City plans fast-track use change for older offices

The City of London is planning to fast-track applications to convert unused older offices to avoid a Square Mile full of stranded assets. Its latest research predicts that office demand in the City is projected to grow by up to 2m sq ft over the next decade. However, it adds that the demand will be for buildings with the best facilities and environmental credentials.  Older buildings that do not meet tightening environmental standards will struggle to attract tenants, but Shravan Joshi, chair of the City’s planning and transportation committee, said around 80% of the Square Mile’s offices are of “prime” quality. “It’s that 20% that we have really got to manage, and make sure they don’t become stranded assets,” he said, in an interview with the Financial Times.  Joshi said he wanted a quicker process for approving plans to modify unused office buildings for other uses, including hotel and residential use. Changes could include reducing the amount of evidence required to justify a switch.  He added that the planning committee was “sympathetic” to new uses that are complementary to the City’s identity as a business centre, including hotels, as well as “educational and cultural uses”, such as galleries, universities and research space. “There will be some savings in time and costs for developers,” he said. Joshi did not rule out converting office buildings into flats, but he said he was nervous of having more housing within the business district. More residents would mean extra constraints when planning high-rise developments, he said.  To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo by Thomas Krych/ZUMA Press Wire/Shutterstock