September 28, 2017

Offices rents in London skyscrapers and tech hubs are amongst highest in world

Rents for office space in London skyscrapers are still the highest in Europe, according to a report from Knight Frank, suggesting that the capital remains one of the most sought after business hubs in Europe despite Brexit. Knight Frank has also reported on the costs of office space in East London’s tech hubs and found they are amongst the highest in the world, with rents akin to those seen in the City of London. According to the study, prime rents in London buildings over 30 storeys stood at $110 per square feet over the first half of the year, nearly double the $58 per square feet and $54 per square feet rent for buildings in Paris and Frankfurt respectively.

September 26, 2017

Growing concerns about staff wellbeing will transform real estate over coming years, claims study

by Mark Eltringham • News, Property, Wellbeing, Workplace design

The UK commercial property market will be transformed over the next few years as a growing number of firms use their workplaces to address the physical and mental wellbeing of staff, claims a new report from law firm CMS. The report, Smart Healthy Agile, is based around the findings of a survey of 1,000 office workers and 350 real estate firms. It claims that the most common problems associated with office life and sedentary lifestyles, such as weight gain, stress, depression and musculoskeletal disorders are encouraging employers to adopt a different approach to working culture and office design.

September 22, 2017

Groundbreaking White Collar Factory building opens in London

by Neil Franklin • Company news, Property, Workplace design

Derwent London has announced the opening of White Collar Factory. The firm claims that the project is one of the most visionary developments of recent years, White Collar Factory combines the look of a well-built industrial space with modern office design. Located near Old Street Roundabout in North East London and designed by architectural practice Allford Hall Monaghan Morris (AHMM), the features of the White Colla Factory include 3.5m high ceilings, concrete core cooling, a 150m rooftop running track, communal roof terrace, a new landscaped public space and the ability to accommodate flexible occupation. The 293,000 sq ft mixed-use development includes a 237,000 sq ft office tower, where the first tenants are already in occupation. Tenants include Adobe, AKTII, BGL, Box.com, Capital One, Runpath, Spark44, The Office Group and Workshop Coffee. The tower forms part of a new urban campus with a further 56,000 sq ft of offices, studios, incubator space, restaurants and apartments, set around a new landscaped area of public realm, ‘Old Street Yard’.

September 22, 2017

The government announces a major new office for public servants in the West Midlands

by Neil Franklin • News, Property

Thousands of public servants in the West Midlands will move to a new building in central Birmingham, as the government continues its drive to modernise its office estate. HMRC working with the Cabinet Office has signed a 25 year lease to take 238,988 sq ft at 3 Arena Central, which is a new office development in the centre of Birmingham. The building will see around 3,600 public servants from several government departments move there from 2020, including from HMRC and Department for Work and Pensions (DWP). The hub will be the base for one of HMRC’s regional centres. DWP plans to move staff into the hub from existing offices in the city. The move is part of the Government Hubs Programme, which will reduce the number of isolated and under-used offices that the government has by co-locating departments in shared buildings across the UK. Departments moving to hubs will need less space as they adopt smart working principles, which will reduce their operating costs. Providing modern, flexible office space will further deliver value for money by improving staff wellbeing and productivity

September 19, 2017

London faces potentially large loss of office stock under office-to-residential conversion rights

by Mark Eltringham • News, Property

A total of 13.3 million square feet of London office space could be lost to office-to-residential conversions carried out under new Permitted Development Rights introduced in 2013, according to new research published by the British Council for Offices (BCO). This figure comprises of 7.5 million ft² of office space in London which has already been converted to homes since the introduction of the rights, with a further 5.7 million ft² of conversions in the capital having approval. An average of 2 million ft²/year has been converted each year since the rights were introduced in 2013, or 0.7 percent of the total London office stock.

