"It’s not just a flight to quality that will define the next generation of the office sector; it will be the flight to humanity."
Natalie Slessor is the Head of Customer and Digital, Investment Management at Lendlease, one of Australia's preeminent real estate groups, and has over two decades of experience advising, consulting, and exploring the future of living, leisure and work. From the Macquarie Group to Woods Bagot to Lendlease, Ms. Slessor has experience working all across the property and design industries: she's a repository of valuable knowledge in these fields.
The development of the office sector has been a constant fixture in the discussion surrounding the commercial property market as of late, and who better to comment on the current trends evident in the workplace than Ms. Slessor? In this Q&A, we get a first-hand account of what's in-vogue for the office sector in 2022, courtesy of one of the industry's brightest minds.
Generally, what are the key trends in the office sector right now?
There’s no doubt there’s a lack of ‘muscle memory’ when it comes to the office, following two years of out, in-again, out-again, hybrid…and everything in between.
It’s taking time to establish patterns that make sense to individuals, teams and businesses in terms of supercharging culture, growth and outperformance. And the tight, and tightening, labour market alongside economic stress adds complexity it would take a 3D Chessmaster to unravel.
We can see the macroeconomics, but we have also been partnering with data scientists like Propella, social scientists like Leesman Index and workshopping with the next generation of the workforce to get further under the skin of how we might respond.
Lendlease's office - Courtesy of Office Snapshots
And through this complexity, using data and drawing on Lendlease’s international experience and perspective, we find that (and breathe now): simplicity is our greatest ally. People want to be where other people are, where cool things are happening, connected to transport and where nature is.
There’s a lot of talk about flight to quality in the office sector right now, and at Lendlease we’re in fierce agreement that more sustainable, better constructed, digitally enabled and healthier places are our future. Side note: these factors are also Lendlease’s past and present… but that’s another story… needless to say, we’ve been on that track for many years, decades even, and we’re not going to stop leading the pack on this anytime soon.
But it’s not just a flight to quality that will define the next generation of the office sector; it will be the flight to humanity.
Hybrid work is more popular than ever, according to recent reports. How is the office sector adjusting to employees opting for a mix of WFH and working in-office?
The phrase ‘earn the commute’ does spring to mind here - perhaps it’s overused but there is a point. Is it worth the time, cost and family-juggle to go to a dusty desk in an outdated place?
The office needs to be easy to get to, and great when you get there. Immediately transport proximate, amenity rich, fun yet safe places bring people and life back to our cities – and not just for the benefit of the office space. The city is underpinned by small retailers, start-ups, and scaleups that rely on proximity and footfall to survive. Not to mention the arts and culture sector. We owe it to them to get hybrid right in many ways.
Barangaroo - A Lendlease office development
At Lendlease we’re supporting our urban retailers but also introducing culture into our precincts, activating the spaces in between the offices to see how we might play with the mix of what happens near the offices, to the benefit of the whole community.
But we also have to get the basics right, family friendly amenity like childcare, gyms, showers with fluffy towels, great food options, even better coffee options. These are no brainers and again, part of what we have been working on for some time, we’re restless place-makers at our heart.
Sustainability is becoming a pre-eminent concern for many tenants. How are developers going about creating more sustainable office spaces?
We have to think that development is now planet-first. Sustainability is the core consideration in all of our office and workplace developments and is essential if Lendlease is going to reach its ambitious absolute zero carbon emissions targets by 2040.
3401 S La Cienega - A Lendlease development recognised for its commitment to sustainablility
Our existing and potential tenants are all telling us that they want to be working in highly sustainable precincts that support their own sustainability and ESG goals. We can only achieve this through partnership with each other, a move we welcome and are embracing.
Lendlease is mandated to achieve the highest possible ratings we can, and we’re proud to be held accountable to these standards, and you’ll see all our assets and new developments are on a pathway excellence in this area.
What are some of the most exciting office projects currently in Lendlease's pipeline?
I’d thought you’d never ask! All of this talk about the future is really nothing unless we’re acting on it and delivering great places in the cities where we work.
Victoria Cross Tower in North Sydney is a prime example of the future of office and represents the latest global thinking in place creation and workplace experience. The 42-storey office tower is incredibly well-connected, located directly above the new Sydney Metro station, it offers brilliant workplace design, surrounded by a new mixed retail and dining precinct.
It is also positioned to be one of Sydney’s most sustainable workplaces, as it will be net zero carbon, fully electric powered by 100 per cent renewables, and targeting a Platinum WELL and 6-Star Green Star rating. It’s a win-win for place and planet.
Salesforce Tower - Soon-to-be Sydney's tallest commercial tower, developed by Lendlease
But coming to life in 2023 will be Salesforce Tower at 180 George Street in the Sydney CBD, which is transforming a pocket of Circular Quay into one of Sydney's latest new business, lifestyle and innovation precincts – incredibly there’s a climate tech hub for scale ups in the building, not to mention the social businesses that will call this place home, it really is the new mixed use.
It’s Sydney’s tallest commercial tower, with a revamped Jacksons on George, bars, restaurants and community spaces activating the laneways below. Designed by one of the world’s leading architects, Foster + Partners, the development has also been awarded a Platinum WELL rating and GBCA 6 Star Green Star, and is targeting a 5.5 Star NABERS energy rating.
Salesforce Tower is already over 70 per cent leased – a testament to the strength and confidence in the return to office.
Then from the tallest to the most boutique; at the other end of the scale there’s Blue & William in North Sydney. Think sweeping harbour views, a landscaped wellness garden and incredible open spaces, an organic café and an array of facilities to support healthier ways to commute. Nature and sanctuary, you’re welcome! Designed by global architecture and design studio Woods Bagot, it was acquired last year by Keppel REIT and is being developed and managed by Lendlease. We’re thrilled with this new jewel in our crown.
And of course in Melbourne we round out our spectacular Melbourne Quarter development with Melbourne Quarter Tower. Built to target the highest international standards in wellness and sustainability, a combination of highly-flexible, tech-enabled workspaces combine with progressive public amenity and an activated programmed precinct that spans an unique sky garden, a new public square and a public art and engagement program to rival the best.
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