London office occupancy has stabilised to be above 30% and hybrid working is “here to stay”, a new report said as it emerged John Lewis Partnership has inked a deal to slash the size of its headquarters.
The employee-owned business behind John Lewis and Waitrose will from next Summer relocate to 108,000 square feet in Pimlico, leaving 220,000 square feet at its home of more than 30 years on Victoria Street.
Lucy Brown, director of central operations at John Lewis Partnership told the Evening Standard: “This relocation reflects our flexible working policy which enables our partners to combine working from home, with time in the office and our other sites.”
Brown added: “Alongside remote working, our partners see huge merit in being able to sit down with colleagues to collaborate, innovate, and generally get to know one another. Our new office reflects this way of working and we look forward to making it our new home.”
The new base will be One Drummond Gate, which was formerly used by the Metropolitan Police according to property website React News, which first revealed the new letting brokered by property agent Tuckerman.
The move is motivated by the company embracing hybrid working and not needing as much fixed desk space, and wanting better flexible workspace and meeting rooms.
But there will be cost savings from downsizing- something that will be welcomed in chairman Dame Sharon White’s turnaround plan.
She intends to boost sales, trim costs and create new revenue streams, such as building rental flats over some of its shops. The former Ofcom boss has had a turbulent year, and in May secured backing from staff to remain as chair but there was criticism over the retailer’s performance.
Remit Consulting, which tracks figures provided by building managers, said over the last six weeks average office occupier levels in the capital have been just under a third at 32.9%.
Remit Consulting’s Lorna Landells said: “Hybrid working for office-based staff is here to stay. With a number of high profile, international businesses looking to reduce the amount of office space they occupy in the capital, this trend is particularly evident in London.”
