When we envisage sustainable real estate development, we often imagine elegant and utopian buildings: biophile interiors that blur the line between the interior and the exterior, the roofs decorated with solar panels and outdoor spaces which provide a respite from the concrete jungle. For the real estate development company based in London, Graycoat, led by CEO Nick Millican, this vision has become a central component of their approach to urban real estate – transforming hard urban landscapes in more inviting and sustainable environments thanks to the strategic integration of greenery and outdoor spaces.
“As a developer, what we are focusing on is to make sure that the building bones allow someone to do so,” said Millican. “So, generally, we would be very concentrated on the supply of outdoor spaces for tenants, the supply of an entry experience which would generally have an escape space, coffee, etc., on the lower ground floor to give a little atmosphere and environment for the tenants of a building.”
This philosophy represents more than just aesthetic improvement – this is part of a broader change in what tenants and investors expect modern commercial spaces, especially in dense urban environments like London.
The evolution of urban commercial spaces
The pandemic accelerated changes in workplace expectations, forcing companies to reconsider what would attract employees to the office. As remote work normalized, the office had to offer something more convincing than a simple workplace.
“People actively plan to know how to encourage employees to move by offering attractive office spaces and additional equipment such as outdoor areas,” said Millican. These outdoor spaces – earthworks, roof gardens and interior lessons – have complementary luxury modules to essential components of competitive commercial real estate.
For Graycoat, this approach aligns with their wider durability objectives. Under the management of Millican, the company has positioned itself as a leader in sustainable real estate development, by adopting strategies which focus on both the reduction of carbon and the creation of spaces that benefit the well-being of the occupants.
The incorporation of greenery in urban developments is not simply decorative – it is simultaneously raising multiple challenges of sustainability. Plants absorb carbon dioxide, filter air pollutants, reduce the effects of urban heat islands and manage the runoff of rainwater. In dense urban environments like London, where the green space is limited, the integration of plants in the design of buildings creates new ecological niches in otherwise sterile urban landscapes.
The transformation of dials
Graycoat’s vision for urban greenery is perhaps better illustrated by their work on dials, a 6-story office in the city of London. Acquired in December 2023 in partnership with Goldman Sachs Asset Management, this property undergoes a complete transformation with sustainability to its heart.
“Our vision of dials goes beyond a simple acquisition of properties,” explains Millican. “We are embarking on a trip to transform this space of 140,000 square feet into an innovation and sustainability lighthouse. Our approach is not only to be at the forefront of design, but to push the limits of what is possible in sustainable development.”
The overhaul includes the atrium at full height in the reception area, which brings natural light floods in the building. This architectural characteristic creates not only an impressive entry, but serves as a central component of the building’s biophile design strategy.
“The atrium adds not only to the aesthetic value of the dials, but also maximizes natural light. This is a large characteristic,” notes Millican. This insistence on natural light completes the green elements of the building, creating spaces that feel connected to nature despite their urban framework.
Renovation plans also include improving outdoor equipment that will directly contribute to the well-being of occupants while softening the environmental impact of the building. These green spaces are used as a double final: they provide valuable external areas for building occupants while contributing to biodiversity in the urban environment.
A strategic response to market requests
Graycoat’s commitment to integrate greenery into its developments is not only motivated by the environment but strategically healthy. Millican observed a clear bifurcation on the post-pandemic real estate market.
“It becomes a two-level market,” he explains. “There are good buildings in desirable places with modern environmental performance that is doing very well, and rents are increasing. Then there are properties that are not really suitable for a goal and which are in the wrong place which must probably be reused in something else.”
By integrating green spaces and durable characteristics, Graycoat firmly positions its properties in the first category – very efficient and desirable spaces which order premium rents despite market fluctuations.
This approach reflects Millican’s understanding that the market now considers durability identification information not as optional extras but as fundamentals for the proposal for the value of a property. Properties with strong environmental identification information such as energy efficiency, reduction of carbon footprints and membership of certifications such as EPC standards or BREEAM standards are now considered to be lower and future investments.
Beyond aesthetics: profitability analysis for urban greenery
For Millican, the integration of greenery into Greycoat developments has a commercial meaning on several levels. In addition to improving the attraction of the market of a property, it aligns with the growing accent on the ESG (Environment, Social and Governance) criteria in investment decisions.
“I think there is more need to invest in buildings now that there has been historically, due to the environmental regulations that change here. And therefore people are in a way forced to make their buildings more efficient in energy,” observes Millican.
While many real estate development companies bring these changes in response to regulatory pressure, Graycoat under the direction of Millican has sought to extend their lasting efforts beyond minimum requirements. The company has incorporated innovative durability approaches, such as the reuse of the materials of the old facade of a building by crushing and transforming them into tiles to reuse.
This commitment to sustainability extends to their approach to urban greenery. Rather than considering plants as simple decorative elements, Graycoat integrates them in a thoughtful way into the global environmental strategy of the building, ensuring that they are significantly contributing to the reduction of carbon, biodiversity and well-being of occupants.
The future of urban development
For the future, Millican sees the integration of greenery into urban developments in the context of a broader transformation of the way we approach the construction of the city. “I think we will see more and more over time on retention and renovation rather than demolition and reconstruction,” he predicts.
This evolution towards the renovation aligns perfectly with Graycoat’s strategy to integrate green elements into existing structures. By preserving the “bones” of buildings while improving their environmental references and their aesthetic appeal thanks to the strategic use of plants and outdoor spaces, Graycoat creates properties that meet modern demands without the cost of the carbon of the new construction.
For Nick Millican and Graycoat, softening the urban landscape by the thoughtful integration of greenery is not only to create more attractive buildings – it is a question of reinventing what urban real estate can be. In a city dominated by concrete like London, their approach brings out nature in everyday life, creating workspaces that are not only more durable but more human.
As Millican says, successful developments must consider today “how he works in the longer term”. By providing greenery in the urban environment, Graycoat creates buildings designed not only for the market today but for a greener future.