EG launched its 2023 student essay competition in the spring, inviting all apprentices, undergraduates and postgraduates in real estate to respond to the question: “As an agile developer, how would you create opportunity out of repurposing an underutilised commercial office block above disused retail space in an urban high street? Would you change its use? If so, what to and why?”
In no more than 1,200 words, entrants had to explain how both the office and the retail space could be retrofitted. Consideration needed to be given to how the roof space could be utilised. For example, could it be an opportunity to create residential accommodation, or to incorporate a vertical farm or roof-top growing to promote urban food security?
Implications of the proposed repurposing needed to be explained from a planning and property asset/investment class perspective, as well as from a wider social, environmental and economic viewpoint. The plan had to balance the need to generate appropriate returns with a reduction of operational emissions.
Students had to explain why they felt those, or other, factors were important, as well as detailing how success could be achieved over the short to medium term. For example, who should take the lead in driving forward change?
Entries were anonymised and sent to the panel for blind judging, based on agreed criteria and weighting.
Coming out on top was Mulayi Conrad Abraham, while the runner-up was Shanika Dilrukshi Amaradivakara.
In addition to having their essays published in EG, each will receive mentoring and a year’s free subscription to the digital magazine, and the winner will also receive £250 in vouchers.
Judging the entries
A three-strong judging panel, which combined a mix of industry and academic expertise, reviewed submissions and determined the winner and runner-up. The participants were:
- Sue Brown, managing director at Real Estate Balance
- Paul Collins MSc FRICS FHEA, senior lecturer at Nottingham Trent University
- Jen Lemen BSc (Hons) FRICS, partner at Property Elite
COMPETITION WINNER
Mulayi Conrad Abraham
Bachelor of business statistics,
Makerere University Business School, Uganda
Repurposing an underutilised commercial office block and disused retail space using an agile developer’s approach
In today’s rapidly changing urban landscape, agile developers possess the skills and mindset to create opportunities by repurposing underutilised spaces. This essay explores the possibilities of repurposing a commercial office block above disused retail space in an urban high street.
As an agile developer, I would carefully consider retrofitting both the office and retail spaces, while also exploring the potential of utilising the roof space for various purposes, such as residential accommodation or rooftop farming. This repurposing strategy would have implications in terms of planning and property asset/investment class, as well as social, environmental and economic factors. The plan aims to balance the generation of appropriate returns with a reduction of operational emissions.
Retrofitting the space
To repurpose the office block, an agile developer would assess the existing layout, infrastructure and potential market demand. The focus would be on creating a flexible workspace that meets the evolving needs of modern businesses. This could involve implementing open floor plans and collaborative areas, and incorporating technology-driven features to enhance productivity. Additionally, attention would be given to sustainability aspects, such as energy-efficient lighting, smart climate control systems and eco-friendly materials.
Regarding the disused retail space, an agile developer would conduct market research to identify emerging trends and demands. Repurposing the retail space could involve transforming it into a mixed-use area that combines commercial and community-oriented elements. This could include creating a vibrant co-working space, hosting local events or establishing pop-up shops and artisanal markets. The goal would be to revitalise the urban high street and foster a sense of community engagement.
Utilising the roof space
The roof space offers tremendous potential for creating additional value and promoting sustainability. One option would be to incorporate residential accommodation, such as modern apartments or loft-style living spaces. This would cater to the growing demand for urban housing, attracting residents seeking convenience and a vibrant city lifestyle. The inclusion of green spaces and communal areas would enhance the residents’ wellbeing.
Another possibility is to establish a vertical farm or rooftop garden, promoting urban food security and sustainable agriculture. By utilising advanced hydroponic or aeroponic systems, fresh produce could be grown locally, reducing transportation emissions and providing the surrounding community with access to healthy, locally sourced food. This integration of food production within an urban environment aligns with the principles of sustainable development and fosters a stronger connection between residents and their food sources.
Implications and balancing priorities
The proposed repurposing of the underutilised commercial office block and disused retail space has implications from various perspectives, including planning, property asset/investment class and wider social, environmental and economic considerations. The plan strives to strike a balance between generating appropriate returns and reducing operational emissions.
Planning implications
Repurposing the space would require careful consideration of planning regulations and obtaining the necessary permits. Collaboration with local authorities and urban planners is essential to navigate zoning regulations, building codes and any historic preservation requirements. Engaging with the community and soliciting people’s input can ensure the project aligns with local needs and aspirations.
