Why universities can be a powerful catalyst for regeneration

COMMENT Recent data reveals a significant surge in universities scouting for office spaces across London, with Cushman & Wakefield tracking transactions nearing 500,000 sq ft. While office occupiers downsize in response to hybrid working, London’s academic institutions are expanding, and regional universities are seeking new sites in the capital. It is an exciting trend, particularly for regeneration areas that offer space at a competitive price point and where occupiers can act as a powerful draw for footfall, business and investment. Many of the capital’s universities, including University College London, King’s College London and Imperial College London, are based in central locations dating back to 19th and 20th-century origins. Land is expensive and opportunities to expand and create modern facilities are limited. Students are also paying expensive rents in Westminster, Chelsea, Islington and Kensington to be close to lecture halls, which is not financially sustainable. It means universities are looking to new locations. Imperial College was an early adopter, with its 23-acre White City campus, and in 2022, UCL East opened in Stratford, E20, citing “space to grow” and a “dynamic young population” as motivation. Both areas have since seen an influx of tech and life sciences businesses. Class in session Regeneration areas are in pole position to capitalise on this demand, if we embrace the distinct requirements of these occupiers and integrate them into our schemes effectively. There is significant overlap between the higher education and office sectors in terms of products and locations they seek. Both want to provide grade-A, sustainable and tech-enabled spaces. They are also aligned in their focus on location and over the past four years have placed greater emphasis on the area beyond their learning environments. But these are distinct sectors and one of the most significant points of difference is that universities have a customer base that leaves campus for half the academic year. How do we address this shift in footfall throughout the seasons and ensure that universities are accessible all year round? Community integration Integrating these institutions into their communities and designing inclusive buildings is paramount. We need to apply similar design principles to those that promote flexibility and collaboration between businesses in traditional offices: adaptable spaces that can change use throughout the year, and technology and apps to seamlessly connect students with local businesses and community groups. Adaptability and integration must also go beyond building design and be embedded at all levels. The Turing Building – the first of three major office buildings in Stratford Cross – has a dual-use consent for both office and higher education purposes. It means university occupiers benefit from a collaborative business community and talent pool within their building and proximity to the world-leading institutions at East Bank, while maintaining operational autonomy. The surge in demand from universities is an endorsement of London as a global academic powerhouse and a positive sign for investment in the UK, but we should ask ourselves how we increase opportunities for students post-graduation so they stay and contribute to these communities in the long term. Research shows that students who have connected with their communities throughout their studies will often become valuable long-term contributors to these areas. It is up to us to ensure we create the right environment for these connections to flourish. In Stratford, occupiers can join Shift, an inclusive innovation district founded by the London Legacy Development Corporation, Lendlease, University College London, University of the Arts London, Loughborough University, Here East and Plexal. Shift is a good example of how we can co-create collaborative frameworks across diverse sectors to maximise opportunities for the broader community and deliver local benefit. First-class results The higher education sector is projected to experience strong growth over the next five years. Demand for places from overseas students is expected to reach 1m by 2030, according to the Universities and Colleges Admissions Service, with the higher education sector contributing over £130bn to the UK economy. If we can cater to the unique needs of these educational institutions, ensure they are valuable contributors to their communities, and that they sit within the right broader ecosystem, universities can be the cornerstones of our towns and cities in the future and our calling card to the rest of the world. Felicity Ranger is London office leasing manager for Stratford Cross at Lendlease