October 25, 2015

Vacant property management survey seeks FMs main concerns ⁰

by Sara Bean • Facilities management, News, Property

When squatting in a residential building became a criminal offence three years ago an Orbis survey revealed that a third of property managers predicted a rise in squatters targeting commercial properties as a result. Orbis has now launched a new vacant property management survey for 2015 with the BIFM to obtain views from property and facilities managers about the empty buildings in their portfolio. It seeks to understand what facilities managers’ main concerns are when it comes to empty buildings, their understanding of the legal and insurance requirements around empty properties and how they currently manage them. The survey also considers urban exploring, the exploration of man-made structures, to determine whether this is a growing trend and a threat. Guy Other, chief executive officer of Orbis said: “With this new survey we will better determine the extent of the problem in 2015, and the extent of any new threats.” Click here to take part

October 23, 2015

Multi office occupiers in the City of London could face millions more in taxes ⁰

by Sara Bean • Facilities management, Legal news, News, Property

Multi office occupiers in the City of London could face an additional tax bill of an estimated £720million thanks to the recent Woolway v Mazars Supreme Court decision, which could allow the Valuation Office Agency (VOA) to assess business rates on a floor by floor rather than the entire area a company occupies, Cluttons has warned. Currently the VOA applies an allowance, or discount in layman’s terms, on substantial accommodation occupied over several floors in a building, subject to the size and specification of areas occupied. Within the Square Mile allowances starts from 70,000 sq ft for Grade A office space, 50,000 sq ft for Grade B and 21,000 sq ft for basic or poor accommodation. However, the Supreme Court’s decision, which contradicts previous case law and the VOA’s current policy, could mean businesses may lose any size allowance on their existing rating assessments.

October 22, 2015

Shrinking Asian workplace density could impair business performance ⁰

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

Workplace static density, i.e. the space per sq. ft. per workstation, has halved in many Asian markets over the last decade and in many parts of Asia, this has already reached a point where further reductions will impact productivity, performance and retention. In Hong Kong, India and China, workplace space has shrunk from 100 sq. ft. per desk to 50-60 sq. ft. per desk. This figure is nearly half that of Europe and the US, where density norms are around 150-200 sq. ft. per desk. Elsewhere, in Australia and New Zealand, standards remain more generous at around 90-150 sq. ft. per desk. CBRE’s recent report, Space Utilization: The Next Frontier, looks at how organizations across the region are now under pressure to drive down costs by increasing their workplace ‘static density’ and suggests ways in which companies can use workplace density and utilization data to drive efficiency and business performance.

October 21, 2015

Small businesses vital for cities, but London SMEs struggle with property costs ⁰

by Mark Eltringham • Cities, News, Property

Two new surveys demonstrate that while small firms in creative sectors are essential for the economic success of the UK’s cities, many small businesses are struggling to find appropriate and well-priced office space in London and are now calling on the incoming new Mayor of London to address the issue as a matter of urgency. While a report from the Centre for Cities shows how small businesses in the creative, professional and digital sectors drive job growth, productivity and average wages in ten key UK cities, the study by the Federation of Small Businesses claims that the cost of commercial property remains one of the most pressing concerns for many SMEs based in London. The FSB study also found that the cost of living in London was also a concern for small employers in the capital, with many claiming it makes it incredibly hard to attract and retain employees.

October 15, 2015

M25 office sector has fastest rate of rental growth in fifteen years ⁰

by Sara Bean • Facilities management, News, Property

The Outer London/M25 Office sector, known as the ‘doughnut’ has recorded the highest rental growth since 2000 according to the latest CBRE Monthly index. Rental values for offices in the ‘doughnut’ grew by 1.0 percent in the last month, the fastest monthly rate since July 2000 (1.4 percent) and growth of 4.2 percent since January. Central London offices also recorded rental value growth of 1.0 percent however, which is the fourth time growth in the capital has reached this mark in this calendar year. Central London rental values have risen by 7.1 percent in 2015 with offices in the West End and City having the biggest impact. The rest of UK slowed marginally from 0.5 percent in August to 0.4% in September, but due to London’s strength, UK wide office rents are now growing at a 7.4 percent, their fastest annual rate since March 2008, and a post recessionary high for the sector.

October 14, 2015

Workspace shortage as office to residential rights made permanent ⁰

by Sara Bean • Architecture, News, Property

The British Council for Offices (BCO) has warned that the UK needs to avoid a free-for-all following the government’s announcement it is to make permanent the relaxation of planning rules on the conversion of office to residential properties. According to recent BCO research, changes to the Permitted Development Right for office to residential conversion led to over 6 million sq ft of office space in England being converted to residential use in 2014. Some of the most concentrated commercial property markets have been significantly affected by this. In London, office to residential conversions are now occurring at a faster pace than ever before with 2.7 million sq feet of office space lost to residential conversions since May 2013. London Assembly Member Nicky Gavron questioned the decision to extend the scheme saying that it will reduce the availability of affordable workspace required by start-ups and small businesses in the capital.

