May 10, 2017

The new normal arrives for the commercial property sector ⁰

by Gary Chandler • Comment, Facilities management, Property, Workplace design

Traditionally, the two principle vectors for change in the commercial property market have been lease lengths and space standards. Both have shrunk markedly over recent years, subject to the miniaturising effects of technological and cultural change. Even so, the effects of this contraction have taken place within an existing paradigm so have been easily understood, if not always acted upon.So it has been that major property organisations such as the British Council for Offices and CoreNet have been able to produce guides and reports based on well understood principles and without challenging the business models and assumptions of developers, landlords, workplace designers and occupiers. For most the challenges remained the same, not least how to resolve the sometimes conflicting timescales of people, place, property and technology that is the defining tension at the heart of office design and management.

May 5, 2017

Property developers welcome extension of office to residential conversion rights ⁰

by Mark Eltringham • News, Property

Three quarters (74 percent) of property developers expect to see an increase in the number of conversions of under-used office buildings into new homes over the next two years as a result of the government’s decision to extend property development rights (PDR) legislation. Of these, nearly a third (30 percent) of developers expects to see a significant growth in PDR-related conversion schemes. This is according to a small study commissioned by Amicus Property Finance. More than two thirds (69 percent) of property developers welcome the PDR extension, which was designed to enable thousands of new homes to be built by making use of neglected industrial and office property while preserving the green belt. In the UK between July 2015 and June 20163, a total of 1,066 office to residential permitted development applications were permitted with prior approval not required and a further 1,480 applications granted with prior approval.

May 5, 2017

Regional office take up in UK’s major cities hits five year low ⁰

by Neil Franklin • News, Property

The latest research from real estate adviser GVA claims that Q1 2017 office space take-up across the UK’s ‘Big Nine’ regional office markets was at its lowest level for five years. At 23 percent below average, activity was particularly low in the city centre market where only Cardiff recorded above average take-up. Out-of-town markets were more resilient however with Bristol, Edinburgh, Liverpool and Newcastle recording above average take-up. Professional services made up 28 percent of all take-up over 5,000 sq. ft. in the city centres during Q1, slightly higher than the usual profile, led by legal and engineering firms. Deals to universities in Cardiff and Bristol meant that the education sub-sector made up 15 percent of activity. It was a strong quarter for the Technology Media and Telecom (TMT) sector, which increased its share to 18 percent compared to an average of 13 percent, while recruitment companies were also very active (9 percent of take-up).

May 2, 2017

Winners of BCO Awards for Midlands and Central England announced ⁰

by Mark Eltringham • News, Property, Workplace design

The £10 million new headquarters of Wolverhampton beer and pubs group Marston’s has been named as the Best Corporate Workplace at the British Council for Offices’ annual Midlands and Central England Property Awards. The refurbishment was led by interior design firm Newman Gauge. Centre City, in Birmingham, gained the award for best commercial workplace following a redevelopment by owner Bruntwood. The judging panel said the 1975 building had been brought back to life by the refurbishment. Energy Systems Catapult, a workspace lab based at Cannon House won the award for best fit out of a workplace, with judges praising the company ethos to stimulate innovation in energy technologies.

May 2, 2017

Immigration and skills will be key to success of next UK Government ⁰

by Mark Eltringham • News, Property

The next Government must ensure the construction sector has enough skilled workers post-Brexit or its housing and infrastructure manifesto pledges will be redundant, says the Federation of Master Builders (FMB). The FMB has called on all major political parties to recognise the importance of migrant labour to the construction sector as part of its ‘Programme for Government’, that has been launched the day before Parliament is dissolved for the General Election. The organisation claims that the UK construction sector’s demand for skilled migrant workers from the EU and beyond cannot be overstated. It suggests that in London alone, there are more than 157,000 non-UK construction workers constituting almost half of the industry’s workforce in the capital. Pre-Brexit, 60 percent of small construction firms are already having trouble hiring key workers even before the Government unveils its intentions for the free movement of people.

May 1, 2017

Fresh concerns raised about council investments in commercial property market ⁰

by Mark Eltringham • Comment, Property, Public Sector

As we reported last month, the level of investment in commercial property undertaken by UK local authorities is raising serious concerns within both central government and the real estate sector. Now, a fresh warning has been issued by the former business secretary Sir Vince Cable that councils face potential bankruptcy if the property bubble bursts. In recent years councils have faced an average 37 percent real term cut in government funding and so have taken to borrowing large sums at low interest rates from the Treasury’s Public Works Loan Board to reinvest in commercial property ventures. The move has already been identified as risky by the Government’sown Public Accounts Committee and Cable joins a chorus of voices in expressing doubts.

