When we envision sustainable property development, we often picture sleek, utopian buildings: biophilic interiors that blur the line between indoors and outdoors, rooftops adorned with solar panels, and outdoor spaces that provide a respite from the concrete jungle. For London-based property development firm Greycoat, led by CEO Nick Millican, this vision has become a central component of their approach to urban real estate—transforming harsh cityscapes into more inviting, sustainable environments through strategic integration of greenery and outdoor spaces.
"As a developer, what we focus on is making sure the bones of the building enable someone to do that," explains Millican. "So typically, we'd be very focused on provision of outside space for tenants, provision of an entrance experience that typically would have breakout space, cafe, etc., at the lower ground floor to give a bit of atmosphere and environment for tenants in a building."
This philosophy represents more than just aesthetic enhancement—it's part of a broader shift in what tenants and investors expect from modern commercial spaces, particularly 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 back to the office. As remote work became normalized, the office needed to offer something more compelling than just a place to work.
"People are actively considering how to encourage employees to commute by offering attractive office spaces and additional amenities such as outdoor areas," Millican points out. These outdoor spaces—terraces, rooftop gardens, and interior courtyards—have transformed from luxury add-ons to essential components of competitive commercial real estate.
For Greycoat, this approach aligns with their broader sustainability goals. Under Millican's leadership, the company has positioned itself as a leader in sustainable property development, adopting strategies that focus on both carbon reduction and creating spaces that benefit occupants' wellbeing.
The incorporation of greenery into urban developments isn't merely decorative—it addresses multiple sustainability challenges simultaneously. Plants absorb carbon dioxide, filter air pollutants, reduce urban heat island effects, and manage stormwater runoff. In dense urban environments like London, where green space is limited, integrating plants into building design creates new ecological niches in otherwise barren cityscapes.
The DIALS Transformation
Greycoat's vision for urban greenery is perhaps best illustrated by their work on DIALS, a 6-story office bvuilding in the City of London. Acquired in December 2023 in partnership with Goldman Sachs Asset Management, this property is undergoing a comprehensive transformation with sustainability at its core.
"Our vision for DIALS goes beyond a mere property acquisition," says Millican. "We are embarking on a journey to transform this 140,000 sq ft space into a beacon of innovation and sustainability. Our approach is not just about being at the forefront of design, but about pushing the boundaries of what is possible in sustainable development."
The redesign includes the full-height atrium in the reception area, which brings natural light flooding into the building. This architectural feature not only creates an impressive entrance but serves as a central component of the building's biophilic design strategy.
"The atrium not only adds to the aesthetic value of DIALS but also maximizes natural light. It's a great feature," Millican notes. This emphasis on natural light complements the building's green elements, creating spaces that feel connected to nature despite their urban setting.
The renovation plans also include enhancing outdoor amenities that will directly contribute to occupant wellbeing while softening the building's environmental impact. These green spaces serve dual purposes: they provide valuable outdoor areas for building occupants while also contributing to biodiversity in the urban environment.
A Strategic Response to Market Demands
Greycoat's commitment to incorporating greenery into its developments is not just environmentally motivated but strategically sound. Millican has observed a clear bifurcation in the post-pandemic real estate market.
"It's becoming a two-tier market," he explains. "There's good buildings in desirable locations with modern environmental performance that are doing very well, and rents are actually going up. Then there are properties that aren't really fit for purpose and are in the wrong location that probably needs to be repurposed into something else."
By integrating green spaces and sustainable features, Greycoat positions its properties firmly in the first category—high-performing, desirable spaces that command premium rents despite market fluctuations.
This approach reflects Millican's understanding that the market now views sustainability credentials not as optional extras but as fundamental to a property's value proposition. Properties with strong environmental credentials such as energy efficiency, reduced carbon footprints, and adherence to certifications like EPC ratings or BREEAM standards are now viewed as lower-risk, future-proofed investments.
Beyond Aesthetics: The Business Case for Urban Greenery
For Millican, the integration of greenery into Greycoat's developments makes business sense on multiple levels. In addition to enhancing a property's market appeal, it aligns with the growing focus on ESG (Environmental, Social, and Governance) criteria in investment decisions.
"I think there's more of a need to invest in buildings now than there has been historically, because of the environmental regulations here changing. And so people are kind of forced to make their buildings more energy-efficient," Millican observes.
While many property development companies are making these changes in response to regulatory pressure, Greycoat under Millican's direction has sought to extend their sustainable efforts beyond minimum requirements. The firm has incorporated innovative approaches to sustainability, such as repurposing materials from a building's old facade by grinding them down and transforming them into tiles for reuse.
This commitment to sustainability extends to their approach to urban greenery. Rather than viewing plants as mere decorative elements, Greycoat integrates them thoughtfully into the building's overall environmental strategy, ensuring they contribute meaningfully to carbon reduction, biodiversity, and occupant wellbeing.
The Future of Urban Development
Looking ahead, Millican sees the integration of greenery into urban developments as part of a broader transformation in how we approach city building. "I think we'll see over time more and more focus on retention and refurbishment rather than demolition and rebuild," he predicts.
This shift toward refurbishment aligns perfectly with Greycoat's strategy of incorporating green elements into existing structures. By preserving the "bones" of buildings while enhancing their environmental credentials and aesthetic appeal through strategic use of plants and outdoor spaces, Greycoat creates properties that meet modern demands without the carbon cost of new construction.
For Nick Millican and Greycoat, softening the cityscape through thoughtful integration of greenery isn't just about creating more attractive buildings—it's about reimagining what urban real estate can be. In a concrete-dominated city like London, their approach brings nature back into daily life, creating workspaces that are not only more sustainable but more humane.
As Millican puts it, successful developments today must consider "how does it perform longer term." By bringing greenery into the urban environment, Greycoat is creating buildings designed not just for today's market but for a greener future.
