Circling the Square

How Centre Square Offices are helping occupiers meet today's challanges

The third building in Middlesbrough’s showpiece Centre Square office development is well on its way to completion.  The project was launched six years ago by Ashall Projects whose managing director Mark Ashall Projects has shared his reflections with Tees Business.

 Mark, it is fair to say that businesses have faced a variety of challenges in recent years.

MA: Ours certainly has.  During the last three years COVID has led to a substantial change in working practices and norms.  Staff have been asked to work from home for extended periods and many companies are still wrestling with the right mix between working from home and the office.

The war in Ukraine has now led to sharp increases in energy prices, with the price of electricity charged to businesses currently four or five times last year’s level.  While the cost is expected to fall a little next summer it is believed prices will remain high for some considerable time.

At the same time the impact of climate change is becoming increasingly apparent and many businesses and people are taking steps to reduce their carbon footprint.  This process is also being driven by the UK Government which is seeking to introduce higher standards for the energy efficiency of commercial buildings.  By 2027 they’ll have to achieve an Energy Performance Certificate (EPC) C rating.  Three years later a grade B will be required. Our Centre Square buildings are all rated EPC A so they would not be affected by these changes.

What are the implications for Centre Square? 

MA: Selecting the right office is obviously a major decision for a business, which often focuses on the financial implications of the length of lease, rent, fit out and running costs.  However, what is not always recognised is that the property-related expenditure  represents just 5-10% of a company’s total operating cost. The vast majority of these costs are salaries and other employment costs such as NI and pensions. 

The focus instead should be on what needs to be done to attract, retain and motivate staff and thus minimise the cost of recruitment, training and the loss of productivity that occurs as new employees get up to speed. 

Providing staff with a high-quality workplace is part of the solution.  At Centre Square we offer a combination of 3m floor to ceiling heights and full-height glazing, an abundance of natural light and excellent ventilation and temperature control.  This provides staff with a great working environment and in turn makes them feel positive about going to work, enabling companies to see the full benefits of collaborative working which is best achieved in the workplace. 

Location is also important.  Our position in the centre of Middlesbrough, the Tees Valley’s transport hub, makes it easier to travel to work and take advantage of a wide range of local amenities. 

What about the rising cost of energy?

MA: A move to Centre Square’s Grade A offices can also help businesses cope with the impact of a five-fold increase in electricity prices.  The design of our offices incorporates a wide range of features which reduce energy usage.  These include a low energy LED lighting and control system with daylight dimming, and installation of Variable Refrigerant Flow (VRF) comfort cooling systems with heat recovery.

 In addition, solar panels have been installed on the roof which power the solar water heating system and meet part of the building’s remaining power requirement.  As a result each of the Centre Square offices has achieved an EPC rating of A.  This in turn has delivered significant savings to our occupiers.  For example, one of the largest has reduced its energy usage per square metre by approximately 60% compared with its previous premises, which was an EPC D rated building.  This occupier will not only benefit from a move to Centre Square this year but for many years to come.

Furthermore, moving into an EPC A rated building means businesses will avoid the cost and disruption associated with implementing the changes the government will be requiring.    

Do businesses realise this is just around the corner?

MA: Perhaps not – and this seems to have gone under the radar.  But research by Savills - one of the world's oldest and leading property agents - suggests that 85% of office space in commercial centres such as London, Leeds and Manchester is rated at EPC grade C or below and a further 800 million sq ft is below the proposed new B rating.  It estimates that it could cost UK landlords more than £40 per sq ft (£430 per sq m) to make these improvements in order to achieve the new energy targets.

Is Centre Square helping your occupiers reduce their impact on the environment? 

MA: Very much so.  In addition to the energy efficiency measures listed above we have reduced energy usage through the use of solar shading, the installation of eco-efficient passenger lifts and insulating the building to a very high standard.

The combined impact of all the above measures is that the building emission rate of our offices is a fraction of the average office building stock on Teesside.  For example, by moving to Centre Square one of our larger occupiers has reduced its building emission rate (measured as kg CO2/m² per year) by 77%.

Thank you Mark.

For more information contact Ashall Projects on 01928 280160 or at mark.ashall@ashallproperty.com or Dodds Brown on 01642 244130 or s.brown@doddsbrown.co.uk