Fly solo or mix it up?

With agents struggling over the past two years, capital values tumbling, and rental estimations plummeting the small glimmer of light on the horizon has provided a welcome lift in sentiment throughout the London office market, but just what has all this meant for the office block itself?

Some estate agents believe that there will be no market for solo office blocks in the future. One said: "The days of building a solo office block are long gone. Mixed use, residential and commercial, is the way forward for property development. The office element is the most challenging to let. The fall in rents has been so severe and there are no tenants around. Retail units may be easier to pre-let and residential units will sell because of the hot market."

Mixed use schemes certainly appear to be a sensible option as we look forward, however it is important to highlight that they do not come without some technical and planning difficulties, juggling space to meet numerous requirements.

 
I think while it is important to offer a mix of uses to tie a building in with the community, and by doing so lower the risk in the investment, it is also important to remember that every case is individual. There are still large floor plate requirements out there, with tenants hunting for high quality pure office space.