December 13, 2018
European property sector predicted to grow next year, despite economic challenges
The European property sector is predicted to grow next year, according to CBRE’s 2019 EMEA Market Outlook report. Although recent indicators suggest some slowing of momentum economic growth in Europe will remain above-trend rate in 2019 and 2020, with Spain, Ireland and the central European countries expected to see the fastest economic growth. France’s growth is expected to accelerate as recent economic reforms begin to pay off; however, UK growth is expected to remain below-trend, but with better long-term potential once the current uncertainty around Brexit passes. Office markets around the region are expected to see positive growth in leasing levels in 2019. However, major European cities, including Paris, Berlin, Stockholm and London, are expected to see lower levels of employment growth in office-using sectors. More →
A new task group spearheaded by the UK Green Building Council (UKGBC) being launched which will develop an industry-led definition for net zero carbon buildings. The task group brings together over thirty experts from across the building value chain and is being supported by 12 leading industry bodies. Following the recent IPCC report and the Paris Climate Agreement, worldwide attention has switched to achieving “net zero emissions” to escape the worst impacts of climate change. To answer this, a global campaign is being led by the World Green Building Council – calling for all new buildings to be net zero carbon in operation by 2030 and all existing buildings to achieve this standard by 2050. Its aim is to build industry consensus on a definition for net zero carbon buildings, which can then be used to advise project designs, planning requirements and building regulations.
Take-up of office space in Central London has shown a year-on-year increase of 30 percent, reaching 1.3m sq ft in October, according to CBRE. Take-up was strong from creative firms, representing 18 percent of all deals, including the largest deal of the month which saw McCann Erickson take 146,400 sq ft at 135 Bishopsgate EC2. Flexible office operators took 122,300 sq ft of space during the month, bringing the proportion of take-up represented by the flexible office sector in the last 12 months to 19 percent. The largest flex acquisition in October saw Landmark Spaces acquire 37,800 sq ft at Portman House in the West End. 
The level of demand for UK commercial property remains strong, despite continued lack of clarity over Brexit. According to the latest GVA review of commercial property investment market, European investors were more risk averse to the UK market because of the uncertainty caused by Brexit but demand from overseas investors, particular from China and the Far East, strengthened in 2018. Domestic investors have also made a ‘come-back’ to the UK market and have accounted for approximately 12 percent more acquisitions in 2018, compared to the previous year. In the North East, the lack of availability of investment property is one of the biggest factors affecting growth and there remains strong competition, particularly for prime well let assets. Regardless of political uncertainty, the fundamentals of the UK commercial property market will continue to make it an attractive place to invest, with London remaining the number one priority target of investors outside of Europe. Overall, the report concludes, the UK commercial property market will remain attractive with the exception of retail.
Investment in City of London offices is up by 7.6 percent for the same period last year reaching £9.47 billion as of the end of October 2018 – while the West End market is on track to reach at least £7.4 billion before the year is out. This is up on the £7 billion turnover seen in 2017, according to Savills. Stephen Down, executive director and head of Savills Central London investment team, says: “Demand for central London offices has remained buoyant throughout 2018. While we may not see the year set any new records, annual volumes look set to either surpass or draw very close to those of 2017. 
November 23, 2018
Communities are the key factor to rapid growth of coworking
by Petr Boruta • Comment, Coworking, Property, Workplace design
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