Property asset/investment class
Repurposing the space enhances its value as an asset and investment. By transforming it into a mixed-use development, the property becomes more attractive to potential tenants or buyers. The diverse revenue streams from residential, commercial and community-oriented spaces reduce risk and increase the asset’s long-term viability. The project’s sustainability features, such as energy-efficient systems and rooftop farming, can also enhance the property’s appeal to environmentally conscious investors.
Social implications
Repurposing the space has significant social implications. The revitalisation of the urban high street would create a vibrant and inclusive community hub. The mixed-use approach fosters a sense of place and provides opportunities for local businesses and entrepreneurs. The inclusion of affordable housing options or subsidised spaces for community initiatives addresses social equity concerns, promoting a diverse and inclusive urban environment.
Environmental implications
The proposed repurposing plan emphasises sustainability and environmental responsibility. Retrofitting the office block and retail space with energy-efficient systems reduces operational emissions and lowers energy consumption. Integrating rooftop farming or vertical gardens promotes local food production, reducing reliance on long-distance transportation and supporting urban food security. The plan also encourages the use of eco-friendly materials and design principles, minimising the environmental impact of the project.
Economic implications
From an economic perspective, the repurposed space offers the potential for appropriate returns on investment. The mixed-use development would attract a diverse range of tenants, buyers and customers, leading to increased footfall and economic activity. The presence of residential accommodation can generate rental income, while the commercial spaces would attract businesses and contribute to local employment opportunities. Additionally, the project’s sustainability features and alignment with environmental goals can enhance its market appeal, attracting environmentally conscious investors and consumers.
Balancing returns and operational emissions
The proposed repurposing plan acknowledges the need to balance financial returns with a reduction of operational emissions. By incorporating energy-efficient systems, sustainable design principles and rooftop farming, the project aims to minimise its environmental impact. These measures not only contribute to long-term cost savings but also enhance the property’s marketability. Through careful planning and the integration of sustainable practices, the project can achieve a harmonious balance between financial viability and environmental responsibility.
The building’s reduced operational emissions, energy consumption and waste generation would contribute to environmental goals and create a greener, more resilient urban environment.
Conclusion
The repurposing of the underutilised commercial office block and disused retail space has far-reaching implications from various perspectives. It aligns with planning regulations, enhances the property’s value and appeal as an investment, and fosters social inclusivity and community engagement. The sustainability features and environmental considerations contribute to a greener urban environment while balancing the need for appropriate financial returns. By repurposing the space in a thoughtful and agile manner, the project can generate positive outcomes for the stakeholders involved while reducing operational emissions and promoting social, environmental and economic wellbeing.
RUNNER-UP
Shanika Dilrukshi Amaradivakara
MSc real estate,
Liverpool John Moores University
Exploring opportunities and benefits in repurposing an underutilised office block and retail space: flexible co-working spaces
When repurposing the underutilised office block and disused retail space in an urban high street, as an agile developer, I would consider the lot size, occupational flexibility, and environmental, social and governance factors. Based on current UK real estate trends, potential options for repurposing include residential apartments, flexible workspaces, mixed-use developments or third-use developments [1].
Converting the office block into residential apartments helps to address the UK’s housing shortage and would increase the footfall in the high street. However, this option requires significant modifications to meet regulations and housing standards. Profitability may be impacted by conversion costs, potential planning permission challenges and lower rental yields compared with commercial rentals [1].
As an agile developer, I would recognise the planning potential in repurposing an underutilised office block as flexible workspaces. By leveraging the existing space, we can achieve adaptive reuse, reducing the need for new construction and making efficient use of available resources. This approach not only addresses the demand for workspace flexibility but also plays a role in revitalising a neglected office and retail block [2].
To support such initiatives, collaboration with local authorities and urban planners is crucial. By advocating for flexible zoning regulations and incentives, we can promote the conversion of properties into vibrant co-working environments [3]. For example, the UK government’s introduction of the £150m Community Ownership Fund provides a valuable opportunity for communities to acquire local assets and operate them as community businesses, including co-working spaces [4].
By recognising the emerging trend of co-working-as-a-service, which expands shared office spaces beyond providing just a physical workspace [5], it is essential to explore the potential of converting disused retail space on the ground floor into co-working spaces. This approach offers a unique opportunity to bridge the gap between home and work [5], while also enhancing the appeal of the high street area.
To cater to the evolving needs of entrepreneurs, start-ups and freelancers, niche markets within co-working spaces could be considered. These could include LGBTQ+ co-working spaces, wellness-focused spaces, tech-focused spaces or artist-creative spaces, based on local demand. Addressing specific requirements fosters collaboration and belonging [5]. As an agile developer, I would engage stakeholders and conduct market research to understand preferences, guiding the development process to ensure alignment with the needs of niche markets in the converted retail space.
