June 3, 2016

Commercial real estate failing to meet sustainability standards ⁰

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

There is an urgent need for more action and greater leadership in tackling sustainability requirements in commercial real estate. Just a handful of large companies are meeting sustainability challenges, according to Bilfinger GVA’s sixth Green to Gold survey on the risks of rising sustainability pressures and market demands, with the progress being made not as strong as expected. Although 84 percent of respondents acknowledged that they have a sustainability strategy in place, there are still huge gaps that need to be filled in order to meet appropriate standards. Only 50 percent admitted to assessing operational energy efficiency, whilst 63 percent are not assigning specific figures for the costs or benefits of sustainability issues in investment appraisal calculations. Added to this, 43 percent are yet to assess their portfolio’s risk profile with regards to Minimum Energy Efficiency Standards. This means the industry now finds itself with more to achieve in significantly less time.

June 1, 2016

Coworking continuing to drive workplace change around the world ⁰

by Mark Eltringham • Knowledge, News, Property, Workplace design

Coworking continues to be one of the main drivers of workplace change globally and is now becoming mainstream, according to new research from serviced office provider The Instant Group. According to the firm’s Flexible Workspace Review – US 2016 report, coworking grew more than 10 percent across the US over the last year and ‘combination centres’ which offer both executive suites and coworking spaces expanded by 12.9 percent as existing operators sought to take advantage of the growing demand for collaborative and agile workspace. The study claims that the occupation of flexible workspace by corporations has significantly expanded the US flexible office market over the past year, largely driven by the rise of the contingent workforce and changing workplace demands of Millennials. The total market grew by 4.3 percent and now includes 3,596 centres, the largest markets of its kind in the world with the UK following at 3,290 centres.

June 1, 2016

Financial sector is rationalising real estate to remain in London ⁰

by Sara Bean • Cities, Facilities management, Property

A relentless drive to cut costs is forcing financial services occupiers to focus on reducing real estate costs and adopting strategies to use their space more efficiently in Central London. According to research from CBRE there has been an ongoing move by big banks to relocate non-core functions outside of Central London, as seen in HSBC’s decision to move 1,000 head office staff from London to Birmingham. However despite the inherent challenges, banks continue to cite client needs, recruitment, profile and presence as key reasons to keep office space in the Capital. This is reflected in last year’s leasing figures with banking and finance occupiers leasing 3.2m sq ft, 4.9 percent above the 10-year average. There are a variety of compromises companies may make as part of rationalisation strategies to maintain their position in London. Consolidation is an ongoing trend. But it is not a one size fits all approach.

May 27, 2016

Gallery: World’s first 3D printed office opens in Dubai ⁰

by Mark Eltringham • Environment, Facilities management, News, Property, Technology

The Government of Dubai has announced the opening of what it claims is the world’s first 3D printed office building, a project it first unveiled last Summer. China may take issue with them on that claim but the announcement marks yet another step in the development of the construction process towards mainstream use. The Emirate is using the 250 sq. m. Museum of the Future building as an example of how the UAE can lead the world in 3D building technology. A 3D printer took 17 days to print the building using a modified cement material in layers. The total cost of the print was US$140,000 excluding interior fit-out and furnishing. The developers also claim that there was a 50 percent saving on labour costs as the project only involved 18 people on site, mostly electricians and engineers. The design claims to achieve ‘a shift from the traditional form of work environments and provide greater opportunities to stimulate innovation and communication between workplace teams.’

May 27, 2016

Canary Wharf bucks London’s Brexit office market slow down ⁰

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

Canary Wharf has outperformed the Central London office market during the past 12 months, with rental growth reaching 26.7 percent, ahead of Mayfair and St James’. It seems Canary Wharf’s high quality purpose built space, coupled with its relative affordability when compared to the rest of London, has helped attract significant deals in recent months. The most notable deal during Q1 was Thomson Reuters take up of 300,000sq ft in St Martin’s 5 Canada Square. Faisal Durrani, Cluttons head of research, explained, “It was only a matter of time before the area began to draw in occupiers, particularly from the City and City fringes. It’s a market that has undersold itself and its full potential is yet to be realised but we may be approaching a significant turning point in its attractiveness. In recent months, the Central London market has experienced Brexit nervousness and general settling of the market but Canary Wharf has bucked this trend.”

May 24, 2016

New standard for building wellbeing launched in US ⁰

by Mark Eltringham • Architecture, Environment, Facilities management, Legal news, Property

If you’re still confused about the proliferation of green building standards worldwide, then brace yourself. A new standard that seeks to measure the wellbeing inducing characteristics of a building has been launched as a counterpart to the WELL Building Standard developed by the Green Building Certification Institute and the International WELL Building Institute. The new standard is called Fitwel, was designed by The Centers for Disease Control and Prevention and the General Services Administration and is overseen by the Centre for Active Design. The standard uses a scorecard that ranks buildings on over 60 criteria such as indoor air quality, fitness facilities and lobby and stairwell design. According to its proponents these criteria apply well-established scientific principles to address seven characteristics of a healthy working environment. The standard is very much a product of the US public sector at this stage and was piloted in 89 federal buildings during 2015. Its full launch is scheduled for next year. Image: Gensler / Hedrich Blessing

