Retrofit is essential for the UK’s stock of poor performing commercial property

Retrofit is essential for the UK’s stock of poor performing commercial property

commercial property retrofitThe UK Green Building Council (UKGBC) has published a guide that calls on businesses to retrofit the country’s poorly performing stock of commercial buildings. From 2025, every commercial building in the UK will require an energy performance certificate (EPC) which rates its energy efficiency from grade A to G. The Government is seeking to strengthen these standards and has proposed that all commercial properties being let have a minimum EPC rating of at least ‘B’ by 2030 and is considering a possible interim requirement of level ‘C’ by 2027. Buildings which fail to meet these new standards would require owners and landlords of commercial buildings to upgrade their stock. More →

British Council for Offices honours the North’s best workplaces at annual Regional Awards

British Council for Offices honours the North’s best workplaces at annual Regional Awards

Six workplaces across the North of England and Northern Ireland have been recognised at the annual British Council for Offices (BCO) Regional Awards today. The Northern BCO Awards dinner returned in-person to the Kimpton Clocktower in Manchester, recognising the North’s highest quality developments and setting the standard for excellence in the office sector across the UK. More →

Demand for office space ‘bounces back’

Demand for office space ‘bounces back’

office spaceThe start of 2022 saw a jump in new tenants looking to rent UK commercial property, with the uplift particularly prevalent in prime office space. Investor enquiries across all UK commercial property also continued to rise, according to the RICS Commercial Property Market Survey, Q1 2022. Respondents to the survey saw a notable increase in UK office demand in Q1 2022 with the net balance improving to +30 percent from a flat picture at the end of 2021. A considerable change in sentiment was also seen in the retail sector, as occupier demand moved into relatively neutral territory (-1% net balance), the first time this reading has been neutral or positive since the beginning of 2017. More →

British Council for Offices honour London’s best workplaces at annual Regional Awards

British Council for Offices honour London’s best workplaces at annual Regional Awards

Six London workplaces have been recognised at the annual British Council for Offices’ (BCO) Regional Awards. The London Awards Lunch returned in-person to the London Hilton on Park Lane, recognising the highest quality developments in London and setting the standard for excellence in the office sector across the UK. The winning workplaces include:  80 Charlotte Street (Commercial Workplace); Plumtree Court, 25 Shoe Lane (Corporate Workplace); Dojo, The Brunel Building, 2 Canalside Walk (Fit Out of Workplace); ASOS HQ, Greater London House, 180 Hampstead Road (Refurbished/Recycled Workplace); Pennybank , 33-35 St John’s Square (Projects up to 1,500m sq. ); 1 Triton, 1 Triton Square, Regent’s Place (Innovation) More →

We need to seize the chance to make our buildings far more intelligent

We need to seize the chance to make our buildings far more intelligent

Even before the pandemic, statistics were making the case for workplaces to be made up of more intelligent buildings. This includes the fact that offices generally operate at around 55-60 percent utilisation, and as we return to the office are currently at 45 percent utilisation. From presenteeism to absenteeism and many other factors in between, workplaces have seldom been utilised by entire workforces at the same time. However, the prevailing approach has been for firms to drive an office setup with one-to-one desking – a seat for every employee, even though five in 10 would not be in at any one time. More →

What Jacob Rees Mogg really got wrong about working from the office

What Jacob Rees Mogg really got wrong about working from the office

One of the challenges of taking part in The Great Work Conversation is swerving alignments with the wrong people. It’s easy enough to call out the crusty, passive aggressive notes apparently left by Lord Bufton Tufton on the desks of civil service drones. But it’s equally easy to find yourself tarred with the same brush if you dare to suggest not everybody is about to cocoon themselves in a bedroom forever or swap all they have for a life trundling from place to place in a dormobile, exchanging work for tokens. More →

Half of large office occupiers plan to rethink their property requirements

Half of large office occupiers plan to rethink their property requirements

PWC officeLarger office occupiers are getting to grips with the fallout following the pandemic and are now reassessing their office property needs, according to a new YouGov survey commissioned by law firm Irwin Mitchell. The survey of over 500 office property decision makers shows that nearly half (46 percent) of large businesses and (39 percent) of medium sized companies plan to rethink their office space- whether by upsizing, downsizing, or relocating. The survey shows that one in five large businesses plan to increase their existing office space, with the same proportion looking to reduce space and 5 percent to relocate. In addition, 11 percent are looking to reconfigure their existing space. While 37 percent plan to stay the same. More →