October 13, 2015

Small business demand for coworking space ‘set to soar’ in the UK ⁰

by Neil Franklin • Facilities management, News, Property

New research from the UK solicitors network QualitySolicitors claims that demand for flexible coworking space is set to soar, with 71 percent of SMEs predicting this to be a priority for them in the short and medium term. According to the study of 250 small business decision makers, over two fifths (42 percent) believe that having a flexible and adaptable space where they can grow is ‘more important’, almost a fifth (18 percent) say it’s important to be able to interact and collaborate on ideas with other businesses in their premises and a further 39 percent are looking for a workspace with networking opportunities. It’s not just the space that needs to be flexible however; over half (54 percent) claim they want flexible, short term lets when negotiating their lease and 53 percent would demand a break clause to prevent them from being tied down if the space is no longer practical for their business.

October 13, 2015

Gateway cities spearheading a global commercial property revival ⁰

by Mark Eltringham • Cities, News, Property

Investment in commercial property is at its highest level worldwide since the 2008 downturn, according to a new report from Cushman & Wakefield. The firm’s annual Winning in Growth Cities report claims that global investment levels increased by 16 percent in the year to June 2015 to stand at US$942.8 billion. The report suggests that global volumes will rise 17 percent over the next twelve months to hit a new record high of $1.1 trillion. Growth will be led again by markets in North America and Europe with patchy levels of investment worldwide. This has already led to the world’s top 25 ‘gateway cities’ in terms of investment increase their market share from 51 percent to 53 percent with cities like New York remaining attractive locations for foreign investors.London was the second largest market overall but top for foreign investors, while Tokyo, Los Angeles and San Francisco made up the rest of the top five.

October 6, 2015

Apple agrees deal for new tech palace and campus in California ⁰

by Mark Eltringham • Architecture, News, Property, Technology

According to a report published in the Silicon Valley Business Journal, Apple is planning to add another tech palace to run alongside its Norman Foster designed campus in California. This time Apple is not commissioning a purpose made building but is buying one off the shelf, albeit one marked ‘exactly the sort of place Apple would occupy’. The HOK designed Central and Wolfe campus in Sunnyvale will house 3,000 employees in three connected six storey offices set in landscaped grounds that include walks, bike paths and retail and leisure facilities. The campus is designed to achieve a LEED Platinum accreditation so includes green roofs, solar panelling and water reclamation technology. According to the report: “The campus promises to dramatically alter a neighborhood dominated by single-storey industrial and R&D buildings. While Apple has been snapping up existing buildings all over the neighborhood, the massive new campus could become a new icon for the region.”

October 6, 2015

Commercial property markets in world cities are evolving rapidly ⁰

by Mark Eltringham • Cities, News, Property

The commercial property markets in the world’s major cities are evolving against a backdrop of ongoing economic and political uncertainty, according to the new 12 Cities Report from Savills. The authors suggest that the main consequence of this since 2008 has been for investors to switch their focus from paper assets to property. This in turn has led to a number of developments in local commercial property markets including global investors looking for alternatives to the major cities within key national economies. One of the key developments is that major tech firms are now willing to spend as much on their real estate as the previously dominant financial giants. One other interesting issue raised in the report is the growing inability of people to afford to live and work in the same place, especially in cities with restrictions on the amount of space available for development.

October 2, 2015

For once and for all, please stop with this ‘death of the office’ stuff ⁰

by Mark Eltringham • Comment, Furniture, Property, Technology, Workplace design

I was involved in a meeting with an office fit-out company this week which involved a discussion of how their clients can develop misconceptions about the extent to which their contemporaries are introducing new office design and management models based on agile working, shared space, mobile technology and all that other good stuff. This presents a particular challenge for firms in the sector because their day to day experiences of what clients talk about and ask from them can be pretty removed from the things talked about in the media. If you were to judge the state of the office solely on the basis of what you read and hear and see at shows, it would be easy to conclude that the office is indeed dying and dragging down with it the markets for office furniture, commercial property and traditional technology. The problem is that the facts don’t support that notion at all.

September 29, 2015

Generation Z is the smart generation that will redefine work, claims report ⁰

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

The trade association BSRIA has launched a White Paper called Products and Systems for Generation Z in Reduced Carbon Buildings to explore the future needs of buildings designed for what it calls the ‘smart generation’. It considers ways in which the value of buildings might be improved in order to raise productivity and wellbeing for occupiers and at the same time generate new revenue streams for suppliers. Authored by Jeremy Towler and based on data collected in March of this year, it suggests that Generation Z are the “first tribe of true digital natives” and are ‘smarter and more prudent than Generation Y. They are empowered, have more job choices, seek freedom of movement and flexible working policies. They are the ‘see it – want it’, ‘touch it – get it now’ generation.’ The report claims this will define their relationship with work and drive demand for flexible working and on-demand offices.