August 28, 2017

Mixed picture for European commercial property markets

Investment in European commercial property fell during the first half of the year, despite the strong performance of key markets such as Germany, claims a new report from Knight Frank. Overall, commercial property investment stood at €43.3 billion for the second quarter of 2017 bringing transaction volumes for the first half of the year amounted to €90.3 billion, an 8 percent decrease year on year. According to the report, Germany has become the leading European investment destination for North American investors and the dominant location for intra-European cross border investment.

August 25, 2017

UK serviced office take-up more than doubles in first half of 2017

by Neil Franklin • News, Property

Serviced office take up across the UK has increased by 176 percent in the first half of 2017, reaching 1.07 million sq ft compared to the same period in 2016, which saw 386,750 sq ft acquired, according to real estate adviser Savills. The firm claims that while Central London saw a significant increase with take-up reaching 860,368 sq ft in the first six months, property markets outside the capital also saw substantial growth. Savills research shows that the M25 office market saw take-up by serviced office operators rise from 44,676 sq ft in the same period last year to 109,886 sq ft in the first half of 2017, while in the regional markets, serviced offices, including coworking spaces, accounted for 4 percent of overall office take-up in the first half of the year at 95,987 sq ft, compared to 41,568 sq ft during the same period in 2016.

August 23, 2017

I’ve got some real estate here in my bag

by Paul Carder • Comment, Flexible working, Property, Technology

Let us be lovers,
We’ll marry our fortunes together.
I’ve got some real estate
Here in my bag.
So we bought a pack of cigarettes,
And Mrs. Wagner’s pies,
And walked off
To look for America.
“Kathy”, I said,
As we boarded a Greyhound in Pittsburgh,
Michigan seems like a dream to me now.

August 23, 2017

New eco coworking centre breaks ground in Oxfordshire

by Neil Franklin • Architecture, Company news, Environment, Property

Construction has begun on a new zero carbon business centre at the Elmsbrook development in Bicester, Oxfordshire. PERCH, Elmsbrook is one of two new coworking spaces brought to Bicester by Cherwell District Council (CDC) and is subject to support from European Regional Development Funding. The 1,400 sqm building will span three floors and accommodate up to 125 people. The council claims it will be unique in ‘providing local office space for individuals and small businesses in a highly sustainable building, meeting the standards of the North West Bicester Eco Town’ scheme.

August 22, 2017

Regional office market remains strong and embraces the co-working revolution

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

The creative industries sector accounted for over a third 35 percent) of take-up in the regional office market in the first half of the year, with this sector in particular driving the co-working revolution and the provision of flexible office space. Latest figures in CBRE’s H1 2017 Property Perspective, which monitors the performance of ten regional cities, overall, the UK’s regional office markets saw continued demand in the first half of 2017, with office take-up reaching 2.8 million sq ft, only slightly lower than the five-year average. For the first half of 2017, several cities witnessed improved levels of take-up when compared with the first half of 2016, these include Aberdeen, Edinburgh, Leeds and Manchester. Select locations such as Reading, Maidenhead and Watford also saw a continuation of record rents being set during the first half of the year, which has largely been driven by the delivery of new developments.

August 21, 2017

Office sector undergoing transformational structural disruption in response to changing supply and demand

by Mark Eltringham • News, Property

Amid varying economic performances and property fundamentals, North American and European office leasing markets are generally performing well as they undergo an important shift in dynamics influenced by trends transforming both occupier demand and the supply of new product. Traditional drivers of demand are being joined by emerging disruptors that will increasingly shape the future of the office-space market and commercial real estate as a whole. These are some of the key trends noted in Avison Young’s Mid-Year 2017 North America and Europe Office Market Report. According to the report, of the 64 office markets tracked in North America and Europe, which comprise almost 6 billion square feet, market-wide vacancy rates decreased in 40 of the markets as nearly 52 million square feet was absorbed. Occupiers’ desire for new products remains strong and developers have responded, according to the report, with more than 62 million sq. ft. of office space was completed during the 12-month period ending June 30, 2017.