September 18, 2017

The mega trends that continue to reshape the workplace around the world

by Neil Franklin • Events, Features, Property, Technology, Workplace design

Last week, over 600 workplace and property experts met in London at the CoreNet Global Summit 2017 to discuss some of the most important trends affecting the sector. The debates underlined one important fact about property and workplaces, which is how they are shaped by major, globalised events as much as they are local needs and the objectives of specific organisations. This quickly became evident on day one, which demonstrated how dramatic shifts in the geopolitical landscape, all of which are impacting corporate real estate – from America First to Brexit – remain key talking points for the industry. Opening speaker Linda Yueh (University of Oxford and London Business School) explored several possible scenarios, including how the focus of ‘Trumpism’ would have a significant effect on the U.S. role on the world stage, with the priority on the domestic economy leaving little scope for global trade. She also predicted that a ‘hard Brexit’, with no new trade deal with the EU, will be the most likely outcome for the UK’s withdrawal process; and that businesses will need to focus on alternative WTO rules as an urgent priority. Other impacting factors covered by Yueh included the rise of a dominant global middle class, and China’s need to rebalance its economic growth drivers.
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September 15, 2017

Regional office property market benefits from growth in office based employment

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

Strong demand and a lack of supply is helping to boast the regional office rental market, according to Savills’ latest Regional Offices Market Watch. The firm anticipates that take-up will reach 9.8 million sq ft (910,450 sq m) by the end of 2017, a 4 percent increase on 2016 and 9 percent up on the 10 year average. This is due to a number of large Government Property Unit (GPU) deals completing in the second half of the year. As a result of strong demand, total availability across the UK fell by 1 percent to 30 million sq ft (2.787 million sq m) in the first half of the year, which equates to just 1.8 years worth of available Grade A supply. What’s more, Savills notes that office based employment across the regional cities is forecast to grow by up to 4.6 percent over the next five years, leading to a net additional 55,000 jobs, representing a need for a further 5 million sq ft (464,616 sq m) of office space.

September 12, 2017

Eight pathways launched to combat unethical practices in construction supply chains

by Neil Franklin • Architecture, Facilities management, News, Property

A new eight stage action programme called APRES, has been released by the Building Research Establishment (BRE) to support the responsible and ethical sourcing of materials, products and people. This call to action has been created in partnership with Loughborough University and presents eight pathways to best practice to combat modern slavery and unethical practices in supply chains. The pathways aim to take organisations and individuals from the level of ‘Baseline’ to ‘Best in Class’ performance.

September 12, 2017

Commercial property can help guide organisations through the Brexit maze

by Mark Eltringham • News, Property

Corporate real estate (CRE) executives are ideally suited to guiding their corporations through Brexit, the 2016 vote by the United Kingdom to exit the European Union, according to a White Paper (registration needed) authored by René Buck, founder and CEO of Buck Consultants International, published to coincide with this week’s CoreNet Global Summit in London. Buck lays out several ways that corporate real estate executives can contribute to a robust Brexit strategy for their companies in the paper.
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September 8, 2017

Mixed use development at Victoria Station named as the UK’s worst new building

by Mark Eltringham • Architecture, News, Property

A mixed use scheme featuring two prominent towers next to London’s Victoria station has been named the UK’s worst new building from the last year. The Nova Victoria development, designed by PLP Architecture, was awarded the 2017 Carbuncle Cup – an annual competition organised by architecture website Building Design (BD) that recognises the ugliest buildings completed in the UK over the previous year. The project was named as winner of this year’s unwanted accolade by a panel of judges comprising BD editor Thomas Lane and assistant editor Elizabeth Hopkirk, as well as Twentieth Century Society director Catherine Croft and urbanist David Rudlin who also took into account comments from readers.

September 8, 2017

London’s commercial office market slows down as occupiers choose to stay put

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

Following a period of stability over the last few quarters, despite the Brexit vote, London’s office market is increasingly coming under pressure, according to Clutton’s London Office Bulletin for Summer 2017. According to Ralph Pearson, Clutton’s head of commercial agency – this is due to reduced levels of occupier activity post Brexit where there is increased instances of tenants renewing leases rather than electing to relocate. Although take up in the second quarter of this year was close to the five-year average, the main reason for this was due to activity carried out by WeWork, which accounted for the two largest deals – involving a total of 425,000 sq ft in Shaftesbury Avenue and at South Bank Place. The market has since begun to stagnate, and so far, for the third quarter of this year quoted rents have slipped across much of central London with rent free periods continuing to lengthen.

September 7, 2017

Leeds latest city to announce major new Government Hub

by Neil Franklin • News, Property, Public Sector

Following the announcement of new UK Government Hubs in Cardiff and Edinburgh, a total of 6,000 civil servants are to be relocated to a new Government Hub in Leeds in what is claimed to be the biggest ever commercial property letting deal in the city’s history. HMRC, working with the Cabinet Office, will take approximately 378,000 sq ft at Wellington Place on a 25 year lease. The deal will see 6,000 civil servants working in a state-of-the-art new city centre premises in 2020.