As I recently marked my first 100 days as Head of Office Agency in central London at Fisher German, it seemed an opportune moment to reflect on the insights and experiences gained during this period,
Career Background
My career has predominantly been in the London office leasing market. However, for the past four years, I transitioned to a client-side role at Canary Wharf Group. Returning to agency at Fisher German has been a refreshing experience, akin to reconnecting with an old friend in the street. And I mean this literally as well as figuratively - the familiarity of the London office market and reconnecting with fellow agents and clients who I’ve come to know over the last 20 years, has been a pleasure.
Key Learnings
The market is challenging
First and foremost, the current market conditions are undeniably tough. I’ve had dozens of breakfasts, coffee catchups, meetings, lunches, Teams calls (and the occasional beer), and one thing I’ve never heard is a breezy “I’m not sure about you, but I’m finding life really easy at the moment”.
- Agents' Frustrations: Agents are typically frustrated with the pace of occupier decision-making and the limited availability of stock to replenish their instruction lists.
- Landlords' Struggles: Landlords face difficulties reconciling the soaring headline rents in Mayfair and the City Core with the reality of attracting tenants to their vacant buildings.
Opportunities in a recovering Market
But that’s enough of the moaning. Those who have worked in real estate over the last two decades, regardless of sector or geography, understand that the work is always hard but ultimately rewarding and profitable. The recovering market presents numerous opportunities.
- Return to Office: The conversation around ‘return to the office’ has finally subsided, and with the return of good weather, the pavements outside City pubs are bustling with people enjoying early evening refreshment.
- Investment Market Revival: Slowly but surely, the investment market is coming back to life. Almost every client I have spoken to is either waiting in the wings to invest capital in new projects or considering potential sales over the next few months that were previously on hold.
Demand for Fully Fitted Office Space
Secondly, the demand for fully fitted and ready-to-occupy office space remains strong. However, the rising costs of materials, labour, and services necessitate careful financial management
- Cost Management: Even minor overspending can significantly impact profitability. While rents are increasing, the margin for error is narrower than ever.
- Managed Services: Offering managed services to occupiers is appealing but challenging to execute effectively. It is crucial to carefully consider the services offered and manage expectations to remain profitable.
- My advice to clients is to think very carefully about what you’re offering – and if you’re trying to guess how much coffee a business will get through, think of a number and double it!
Innovation and Technology
Thirdly, the property industry has seen significant advancements in innovation and technology, enhancing efficiency and effectiveness. From leveraging mobile phone data to identify new business opportunities to targeted social media advertising, technology has transformed our operations.
Despite technological advancements, the property industry remains fundamentally a people-centric business. Face-to-face interactions are irreplaceable, underscoring the importance of personal connections in our industry.
Reflecting on these first 100 days, it is evident that while the challenges are substantial, the opportunities and innovations within the market offer a promising outlook for the future. The resilience and adaptability of the industry, coupled with the enduring value of personal relationships, provide a solid foundation for continued success in the office market both in London and beyond.
