February 15, 2016

Employers must meet productivity challenges of paying Living Wage ⁰

by Sara Bean • Facilities management, Flexible working, News, Workplace

A quarter of private sector employees will be directly affected by the implementation of the new National Living Wage, (NLW) over double the proportion of public sector employees. The research, conducted by the Social Market Foundation in partnership with Adecco Group UK & Ireland, warns these employers will need to overcome significant productivity challenges in order to cope with the cost. The NLW cut-off at age 25 means businesses will be faced with potential discrepancies in wages across their younger workforce. While almost a fifth (18 percent) of employees who will benefit from the NLW are younger workers surprisingly, workers aged 50 or over will make up a third. Part-time workers make up around half of the workforce in severely affected workplaces. The research also found that the workplaces severely affected by new National Living Wage tend to have low-skilled employees and are much less likely to offer in-work training.

February 14, 2016

Office design & stress + Manchester office shortage + Global flexible working ⁰

by Sara Bean • Facilities management, Flexible working, Newsletter, Wellbeing, Workplace, Workplace design

In this week’s Insight Newsletter; Mark Eltringham explains what Douglas Adams could teach us about workplace design and Sara Bean says there are fewer promotion prospects for part time working mums. Rise in worldwide take-up of flexible working; £1bn in savings if NHS made better use of its estate and Manchester may soon run out of Grade A office space. 2016 will see an exodus of Tech firm’s from cities, almost three quarters of small businesses believe co-working spaces are the ideal for start-ups and unpredictability and workplace environment are two most common factors influencing work related stress. Download the latest issue of Work&Place and access an Insight Briefing produced in partnership with Connection, which looks at agile working in the public sector. Visit our new events page, follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

February 10, 2016

Moderate growth for global commercial real estate predicted in 2016 ⁰

by Sara Bean • Facilities management, News, Property

US and European office markets will tighten further in 2016 as demand for space outpaces a limited number of new developments, according to CBRE Group’s 2016 Global Real Estate Market Outlook. However, the extent of tightening in individual cities will depend strongly on local job growth in major office-using industries. Global prime rents across the three major property types—office, industrial and retail—are expected to grow 2.2 percent on an annual basis, according to estimates from CBRE’s Global Rent Index. The Americas, thanks to the strength of the US property sector, is expected to see commercial real estate rents rise 3.4 percent in 2016, as consumption growth and rising employment, combined with comparatively limited new supply levels, simulates demand. Rents in EMEA are forecast to rise by 3.2 percent thanks to a combination of increased consumer spending, pent-up demand for commercial space and anticipated further monetary easing by the European Central Bank.

February 9, 2016

Better workplace design and management could save the NHS £1 billion ⁰

by Mark Eltringham • Facilities management, News, Property, Public Sector, Workplace design

The National Health Service could make around £1bn in savings if it made better use of its estate, including more efficient workplace design, according to Lord Carter’s wide-ranging 18-month review into the operations and productivity of the NHS. The wide ranging review claimed that a total of £5bn could be saved by adopting a range of best practice standards. Carter examined 32 hospitals as well as looking at systems in the US, Germany, Australia, Italy and France for the report. Among the differences highlighted were variations in the use of floorspace, with one trust using 12 percent for non-clinical purposes and another using 69 percent. Overall, the review suggests that the NHS could save £1bn by 2020 via from the better management of estates, such as lighting, heating and the utilisation of floor space. The challenges of running the NHS estate efficiently have been something of an issue for some time, as we have reported.

February 6, 2016

Robot’s rise + Shrinking public sector estate + Office of the future (not) ⁰

by Sara Bean • Facilities management, Flexible working, Property, Public Sector, Wellbeing, Workplace, Workplace design

In this week’s Insight newsletter; Gary Chandler envisages how automation will transform society and workplaces; Paul Goodchild explains why office life still attracts people; Mark Eltringham bemoans the narrow focus shown in predictions of the future office and Sara Bean says the HR discipline needs to evolve to support the changing workplace. A new report reveals 88 percent of British workers are regularly stressed at work; employees are increasingly keen to find jobs that offer them flexible working; and men are penalised for opting for a better work/life balance. Government plans to cut the size of its estate by 75 percent by 2023 and an expanding TMT sector increases demand in central London. Download the latest issue of Work&Place and access an Insight Briefing produced in partnership with Connection, which looks at agile working in the public sector. Visit our new events page, follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

February 4, 2016

Maturing TMT sector fuels demand for office space in Central London ⁰

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

The Technology, Media and Telecoms (TMT) sector was the largest source of demand for office space in Central London in 2015, for the fifth consecutive year finds the latest Knight Frank London Report, Canary Wharf is set to have the strongest Central London office rental growth in 2016 with an increase of 12.8 percent. This is followed by Shoreditch at 10 percent and Midtown at 9.6 percent. Affordability is the main driver, along with the development of Crossrail, integrating Canary Wharf with the rest of Central London, and a general shortage of available offices across London pushing tenants seeking high quality affordable offices eastwards. Expansion by TMT firms is contributing to the shift, as they are increasingly seeking larger offices. Shoreditch’s increase in office rents will principally be driven by Tech sector expansion as the more mature, established heavy weight tech firms have firmly established a London rival for California’s ‘Silicon Valley’ in the area.

