April 15, 2016

Office demand prompts rise in level of London commercial construction ⁰

by Sara Bean • Cities, Facilities management, News, Property

London has reached the highest level of commercial construction since 2008, with activity totalling £7.4 billion. According to JLL and Glenigan’s latest UK Commercial Construction Index the level of speculative office development under construction in Central London totalled 8.3 million sq ft at the end of Q1 2016, well ahead of the long term average (5 million sq ft) indicating that developers are continuing to respond to London’s burgeoning requirements for new office floor space. In the West End office market alone, construction started speculatively on nine schemes in the first quarter of this year totalling 596,997 sq ft; the highest level of commencements since the end of 2014. The largest starts were at Brunel, W2 at 241,000 sq ft, which is scheduled to complete in 2019 and The Foundry, W8, a refurbishment planned to complete by the end of this year totalling 110,000 sq ft.

April 14, 2016

Londoners work less flexibly than elsewhere, despite longer commutes ⁰

by Sara Bean • Cities, Flexible working, News, Workplace

Londoners are less likely to work flexibly than the rest of the UK, despite having much longer commuting times. This is according to the results of new research by the CIPD which found that many Londoners are travelling for the equivalent of at least one full working day in a ‘typical’ week. They spend an average of 47 minutes travelling to work each way compared to the national average of 31 minutes, and their average travel to work time increases to 56 minutes each way, if you consider a combination of both employees who live in London and those that commute into the capital from outside the M25. The data also reveals that flexible workers in London are more satisfied with their jobs, feel under less pressure and have better work-life balance than those who don’t work flexibly. In its policy programme, Opportunity through work: A manifesto for London, the CIPD is calling for a campaign to increase the uptake of flexible working in the Capital.

April 12, 2016

London’s first timber skyscraper could be a step closer to reality ⁰

by Sara Bean • Architecture, Cities, Environment, Facilities management, News, Wellbeing

Londoners may reportedly be growing concerned over the proliferation of tall buildings, but what if they were constructed in wood, rather than steel and concrete? This is the possibility raised by researchers from Cambridge University’s Department of Architecture, who are working with PLP Architecture and engineers Smith and Wallwork, on the development of tall timber buildings in central London. The use of timber is an area of emerging interest for its potential benefits; the most obvious being that it is a renewable resource. Researchers are also investigating other potential benefits, such as reduced costs and improved construction timescales, increased fire resistance, and significant reduction in the overall weight of buildings. Mayor of London Boris Johnson has now been presented with conceptual plans for an 80-storey, 300m high mixed use wooden building integrated within the Barbican.

April 8, 2016

93 percent of UK mobile phone users have their location tracked daily ⁰

by Mark Eltringham • Cities, Flexible working, News, Technology

You may recall a couple of news stories from January that sparked a fleeting debate about the way technology allows firms to pry into where we are and what we are doing. The first concerned the installation of under-desk sensors at the offices of The Daily Telegraph, the second a ruling from the European Court of Human Rights concerning the rights of employers to monitor the social media activities of staff. Our take on these stories was that neither was quite as it was reported, but maybe there’s more to concern us in a claim from an advocacy group called Krowdthink that Wi-Fi and mobile networks in the UK routinely track our location and sell data to marketing firms and other third parties. The organisation has initiated a new campaign called Opt me out of Location to highlight what it considers the privacy implications of a situation in which 93 percent of mobile phone users in the UK have their location monitored, usually without their knowledge.

April 6, 2016

Londoners unsure about the city’s proliferation of tall buildings ⁰

by Mark Eltringham • Architecture, Cities, News, Property

A new poll from Historic England claims that nearly half of Londoners (48 percent) think the now 430 tall buildings planned for the capital will have a negative impact on the skyline, compared to the 34 percent who think they will have a positive impact. The study also claims that more than half do not know how to make their voice heard. The figures were released as Loyd Grossman, Chairman of the Heritage Alliance, Sir Laurie Magnus, Chairman of Historic England and architect Sir Terry Farrell wrote an open letter calling for a clearer strategy on tall buildings for London. When asked which planning applications they would like to be consulted on, 60 percent believed people across the city should have a say if a tall building is proposed in a historically important place. But currently it is usually only those in surrounding areas who are consulted on proposals for buildings that may be so tall they affect views and settings for miles around.

March 31, 2016

Flexible workspace underpins Hong Kong’s status as Asia’s hub ⁰

by Sean Lynch • Cities, Comment, Flexible working, Property

Despite the challenging cost of real estate and general commercial life in Hong Kong, startup activity in the city has seen exponential growth in the last few years, fuelled in part by new and innovative approaches to occupying workspace. The conventional Hong Kong office market is, famously, the most expensive of its kind – making it challenging for small and medium sized businesses to enter the market via this form of space. Despite this, the region’s startup scene is booming. According to an InvestHK survey, over 1500 startups bloomed in Hong Kong in 2015, which is a 46 percent increase compared to the previous year. And those numbers are likely to keep growing. So the question is, how do cash-strapped entrepreneurs, startups and other businesses manage to establish a base in this thriving city, despite these challenges, and what lessons does Hong Kong’s experience have for the rest of the world?

