Earlier this year the Bromley Town Hall in London opened its doors to the 23-unit boutique Brama Hotel, adding another offering to its mixed-use development after launching a flexible workspace last summer with an all-day food and beverage offering, Dorothy and Marshall, also open.
The property is the latest to embrace the new ways of working, living and socialising in a post-pandemic world with these trends looking set to stay, meaning that, developing multi-purpose adaptable spaces is appealing to more investors.
“Since the pandemic, we have seen a blurring of the boundaries between business and leisure travel,” Michael Kovacs, founding partner of real estate investor Castleforge, the building’s owner, says.
“Due to higher demand from residents and companies looking to locate in built-up areas with higher and more varied amenities, we have seen a change in investor preferences too. Institutional investors are increasingly understanding that mixed-use assets have a place in any well-diversified portfolio.”
“The redevelopment of Bromley Old Town Hall will not only significantly improve Bromley’s stock of high-quality flexible workspace, meeting rooms, and boutique hotel rooms, which are in demand by the local population, but will also cater to this new mixed demand by housing all of these operations under one roof and coordinated by a strong operation,” said Kovacs.
Hotelisation of flexible workspaces
Amid the whirlwind of corporations shrinking their office footprints, flexible workspace occupancy is on the rise. A Savills report from October 2022 shows that in Europe, flex contract occupancy rates were at 80 per cent for private offices and 65 per cent for shared space whilst conventional office space occupancy averaged 43 per cent, down from around 70 per cent before the pandemic.
Bromley Town Hall houses the second Clockwise workspace in London. Clockwise — Castleforge’s flexible workspace provider — has 500,000 square feet of commercial workspace in the UK and plans to add over 250,000 square feet to its European portfolio by 2026.
Alexandra Livesey, chief operating officer (COO) at Clockwise, talks about how its workspaces serve businesses and individuals at all stages. “We recognise that many large companies and corporations are adopting more flexible work arrangements post-pandemic, which has led to a trend of shrinking office footprints to ensure less wasted space and keep costs lower,” she explains.
“Our workspace in Bromley is designed to provide flexible and adaptable office spaces that can accommodate varying team sizes and work schedules, while also factoring in business growth or reduction. Our members have the freedom to choose from a shared coworking space to private offices for teams of all sizes, allowing them to scale their space as needed, promoting efficiency, and a cost-effective solution.”
At 62,000 square feet, Clockwise Bromley is located on the ground floor in what might otherwise have been the hotel lobby. Third spaces (a workspace that’s not the home or the office) like hotel lobbies attract people to work there because of the comfortable seating and strong internet connection. In a continuing trend, JLL reports that 36 per cent of workers use third spaces at least one day per week.
By replacing the public lobby space with a flexible workspace, Castleforge is capitalising on its offerings at every touch point. Hotel guests can use the workspace on a 20 per cent discounted day pass. Non-hotel guests can pay for a day, a month, or on an ad-hoc basis, for booking meeting rooms and a podcast room, leasing desk space, or a private office under a variety of membership options. The building also boasts a members’ lounge, café, and terrace.
Appealing to a variety of customers including international visitors and the local people of Bromley, the mixed-use nature of the Old Town Hall transforms from a workspace by day to a hotel and restaurant in the evening.
ESG agenda
The £20 million renovation project started in 2021 after plans to convert the Grade-II listed building were approved in 2015. Bromley Town Hall previously sat empty for over 10 years, with developers opting for a retrofit approach to construction.
Repurposing is a more sustainable approach than rebuilding, Lora Brill, Head of Responsibility and ESG at Orchard Street, explains as ‘reus[ing] building materials and historic site work, can reduce emissions significantly when compared to a new build.” In alignment with industry targets of reaching net zero by 2050, developers must consider energy efficiency and a project’s environmental impact.
Bromley Town Hall “had been on the Heritage at Risk register,” says Kovacs. “Our sensitive restorations have protected and preserved the best of its history while future-proofing the space. Meanwhile, we have improved plant and energy services to make the building meet higher energy performance specifications.