August 14, 2017

Google wins approval for new London headquarters

by Mark Eltringham • Cities, News, Property

Google’s much talked about plan to build a new London headquarters in King’s Cross has been approved by Camden Council. The building, designed by Thomas Heatherwick and BIG in collaboration with BDP replicates some of the campus facilities now associated with a tech campus including a garden, 200m jogging track on the roof, swimming pool, massage parlours exercise rooms and facilities for badminton, five-a-side football and basketball. The finished 11-storey building will be more than one million square feet in size of which Google will occupy 650,000 sq ft. Motorised timber blinds on the outside of the building keep direct sunlight out. Solar panels on the roof will deliver an annual output of 20MWh. The main contractor Lendlease will start on site next year on a contract believed to be worth around £350m.

July 28, 2017

UK commercial property market remains largely resilient

by Neil Franklin • News, Property

Although the commercial property market in the UK is proving largely resilient, demand to rent levelled off for the first time in almost five years during the past three months, according to a study from The Royal Institution of Chartered Surveyors (RICS) Its gauge of commercial tenants’ demand for property fell to -2 for the second quarter of 2017, its lowest reading since the third quarter of 2012. Demand varies across market sectors, however, with occupier demand declining in the office and retail sectors of the UK commercial property market, but conditions in the industrial segment remain firm, according to the survey.

July 25, 2017

Other UK cities must rebalance London-centric commercial property market

by Neil Franklin • Cities, News, Property

It is up to the UK’s other cities to rebalance the country’s London focussed commercial property market according to a new report, ‘What investors want: a guide for cities’, published by the think tank Centre for Cities with support from Capita. It examines the top priorities for investors when choosing which places to invest in, and offers practical advice for cities on how to make their places as attractive as possible for investors. The report shows that just over half of all investment in Britain’s commercial property market in 2016 – worth over £43bn in total – was spent in London. This was significantly more than the South East, the second most successful region, which secured nearly £5bn of investment, equivalent to 11% of the total share across Britain.

July 24, 2017

Employers have a growing responsibility to provide staff with cycling facilities

by Peter Ferrari • Cities, Comment, Property, Wellbeing

This month, the British Council for Offices (BCO) launched a new report looking at the importance of offering better workplace facilities for cyclists in order to support the Government’s ambitious cycling growth targets. The Department for Transport’s £1.2bn cycling and walking investment strategy, published in April, aims to make cycling “the norm” by 2040. It plans to do this by improving cycling infrastructure and expanding cycle routes between city centres, local communities and key employment and retail sites, making improvements to 200 sections of roads for cyclists and providing funding for councils to invest in cycling schemes. In addition, city councils across the UK are making improvements to their cycling infrastructure. Last year, Sadiq Khan announced plans to spend £770m on cycling initiatives in London over the course of his term, in order to make riding a bike “the safe and obvious” transport choice for all Londoners. Birmingham City Council has pledged to invest more than £11m in creating two-way cycle paths, resurfacing canal towpaths, and even offering free bikes, with the aim of doubling the number of trips in the city made by bike from 5 percent to 10 percent by 2033, in order to make the city healthier, greener, safer and less congested.

July 19, 2017

Link between offices and wellbeing is too important for landlords and occupiers to ignore

by Neil Franklin • Facilities management, News, Property, Wellbeing, Workplace design

Developers and landlords who invest to create offices that embody the occupier-driven focus on wellbeing will reap their rewards commercially while those that don’t face diminishing returns, according to a new report from Cushman & Wakefield. The Well Workplace report claims to map out the major trends, opportunities and challenges of the future facing owners and occupiers of commercial office space due to the growing emphasis on employee health and vitality as part of the work environment. Improved lighting, layout and use of plants are all known to benefit wellbeing and can increase employee performance. Gains through boosting performance far outweigh potential cost savings through real estate efficiencies – making the imperative for occupiers clear, according to the report’s authors.

July 17, 2017

BCO predicts how Brexit might impact on demand for office space to 2022

by Sara Bean • Facilities management, Legal news, News, Property, Workplace

Commercial property occupiers remain cautious about the future, and hard data indicates that demand has, so far, been largely unaffected by Brexit, claims a new report from the British Council for Offices (BCO) . ‘Brexit and its Potential Impact on Office Demand’, examines how Brexit might impact on demand for office space on a national and regional basis through to 2022. According to the report, almost one year on from the Brexit vote the situation is one of uncertainty, feeding through to slower growth, with ‘an almost palpable sense that choppy waters lie ahead, particularly with regard to trade and movement of labour’. However, businesses continue to make long-term investments in the national economy and even in the City, some large investment banks have committed to large new office buildings. There is much variation in the relative performance of the UK’s major office centres, though, with some expanding and others apparently in decline.