November 9, 2021
Research from Gerald Eve has highlighted a strong resurgence in activity in the London office market in Q3. Occupier take-up increased 30 percent to 2.8 million sq ft, driven by large commitments by major London occupiers. It was the highest level of occupier activity since before the pandemic and only 7 percent below the five-year quarterly average. More →
November 2, 2021
A new report expresses scepticism about the UK government’s current net zero strategy for the country’s buildings, with 69 percent of built environment professionals doubting its feasibility. The research, published in the City of Tomorrow report by building performance analysts IES, found that more than half (51 percent) of those working in the sector believe that net-zero 2050 is only achievable with further legislative action. One in 10 think that the current plan is not ambitious enough, and 8 percent think it’s not realistic. More →
November 1, 2021
There are no prizes to be won for saying that the modern workplace is already markedly different from those we have known in recent decades. As remote and flexible working practices have become more common, the role of the office has already begun to evolve – the pace of change has been greatly accelerated by the pandemic, which has resulted in a rethink among many organisations about their real estate needs. More →
October 29, 2021
Pressing the ‘reset’ button is never easy. But I’m a firm believer that, once we do, we become much less averse than we perhaps expected to the change it inevitably brings. This is particularly true of the past eighteen months. From all of the sadness and hardship endured, we are beginning to emerge into a new, changed way of living. One that is both familiar and altogether different. The dichotomy is particularly evident in our workplaces. For many sections of the economy, the office was the ecosystem of our daily working lives. Initial questions of whether the office would survive quickly fell by the wayside, and a more interesting, nuanced, debate of what we want the office to be began. More →
October 29, 2021
The latest research from Avison Young claims that the London office market’s recovery continued in the third quarter of 2021, with activity in the occupier market increasing to 2.4 million sq ft, 26 percent above the previous quarter and 1.1 percent above the 10-year quarterly average. More →
October 18, 2021
A new report from property consultancy Cluttons looks at the new challenges the Prime Central London office market faces in 2021/22, with issues such as Brexit and the immediate impacts of the global pandemic – but also longer-term problems like changing lifestyle preferences, the uptake of remote working and climate change. More →
October 14, 2021
The UK Green Building Council has published new guidance for local authorities on the environmental performance of their new buildings. The organisation has published its latest Commercial Playbook to “fill the gap left by national policy, which is not currently delivering change at the pace that is required to meet the UK’s environmental commitments”. More →
September 30, 2021
The debate about the workplace and the future of work gets more interesting by the week. In the last few days alone, I’ve listened in on three great speakers talking about the opportunities, challenges, nuances and complexities of it all in a way that has been all but impossible in the past 18 months. In addition, Nigel Oseland has published his new book on people-centred work. Jo Owen’s new book on hybrid working is similarly a breath of fresh air on that particular subject. More →
September 21, 2021
Predicting behaviours in the commercial property market is never an easy thing, yet we know that the pandemic has drastically altered this market. Whilst some players have advocated ‘the end is nigh’ for all office space, research shows a different picture emerging – namely the office space as we know it is evolving into something different. The impact of prolonged uncertainty has fuelled change. However, there are other forces at work shaping a brighter and more varied future for office space. More →
September 16, 2021
September 14, 2021
New ways of working will boost UK productivity and increase employment levels in cities outside of London, according to a new report from KPMG. And as businesses in some sectors prepare for employees to spend two to three days a week working from home on a permanent basis, demand for office space could see capacity potentially increase by as much as 40 percent, according to a new KPMG report, New working patterns and the transformation of UK business landscape.
The increased availability of office space in major business hubs is expected to attract businesses from smaller areas to fill up the vacant space, with cities like Manchester, Bristol, Glasgow, Leeds and Birmingham set to see employment rise by 5-10 percent as a result. This will have a significant knock on effect for demand for office space.
Areas in central London are also expected to benefit, as well as smaller towns and cities with a large proportion of the workforce working partially from home. Meanwhile, less dense business areas could see a decline in employment and may need to be transformed into more residential, leisure, retail and other uses.
As the business landscape consolidates, KPMG analysis also claims the change could boost overall UK labour productivity by 0.5 percent, thanks to businesses being able to tap into a larger pool of workers, suppliers, and clients.
Yael Selfin, Chief Economist at KPMG UK, commented on the report: “As we emerge from the pandemic, businesses need to adapt to the new environment they will be facing. Some may choose to relocate to larger business hubs to boost profitability, while others in less central areas could see their local customer base profile change. While the overall impact on the UK economy is expected to be positive, the changes ahead could prove challenging for those businesses already saddled by the pandemic.”
The report examines how local high streets in residential towns and neighbourhoods are expected to reap the benefits of greater homeworking through increased demand by residents during the week. But the impact on high streets across the UK is unlikely to be uniform. Some places may be hit relatively hard by the loss of office workers due to their proximity to a larger business hub, which may be compounded by the loss of commuter footfall among remaining employees due to the prevalence of working from home.
Yael Selfin added: “As people spend more time working from home and less time in the office, we could see a revival of the local high street.
“They will need to transform into places of purpose to meet demand for community-based services, hospitality, culture, as well as retail. High street offering in smaller towns and cities may need to become more focused on residents’ needs and less focused on businesses and commuters.
“This transformation will require local government, residents and businesses to work together to map their future shape and make concrete plans to support and enable the necessary changes to make the most of the new post-Covid business reality.”
Chris Hearld, Head of Regions at KPMG UK, commented: “Over time, a shift in business location could support the rise of several major business hubs across the UK. An increase in the concentration of businesses and workers has the potential to make those businesses located there more productive and enable these areas to serve as the engines of economic growth. This should also support the Government’s Levelling Up agenda. Cities like Manchester, Leeds, Birmingham, and Newcastle stand to benefit from such a consolidation of business locations. For this to happen they will need government to work closely with local leaders to ensure the transition is smooth and any barriers to growth are quickly ironed out.”
Completions in central London are expected to hit a three-year high, with 5.5m sq ft scheduled for delivery by the end of this year, according to
November 10, 2021
Working culture should align and balance with commercial objectives
by Siobhan Byrnes • Comment, Flexible working, Property, Wellbeing