This month’s focus is on the delivery of major commercial (specifically office) schemes on the basis of a ‘new build’, as opposed to a conversion of the existing floor space, from a planning point of view.

This article predominantly references our involvement in an ongoing case study regarding the part-conversion and part-new build extension works to provide a high-quality HQ office scheme for Vivienne Westwood Limited near to Battersea Park, close to the River Thames. This scheme provides a part-two, part-four and part-eight storey extension to the existing building, totalling a full 10 storeys to its highest part. The scheme is essentially a commercial office scheme, but aspects of the internal layout and specification reflect certain discreet nuances that relate to the creative/fashion industry character of occupation.

There can be differences in policy approach, especially at a local plan policy level, in respect of owner-occupier schemes as opposed to more speculative office schemes, which this article will consider.

Opportunities for commercial investors
There is a growing demand for high-quality, serviced and flexible office spaces in the UK. Serviced office demand in London, for instance, has surged by 173% in the past five years. Many companies are rethinking their workplace strategy and opting for flexible solutions such as short-term leases and coworking spaces. Regional cities like Manchester and Bristol are also seeing strong demand for quality office space, with some even achieving new headline rents.

Nearly half of the UK’s commercial property is owner-occupied rather than rented and there is strong demand for such space amongst those seeking more long-term stability and control and seeking to avoid being caught out by future upwards only increases in rent.

Regulatory changes to the residential market relating to increased protection to tenants has led to some landlords exiting from the residential property market, with the commercial property sector often seen as less vulnerable to future legislative changes, more robust security and protection for landlords, and less management hassles.