September 27, 2016

Nearly all UK cities lagging behind European average for productivity ⁰

by Mark Eltringham • Cities, News, Property, Public Sector, Technology

The UK’s major cities are lagging behind their European competitors in terms of skills, innovation and productivity, claims a new report from the Centre for Cities think tank. In Competing with the Continent, the authors argue that the onus is on the UK to come up to speed with the 330 cities covered in the report, especially if they want to compete in the new post Brexit European landscape. However, the report notes that the UK has a number of existing, structural advantages over other countries. UK cities generate around a fifth of Europe’s total economic output and contribute more to the national economy than cities in other countries. Major British cities contribute 60 percent of national GDP, compared to just 36 percent in Germany and 32 percent in Italy. The report shows that UK cities lag behind on a range of indicators including skills, innovation and productivity and a number have an industrial mix that has more in common with cities in Eastern Europe than those in the West.

September 27, 2016

Businesses failing to look at workplace effectiveness in the right way ⁰

by Tim Oldman • Comment, Facilities management, Property, Workplace design

This month, the director-general of the Confederation of British Industry (CBI), Carolyn Fairbairn, suggested that productivity growth across all parts of the UK economy should be the number one priority for business and government. And the CBI isn’t alone in emphasising the importance of honing in on and tackling the ongoing productivity problem. According to the Organisation for Economic Co-operation and Development’s (OECD) economic forecast summary, published earlier this summer, productivity has been exceptionally weak since 2007 and doesn’t show much sign of abating nearly ten years later. Labour productivity per employee has failed to markedly rise since the global downturn and the UK is still miles behind the G7 average – that’s according to the Office for National Statistics (ONS) quarterly figures and CBI data. So, to echo Fairbairn, reviving British productivity is essential to sustain growth and living standards.

September 27, 2016

CEOs remain confident post Brexit but may consider relocating offices out of UK ⁰

by Mark Eltringham • News, Property

Despite largely voting to remain in the EU, the Brexit vote hasn’t dampened the short or long term confidence of UK CEOs. It has however raised a question mark over the UK’s ability to do business and, as a result, many are putting together contingencies including the possible relocating offices or operations, according to KPMG’s first ‘100 UK CEOs’ survey. The survey of CEOs from companies with revenues ranged between £100 million and £1bn found that, both in the short term (the next year) and the medium term (the next three years), the majority are confident about the future growth of the country, the global economy and their own businesses. However, over half believe the UK’s ability to do effective business will be hindered after leaving the EU. The majority of CEOs felt that a division in society between ‘big business’ and the general public contributed to the EU referendum result, including over a third who believed this ‘to a great extent’.

September 27, 2016

Boost predicted for commercial property transactions across the UK ⁰

by Mark Eltringham • Flexible working, News, Property

The next five years will see demand for commercial property in the South East of England expand at a faster rate than in London according to the Royal Institution of Chartered Surveyors (RICS) Annual Occupiers Survey 2016. The survey, conducted in association with EY and Savills found that a fifth (20 per cent) of UK property decision-makers expect to increase rather than decrease the amount of space they own or rent in the South East. In total, a net balance (percentage expecting to expand minus percentage expecting to downsize) of 13 per cent more respondents in the South East expect to increase, rather than decrease their portfolio, nearly double the figure for London at seven per cent. The net balance figures showed the lowest indication of growth was in the South West, at four per cent. The survey also revealed that 41 per cent of UK firms expect to expand the amount of UK property they own or rent over the next five years while only 8 per cent expect to downsize.

September 26, 2016

HSBC moves 300 staff into coworking space in Hong Kong ⁰

by Mark Eltringham • Coworking, Flexible working, News, Property

The idea that coworking is primarily for the self-employed, tech startups and other small firms who can’t afford permanent offices in the world’s expensive cities has been challenged with the news HSBC has moved 300 staff into a coworking space in Hong Kong, according to a report in the South China Morning Post. The bank has rented the workstations in WeWork’s space in Causeway Bay, one of the world’s most expensive districts for offices and shops. The bank has taken out a large scale corporate membership with WeWork for the 300 members of its digital and transformation team. According to the report, a spokesman from CBRE claimed that the move is less about saving money than it is with providing short term flexibility in a time of economic uncertainty. However you view that, the bank is saving as much as HK$2.45 million a month with the move (£240,000 or $320,000). The annual cost savings are estimated at HK$23,640 per person.

September 25, 2016

Flexible productivity myth + Women’s wear + Millennial motivators ⁰

by Sara Bean • Facilities management, Flexible working, Newsletter, Property

In this week’s Newsletter; Colin Watson points out that we sometimes forget just how young the Internet is; Paul Carter ponders working off the radar and the rise of co-working hubs and agile working; Mark Eltringham argues we’ve known for some time what makes people happy and productive at work; and says flexible working has developed a reputation as something of a silver bullet. Women’s choice of office attire is subject to unfair criticism by bosses; contrary to popular belief Millennials want the same from the workplace as everyone else; and evidence that sensory inputs can significantly improve productivity and cognitive performance. A new report suggests how technology will impact on real estate; and reasons for the boom in co-working spaces in London are revealed. Download our new Briefing, produced in partnership with Boss Design on the link between culture and workplace strategy and design; visit our new events page, follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

September 20, 2016

Construction firms still failing to seize opportunities offered by new technology ⁰

by Mark Eltringham • Architecture, News, Property, Technology

Despite substantial investment in new technology over recent years, the construction industry is struggling to realise the full benefits of key technologies including advanced data and analytics, mobility, automation and robotics. That’s the main finding from Building a technology advantage – Global Construction Survey 2016, the annual state-of-the-industry report from KPMG International. Of the 200-plus senior construction executives who took part in the survey, just 8 percent of their companies rank as “cutting edge technology visionaries,” while 64 percent of contractors and 73 percent of project owners rank as “industry followers” or “behind the curve” when it comes to technology. Two-thirds of survey respondents believe project risks are increasing. According to Armstrong, this is an industry ripe for disruption, yet less than 20 percent of respondents say they are aggressively disrupting their business models.

