In the era of hybrid work, employers are finding a new way to entice workers back to the office: self-sustaining ‘precincts’ that are fun, energetic and packed with amenities.
These are integrated mixed-use developments comprising multiple office buildings supported by shared infrastructure, retail, restaurants, green spaces and public walkways.
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Good examples are the V&A Waterfront in Cape Town and Melrose Arch in Johannesburg, but developments of this kind are appearing everywhere and becoming increasingly ambitious in scale.
London’s King’s Cross precinct is a 67-acre mixed-use district that combines transport hubs with residential and office accommodation, dining, shopping, cultural attractions, education and large open spaces.
Hudson Yards is a massive, mixed-use real estate development and neighbourhood on the West Side of New York’s Midtown Manhattan that mixes towering skyscrapers with public spaces, arts, commercial and residential office space and cultural attractions.
The evidence is compelling: precincts tend to achieve higher occupancies, stronger tenant retention, better rentals and lower shared operating costs.
Companies are increasingly seeking workplaces that offer more than just desks and meeting rooms. They want environments that attract employees back to the office by choice rather than obligation.
“Historically, property value and desirability were judged entirely by rigid industry classifications such as building gradings or geographical nodes,” says Timothy Irvine, head of Growthpoint’s office portfolio.
“Today, we have to change our lens completely and look at desirability from the client and end-user’s perspective.”
Walking neighbourhoods
After years of remote and hybrid work, companies have learned that if commuting is inconvenient, the destination must be worth the journey.
Irvine says employers increasingly want workplaces that resemble “walking neighbourhoods”, where functional and human needs are integrated. “Employers want a place where their employees are happy to come to work because they know that a happy workforce drives company success.”
This evolution is changing how commercial property is designed, developed and managed.
Timothy Irvine, head of the office portfolio at Growthpoint Properties. Image: Supplied
Why precincts outperform
The commercial property data increasingly supports this approach. Integrated precincts generally achieve stronger tenant retention and lower vacancy rates than conventional office parks.
According to Irvine, this is because they deliver both reliability and relevance. Historically, developers focused on maximising every square metre of rentable space. Today, successful developments recognise that the areas between buildings can be just as valuable as the buildings themselves.
“Effective urban design requires dedicating substantial space to public amenities, plazas and pedestrian walkways,” he says.
These shared spaces encourage people to linger, support surrounding businesses and develop a stronger connection to their environment.
The result is what Irvine describes as a flywheel effect. Better experiences attract tenants and visitors, higher demand supports stronger property performance, and that performance enables further investment in the precinct.
Traditional office parks, by contrast, often remain static and struggle to evolve with changing workplace expectations.
Overcoming municipal failures
In SA, where businesses face increasing concerns around municipal service delivery, electricity reliability, water security and safety, precincts also offer practical advantages.
“At a very basic level, precincts get the fundamentals right,” says Irvine. “Things like reliable power with backup, water resilience, security, fibre and well-maintained infrastructure. These are the basic needs. You don’t notice that they work until they don’t.”
These essentials remove friction from daily operations and allow businesses to function more efficiently. But the appeal of precincts extends beyond infrastructure.
At a second level, they enhance the workplace experience through curated amenities such as coffee shops, restaurants, shared meeting areas and public gathering spaces.
“It’s not just about space anymore,” says Irvine. “It’s about creating an environment that works effortlessly and feels good to be in.”
The importance of physical workplaces
While many employees argue they can be fully productive from home, Irvine believes the office still plays a critical role in business success.
Companies rely on physical workplaces to build culture, strengthen relationships and transfer knowledge between employees. Mentorship, collaboration and informal learning often occur organically through daily interactions that are difficult to replicate through video calls.
“There is a general consensus among business leaders that while they support flexible working arrangements, they still see the need to have employees together in a place of work,” says Irvine.
This is particularly important for younger employees developing their careers.
“You cannot easily onboard new talent, build long-term loyalty or pass down critical company knowledge over a video call. To develop the next generation of business leaders, you have to bring people together in a shared space.”
For employers seeking to attract staff back to the office, the quality of the environment has become a strategic consideration rather than a property decision.
How precincts are showing up in SA
Precincts are making their mark in SA.
A good example is Growthpoint’s Longkloof Precinct in Cape Town. What began as four disconnected buildings with traditional office space and a small convenience store has been transformed into a mixed-use precinct that includes collaborative workspaces, a 154-room Canopy by Hilton hotel, speciality retail outlets and a central public piazza.
Two others in the works are Woodlands Precinct and Sandton Summit, both in Johannesburg, and both being developed by Growthpoint Properties.
Irvine says these projects illustrate how developers are responding to changing workplace expectations by creating destinations rather than simply leasing office space.
“Businesses are often reluctant to leave these environments because they become part of the broader ecosystem.”
Looking ahead, Irvine believes the distinction between successful and struggling commercial property assets will become increasingly clear.
“Successful precincts get both the basics and the experience right,” he says. “They remove friction for businesses, but they also create environments where people want to be.”
“When you align those things with how people live and work today, you don’t just create better spaces, you create long-term value.”
The future belongs not to the best buildings, but to the best places, argues Irvine.
“When you align those things with how people live and work today, you don’t just create better spaces, you create long-term value. In the end, the winners won’t be the best buildings – they’ll be the best places.”
Brought to you by Growthpoint Properties.
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