The office is going through a tough period. Not only are vacancies high, but headlines speak of the risk that work-from-home poses to the economy due to reduced productivity. Many businesses are struggling to fill empty desks.
It’s not only businesses that should be worried. The lack of interaction could impact people’s careers and salaries, as businesses with higher levels of remote work have had lower wage growth since 2022.
To get people back into the traditional workplace, the world needs a new human-centric definition of the word “office” that describes the potential the right space has to boost a business, said Ben Gillam, founder and CEO of office fit-out company Thirdway.
“All the solutions to create a great office already exist — we’re not waiting for a breakthrough,” he said. “But we are waiting for a radical breakthrough in terms of how it’s all put together to create spaces that really boost productivity. All it takes is for landlords and occupiers to approach office design from a different mindset.”
Ahead of Bisnow’s UK Office Series: The Renaissance on 21 March, Bisnow spoke to Gillam about how taking a human-centric approach to designing an office can transform a business.
Bisnow: Why isn’t the traditional definition of an office suitable anymore?
Ben Gillam: If you looked at a dictionary definition of “office,” it is functional: a room or set of rooms for bureaucratic activity. The problem with this definition is there’s no human in it. Offices need to be places where culture can grow, where people can thrive to help businesses succeed.
The office really needs a PR campaign right now. There is far too much negativity in the media focused on its demise rather than its possibilities. I believe the role the physical space can play in the success of people and companies is material.
Bisnow: How has the way people use offices changed in recent years?
Gillam: The biggest change is clearly technology: email, handheld devices and cloud storage. It impacts how, where and when we work, has automated functional tasks and changed the layout and use of an office.
When you add AI, you can see how technology will free us to focus on the more interesting aspects of our jobs, the human aspects. While we often talk about the intersection of technology and people, the benefits of human plus AI, what’s more interesting is the backdrop in which human and machine co-exist — the physical space.
The office will play a more meaningful role in how we work because technology is changing the nature of what we do in the office, why and when we come in. Our experience with our occupier clients points to the need for meaningful interactions, social exchange, idea transfer, collaboration, creativity and problem-solving.
Increasingly, that’s what people want from their space. We have always craved human interaction, and offices have become a place to bring people together, like an institute or a town square.
Bisnow: Has the real estate sector accepted this new function?
Gillam: Thirdway is uniquely placed as the only design and build company in London with a client base split 50-50 between landlords and tenants. We’ve developed long-term relationships with landlords, bringing them insights into what occupiers are looking for.
Overall, we see that the sector does understand that offices have changed, but to some landlords, creating a great workspace is still just a way to market the space. They don’t consider what businesses are looking for.
The most successful landlords understand that the current flight to quality that everyone is talking about isn’t just at the service level. It’s about the alignment of what “flight to quality” means. We are seeing such a large take-up in the West End, a market that is, per square foot, one the most expensive in London, but occupiers are not demanding a sea of desks.
So much space is now deliberately focused on creating that engagement platform. Social spaces, a focus on well-being, creating a home away from home. They want a real reason to be there and for this to boost professional and personal development. There is a meaningful difference between having to go to the office and getting to go to the office.
Bisnow: Where should a landlord or tenant start with designing a great office?
Gillam: Our clients understand that what they spend on an office is an investment, not just a cost. If you’re going to spend, say, £100 per SF or even £200 per SF, that will add up, but you should treat it as an investment in your people. Nothing gives culture a boost like an office move or refurbishment. There is excitement about the possibilities.
When a business starts from this position, they should think about their goals, their shortcomings, what they need to improve, how to future-proof their space, engage their people, enhance collaboration. They should think about space and movement, how to ensure technology and well-being impact positively. What needs to be transparent and open, what needs to be private? What does the client experience need to be?
Importantly, we see that each sector’s needs are different, and every business is unique. The outcome a law firm needs will be very different to a tech unicorn. When you answer these questions, you create spaces that don’t just look amazing but where amazing things happen.
Bisnow: How can a great office help an occupier?
Gillam: For 99% of companies, their biggest cost is their people cost. After that, it’s usually the occupational cost, which I’d treat as an investment in people. If we get our job right and design an amazing space, we will enhance that workforce, the space and the organisation.
This isn’t just from a productivity point of view but in terms of engagement and culture. People’s working lives will be better and their careers will benefit. A healthy culture of trust emerges when they can see the output of their work and have affirmation from colleagues in person.
In a world of tech, AI and automation, we need humanity more than ever. On the flip side, where an office is badly designed or sterile, you simply get a group of people going into a functional environment and hoping for the right output.
I am a true office evangelist. They should be celebrated. Offices are the catalyst for so many of life’s opportunities, where so many relationships are formed. They have the potential to be inclusive spaces where great companies get to change the world for the better.
Bisnow: How has Thirdway evolved as the definition of the office has changed?
Gillam: One thing that hasn’t changed is our obsession with what our clients want and to solve their problems. We’re focusing on landlord clients to help them offer best-in-class space for tenants.
Already we’ve helped define Cat A+, positioning landlords to let space quickly. We’ve added a technology platform, TX, that helps tenants visualise the space and associated costs in real time, which helps them make decisions and helps landlords let the space faster.
We’ve matured and are now partnering with clients across sectors. Our design has matured and is tailored to each client because we realise how important it is to ask the right questions, listen and spend time with clients during the design process. Whether it’s formal or informal workplace studies, clients now need data to help create the right experience and, importantly, measure and optimise that experience.
Finally, we’ve always been London-centric, but our clients wanted to partner in new geographies. Already 25% of our work is outside the city, a percentage that’s growing.
We’ve come a long way over the last 14 years, and we have bold ambitions. I want to double our business over the next four years. To do this, we will need to continue to innovate, stay true to strong design roots, deepen our landlord relationships and double down on our managed offering, Pulse. And if we continue to solve client problems, we’ll continue to be relevant.
This article was produced in collaboration between Thirdway and Studio B. Bisnow news staff was not involved in the production of this content.
Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to [email protected].
Credit by BISNOW