September 19, 2016

London’s sky high property costs driving uptake of coworking, claims report ⁰

by Mark Eltringham • Cities, Flexible working, News, Property

Start-up tech firms in London face the world’s highest property costs and the result is a boom in coworking, according to a report from Knight Frank. The research, undertaken as part of Knight Frank’s 2017 Global Cities Report, examines the cost of leasing and fitting-out 600 sq ft of office space in the tech and creative districts of the world’s leading cities. Intense demand for space in Shoreditch, London, has seen start-up office costs soar with Knight Frank calculating 600 sq ft of office space to cost US$66,706 per year – the highest of any creative district in the world. This is followed by Brooklyn in New York (US$62,736), Mid-Market in San Francisco (US$61,680), 1st, 2nd and 9th Districts in Paris (US$57,426) and the Seaport District in Boston (US$50,700). However, London’s burgeoning coworking market also shows how firms are using the model to overcome the challenge of finding somewhere to work at an appropriate cost.

September 16, 2016

CoreNet report sets out how technology will reshape corporate real estate ⁰

by Mark Eltringham • Events, Facilities management, News, Property

The speed of today’s technological advances is dramatically reshaping the way that corporations manage and use their real estate. It’s a dynamic that has significant consequences for the workplace, urban development and the overall lifestyle of the average worker. Those are the unsurprising conclusions of a new report from trade association CoreNet Global, which was discussed this week at the organisation’s 2016 Summit – EMEA, held in Amsterdam. As ever, the devil is in the detail so the report is worth exploring to get a sense of just how imminent many of the changes will be, especially because they will converge to create a perfect storm of change for the workplace. This marks the new era out from the past when technology developed in more predictable ways. Several CoreNet Global Gold Strategic Partners contributed to the report including CBRE, Deloitte, ISS, JLL, Newmark Grubb Knight Frank, Sodexo and Steelcase.

September 14, 2016

Calls to improve London’s transport infrastructure in Brexit negotiations ⁰

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

London’s property sector has been resilient following the EU referendum, with commercial property rents remaining strong over the summer, though over the next few months the overall direction of the market is likely to become clearer. This is according to the latest CBI/CBRE London Business Survey, which has found that businesses want the city’s mayor to play a leading role in influencing Brexit negotiations, particularly in driving improvements to the city’s transport infrastructure. Two thirds (67 percent) wish to see upgrades to the existing London Underground network, whilst over a half (55 percent) want a commitment from City Hall to start building Crossrail 2 and one third (31 percent) hope for greater investment in the capital’s road network. Unsurprisingly, uncertainty over the UK’s role in the EU is the most significant cause for concern (75 percent of firms), followed by retaining the best people for the job (49 percent) and a lack of appropriately skilled staff (44 percent).

September 12, 2016

CoreNet Global 2016 summit to convene in Amsterdam this week ⁰

by Sara Bean • Company news, Events, Facilities management, Property, Wellbeing, Workplace, Workplace design

The Bigger Picture: Geopolitics, Economics and the Environment is the theme of this year’s CoreNet Global 2016 Summit – EMEA, (14-16 September). It will include sessions focusing on issues as diverse as Brexit, terrorism, disruptive technologies in real estate, the impact of geopolitics and economics on occupiers, sustainable buildings, the war for talent, and how the latest findings from neuroscience are contributing to workplace design. The summit, which is being held in Amsterdam, will host more than 500 registered delegates from 25 countries. Confirmed keynote speakers during the three day event include Mujtaba Rahman of the Eurasia Group, who will explore the current political and economic state of the EMEA region, and writer, businessman and futurologist Mark Stevenson, who will address the importance of agility and disruption. This year’s programme will also include a guided site tour of the Overhoeks mixed use development project. Registration details are available from the website.

September 10, 2016

Home working myths + Millennial’s needs + Global sustainability ⁰

by Sara Bean • Comment, Facilities management, Flexible working, Newsletter, Property, Workplace, Workplace design

In this week’s Newsletter; Mark Eltringham finds some global patterns in office design, but many local differences; suggests we stop treating Generation Y as an alien species; and shares a new report which suggests that younger people are in fact people after all. A new study finds that the perceived benefits of working from home disappear over time; Germans now work significantly longer hours than twenty years ago; and two thirds of those who have worked as an independent contractor in the US would choose not to do so again. The commercial office sector leads the global property market in sustainability; Mothers with young children are a third less likely to be in work than fathers; and we round up the latest post-Brexit news. Download our new Briefing, produced in partnership with Boss Design on the link between culture and workplace strategy and design; visit our new events page, follow us on Twitter and join our LinkedIn Group to discuss these and other stories.