February 3, 2016

Government plans to cut size of estate by 75 percent by 2023 ⁰

by Mark Eltringham • Facilities management, News, Property, Public Sector, Workplace design

The UK Government has today published the latest edition of its annual State of the Estate report, which gives an update on plans to consolidate, divest and modernise the central government property portfolio. Minister for the Cabinet Office Matt Hancock claims that the current administration has reduced the size of the estate by 2.4 million sq. m. since 2010. (As is the way of these things, the minister claims this is equivalent to 336football pitches, 43 Shards or more than the entire principality of Monaco. Presumably individual departments measured their own successes in blue whales and double decker buses.) He claims that this means that the total central government estate has fallen below 5,000 holdings for the first time and could fit inside the area of West Finchley (which is a new measurement on us). The reduction has been achieved by selling property ranging from the historic Old War Office (top) to an old bakery and lighthouse.

February 1, 2016

M25 office market returns to pre-recessionary levels as demand increases ⁰

by Sara Bean • Facilities management, News, Property

The ‘M25’ office market returned to pre-recessionary levels in 2015 as take-up reached 4.25 million sq ft, which is the highest recorded figure since 2007. Given the higher levels of demand in the regional commercial property market, take-up is predicted to reach 4.5 million sq ft for 2016. The research by Savills claims that the ‘Western Sector’ was the strongest performer in the market within the M25 during 2015, where 1.91 million sq ft was transacted, which accounted for 44 percent of total take-up. Improving economic conditions combined with a reduction in grade B and C office space, due to permitted development rights, meant that 62 percent of space transacted was for grade A space. Total supply currently stands at 18.34 million sq ft, which is a 7 percent decrease from 2014, not helped by the fact that approximately one million sq ft of office space has been converted to residential uses since 2014.

January 30, 2016

Coworking goes mainstream + Sit stand working + Future for tech offices ⁰

by Sara Bean • Facilities management, Flexible working, Newsletter, Property, Wellbeing, Workplace, Workplace design

In this week’s Insight newsletter; Mark Eltringham analyses the impact of the sit-stand movement and suggests that the I-phone is a very isolating piece of equipment; Georgi Georgiev says remote work is no longer just a freelancer’s game; and Paul Goodchild explains why co-working is shaping office design more than you’d imagine. A new report outlines the key future property trends for TMT workplaces; parents are at greater risk of burn out as they strive for work life balance; fewer than one in ten (8 percent) of UK organisations currently have a standalone wellbeing strategy; the positive benefits of active work are revealed and the UK’s CEO’s worries about cyber-risks. Download the latest issue of Work&Place and access an Insight Briefing produced in partnership with Connection, which looks at agile working in the public sector. Visit our new events page, follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

January 28, 2016

Shortage of available office space for major occupiers in many US cities ⁰

by Sara Bean • Facilities management, News, Property

The diminishing availability of office space across the US is creating challenges for major occupiers, according to a new report from CBRE. An improving economy and subsequent increase in office demand along with the slow commencement of new construction has led to a shortage of large blocks of available office space in some major cities, including Philadelphia, San Francisco and Manhattan. While construction activity began to increase recently, with many constrained central office markets having new projects under construction, heavy pre-leasing activity means that the increased supply is often not enough to meet demand from large space users. Among downtown markets in the third quarter of 2015, the fewest total available large blocks (defined as 100,000 square feet or more of contiguous space) in existing and under-construction buildings were in Philadelphia (six), San Francisco (seven) and South Manhattan (ten).

January 28, 2016

UK’s CEOs rate cyber security as greatest challenge for their company ⁰

by Sara Bean • Facilities management, News, Technology

Almost three-quarters (74 percent) of chief executive officers in the UK rate cyber security as the third biggest risk to their company; over regulation and geopolitical uncertainty. Yet commenting on the firm’s 19th Annual Global CEO Survey, released at the World Economic Forum in Davos, PwC cyber security partner Richard Horne has warned that UK companies and institutions remain vulnerable to cyber-attacks, and more needed to be done by boards to protect company data and systems. He said there appeared to be a disconnect between concerns at the top of business and the speed and consistency with which these security measures can be implemented within organisations. This vulnerability to attacks becomes more stark with the speed of technological change and the way organisations’ new digital initiatives present greater potential for attackers, arming them with both new tools and a wider range of targets.

January 26, 2016

Could a sexy office help you seduce clients back to your place? ⁰

by Darren Bilsborough • Comment, Facilities management, Workplace design

I am not suggesting that a cool or sexy office is all you need to drive business outcomes. Nor am I going to suggest that all you need to do to grow a successful business is to invest in a fully loaded, bells and whistles, technology laden, productivity enabling office environment. Not that all of those things won’t help, they very well could be the things that prove to be difference makers. What I will suggest however, is that in most instances a business’s success relies almost exclusively upon the satisfaction of their customer base. Any deliberations associated with office space should, therefore, in some way consider their needs and desires. No doubt these considerations will be highly dependent on the type of business you are in and whether the model it embraces is business-to-business or business-to-consumer, but when contemplating the needs of your clients, you should at least ask yourself the following 4 simple questions.