How Banks are transforming old headquarters into modern workplaces

As banks and financial services shed their staid reputations and evolve into tech-forward, human-centric organizations, there is a desire to take their brands and workplaces along for the ride to recruit younger talent and secure brand loyalty with customers. Driven by new frontier technologies and the seismic shifts in how people work – and what they demand in their work setting – banks are acting fast.?

While this all rings true whether a company owns or leases their property, it has been exciting to see some bold, transformative projects at trophy properties owned by banks and financial services companies. The new era of work is reshaping how financial institutions optimize their workplace and requiring organizations to think more strategically and elevate the experience for top talent and the high-profile clientele they serve. This includes elevated aspects and distinct services from the moment that they enter the building to when they leave.??

As new trophy offices in cities become scarce, companies are making the decision to instead upgrade their owned asset. We’ve seen massive financial institutions with a centuries-long headquarters presence in traditional banking centers commit to full-scale occupied rehabs of their owned buildings. These projects can cost upward of a billion dollars and take years to complete. But the success of these projects relies on so much more than the success of the build.???

For the design and construction of their reimagined workplaces, we’re these seeing financial institutions address additional critical areas of workforce strategy, facilities and property management, as well as design, employee experience, sustainability and technology integration.??

?

Lessons from The Magic Kingdom?

How do you successfully control all of these interconnected workplace levers in a way that feels cohesive and authentic—and most importantly, NOT disruptive—while also addressing the challenges unique to the industry? Honestly, it’s really tricky. We call it: The Disney World effect.?

A bank could have 3,000 or 4,000 employees walking through its front door every day in the midst of an active construction zone, and their experience from the front door to their seat must be efficient, seamless and even visually appealing. Operationally, things need to be humming. Ever notice you don’t see garbage (or even bugs) at Disney World? There’s a tremendous amount of behind-the-scenes coordination to make that happen. Whether a light bulb needs to be changed, a curtain wall replaced, an amenity space managed or eco-friendly materials sourced, it all should happen under a unified delivery model with no inconvenience to the company. Every little detail needs to be thought out with someone to manage any issue, large or small, that arises.?

?

Mind meld?

Delivering construction project management; property and facilities management; and experience management together—rather than taking a siloed approach— is the winning formula. Banking and financial services workplaces have unique physical requirements—like trading floors—and regulatory requirements— like blackout periods and 100% uptime, with no business interruption. The regulatory risk alone is vast and something that needs to be woven into every real estate strategy and housed under the primary project umbrella.???

Let’s also not forget about the importance of real-world data in this project strategy. Technology and data analytics give insights into different employee personas and workstyles, informing occupancy planning, innovative design elements and tailored employee experiences.?

JLL is managing more than 37 million square feet of space in New York City alone, and at the heart of all of those projects is a deep connection between the design of the physical space, selection and programming of amenity areas, building systems and tenant relations technology—even wayfinding and communications strategy. And when fa?ade work or historic property renovation is involved, coordination with city and preservation agencies is a whole other layer to be folded in.???

?

Isn’t it easier to move??

One question I hear all the time is, “Wouldn’t it be easier and cheaper to move?” In some instances, yes, but in others – you need options to make moves. Despite widespread increases in office vacancy rates in urban cores, options for a bank occupying 500,000 to one million square feet or more are rare. In fact, according to JLL research , availability of trophy product in New York City is decreasing, and the increase in conversions and a slowing of the development pipeline gives major tenants even fewer options.?

What about smaller spaces??

As the financial services industry embraces innovation, occupiers will be confronted with a more geographically distributed innovation ecosystem. According to JLL research , despite an overall decline of 20% in financial services leasing activity in the U.S. since 2019, there has been a renewed focus on investing in newer, highly amenitized workplaces. Location strategies are shifting towards major tech hubs, established secondary tech hubs and locations near research institutes and universities with robust support systems for entrepreneurship. When considering innovation hubs, regional bank offices or other smaller workplace settings, the same approach founded on integrated service delivery is just as relevant.??

More disruption ahead?

This is a really exciting time for our clients. Propelled by various factors including increasing regulatory reforms, technological advancements and shifting customer expectations, the industry stands firmly at the forefront of disruption. When you think of the headquarters of our largest, oldest financial institutions, do you see people in basements pushing dusty old stock certificates around in wheelbarrows? If so, look again. This is the notion that is being turned on its head.??

Connect with me on LinkedIn for more insights like this or visit our industry page to learn more .?

?

?

?

?