September 9, 2016

Fall in demand for office space across the United Arab Emirates ⁰

by Sara Bean • Facilities management, News, Property

Redundancies in the oil and gas, finance and banking sectors have stifled demand for office space across the United Arab Emirates (UAE). Cluttons’ 2016 UAE Property Market Report expects declines of close to 5 percent in Abu Dhabi and Dubai, with Sharjah predicted to see declines of closer to 10 percent by the end of the year. With challenging economic conditions expected to persist in Abu Dhabi in the short term, the prospect of seeing a surge in take up activity remains low. Consolidation activity remains a dominant feature of the market, while some firms are taking a ‘wait and see’ approach to relocating from more secondary space, deterred by the capital expenditure associated with a move. In Dubai landlords’ are getting used to quieter conditions due to the emphasis occupiers are placing on budgets; while after six months of stability in Sharjah’s office rental market, rents are starting to falter, with two of the city’s three major office markets registering declines.

September 9, 2016

Office property sector leads global real estate market in sustainability ⁰

by Sara Bean • Environment, Facilities management, News, Property, Wellbeing

The global real estate market is showing signs of improvement across all areas of environmental, social and governance performance (ESG) including a 1.2 percent reduction in energy consumption, 2 percent reduction in GHG emissions and close to 1 percent reduction in water use. It is also placing greater focus on occupant health and well-being. This is according to the latest data compiled by GRESB, a benchmarking organisation for real estate companies and funds which evaluates sustainability practices in the global real estate sector. In the results for the 2016 GRESB Real Estate, Developer and Debt assessments, which analyses the sustainability performance of more than 1,100 real estate portfolios of both private equity and listed companies, Australian entities outperformed all other regions with an average score of 74, which is 14 points above the global average; and office companies and funds outperformed other property types with an average score of 66.

September 6, 2016

Post Brexit business confidence returns but overall uncertainty remains ⁰

by Mark Eltringham • Cities, Legal news, News, Property

Blink and you’ll miss some news item on Brexit, so here’s just some of the stuff we’ve picked up on the last few days. It’s hard to imagine that any of these stories might be woven into some sort of coherent narrative, especially when the Prime Minister has yet to announce any details or timescales for the UK’s mooted withdrawal from the EU, if not the Single Market. Some of the ifs and buts are laid out in this excellent blog, but the reality is that nobody really knows what will happen and, as the writer suggests, the UK may not have the expertise to deliver a coherent withdrawal anyway. In the meantime, there appears to be some sense that business is returning to normal. The key CIPS/Markit survey of business confidence has bounced back both quickly and strongly and there are other signs that not all is doom and gloom. That said, there are clear signs that overseas partners are spooked amid the uncertainty even though the still low Sterling exchange rate continues to make the UK attractive.

September 5, 2016

Majority of Londoners support greater restrictions on new tall buildings ⁰

by Mark Eltringham • Architecture, Cities, News, Property

Most Londoners think tall buildings should only be built in areas like the City and Canary Wharf, and that there should be limits on how high they can be, according to an IPSOS Mori survey carried out on behalf of the Skyline Campaign. The findings come after Westminster Council controversially gave the green light for a 30 storey tower to be built in Paddington, and show stark differences in the views of Londoners in the inner and outer boroughs about how this new generation of tall buildings is affecting the Capital. The survey of more than 500 Londoners finds almost half (49 percent) of residents of inner London boroughs think that the 270 tall buildings planned, proposed, or under construction in London is too many. This contrasts with 34 percent of people in outer boroughs who say the same. Latest data released after the research was conducted indicates more than 400 new tall buildings are planned, proposed or under construction.

September 3, 2016

Office of future + Commuting and wellbeing + Air quality ⁰

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

In this week’s Newsletter; Mark Eltringham describes what Lewis Carroll can teach us about the office of the future; we learn of the personality differences between iPhone and Android smartphone users; and disturbing news from Australia on a growing culture of presenteeism. BSRIA releases a new topic guide on indoor air quality (IAQ); a new report claims a direct link between lack of sleep and lower workplace productivity; and how fewer distractions make home the preferred place for maximum productivity. The average UK commuter adds almost 800 calories to their diet every week; staff want a more human experience at work and the Institute for Employment Studies, aims to track the effects of the UK’s vote to leave the EU. 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 1, 2016

BSRIA publishes new downloadable guide to indoor air quality ⁰

by Mark Eltringham • Facilities management, Knowledge, Property, Technology, Wellbeing

The Building Services Research and Information Association (BSRIA) has released a new topic guide on indoor air quality (IAQ), which is now available to download free from the association’s website. The guide is written for those seeking some introductory information about indoor air quality including prevalence, history and definition, along with information on types of contaminants and their exposure limits, while readers are also provided with a useful site map. BSRIA’s asset performance team leader, Blanca Beato-Arribas, said: “People spend approximately 80 per cent of their time indoors. There is enough evidence that links poor air quality with permanent damages to health or even death. Therefore, we should be aware of the quality of the air that we breathe both at home and at work, and ensuring good indoor air quality at work should be a priority for employers.” The guide will provide insight into the most common contaminants, both from indoor sources and external sources as well as a summary of the current legislation and a guide map of what contaminants to investigate.

