October 25, 2016

Nearly a third of investors say Brexit offers commercial real estate investment opps ⁰

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

The recent warning that the major banks are planning to leave the Capital following the Brexit vote has understandably caused some concern within the commercial property sector; so it’s cheering to hear that three in ten (30 percent) institutional investors actually believe Brexit will either increase or significantly increase European commercial real estate investment opportunities. A further one in four (23 percent) institutional investors believe that Brexit will have no impact on commercial real estate investment opportunities. According to a new study by BrickVest, following the UK’s decision to leave the European Union, nearly two in five (38 percent) institutional real estate investors cited London as the top European city to invest in commercial real estate, ahead of Berlin (36 percent), Munich (31 percent) and Paris (22 percent). However, one in five (21 percent) cited both Dublin and Hamburg and a further 16 percent selected Frankfurt, highlighting a clear positive trend towards German commercial real estate. Indeed 40 percent of the top ten European cities were German.

October 24, 2016

Corporate real estate sector continues to make progress in energy consumption, carbon emissions and water use ⁰

by Mark Eltringham • Environment, News, Property

The world’s leading corporate real estate owners and managers are making significant progress in reducing energy consumption, carbon emissions and water usage in their buildings, according to a new report from the Urban Land Institute’s (ULI) Greenprint Center for Building Performance. The Greenprint Performance Report, which measures and tracks the performance of more than 5,400 properties owned by Greenprint’s members, demonstrates a 3.4 percent reduction in energy consumption, a 3.9 percent reduction in carbon emissions and a 4.8 percent reduction in water use between 2014 and 2015. According to the study, since Greenprint started recording building performance in 2009, the energy consumed by members’ properties tracked by Greenprint has dropped 13.7 percent. Carbon emissions from those properties have decreased 16.5 percent; and water usage has dropped by 10.6 percent. The reductions occurred even as building occupancy rose, suggesting that greater space usage does not necessarily cause a decline in building performance.

October 22, 2016

Uberification of work + Future of coworking + Quest for productivity ⁰

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

In this week’s Newsletter; Anthony Brown argues Uber’s success lends a name for a process that is reshaping the commercial property sector; Mike James wonders where the gig economy and zero hours contracts are taking us; and Mark Eltringham discusses the interaction of people and technology. Two new reports highlight the growth of the freelance workforce in the UK and US; researchers analyse the impact of coworking from a corporate real estate (CRE) perspective; Barclays presents its vision of the workforce of the future; and Herman Miller unveils a new Aeron chair. The latest stage of the UK’s BIM Task Group programme is officially launched; responses to a government enquiry reveal the barriers the built environment still presents to disabled people; and a combination of financial, mental and physical health problems affect many workers. 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.

October 21, 2016

New BIM initiative announced as report slams dysfunctional construction sector ⁰

by Mark Eltringham • News, Property, Technology

Digital Built Britain, the latest stage of the UK’s BIM Task Group programme, has officially been launched at the ICE BIM 2016 conference by Mark Bew, chair of the BIM Task Group. The launch comes in the wake of the publication of the Government commissioned Farmer Report into the state of the construction industry which laid out in stark terms the structural problems that suggest the sector risks terminal decline without innovation and cultural change. The report, subtitled Modernise or Die, suggests that the UK’s construction industry faces ‘inexorable decline’ unless longstanding problems are addressed. In particular, the review highlights the sector’s dysfunctional training model, its lack of innovation and collaboration, and a non-existent research and development (R&D) culture. First announced in the 2016 budget, Digital Built Britain aims to deliver reductions in the whole-life costs and carbon emissions of buildings, while improving productivity and capacity by using intelligent building information models, sensing technology and secure data and information infrastructure. Digital Built Britain will also continue the work of the BIM Task Group programme, set up in 2011 to deliver a projected 20 percent saving on the costs of major projects.

October 18, 2016

The global uberification of commercial property and the workplace ⁰

by Anthony Brown • Facilities management, Features, Property, Technology, Workplace design

Technology doesn’t just transform the world, it reshapes our language. So, we all need to get used to the word uberification as well as the idea of it. Based on the success of the on demand taxi service Uber, the word refers to the way a product or service becomes available to customers on demand via the Internet. Customers book a service only at the point of consumption. This represents an entirely new commercial model and is the defining characteristic of the new 21st Century economy. Uber may have provided the tipping point, going from start up to market valuation of $66 billion in just 7 years, but its success has given us a name for a process that is reshaping businesses and customer experiences across the entire economy, including in the commercial property sector.

October 18, 2016

London office sector still recovering from Brexit shock ⁰

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

Although the UK economy has shown a measure of resilience post referendum, take-up in the key London office market, although still on a quarter to quarter rise of 34 percent, is 7 percent below its long term average. According to the latest London Office Snapshot from Colliers, transactions were largely boosted by major deals to Apple (500,000 sq ft) and Wells Fargo (220,000 sq ft), with both deals for new headquarters buildings, in Battersea and the City core respectively, being a major vote of confidence for London. In the City, the level of take-up demonstrated some positivity as it rose by 8 per cent quarter on quarter, though the quarterly take up is still 26 percent below average. Though pre-letting activity was healthy, doubling quarter on quarter, West End take-up was disappointingly subdued in the third quarter, falling further from the already sharply below trend Q2 total. Encouragingly, a number of deals that were seemingly ‘mothballed’ post referendum have now been concluded, albeit at marginally lower price points.

