting there”, with progress demonstrated through Bloomberg’s new 1m sq ft headquarters close to the Bank of England, EC2 and Deliveroo’s new 50,000 sq ft home in Cannon Bridge House, EC4.
“If I said to you five years ago a food delivery company riding around on bicycles was going to occupy the trading floor above Cannon Street Station you would have thought I was even madder than the people on the bicycles,” Kaye said.
The City of London Corporation has launched a campaign to pitch the Square Mile as the original and future co-working space to attract the next wave of occupiers. An improved cultural offering through a new concert hall and the relocation of the Museum of London; a 5G connectivity upgrade; better transport links; and promoting its heritage are some of the key strategies the City of London Corporation is focusing on to attract the next wave of occupiers, said Alastair Moss, deputy for the ward of Cheap.
Kaela Fenn-Smith, head of commercial at Landsec, said the developer was changing its buildings to respond to the changing workforce within the City’s existing occupier base as well as newcomers.
“When we talk to the banks and the big banks….they are looking to hire people that are innovative….creative people,” she said.
At 22 Bishopsgate, EC2, AXA IM-Real Assets is hoping to lead the way in attracting the new wave of occupiers with an art gallery-inspired reception curated by the White Cube Gallery, an incubator for SMEs, and a members’ club/events space where occupiers can network.
James Goldsmith, head of leasing at AXA IM-Real Assets, said: “It’s not just about providing space and private facilities; it’s about providing experience and there’s an awful lot you can learn from the new wave of serviced office providers. If they don’t provide those services all their customers will just walk. So it’s that cultural shift to provide that experience.”
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