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.

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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.

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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.”

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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.

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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.

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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.

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September 26, 2015

Visions of the future of work + Gen Y hype + flexible firms ⁰

by Sara Bean • Environment, Flexible working, Furniture, Newsletter, Property, Workplace, Workplace design

In this week’s issue; legend of the UK office furniture sector, John Fogarty reflects on his five decades of experience; Mark Eltringham argues the TMT sector no more fell from the heavens than Gen Y, and Charles Marks weighs up the pros and cons of the BREEAM environmental standard. The financial sector dominates the annual list of Top Employers for Working Families and we reveal there’s a tendency to drift into caricature when describing multigenerational working. Activity in Europe’s commercial property markets is at its highest level since 2007 and colleagues, not bosses can make people feel more engaged at work. Check out our video evidence which shows how some visions of the future of work can be remarkably prescient while others get it completely wrong. Visit our new events page, subscribe for free quarterly issues of Work&Place and weekly news here. And follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

September 23, 2015

European commercial property markets set to hit eight year high ⁰

by Mark Eltringham • Cities, News, Property

Activity in Europe’s commercial property markets is at its highest level since 2007, according to a new report from Knight Frank. Transaction volumes hit €104.9 billion in the first half of 2015, an increase of nearly a third on the previous year, while investment for the whole of 2015 is forecast to exceed €230 billion. The study claims that these increases are being felt in local markets across Europe, with the two largest markets in the UK and Germany performing especially strongly, accounting for around a half of total investment. There were also major improvements in levels of investment Italy and Portugal as well as more activity in both Spain and Ireland (above). However, the report concedes that rental growth remain ‘patchy’ across the continent but forecasts that this will improve as pressure grows on the availability of space in major cities like Paris.

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September 21, 2015

Powering positive change theme for World Green Building Week 2015 ⁰

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

The theme of this year’s World Green Building Week which runs from 21–25 September is Powering Positive Change. The week brings together Green Building Councils from around the world to create a public conversation about the role buildings play in a sustainable future. Hundreds of events worldwide with the aim of demonstrating global diversity and a collective mission to create sustainable built environments. This is achieved through a variety of activities – including workshops and panel discussions, exhibits and building tours. There are over 30 events in the UK and you can view a calendar of them here. The flagship International Climate Negotiations 2015: Catalysing Action on Buildings will look forward to the international climate negotiations in Paris (COP), and the role which the construction and property sector can play in delivering carbon cuts and supporting national commitments.

September 21, 2015

New study highlights the key roles of real estate at UK’s top law firms ⁰

by Mark Eltringham • Case studies, Facilities management, News, Property, Workplace design

The UK’s top law firms are spending more on their real estate and allocating more space to staff, following years of reductions. Those are two of the key findings of a new report from The Lawyer magazine and property consultants JLL. Around half of the UK’s Top 200 law firms shared detailed data with the study, which also incorporates publicly available information on transactions. The study also takes into account the links between real estate strategy and broader strategic, management and human resources issues. While the report says the amount of space dedicated to each lawyer has risen by 7 percent over the last two years and the costs of owning real estate have also risen markedly, it also describes how many firms are now actively using flexible working to reduce real estate costs.The report concludes with a speculative look at future trends, including the uptake of coworking space.

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September 16, 2015

Updated environmental standard improves link to business strategy ⁰

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

The revised version of one of the world’s most popular environmental standards aims to improve the link between business strategy and environmental issues and encourage a stronger focus on life-cycle thinking. the updated ISO 14001:2015 has responded to a number of current trends, such as an increasing recognition by companies of the need to factor in both external and internal elements that influence their impact, including climate volatility. Other key improvements in the new version include a greater commitment from leadership; an increased alignment with strategic direction; greater protection for the environment, with a focus on proactive initiatives; more effective communication, driven through a communications strategy and an increased emphasis on life-cycle thinking, considering each stage of a product or service, from development to end-of-life.

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September 15, 2015

Rapid growth in the number of offices converted to residential use ⁰

by Mark Eltringham • Cities, Knowledge, News, Property

The 2013 introduction of new laws which allow greater scope for the conversion of UK offices to residential use is now beginning to have a major impact on the commercial property market, according to a new report from the British Council for Offices (BCO). According to the study, which focuses in particular detail on London and Bristol, more than 6 million sq. ft. of office space was converted to residential use last year following the launch of Permitted Development Right (PDR). This is likely to increase dramatically over the next few years, especially in the capital. A report published last year by Lambert Smith Hampton claimed that there had been a huge leap in applications following the introduction of the new laws and the BCO study confirms the existence of pent up demand from the number of approved schemes yet to be implemented.