May 21, 2016

Flexible working babble + Tall buildings + Engaging workplace design ⁰

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

In this week’s Newsletter; Matias Rodsevich suggests three performance management must haves; Neil Barnfather flags up a lack of disabled representation at board level; and Dr Daniel Wheatley says work-life balance and flexible working continue to be viewed as a ‘women’s issue’. From the latest issue of Work&Place, Serena Borghero looks at the role of workplace design in employee engagement; Mark Eltringham argues there’s no evolution towards a universally accepted model of workplace design and management culture; and that when it comes to skyscrapers, big and clever are two different things. There’s evidence that London’s Central office market has hit its peak; the British public remains ‘clueless or indifferent’ about the nature of smart cities; and we reveal that graduates prefer digitised workplaces. You can download our Insight Briefing, produced in partnership with Connection, on the boundless office; visit our new events page, follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

May 20, 2016

New guide to Level 2 BIM compliance launched ⁰

by Mark Eltringham • Architecture, Facilities management, Legal news, Property, Technology

Anybody who is still confused about Building Information Modelling (there’s a lot of us) and its obligations under new legislation will welcome new free guidance published by the excellent Designing Buildings Wiki created by BRE, CIOB, BSRIA, ICE and others. Since last month, Level 2 BIM has been mandatory on centrally-procured public projects, with far-reaching implications for those involved. Clients, consultants, contractors and suppliers are now required to understand the finer details of the Level 2 process. But the 2016 NBS BIM Survey found 42 percent of respondents were just aware of BIM and 28 percent were not very, or not at all confident in BIM. The new guide aims to take users step-by-step through the Level 2 workflows, from the basics of storing project information to preparing employer’s information requirements. It is open access, meaning anyone in the industry can edit and improve the guide to reflect their experiences of using BIM in practice. It is aligned to Level 2 standard PAS 1192-2 and the 2013 RIBA plan of work.

May 17, 2016

London’s central office market peak driving change for other zones ⁰

by Tobi Crosbie • Cities, Comment, Facilities management, Property

There are plenty of good reasons to believe that London’s Central office market has hit its peak. Rents are at an all-time high in the majority of core office locations and whilst the start of 2016 has seen rents rise, there is certainly a clear steadying of the pace. According to our own data, the Landlord’s quoted rents for offices across the entire Central London market. Core offices such as Mayfair and St James’s have reached levels of £150 per square foot (pfs) in Q1 2016 compared with £120 per square foot in Q1 2015 a rise of 25 percent in 12 months. That does sound excessive, until this is compared with the rises seen East of the city in so called ‘fringe markets’ of Clerkenwell, Old Street and Shoreditch. Here the rents have become eye watering. In Q1 2015, the prime quoting rent in Shoreditch had reached £55 psf. In Q1 2016, this number had reached £75 psf highlighting an increase in 12 months of over 35 percent.

May 17, 2016

Rent rises may help meet shortage of Grade A office space in Belfast ⁰

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

A chronic shortage of Grade A office space, especially those offering floor plates of over 10,000 sq ft in Belfast city means there is a growing acceptance in the market that Grade A rents need to continue to grow to encourage speculative development. This is due to the markets failure to provide suitable options within the City Core, finds the latest Belfast Offices Snapshot from Colliers. This lack of Grade A office stock Belfast has seen two well established Foreign Direct Investment companies (Allstate and Concentrix) bridge the gap from occupier to developer to secure their optimal property solution. However, the Belfast office market experienced a lower level of transactional activity in 2015 than expected. Take-up figures in 2015 totalled c.310,000 sq ft with the inclusion of the new c.100,000 sq ft Belfast City Council headquarters and therefore some way off the 2013 and 2014 take-up figures of 425,000 sq ft and 375,000 sq ft respectively.

May 12, 2016

Office construction at highest level in London for eight years ⁰

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

Office construction in the Capital is at its highest level for eight years, according to Deloitte’s latest London Office Crane report, which measures the volume of office development taking place across central London. Recognising that the low supply of available office space across central London offers a limited choice for tenants, developers have responded by starting a record number of new schemes since the last survey. The latest results show that the volume of office construction has increased by 28 percent over the past six months to 14.2 million sq ft the highest level since the beginning of 2008. In just 18 months activity nearly doubled from 7.7 million sq ft in 2014. The financial sector has leased the largest share of office space under construction in the latest results, accounting for 2.3 million sq ft, or 39% of the let space while currently accounting for 38 percent of the space let, the TMT sector is a leading occupier group.

May 11, 2016

Central London office activity slows as EU uncertainty hits market ⁰

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

Given the level of uncertainty around June’s Referendum on the UK’s membership of the EU, the £11.9bn invested into commercial real estate during the first three months of 2016 appeared robust. However, 50 percent of Q1’s volume was in January, with the data from Lambert Smith Hampton showing that activity tapered off significantly in the following two months. Anecdotal evidence clearly linked the slowdown directly to the approaching vote. As a result there was a significant fall in activity, which translated into a very quiet quarter for Central London Offices, where volume halved quarter-on-quarter to £2.2bn, the lowest quarterly total since the last part of 2011. Given that financial services is widely regarded as the most exposed sector to a possible ‘Brexit’, this sector appears to have suffered most from investor caution.In marked contrast, investment in the rest of UK Offices has remained buoyant at £1.4bn, the highest quarterly total since the middle of 2007.