Whitepaper

5th Apr 2023

Rethinking urban centres

Since the pandemic and the acceleration of home working, many offices have laid empty, or ended up only partly used. With the need for affordable housing, an obvious solution is to convert the empty offices to residential use. But how easy is it to do that, and what considerations do you need to factor in? Together with our sister architecture & design business Benoy, we explored the options available.

In August 2022 there was 31 million sq. ft. of available office space in London, the highest level for 15 years.

So, converting office buildings into residential units is a popular topic now, driven by the need for affordable housing in urban areas and the desire for more sustainable development practices. It’s considered an obvious solution with many town centres faced with historically high vacancy rates, as the demand for office space is reduced by flexible hours and remote working.

Whilst some office buildings are upgrading to offer enticing amenities, from boutique hotel style lounges and cosy nooks to rooftop terraces, green spaces, pop-up installations, fitness centres, spas, and convenient retail options, all aimed at creating the best possible working environment, others though may have to consider alternate uses.

Consideration 1 — Planning

One of the exciting opportunities that lie ahead is the challenge of navigating zoning restrictions in cities. While these laws can be strict and govern the types of buildings used for residential purposes, they also offer a chance to showcase the importance of flexibility and adaptability in our communities. Though the process of obtaining a zoning variance or special use permit can be lengthy and expensive, it provides an opportunity to collaborate with city planners and government officials to ensure that the needs of all parties are met.

It is important to keep in mind that there are various legal and financial considerations to consider when converting office buildings into residential units. For instance, the tax rates and profitability may be impacted, but these challenges can be overcome with creative solutions. By embracing these challenges with a positive and open-minded approach, we can transform our cities into vibrant, adaptable and thriving communities.

The best environments are composed of a cleverly constructed cocktail of commercial, residential, hotels, leisure, retail, civic and cultural components, all locked into a fascinating matrix of public realm — the perfect recipe for a new urban destination.

Consideration 2 — Community

Benoy’s Royalmount scheme in Montréal, Canada.

As we convert office buildings to residential units, we must consider the potential impact on the surrounding community. Concerns about density, traffic, property values, and parking can be addressed through collaborative efforts and careful planning.

Consideration 3 — Fit

Converting office buildings to residential units presents a challenge due to the physical layout of existing buildings, particularly in deep-plan buildings, but it’s also an opportunity for innovative problem-solving. In addition to adding walls, windows, and plumbing, there are many creative ways to transform office buildings into inviting residential spaces. By thinking of the building as ​“Swiss cheese,” we can carve out spaces for courtyards, balconies, terraces, and light wells that bring natural light and fresh air into the building. These design solutions not only enhance the liveability of the space but also add a unique architectural flair that makes the building stand out. With a creative and innovative approach, we can transform our office buildings into stunning and functional residential communities that meet the changing needs of our communities.

Atriums/​light wells

These spaces can bring natural light and fresh air into the interior of the building, creating a more pleasant environment for residential. Atriums can also provide the opportunity for cross-ventilation which is highly desirable and can have long-term benefits from an energy usage standpoint. The IBC requires natural light and ventilation to all habitable rooms. The challenge here is how to make a dense urban block into a habitable bit of Swiss cheese, with balconies and terraces serving to effectively thin the building.

The Marches, Woking

Balconies

Exterior space is always a plus and adding balconies to an existing structure can be challenging, but has huge potential upsides. The main issues with adding balconies is the additional support required, the issue of cold bridging and the potential for making a deep floorplate even deeper with reduction of natural light into the resi units. But, the upsides are offering valuable exterior space to residents, enhancing the overall aesthetic of a building and potentially providing a modern touch to historic or industrial structures. Inset balconies could also be an option, but could be costly in terms of upgrading the existing building to mitigate against the issue of cold bridging. But the upside is the reduction in depth overall.

Green roofs

Green roofs are another solution to deep floorplates that can bring nature into the building. Green roofs can provide a range of benefits, including improving air quality, reducing energy consumption, and reducing stormwater runoff. They also create attractive and peaceful space for residents to enjoy or play areas for kids.

Consideration 4 — Meeting the ground

Activating the ground level of a former office building converted to residential use is a crucial factor to consider. Introducing neighbourhood retail and food and beverage options is a natural part of creating a new community. In addition to these, incorporating community spaces, cultural and educational facilities, and event spaces can significantly enhance the conversion to residential use. Many of these spaces can be situated on the ground level, even in deeper plan areas.

Perhaps the biggest opportunity for clever design intervention is in developing strategies for ground floor residential units in dense urban locations. Designing ground floor residential units in urban environments on the ground level that can allow residents a sense of privacy while at the same time contributing to a vital and active urban realm.

Consideration 5 — The embodied carbon challenge

Repurposing existing buildings presents a tremendous opportunity to create sustainable and vibrant communities. While constructing new energy-efficient buildings may be necessary in some cases, we strive to give unoccupied office buildings a second chance to shine whenever possible. Our goal is to revitalise our cities and communities, and we believe that finding new purposes for buildings is a challenge worth embracing. With creativity and innovation, we can transform these structures into beautiful and functional spaces that benefit both the environment and the people who live and work in them.

Ideas into action — a selection of case studies

40 Bank Street London

40 Bank Street London

Benoy’s brief was to create a ​‘Plug&Play’ fit out scheme for an existing office building in London’s Canary Wharf. It needed to appeal to the widest possible range of prospective users, in particular the typical hybrid worker who might only be looking to spend a few days in the office each week.

One of the more topical ideas is conversion to residential and mixed-use. The opportunity to create a more vibrant mix of uses within one existing building is a challenge that we’re excited about exploring.

Silvertown Quays development

On a forgotten industrial wasteland in London’s East End, there are plans to transform it into a vibrant, thriving economic hub. Silvertown’s vision is not only to capture the potential of commercial development, but also to be a place to live with pursuit and vision. The idea of a flexible building which can accommodate maker space, brand showrooms and potentially residential is part of a new way of looking at buildings as more adaptable and sustainable.

Of course, a few challenges and opportunities may need to be overcome to make this change possible in the US market.

Central Quay, Cardiff, Wales

Central Quay, Cardiff, Wales

Set to be the largest regeneration scheme in Wales, Central Quay in Cardiff is Benoy’s latest mixed-use masterplan. Covering 2.5 million square feet, Central Quay, it will be a public hub on the site of Brains Brewery in the heart of the city, which will fuse co-working, education and food and drink space.

What can Pragma do to help you reactivate and reposition your property?

Despite the increasing recognition of the need to judge assets and developments on their social and environmental impact, the overwhelming factor that stipulates the content of a development is the commercial performance that can be set against the initial and ongoing build and maintenance costs, to drive the overall value. Every location, investor and audience is different. Therefore, in order to determine the uses that have the greatest potential to drive value, a robust assessment of the factors that will drive commercial performance and commercial decision-making must be undertaken. Such analysis must include:

  • Stakeholder priorities – what are investors, local councils, residents hoping to achieve? How will success be measured, and over what timescale?
  • Commercial opportunity – what does a location’s blend of geography, audience, environment and existing provision present in ways of opportunity for retail, leisure, food & beverage, office space, residential and more?
  • Commercial performance – how could performance of provision be maximised, through identifying the optimal quantum of provision, appropriate uses, suitable brands, quality environment and effective marketing to reach target users?

Pragma can utilise a range of data, techniques, relationships and experience to help research and answer these key questions. And through working with our sister brands Benoy, Holmes Wood and Uncommon Land, we can provide the comprehensive data-led design services to deliver mixed-use development from concept to delivery. To find out more email us at info@pragmagroup.com