Active Travel and the opportunities for asset managers

The shifting landscape of active travel in office environments.

It is universally accepted that defining user requirements is critical to the success of property development. This was demonstrated in Remit Consulting’s 2022 report "Market Cycles II - The Impact of Cycling on Office Buildings," commissioned by the British Council for Offices (BCO), which concluded that bicycle storage alone is insufficient and that users need the best possible facilities, to meet the needs of all occupiers. We are now seeing a shift from quantity to quality.

Transitioning to a quality-driven approach.

In 2022 this shift was very apparent, and through Remit’s ReTour initiatives, we have witnessed an increased understanding that active travel facilities are crucial components of office specifications, affecting rental value and office occupancy. That being said, the balance is not yet right, and, anecdotally, it is common for cycle stores to see little more than 30% occupancy on peak office days. Consequently, developers and asset managers need to look beyond the daily commute and consider other active travel trends, such as the rise of cargo and e-cargo bikes, to maximise their returns on cycle facilities.

As the 2022 report called for, cargo bikes have been on the up in the last 18 months. As part of the preparation for the upcoming ReTour 2023 event, in London on the 28th of June, Remit visited nine London office buildings to evaluate the facilities, encountering a variety of policies regarding e-cargo bikes. While some buildings welcomed them, others banned them due to perceived battery risks. This issue requires the collaboration of stakeholders in real estate, facilities management, and the transport industry to ensure carbon reduction commitments are met.

Policy changes in UK cities.

Unfortunately, earlier this year, the Government announced a £200 million reduction in the active travel budget, potentially impacting infrastructure projects aimed at supporting cycling and walking initiatives in England. Despite budget cuts, it is heartening to witness UK cities drafting and adopting policies that support a more active travel-driven society. Birmingham and Leeds, for example, have considered limiting city centres to private cars in their transportation policies and strategies. Additionally, the Borough of Lambeth has developed a Kerbside strategy, with the aim of allocating more public space for cycling, walking, and dwelling. These initiatives signify a positive shift in mindset and a commitment to creating healthier, sustainable urban environments.

The journey continues.

The landscape of active travel in office environments is continuously evolving. The "Market Cycles II" report, coupled with our ReTour visits, showcases the progress made in designing office spaces that cater to the needs of active travellers. However, challenges, including budget cuts and policy disparities, persist - challenges that the property sector needs to address with all speed.

Should you wish to learn more about our work in the realm of Active Travel, our ReTour events, or would like to take part in our Active Travel Forum, please email contact Neil at neil.webster@remitconsulting.com