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

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.
(more…)

Regional office property market benefits from growth in office based employment

Regional office property market benefits from growth in office based employment

GPU New Waverley offices in EdinburghStrong 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.

(more…)

Eight pathways launched to combat unethical practices in construction supply chains

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.

(more…)

Commercial property can help guide organisations through the Brexit maze

Commercial property can help guide organisations through the Brexit maze

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.
(more…)

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

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.

(more…)

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

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.

(more…)

Leeds latest city to announce major new Government Hub

(more…)

Commercial property investment in central London hits ten year high, claims report

Commercial property investment in central London hits ten year high, claims report

Commercial property investment in central London has seen its strongest trading in a decade, according to Savills. The real estate adviser claims that over £2.3bn was invested in central London commercial property in July, with total turnover for 2017 to the end of July reaching £11.5bn, a 24 percent increase on the same period last year. July was the strongest month recorded since March 2007 for the City as sales were boosted by the acquisition of 20 Fenchurch Street for almost £1.3bn to a Hong Kong-based property group.

(more…)

New property scheme launched to cut the cost of empty space in NHS buildings

New property scheme launched to cut the cost of empty space in NHS buildingsA new scheme to help the NHS cut the costs of empty space in their buildings has been launched this week by NHS Property Services (NHSPS). Properties that qualify for the scheme must be deemed surplus to NHS requirements and may be re-let, disposed of or considered as a development opportunity. The new Vacant Space Handback Scheme comes in response to feedback from commissioners who want to reduce the cost of maintaining space that is no longer needed for clinical services.  The cost of maintaining vacant space is kept as low as possible, though some costs are unavoidable where rent, business rates and some service charges remain payable. The total amount and cost of maintaining vacant space in the NHS is difficult to calculate, but costs are estimated to be in excess of £10 million a year on the NHS Property Services estate.

(more…)

Mixed picture for European commercial property markets

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.

(more…)

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

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

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.

(more…)

I’ve got some real estate here in my bag

I’ve got some real estate here in my bag

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.

(more…)