London planners see pandemic as catalyst for reinvention

When the coronavirus pandemic began, nearly 540,000 workers vanished almost overnight from the business hub, known as the City of London, or simply "the City." A year on, most haven't returned. On the surface, London's financial district appears to be a shell of its former self.

But a hive of activity is taking place at one spot, as builders lay the groundwork for the latest skyscraper to transform the skyline. Developers of the tower, called 8 Bishopsgate, are confident that when construction ends late next year, workers and firms will return to fill all 50 floors of the gleaming new office space.

While many believe that some degree of working from home will become the new normal, city planners say they aren't worried about empty office blocks. Rather, they say the uncertainties and changes are just a catalyst for the reinvention of one of the world's top financial centers.

On Bishopsgate, two new side-by-side skyscrapers are set to open soon, and each stress they are armed with spacious offices and a host of amenities to entice workers back. Kevin Darvishi, leasing director at Stanhope, the developer behind 8 Bishopsgate, said demand for top-quality office buildings will remain strong in the post-pandemic world.

"What you'd end up with is a two-tier market where older buildings are discounted considerably because they can't cater to the needs of the next generation of the workforce," he said.

At 62 stories, 22 Bishopsgate is the second-tallest tower in the U.K. and dwarfs everything else nearby. Billed as "Europe's first vertical village," it boasts a huge food hall and a gym, and 60% of its office space already has been leased to companies ahead of its opening in the autumn.

Together with its neighboring tower at 8 Bishopsgate, the two will offer enough space for about 17,000 workers. Harry Badham, head of development for the UK for Axa Investment Managers which runs 22 Bishopsgate said there had been a "surge of interest" in the building since the British government announced its plan to emerge from lockdown.

"What we've seen from that, generally speaking, is people being much, much more focused on the quality of the space for their staff being, being a little more flexible about how they take space and what they'll need, because there's still an uncertainty there. No business can really answer that question yet," Badham said.

Firms like Amazon have recently stated that they plan a return to an "office-centric culture," though many studies both in the U.K. and beyond have suggested that more flexible working policies and increased remote working are here to stay. A January report on London's future from the mayor's office predicted that while companies will not abandon the capital, many will need to improve the quality of their office space to encourage more employees to return and use it.

The City of London Corporation, say that in the first three months of 2021, the body already has approved the equivalent of 80% of the number of planning applications for office space submitted last year. In a broader sense, officials say COVID-19 also has accelerated plans to make the financial district a friendlier, more diverse place that's more open-minded about flexible working -- as well as an area that gives people a reason to stay after work.

More space for pedestrians and cyclists is planned, as well as more affordable or flexible workplaces that can attract people from the creative industries. By 2025, the City of London wants to see a 50% increase in weekend and evening visitors. The workers' return will be crucial for the survival of many shops, restaurants, theaters and museums. Although offices and city centers all over the world have emptied out during the pandemic, the report said London was hit particularly hard by the shift to remote working because it has many fewer people living in the core of the city, compared with New York or Paris.

Hubert Zanier, who co-owns a chain of Southeast Asian takeaway restaurants called Nusa Kitchen in the financial district, has struggled to keep his business afloat with all six branches closed. While technically allowed to open under the government's virus restrictions, it was clear this was not an option with zero foot traffic in the City.

"We were quite hopeful when we first closed down, but little did we know the whole thing would last 12 months with all the ups and downs - more downs than ups," he said. Zanier is preparing to reopen as restrictions gradually ease, and his best-case scenario is for 75% of workers to return on a regular basis in the summer. "It's clear the world will look different," he said. "But you have to be optimistic - if you're not, you might as well pack up your stuff and go." 

Image Credits: AP