October 13, 2016

London needs to adapt to the changing world of work, claims think tank ⁰

by Neil Franklin • Architecture, Cities, News, Property, Workplace design

Think Tank New London Architecture (NLA) which creates a forum for debate on the built environment, has launched its findings and recommendations from its landmark WRK / LDN Insight study on work and workplaces in London. NLA calls on central government, the Mayor of London and other stakeholders in the capital to act to maintain the capital’s position as a preeminent commercial centre. The report claims that, as the digital economy continues to expand, new suppliers of workspace are rapidly emerging – from co-working providers to ‘fab labs’, makerspaces, incubators and innovation centres. The insight study concludes that the affordable business space that currently supports these industries is at risk. London needs new innovative mixed-use models of city planning to support these changes and adapt to the changing world of work.

October 13, 2016

Mix of core and flexible workspaces will shape real estate by 2030 ⁰

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

Thanks to the combination of a changing workforce and greater connectivity, up to 30 percent of corporate real estate portfolios will incorporate flexible workspaces by 2030, with offices more likely to be built around core hubs and comprising fewer locations. Along with this the Internet of Things and smart buildings will create new ways of managing productivity, sustainability and the user experience. These are some of the key findings of JLL’s new report series ‘Workspace, reworked: ride the wave of tech driven change’; two reports exploring the impact of technology, data and digital disruption on work spaces and real estate investment strategies. The series focuses on the office sector over the next 15 years, looking at how occupiers, developers and investors will need to view real estate differently and adapt in order to enhance investment returns and create work spaces that are fit for purpose in a rapidly changing, highly-connected world.

October 12, 2016

Government set to extend groundbreaking One Public Sector Estate programme ⁰

by Mark Eltringham • News, Property, Public Sector

The UK Government has announced that it is to further extend its groundbreaking One Public Sector Estate scheme which supports local authorities and public sector bodies in the sharing and divestment of underutilised property. The Cabinet Office and Local Government Association have issued a joint announcement that 159 councils will join the next phase of the One Public Estate programme and that £7.5 million has been awarded to 37 partnerships made up of councils and public sector bodies. The funding will support cross public sector partnerships to work collaboratively on land and property initiatives leading to new jobs, new homes, joined up public services and savings for the taxpayer. The programme was initially launched in 2013 and has been extended to a number of local authorities and public sector bodies since

October 6, 2016

UK Government kicks off tender process for vast public sector property framework ⁰

by Mark Eltringham • Flexible working, News, Property, Public Sector

The UK Government will this week start the latest tendering process for the Estates Professional Services framework. Originally set up in 2008, the framework covers all central and local government property as the administration sets to rationalise and modernise the country’s entire public sector property estate and help to reduce the £8 billion annual spend. The terms of the framework were updated in an August 2016 briefing, laying out a series of case studies highlighting best practice as well as offering guidance t those firms who wish to bid for work across a range of product and service delivery models. The last set of contracts for services are due to expire in March 2017 and the Government remains committed to the inclusion of smaller providers. The framework covers a range of property-related services, including the reduction and divestment of parts of the estate, the renegotiation of leases, a reduction in running costs, support for the government’s sustainability agenda and the facilitation of flexible working and property sharing initiatives.

September 29, 2016

Worldwide progress in creating sustainable building regulations is slow ⁰

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

The level of transparency in the reporting of the environmental performance of commercial real estate is growing across the world, but the pace of new sustainable building regulations remains slow. That is the key finding of JLL’s Real Estate Environmental Sustainability Index, which measures the availability of a range of environmental transparency tools in 37 countries. Whilst 17 countries have improved their overall scores since the last survey two years ago, 13 have remained static and three have declined. Half of all country index improvements have been driven by the introduction of voluntary minimum energy efficiency standards for existing buildings. This year France topped the Index for the first time, thanks to the consistent roll-out of mandates to transition to a low carbon economy. Japan has moved up from the transparent group to join France, Australia and the UK in the highly transparent group.

September 28, 2016

Apple agrees to lease half million sq. ft. office at Battersea Power Station ⁰

by Mark Eltringham • Cities, News, Property, Technology

Apple has confirmed the rumours that began in the Spring of this year by announcing that it is to relocate its UK headquarters from its current base in the West End along with several other sites to the redeveloped Battersea Power Station. The site’s developers say that Apple will become the largest office tenant at the £9 billion Battersea Power Station mixed use development occupying approximately 500,000 sq. ft. across 6 floors of the central Boiler House inside the iconic building. Apple is expected to move into the Power Station in 2021 at which time the office will account for circa 40 percent of the total office space in the whole development. 1400 Apple employees from existing offices around London will relocate to one of London’s best known landmarks. Apple has added, that this is a great opportunity to have its entire team working and collaborating in one location while supporting the renovation of a neighbourhood rich with history.