In the rapidly evolving landscape of commercial real estate, the old ways of doing business are being challenged like never before. As market dynamics shift, tenant expectations evolve, and sustainability becomes non-negotiable, industry leaders are facing a critical question: adapt or become obsolete. For Nick Millican, CEO of Greycoat Real Estate, the answer is clear.
“A lot of people now have a much better view about what they need,” Millican explains, cutting to the heart of the market’s transformation. “It’s becoming a two-tier market. There are 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 need to be repurposed into something else.”
This bifurcation of the market isn’t just Millican’s observation—it’s the foundation of Greycoat’s strategic approach under his leadership. While some competitors have retreated from the office market altogether, convinced that remote work would make physical workplaces obsolete, Millican recognized that the office wasn’t dying—it was evolving. This insight has positioned Greycoat to capitalize on a future where quality, sustainability, and location are the non-negotiable trinity of successful commercial properties.
From Nice-to-Have to Market Imperative: The Sustainability Revolution
The numbers tell a compelling story: sustainable buildings in London command an average “green premium” of 11.6% in rents compared to traditional properties. This isn’t just a reflection of tenant preferences—it’s an acknowledgment that energy-efficient, low-carbon buildings deliver tangible financial benefits by reducing operational costs and aligning with corporate sustainability goals.
Millican saw this shift coming before many of his peers. “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,” he observes, highlighting the intersection of regulatory pressure and market opportunity.
For Greycoat, sustainability isn’t a checkbox to be ticked—it’s the cornerstone of their entire business strategy. Under Millican’s leadership, the company has developed a comprehensive framework with clear benchmarks like EPC A ratings and BREEAM Excellent certifications. Every development decision passes through this lens, with carbon budgets receiving the same rigorous scrutiny as financial analyses.
This approach positions Greycoat perfectly for a future where, according to industry research, the demand for low-carbon office space in London is expected to exceed supply by 35% by 2030. With over 7,600 companies committing to science-based carbon reduction targets in recent years, the market is speaking clearly: sustainability is no longer optional.
Leveraging Strategic Partnerships in a Challenging Market
When Millican joined Greycoat in 2012, he didn’t just maintain the status quo—he orchestrated a fundamental transformation of the business model. Recognizing the limitations of operating solely as a consultancy, he pivoted toward an “operating partner” approach, where Greycoat collaborates with larger investment groups to acquire and develop properties.
The results speak for themselves. Under Millican’s leadership, Greycoat reached a peak assets under management of £2.5 billion by late 2018-2019. In a move that seems prescient in retrospect, the company sold most of these properties just before the COVID-19 pandemic, what Millican modestly describes as “more through luck than judgment,” but which positioned the company remarkably well for the disruption that followed.
This partnership-based strategy continues to yield results. The December 2023 acquisition of 20 Finsbury Dials with Goldman Sachs Asset Management exemplifies Millican’s approach. This 140,000-square-foot office building isn’t just being refurbished—it’s being completely reimagined as an eco-friendly, amenity-rich workspace designed to attract high-end tenants for long-term profitability. The development aims to achieve BREEAM Outstanding, EPC A, and WELL Platinum ratings, signaling Greycoat’s commitment to setting new benchmarks in sustainable building practices.
Meeting the Demands of a New Generation
By 2030, Generation Z will comprise about 30% of the global workforce, bringing with them expectations that fundamentally challenge traditional approaches to commercial real estate. Raised in an era of smartphones, instant information, and heightened environmental awareness, this cohort demands flexibility, purpose, and integrated technology in their work environments.
Millican has positioned Greycoat ahead of this demographic shift. “People are actively considering how to persuade employees to make the commute,” he notes, recognizing that in a world of remote work options, offices must offer compelling value beyond just a desk.
“As a developer, what we focus on is making sure the bones of the building enable someone to do that. 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 approach acknowledges a fundamental truth: employees will commute if the destination offers genuine value—access to amenities, collaboration opportunities, and spaces that enhance well-being. Under Millican’s guidance, Greycoat’s developments incorporate features like rooftop terraces, landscaped areas, and communal spaces that foster community and creativity—elements that cannot be replicated in a home office environment.
Finding Opportunity in Market Uncertainty
While some industry players have retreated in the face of inflation and high interest rates, Millican sees the current market conditions as rich with opportunity. His perspective is both psychological and strategic: “I think long-term investment is as much about sentiment as anything else,” he observes. “I think the big impact will be when the central banks start to cut rates. People will be able to say to themselves, ‘Well, the worst is over. Things are going to get better from now on.’ I think that will encourage them to get back into the market and purchase assets again from a psychological perspective, rather than because the maths has really changed that much.”
This insight has informed Greycoat’s recent investment strategy. In 2021, the company raised a fund to enable more substantial co-investments alongside majority investors and began reinvesting at the end of that year. With fewer competitors in the market and asset prices at potentially undervalued levels, Millican sees an opportunity to acquire properties with significant potential.
“I think at the moment we feel that sentiments have led to an overcorrection of office prices in some areas and with some criteria building. So some stuff is probably cheaper than it should be if you take a medium-term context, and so we’re quite keen to take on new projects.”
Expanding Horizons: Beyond London
Under Millican’s leadership, Greycoat has successfully taken its proven strategy beyond the borders of the UK with the launch of Greycoat Real Estate LLP France. This milestone marks the company’s first expansion outside its home market and reflects Millican’s strategic vision for European growth.
The launch was spearheaded by the appointment of Arnaud Malbos as Senior Real Estate Partner, who brings extensive pan-European investment expertise from his previous role at Ivanhoé Cambridge, part of the real estate group CDPQ. “Arnaud’s deep knowledge of the real estate market and his track record in implementing successful investment strategies will greatly enhance our capabilities at Greycoat,” said Millican.
In his new role, Malbos is responsible for sourcing and evaluating investment opportunities in France, developing strategic initiatives, and leading key projects that align with Greycoat’s growth objectives. This European expansion demonstrates Millican’s confidence in Greycoat’s business model and its adaptability to different markets. By applying the company’s expertise in sustainable development and market-responsive design to new geographies, Millican is positioning Greycoat for continued growth and influence across the European commercial real estate sector.
Leading Through Transformation
As the commercial real estate industry grapples with post-pandemic realities, environmental imperatives, and shifting tenant expectations, Nick Millican’s leadership at Greycoat offers a masterclass in navigating change. His approach combines strategic foresight with tactical agility, recognizing long-term trends while capitalizing on immediate market opportunities.
By embracing sustainability as a core business strategy, forming powerful strategic partnerships, designing for a new generation of workers, and maintaining adaptability in uncertain markets, Millican has positioned Greycoat at the forefront of the industry’s transformation.
His vision extends beyond immediate market conditions to anticipate the forces that will shape commercial real estate in the decades to come. In a sector often resistant to change, Millican is demonstrating that those who adapt fastest will not just survive but thrive.
As traditional approaches to commercial real estate face obsolescence, Nick Millican’s strategic vision provides a compelling blueprint for success, balancing innovation with practicality, sustainability with profitability, and responsiveness to current trends with preparation for future developments. In a rapidly changing landscape, this forward-looking approach isn’t just smart business—it’s the only viable path forward.