City-centres reimagined into mixed-use dev'ts amidst rise of hybrid work: report

Traditional office spaces are being reimagined into mixed-use developments.

The rise of hybrid working is reducing the number of city-centre commuters, pushing landlords and developers to rethink the purpose of business districts, International Workplace Group (IWG) said.

In its report, IWG said traditional office spaces are being reimagined into mixed-use developments that combine workspaces, residences, and leisure facilities. It cited HSBC planning to vacate its Canary Wharf tower in London to transform it into a mixed-use building.

Companies are also moving away from expensive city-centre offices, adopting a "hub and spoke" model that combines smaller regional offices with coworking spaces.

As employees increasingly work closer to home, urban centres must evolve from solely office-centric to collaboration, entertainment, and innovation hubs.

In addition, it noted hybrid working is revitalising commuter towns, injecting new life into their economies. With workers embracing local workspaces and shorter commutes, these towns are experiencing a surge in economic activity.

This shift offers workers an improved work-life balance, allowing them to split their time between home, flexible workspaces, and occasional visits to central offices.