March 22, 2016

Manchester refurbished office market thrives due to occupier demand ⁰

by Sara Bean • Cities, Facilities management, News, Property, Workplace design

Approximately 625,000 sq ft (58,063 sq m) of office space in Manchester is set to be refurbished over the next two years as the market responds to continuing demand. According to Savills, Grade B has accounted for an average of 62 percent of the city’s annual take up over the last 10 years, and with Grade A supplies running low the proportion could be even higher in 2016. Despite growing demand for Grade A office space in Manchester over the last three years, annual take up has consistently been under pinned by larger Grade B occupiers seeking to balance high quality offices with value for money. Savills also reports that the TMT sector has taken more Grade B space in Manchester than any other sector over the last five years, with deals totalling 710,889 sq ft (66,042 sq m); a significant increase on the 294,631 sq ft (27,371 sq m) of secondary space let to TMT occupiers in the previous five years.

March 16, 2016

Hong Kong, London and Beijing most expensive cities for office space ⁰

by Sara Bean • Cities, Facilities management, News, Property

Hong Kong is the world’s most expensive office location, followed by London, Beijing and New York.This is according to JLL’s Premium Office Rent Tracker, which compares like-for-like occupation costs across 24 cities around the world. This ranks Established World Cities such as New York and London, Emerging World Cities like Shanghai, Dubai and Mumbai, and New World Cities such as San Francisco, Boston and Toronto. The latest research shows that six of the top ten most expensive cities for office rentals are in Asia; with Hong Kong the world’s costliest office rental market on a net basis as well as including added costs such as service charges and property tax. The tracker found continued demand prime office space, despite a rise in economic uncertainty; while across the global cities, the technology, media and telecommunications sectors are moving into premium office space – previously dominated by the finance and professional services sector.

March 1, 2016

Smart Cities emerging rapidly in China due to increasing urbanisation ⁰

by Sara Bean • Cities, Facilities management, News, Technology

“Smart Cities” are emerging as a major force in China. According to a recent CoreNet Global report, China’s urban population surpassed that of the rural population in 2011 and it is estimated that by 2035 there will be more than 70 percent of the population living in urban areas. That urbanisation is creating more pressure for China to leverage digital technology to create smarter cities, which are defined as metro areas that leverage digital technology and intelligent design to facilitate sustainability, along with high-quality living and high-paying jobs. Initially, there were several ‘beachhead’ cities that embraced Smart City initiatives such as Hangzhou (above), Chongqing and Chengdu. Subsequently, the China Central Government issued clear guidelines to roll out smart cities in a systematic and more widespread way. While smart cities are definitely on the long-term agenda for China’s strategic planning, their impact on corporate real estate and site location decisions remains to be determined.

March 1, 2016

Rents and refurbishment activity rise, as office shortage hits UK cities ⁰

by Sara Bean • Cities, Facilities management, News, Property

Last week we reported that the shortage of office space in London was driving up demand within the UK’s regional office markets. Now a new report claims there is under a year’s supply of Grade A space available in the regions which will result in rental inflation. Bristol and Cardiff are predicted to see largest rises at 12 percent and 9 percent respectively. According to Savills’ Regional Office Market Review & Outlook report, average take-up across the UK is currently at 4.6 million sq ft, and availability down 18 percent on 2007 levels. Although speculative development has risen by 129 percent over the last year to approximately 3.5 million sq ft, with 28 percent pre-let it is expected that this will largely be absorbed in first two quarters of 2016. This lack of available space has driven demand for value-add office opportunities to help plug the gap, with January 2016 marking the forty-first consecutive month of refurbishment activity.

February 11, 2016

Manchester set to run out of Grade A office space this year, claims report ⁰

by Mark Eltringham • Cities, News, Property

Manchester could completely run out of ready to occupy, Grade A office space this year, according to a new report from Colliers International. The snapshot of the commercial property market in the city claims that take-up of space in Manchester during 2015 was over a third (37.5 percent) above a ten year average and the rate of occupation by both UK and overseas firms was double that of the previous three years. As a consequence, the local property market is currently unable to keep pace with demand and the availability of Grade A space declined by 61 percent during the year to reach its lowest level since 2006. There is now just 216,000sq ft of Grade A stock available to let in Central Manchester, with major new developments in the key Spinningfields district (above) and elsewhere not expected to complete until later this year and into 2018. Even some of these spaces are already let, according to the study.

February 4, 2016

London’s ability to foster startups lagging behind other key UK cities ⁰

by Neil Franklin • Cities, News, Property

The UK’s largest regional cities have produced twice as many startups as London over the last two years, according to research based on Companies House Data. The report, commissioned by office broker Instant Offices, compares the number of startups in each city to create a list of the country’s most entrepreneurial cities. The authors claim that the UK is now Europe’s most entrepreneurial country with over 2,644,100 businesses started within the last two years alone, according to data gathered from Companies House. The report cites the example of Liverpool with an estimated population of 440,000 and 57,323 new companies starting over the past 2 years. This results in an entrepreneurial population percentage of 16 percent. Birmingham’s entrepreneurial population percentage was 14.5 percent followed closely by Manchester at 14 percent. These numbers are significantly higher than the UK average of 2 percent and London’s 7.5 percent.