“What we’re seeing is that sustainability isn’t just the right thing to do, it also improves our investment prospects. Increasingly, as firms step up their ESG commitments, they will only consider the most sustainable office spaces.”
He explains how Castleforge meets ESG targets across the board, by “ensuring all our developments target high sustainability accreditations and deploy innovative construction techniques wherever possible. Reusing and adapting older buildings is an important part of this approach.”
Clockwise workspaces have a strong commitment to ESG too. Livesey says: “Bromley Old Town Hall holds immense historical and cultural significance for the people of the area. It is often viewed as a symbol of local identity and heritage so we feel honoured to be in this building, it’s a great privilege with great responsibility. It’s a landmark building as impressive as it is iconic, we are dedicated to preserving the building's unique character.”
“Our goal was to honour the legacy of the building while also bringing new life to the space, after years of it sitting empty and unused we were compelled to turn it into a vibrant and innovative hub that serves the modern needs of the local community in the area and positions it as a standout destination. We want the newly regenerated Town Hall to be a source of pride for Bromley residents,” says Livesey.
Local regeneration
The case for opening a southeast London borough workspace aligns with the rise in hybrid workplace policies.
“Suburban areas like Bromley have been overlooked by developers with city centres thought to be most appealing for both hotels and office buildings. But with great links to Central London, high-quality housing stock and a strong mix of amenities, Bromley is an ideal place to address this new consumer demand and to create high-quality, flexible workspace and boutique hotel rooms for increasing numbers of visitors,” says Kovacs.
“[The] Old Town Hall has been at the heart of Bromley town centre for decades,” explains Kovacs. ”Throughout this project it was crucial for us to retain its character and sense of history. Central to this was bringing the building up to modern specifications, while retaining the historical features, to suit a range of potential tenants.”
On a similar note, Livesey explains that having a Clockwise workspace in Bromley meets a post-pandemic trend where “more people have moved out of London and work close to home…Clockwise is well placed to support regional SMEs achieve their potential and our locations mean our members cut down on commuting times, reducing stress and contributing to a healthier work-life balance.”
Research by credit card firm Capital One UK claims that people who work closer to home “spend an estimated two-thirds of their spend on items such as coffee and lunch on their local high streets.” Since reopening post-pandemic, local businesses are experiencing increased footfall. Livesey says, “All Clockwise workspaces are in well-connected commercial areas where people can go for lunch or carry out tasks such as going to the bank.”
Explaining the positive response to the mixed-used offerings at Bromley Town Hall, Livesey explains how “the local business community have welcomed us with open arms and reaffirmed that quality spaces are needed in locations like this.”
Community transformation
Under a wider regeneration scheme, Bromley Town Hall brings job opportunities to the local neighbourhood. Clockwise “always try to hire within the local community, for us that area knowledge is priceless and for members it creates a really positive experience,” says Livesey.
“We also pride ourselves in investment in our talent, providing development opportunities for all colleagues – we have recently appointed a GM in one of our buildings who joined us six years ago as a community assistant.”
A recent Forbes article reported how “well-managed mixed-use developments represent a win-win for both investors and cities, creating more housing, community connection, operating income, retail, and tax revenue.” When a business engages with and is inclusive of its local community, then real societal transformation happens – something to look out for in Bromley in the years to come.
“Clockwise is committed to creating positive impacts in the communities where our workspaces are located, We aim to contribute to local economic growth and prosperity,” details Livesey.
“We provide a professional and productive space for people to work which in turn supports their business and creates local employment opportunities as they grow. We partner with local councils and associations to support the wider business development goals of the area. We actively support local businesses around our workspaces too, collaborating with them whenever possible and encouraging our members to use nearby shops and services.”
”We’ve re-opened the doors to provide a place where connection, collaboration, and community come to life, with space to work, sleep and dine,” says Kovacs.