Office costs creep up, but not because of higher rents

Office costs creep up, but not because of higher rents

office costs riseHigher fit-out costs and service charge growth, not rent rises are set to increase office occupier costs in 2022, claims a new report. Savills analysis of Q1 22 Prime Office Costs (SPOC) in global markets around the world has shown that higher fit-out costs, reflecting material and labour cost inflation, are beginning to creep through in some office markets. While overall there has been no movement in the position of cities in the rankings since the end of 2021, says Savills, some markets are experiencing rising costs in fitting out space and increased service charges. According to Savills this trend is most evident in Chinese cities, Kuala Lumpur, and in North American cities at the moment, but other markets across the globe are set to follow suit in the coming quarters.

Jeremy Bates, head of EMEA occupational markets at Savills, comments: “From higher prices for raw materials to increasing labour costs to keep up with rising inflation, it’s likely that most office occupiers will have to pay more to rent and fit-out their space in global cities this year.

“Whilst rent is the usual indicator of increasing cost, service charge rises and higher capital expenditure will represent the largest contributions towards increased occupier costs in the coming quarters. Even in markets where landlords tend to pay for fit-outs, these costs will eventually be passed on to occupiers later in the form of higher rents. Nonetheless, for many office occupiers the expense is unlikely to deter them from selecting top quality spaces in prime central business districts to attract and retain talent, although they are carrying out extensive data gathering exercises on how employees are using space before making decisions on exactly how much to take.”

Savills says that overall headline rents have, on average, remained flat in local currencies and the increasing additional costs have yet to appear across many markets, according to the international real estate advisor, with fluctuating exchange rates due to increased uncertainty producing the appearance of declining costs for many markets in Dollar terms during the first quarter of 2022, while in local currencies they have broadly remained consistent with Q4 2021.

MIPIM revival offers up a pale, stale imitation of life (but there’s hope)

MIPIM revival offers up a pale, stale imitation of life (but there’s hope)

MIPIMIf a week is a long time in politics, then two years in real estate is practically a lifetime. Time enough for an opportunity for MIPIM, the property world’s annual gathering in Cannes to reset itself post-pandemic. Unlike back in London where British Land had offered up space for Ukrainian care packages at its Paddington Central Campus and Quintain also pledge to make space at its Wembley Park space (as reported by Estates Gazette), unfortunately such correct reading of the room wasn’t the case on the Croisette. More →

Instant Group adds virtual office provider to flex space offering

Instant Group adds virtual office provider to flex space offering

Instant GroupFlex office provider The Instant Group has merged Davinci Virtual Office Solutions into its online marketplace for flexible workplace. Last week, Instant announced the creation of what it claims is the world’s largest independent marketplace for flexible workspace through the merger with key digital assets from IWG plc including: EasyOffices.com, Meetingo.com, Rovva and Worka. More →

Retrofit offers the greatest opportunity for a commercial property market beset by uncertainty

Retrofit offers the greatest opportunity for a commercial property market beset by uncertainty

Retrofit an opportunity for commercial propertyIn the context of a second major economic shock from war in Ukraine and continuing inflationary concerns, the PWC / ULI report Emerging Trends in Real Estate Global Outlook 2022 focuses on the global outlook for the real estate industry increasing pressure for finance to support the decarbonisation of real estate. The industry challenges lenders and their regulators to provide debt for the retrofit of existing buildings and the scale-up of the ‘climate tech’ needed. More →

The much talked about new normal doesn’t exist, but the world has changed in profound ways

The much talked about new normal doesn’t exist, but the world has changed in profound ways

no new normalThe World Health Organization officially declared COVID a pandemic on March 11 2020. Now, two years later, there’s light for some at the end of the tunnel. In many wealthier countries, which have benefited from several rounds of vaccination, the worst of the pandemic is over. We’ve got here by learning a lot of new health behaviour, like wearing masks and sanitising our hands. Many of us have also developed a variety of social habits to reduce the virus’s spread – such as working from home, shopping online, travelling locally and socialising less. But as parts of the world emerge from the pandemic, are these new habits here to stay, or do old habits really die hard? Is there a new normal? Here’s what data can tell us.