August 27, 2016

Gender pay gap + Thomas Jefferson’s swivel chair + The creative office ⁰

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

In this week’s Newsletter; Mark Eltringham describes Thomas Jefferson as an early pioneer of what we now call wellness; and explains why we shouldn’t lose sight of the importance of form in our quest for function. More global organisations than ever offer parental leave rights to workers; yet research shows that the gender pay gap widens more for women with children; but a futurist predicts the UK gender gap will finally close by 2045. Birmingham reaches half a million square feet in office take-up so far this year; and managers and employees in creative sector disagree on the definition of a creative office. A study finds that people respond to stress in strikingly different ways; and evidence that multi-generational team working reaps rewards. 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.

August 22, 2016

Birmingham reaches over half a million sq ft office take-up so far this year ⁰

by Sara Bean • Facilities management, News, Property

Birmingham is set to surpass the 1 million sq ft mark for office occupational activity this year. Following its busiest first quarter to date – office take-up in the Birmingham city core reached 217,295 sq ft in 40 deals during the second quarter. When added to the 283,697 sq ft in Q1 2016, the half year to date totals 500,992 sq ft. According to Colliers, despite Brexit uncertainty, the level of transactional activity remained strong and was above the five-year quarterly average. While the average size of transactions was lower in comparison to this time last year, due to the much publicised HSBC lease, there were a number of significant deals. Network Rail secured 85,000 sq ft over three floors at Baskerville House in Centenary Square, bringing its three separate Birmingham offices together. However, the supply of Grade A office accommodation remains constrained as a result of continued demand for space from the occupiers, as well as the absence of the delivery of new stock before the end of 2016/early 2017.

August 18, 2016

Economic slowdown curbs demand for office space in Dubai ⁰

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

There has been a reduction in demand for office space in Dubai over the past six months, as the ripple effect of the oil price collapse and the subsequent economic slowdown in the rest of the Gulf reverberates across the emirate’s commercial property market. As firms retrench staff and reconsider their future strategy in the wake of global economic challenges, decisions to acquire, expand or move office space have commonly been put on hold according to Cluttons’ latest Dubai Office Market Bulletin. This has resulted in an exaggeration of the seasonal summer slowdown throughout late Q2 and early Q3 2016. Cluttons’ research also highlights that, the general lack of rental growth is unlikely to change in the short-term. Across the market as a whole, rents are not expected to fall much further, particularly as they are at a point where they are considered to be fair market value and landlords appear unwilling to lease below a certain level.

August 15, 2016

UK commercial property prices fall during first full month after Brexit ⁰

by Mark Eltringham • Company news, News, Property

The first full month of market activity in the UK’s commercial property sector since the Brexit vote, saw its value fall by just under three percent, according to the latest data from real estate researchers MSCI in their monthly IPD real estate index. The value of the nationwide market fell by 2.8 percent over the month. Central London was particularly badly hit with values falling by 4.1 percent. The monthly report is sponsored by a number of the major players in the commercial property sector and is based on an analysis of every building in the MSCI database including currently occupied buildings and those in development and being refurbished. A report published earlier this month by Investment Property Forum found that while the overall value of the UK’s commercial property had hit record levels, the uncertainty surrounding the consequences of Brexit was of major concern for investors and occupiers.

August 11, 2016

Government regulations will help global BIM market to grow by a fifth ⁰

by Mark Eltringham • Architecture, News, Property, Technology

A new report from Allied Market Research claims that the worldwide market for Building Information Modelling will grow by over a fifth to hit $11.7 billion by 2022, driven primarily by legislation demanding that all construction work should apply BIM. The World Building Information Modelling (BIM) Market report, claims that its growth projections are based on increasing demand from the construction industry, in turn based on new government regulations mandating the use of BIM, a booming property sector in Asia and growing awareness of the benefits of BIM. Construction industries will continue to be the leading consumers of BIM, constituting nearly 63 percent of the global market by 2022. The report concludes that ‘BIM has emerged as an ideal alternative to traditional CAD software, owing to its suitability over a variety of operational issues such as cost management, handling raw data and information and alignment of processes’.

August 6, 2016

Connectivity creep + Appeal of open plan + Tech and real estate ⁰

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

In this week’s Newsletter; Antony Slumbers looks at the impact of technology on corporate real estate; and Mark Eltringham describes a precursor of the scientific management theories of Frederick Taylor that continues to influence open plan design. We report on the impact Smart Cities can have on energy management; why people are opting for a ‘digital detox’; and how workers are turning their backs on the traditional 9-5 day. A new report says CRE must deliver greater value in a dynamic business environment; one in five workers miss sleep over work worries; and despite hitting an all time high, Brexit uncertainty still permeates the UK’s commercial property market. We also list the seven workplace stories you should read this week. 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.