Obstacle course: how a top London agent keeps office lettings coming

Using the EG On-Demand Rankings, we select a top agent each month to find out more about the deals driving their activities. Here, Jim Larkin talks to Harry James from The Workplace Company. There is a perception in some parts of the country that London offices operate in something of a bubble; that even if the capital’s streets are not paved with actual gold, it still has excellent transport links and a world-class built environment, meaning office space will essentially let itself. But pressures in this market are not the exclusive preserve of the regions. They have definitely been felt by Harry James, associate director at The Workplace Company, who lets offices across central London. “We had a great first quarter, we had a slow second quarter, and I think that is a mixture of everything that is going on in the world [and] domestically,” James says. “Hopefully, with our political changes, come September we will be back moving, but decision-making has definitely taken its time. “You get some pockets of greatness, but there’s no way to tell what to expect every week.” James was the top dealmaker on EG Radius for London offices in June, with eight completions amounting to 7,969 sq ft. He will happily admit this is down to sheer hard work and getting enough potential tenants through enough doors. Although the year to date has been full of bottlenecks, he is more optimistic about the second half. “One of the key things with office space in central London is that we need momentum, and for the past three or four months there has always been a hurdle, whether it’s been a strike, school holidays, the election – you get these one- or two-week windows and then you hit another obstacle or delay,” he says. “We need momentum. We want people to enjoy their summer holidays, come back and let’s enjoy a good run until the end of the year potentially without some of these interferences.” New normal The Workplace Company began life as an acquisition agent and still has a packed database of requirements from potential tenants, but James is focused entirely on landlord representation. Typical deals these days involve a five-year lease with a three-year break. He believes tenants are still figuring out exactly how to use offices post-Covid. “I think there is a rough idea but I think the final touches are ever-evolving over time as people see how their staff are working,” he says. “For us, we’re in the office for five days a week so we know we need the space, whereas other companies might be in the office only three days a week, so on those other two days what do they need? “There’s a massive requirement for meeting room space, Zoom room space, phone booths, etc. That has been a massive implementation since Covid, but how many fixed desks do they need? It is a challenge which we are here to try and help with, but ultimately we need to hear what the requirements are from the potential tenant.” However much space tenants want, all want better quality. “They want a nice shiny office,” says James. “The demand for a ‘plus space’, which is landlord fully fitted space, is through the roof. All these things are to get people back into the office and because people do not want to deal with the hassle of doing anything themselves and are happy to pay a premium for it.” James really comes alive when talking about buildings. His largest June deal came at 1 Valentine Place, SE1, a new development next to The Crown pub on Blackfriars Road. “We are letting brand-new, fully fitted plug-and-play offices with meeting rooms, phone booths, lovely break-outs,” James says. “We have great amenities, we have a shared space in there called the Clubroom, showers, bike racks, on-site estate management, outdoor areas. The estate is very attractive for occupiers down in that neck of the woods.” A very different building is 122 Wigmore Street, W1, in the West End, which is where James managed to strike his biggest rental figure per sq ft last month. “Not the largest floorplate, but perfect if you were wanting a lovely building that presents well and makes you feel good for you and your staff to come to the office,” James says. “Excellent natural light and traditional townhouse features with a boardroom that can be booked on arrangement.” Rating game As optimistic as James is about a new era of stability, he also has a big idea for making sure recovery is locked in, and it is something normally only spoken about in the context of helping retail occupiers across the UK’s beleaguered high streets. “A delicate but interesting subject would be around business rates,” says James. “I think things are astronomical in some areas – rightly so – but [we need] a re-evaluation of especially how Zone 1 business rates are being calculated. There is space available so how can we entice people back in, and one of the best ways is to reduce the overall price.” With public finances as tight as they are this would indeed be a big conversation, and it was a subject notably absent from the King’s Speech. However, it may prove to be a topic on which regional agents will find they have more in common with their London counterparts than they had previously thought. EG’s Dealmaker of the Month is selected based on deals submitted to EG Radius through our On-Demand Rankings. Click here to find out how to submit your deals. Photo © The Workplace Company