In terms of the investment potential, the UK real estate market shows a strong demand for flexible office spaces and remote work solutions. Statista forecasts a CAGR of more than 5% for the flexible office space market in the UK [6]. London property developer GPE aims to raise its flex portfolio stake from 13% to 25% by 2027. By 2026, flexible workspaces are projected to double, representing 10% of the total office space in the UK [3].
To capitalise on this trend, it is crucial to repurpose the disused office block into a flexible workspace. Doing so will not only increase the value and attractiveness of the property in the market but also provide higher rental income and occupancy rates compared with traditional office use. Studies show that co-working space operators can charge up to 40% more rent per square foot than landlords of conventional offices [3].
Adapting the office block into a flexible workspace taps into growing demand and boosts profitability. Agile methodologies enable us to swiftly assess the market and tailor the workspace to evolving needs [7]. We can continuously gather feedback from potential tenants and adjust the layout, amenities and services accordingly. This approach can create a sense of community and belonging, and allows landlords to diversify their tenant mix to reduce their exposure to market volatility.
Creating productive and sustainable workspaces: the future
Creating a flexible work environment goes beyond traditional approaches of providing flexible hours or hybrid office arrangements. It requires a holistic approach to workspace planning that caters to diverse needs. Rethinking workspace design is essential, with different settings for individual work, collaboration, brainstorming, knowledge sharing and quiet time [8]. This calls for numerous modifications to repurpose the office block and incorporate the features that make the office environment truly flexible and appealing.
Successful co-working spaces are not limited to a single aspect but encompass various elements that contribute to their effectiveness. These elements include flexibility, exciting decor and a focus on human-centric design, which are evident in the evolving trends of the industry. To create a thriving co-working space, it is crucial to prioritise flexibility [9]. This means incorporating features and layouts that can adapt to the changing needs and preferences of the users.
In addition, attention to decor is crucial for creating an inspiring and positive co-working ambience. Incorporating vibrant colours, artwork and ergonomic furniture enhances the aesthetic appeal [10]. Outdoor areas such as patios, rooftops and terraces provide a refreshing change of scenery and a connection to nature, boosting productivity and wellbeing [9]. As an agile developer, I would prioritise well-designed outdoor spaces with amenities such as comfortable seating, reliable Wi-Fi and power outlets to enhance the co-working experience.
Furthermore, engaging lighting and decor are essential for repurposing office blocks. Improved natural lighting reduces absenteeism, while ergonomic furniture, windows, skylights, atriums, courtyards and plants create an aesthetically pleasing and functional environment [9]. For instance, incorporating green roofs or V-shaped butterfly roofs can maximise natural light and capture rainwater, while creating more space for windows and ventilation [11]. Sawtooth roofs with multiple slopes on each side, creating a zigzag pattern, are also ideal to facilitate solar panel installation, reducing energy consumption and the carbon footprint. These features improve indoor air quality, occupant comfort and overall sustainability [12].
As co-working spaces evolve, they are adopting advanced smart technologies such as virtual reality, AI tools, sensors and apps to optimise office performance. For instance, they automatically adjust lighting, temperature, ventilation and security based on occupancy, preferences or user schedules, enhancing the user experience and productivity [13]. Biophilic design, incorporating natural elements and cutting down embodied carbon in building, is also a growing trend in these spaces, fostering a connection to nature [14].
In terms of the environment, eco-friendly co-working spaces that prioritise sustainability and natural connections are gaining in popularity. Designing workspaces that seamlessly blend the interior and exterior is key. This involves incorporating eco-focused offerings and energy-efficient technologies, optimising airflow and utilising renewable energy sources. First and foremost, it is crucial to check the current energy performance certificate and make necessary improvements to upgrade the EPC rating, under provisions made in the Energy Act 2011 [8].
This should trigger several refurbishments, including adopting sustainable practices in the design and operation of flexible workspaces, such as energy-efficient HVAC systems, smart building technologies, waste management strategies and renewable energy sources, which help to reduce operational emissions while maintaining satisfactory returns [8]. For instance, for the walls, incorporating movable frameless glass, laminate or wood panels can save costs and time, and reduce waste. Green walls can improve air quality, reduce noise and provide insulation, while recycled walls offer a unique and creative look while minimising resource consumption and offsetting greenhouse gas emissions [15].
Amid current challenges and uncertainties, prioritising employee wellbeing in the workplace is crucial. This includes enhanced cleaning, improved air quality and touchless technology for safety. Wellness facilities such as gyms, saunas and meditation rooms can also be embraced to promote a positive mindset [10].