 

 

Work

One of the biggest changes predicted during the pandemic was a long-term shift towards home or hybrid working. However, there are already signs that this transition might not be as obvious or complete as expected.

[perfectpullquote align=”right” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]The signs of the transition to hybrid work are not as obvious or complete as expected[/perfectpullquote]

In the UK, the proportion of people working from home at least some of the time increased from 27 percent in 2019 to 37 percent in 2020, before falling to 30 percent in January 2022. Similarly, in the US the proportion working from home declined from 35 percent in May 2020 to 11 percent in December 2021.

One of the main reasons people are going back to the office is employers’ expectations. Many companies are concerned that more permanent home working might affect employees’ team building, creativity and productivity.

But among employees, there’s a greater appetite for hybrid and flexible working. One recent multi-national survey found that whereas roughly one-third of workers had worked at home at least some of the time before the pandemic, roughly half said they want to in the future.

 

Shopping

The pandemic didn’t create the habit of online shopping, but it makes more of us do it. Did this make us realise we don’t need actual stores anymore?

It doesn’t seem so. Shopping in bricks-and-mortar stores has already started to recover. Recent data on people’s movements, gathered anonymously from mobile devices, shows how in many countries, before omicron hit, travel to retail and recreation spaces was back up to pre-pandemic levels, and is already starting to rebound after omicron.

The rise in online sales has also not been as dramatic or sustained as many predicted. In the UK, online sales made up 20 percent of total retail sales before the pandemic. By February 2021 this had risen to 36 percent, before declining steadily to 25 percent in February 2022.

 

Travel

One habit that might take longer to recover is our pre-pandemic love of international travel. It has taken a hit around the world, and the sector is still struggling. The UN’s International Civil Aviation Organization projects that international travel in 2022 will still be down by nearly a half compared to 2019.

One British survey conducted last September found that while 80 percent of people were planning on holidaying in the UK in the next year, only around 40 percent were considering going abroad. In comparison, in the 12 months up to July 2019, 64 percent of Brits travelled abroad for a holiday according to one travel industry body.

People’s reluctance to travel has been largely down to concerns over the virus and confusion over travel rules. As worries decline and rules get lifted, we may see a “mini-boom” in holidaymaking.

 

Socialising

Early in the pandemic, some commentators – including the US chief medical adviser Dr Anthony Fauci – suggested we might never return to shaking hands. I, with my colleague Dr Kimberly Dienes, argued that it was vital these rituals make a comeback, as they have several social, psychological and even biological benefits.

Are social-distancing habits, including meeting fewer people and having less physical contact with those we do, here to stay? For most people, no. Data shows only one-third of people in the UK are still socially distancing regularly, the lowest proportion since the pandemic began.

 

No new normal

But truly, only time will tell how much the pandemic will have changed our habits. However, bolder predictions – that the pandemic was going to completely and irrevocably change our ways of working, shopping, travelling and socialising – now seem premature and exaggerated. The pandemic has taught us we can work, learn, shop and socialise in different ways, but the question now is whether we still want to.

[perfectpullquote align=”right” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]The pandemic has taught us that we need to connect with others[/perfectpullquote]

Humans have basic needs, such as autonomy, feeling related to others, and feeling effective and competent in what we do. Part of the challenge with home working, for example, is that it simultaneously fulfils one need by giving us greater autonomy but takes away another by making us less connected. Expanding adequately supported, equality-focused, hybrid and flexible working arrangements is perhaps a promising way to meet both needs.

Some people will have acquired a sense of competence, or at least familiarity, with the new ways of doing things during the pandemic and so may wish to keep doing them. In some areas – travelling overseas, for example – it may take longer for our competence, and confidence, in old habits to return. However, many seem to be quite quickly returning to old ways and re-learning how to feel competent at doing things that they did before.

The extent to which we’ll go back to our old ways may also depend on our personality traits, which have been shown to shape our compliance with new behaviour. For example, those more open to new experiences by nature, or more extroverted, may be more eager to travel internationally or socialise in larger groups.

Finally, the pandemic may have served as a reminder of how much we appreciate everyday interactions with others, in shops, restaurants and so on. People may be keen to return to familiar ways that revive this – for example, picking something up in a store on the way home from work. Above all, the pandemic has taught us that we need to connect with others and that there are limits as to how much online communication can replace real, face-to-face interactions.

This article is republished from The Conversation under a Creative Commons license. Read the original article.