April 27, 2017

Europe needs national renovation strategies for buildings, coalition claims ⁰

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

Europe must lead the world in cutting greenhouse gas emissions from existing buildings if it is to meet the ambitions of the Paris Agreement, claims BUILD UPON, a coalition of over 300 businesses and organisations from across the continent. The coalition – which includes cities, public authorities, property developers, manufacturers and energy utilities, as well as trade associations, NGOs and universities – is backing the need for ambitious ‘national renovation strategies’ that set out clear targets, milestones and measures on transforming existing buildings. The intervention comes as EU member states near the deadline to publish updated strategies to renovate their buildings, which account for around 36 percent of Europe’s total greenhouse gas emissions, and as political decision-makers grapple over the future of EU energy laws for the construction sector.

April 26, 2017

Best workplaces in London honoured by British Council for Offices ⁰

by Mark Eltringham • Facilities management, News, Property, Workplace design

The British Council for Offices has announced the six winners of regional property awards for London and the South East of England. The winning entries, announced at a lunch at the Park Lane Hilton were Sky Central (main image), 8 Finsbury Circus, The Estée Lauder Companies, 20 Eastbourne Terrace, 67-71 Beak Street and Sea Containers House by BDG architecture + design. The prestigious BCO awards programme claims to recognise ‘the highest quality developments and sets the standard for excellence in the regional and national office sector.’ The winner of the Best Commercial Workplace was 8 Finsbury Circus while Sky Central took home the prize in the Best Corporate Workplace Category.

April 25, 2017

Proactive approach needed to improve accessibility within the built environment ⁰

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

Inaccessible workplaces are too common problem that disabled people face in accessing buildings and public spaces, and the Government must lead a charge in improving access and inclusion in the built environment, according to a report by an influential cross party committee published today. The Women and Equalities Committee’s Disability and the Built Environment inquiry has been examining the extent to which those with accessibility issues are considered and accommodated in our built environment, and whether more could be done to increase the accessibility and inclusivity of both new and existing properties and spaces. The report recommends public procurement, fiscal initiatives and transparently modelling best practice, while bringing the full range of work on improving access and inclusion in the built environment into a coherent and transparent strategy, with the Department for Communities and Local Government held responsible for making this happen. The report found that many workplaces are inaccessible, there is very little choice of where to live and the public spaces through which people need to move can be prohibitively excluding; all of which constitute an unacceptable diminution of quality of life and equality.

April 24, 2017

WeWork extends property as a service offering as IBM takes on entire coworking building ⁰

by Mark Eltringham • Facilities management, News, Property, Workplace design

In a deal of enormous significance for the commercial property and workplace sectors, IBM has agreed a deal with coworking giant WeWork to take on all the space at its 88 University Place office in New York. Although originally targeted at startups and freelancers, especially those working in the creative and technology sectors, a growing number of corporate clients are seeing the appeal of coworking space in a fast changing world and now make up over a fifth of WeWork’s membership worldwide. Meanwhile, in moves that are sure to have major implications for the corporate real estate and facilities management market, WeWork has also announced plans to become a major real estate investor and introduce a wider range of FM services. The firm already operates in 135 locations spread across 44 cities in 14 countries.

April 24, 2017

Commercial property lenders should drive sustainability through financial innovation ⁰

by Mark Eltringham • Environment, News, Property

The commercial real estate finance sector is witnessing a dramatic shift in attitudes towards the issue of sustainability, according to a new report from the Better Buildings Partnership. It claims that major commercial property lenders are already exploring new opportunities that go well beyond traditional risk management through sustainability initiatives that ‘drive new business, strengthen customer relationships and improve the data they hold on the buildings in which they have underwritten’. The report, Beyond Risk Management: How sustainability is driving innovation in commercial real estate finance, is sponsored by CREFC Europe, GeoPhy, ING Bank and Lloyds Bank Commercial Banking, and claims to reveal pioneering examples of how lenders are incorporating sustainability into their core business activities.

April 20, 2017

UK government property agency opens bidding for huge estates framework ⁰

by Mark Eltringham • News, Property, Public Sector

The UK government has opened the tendering process the Estates Professional Services framework, the vast public sector property contract that covers all central and local government property and which reports claim is worth up to £430m in fees to the firms appointed. The bid is managed by the Crown Commercial Service, an agency sponsored by the Cabinet Office which has been driving the major overhaul of public sector property as it seeks to save £8 billion through a programme of rationalisation and divestment. The contract runs for four years with the present framework due to expire this September.