In conclusion, the flexible co-working market presents opportunities beyond existing operators as commercial landlords repurpose underutilised office spaces [16]. This transition away from traditional offices has the potential to meet the increasing demand and propel the flex office market forward. As an agile developer, I would leverage agile methodologies and collaboration tools to effectively implement these features [7]. Adhering to the Government Workplace Design Guide will provide high-level requirements and detailed technical guidance to ensure optimal workplace design [17].
Engaging with stakeholders and users throughout the development process allows for real-time feedback and iterative improvements to ensure that the co-working space aligns with evolving needs and expectations. By embracing the potential of flexible workspaces and tailoring them to changing demands, developers and landlords can tap into a thriving market and foster a collaborative work culture, leading to financial and social benefits.
References
[1] Aigwi, IE, Duberia, A and Nwadike, AN (2023) ‘Adaptive reuse of existing buildings as a sustainable tool for climate change mitigation within the built environment’, Sustainable Energy Technologies and Assessments, 56, p.102945. doi:10.1016/j.seta.2022.102945
[2] Lanz, F and Pendlebury, J (2022) ‘Adaptive reuse: A critical review’, The Journal of Architecture, 27(2–3), pp441–462. doi:10.1080/13602365.2022.2105381
[3] Phillips, MN and Donhauser, A (2023) ‘Coworking: Creative spaces after the pandemic home office’, Awakening the Management of Coworking Spaces, pp.3–11. doi:10.1108/978-1-80455-029-820231002
[4] Gov.uk (2023) Community Ownership Fund: Prospectus, GOV.UK. Available at: https://www.gov.uk/government/publications/community-ownership-fund-prospectus (Accessed: 24 May 2023)
[5] Davies, N (2023) The future of coworking: 10 trends that will shape 2023 and beyond, Coworker Mag. Available at: https://www.coworker.com/mag/the-future-of-coworking-10-trends-that-will-shape-2023-and-beyond (Accessed: 24 May 2023)
[6] Statista Research Department (2021) Topic: Flex workspaces in Europe and the UK, Statista. Available at: https://www.statista.com/topics/5912/flex-workspaces-in-europe-and-the-uk/ (Accessed: 24 May 2023)
[7] Leong, J et al. (2023) ‘Hybrid project management between traditional software development lifecycle and agile-based product development for future sustainability’, Sustainability, 15(2), p1121. doi:10.3390/su15021121
[8] Akram, MdW et al. (2022) ‘Global prospects, advance technologies and policies of energy-saving and sustainable building systems: a review’, Sustainability, 14(3), p1316. doi:10.3390/su14031316.
[9] Oseland, N (2022) Beyond the workplace zoo: Humanising the office. London: Routledge, Taylor & Francis Group
[10] Skalicky Klemenčič, V and Žegarac Leskovar, V (2023) ‘The role of open space and green areas in the design of an inclusive nursing home environment during Covid-19 period’, Energy Reports, 9, pp85–91. doi:10.1016/j.egyr.2022.11.155
[11] Yasir, MT (2021) Different types of rooftop architecture designs, Bproperty. Available at: https://www.bproperty.com/blog/different-types-rooftop-architectures/ (Accessed: 24 May 2023)
[12] Carlson, C (2022) The Dezeen guide to roof architecture and design, Dezeen. Available at: https://www.dezeen.com/2022/04/28/dezeen-guide-roof-architecture/ (Accessed: 24 May 2023)
[13] Petani, FJ and Mengis, J (2021) ‘Technology and the hybrid workplace: The affective living of IT-enabled space’, The International Journal of Human Resource Management, 34(8), pp1530–1553. doi:10.1080/09585192.2021.1998186
[14] Zhong, W, Schröder, T and Bekkering, J (2022) ‘Biophilic design in architecture and its contributions to health, well-being, and sustainability: A critical review’, Frontiers of Architectural Research, 11(1), pp114–141. doi:10.1016/j.foar.2021.07.006
[15] Ibrahim, I et al (2022) ‘Creating a post-pandemic sustainable environment in the context of technical and reputational business transformation’, International Journal of Low-Carbon Technologies, 17, pp. 581–590. doi:10.1093/ijlct/ctac029
[16] RICS (2021) Redundant, repurpose, rebound, Rics.org. Available at: https://www.rics.org/news-insights/redundant-repurpose-rebound–is-it-time-to-reimagine-the-use-of-commercial-real-estate-space (Accessed: 24 May 2023)
[17] Government Property Agency (2022) The Government Workplace Design Guide, GOV.UK. Available at: https://www.gov.uk/government/publications/the-government-workplace-design-guide (Accessed: 24 May 2023)
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