February 16, 2015

Government launches scheme to attract US tech sector to UK

by Mark Eltringham • News, Property, Technology

The Government has launched a scheme to attract US tech firms to set up or ramp up their businesses in the UK. The tech sector is already worth around £120 billion to the UK and the Government hopes the HQ-UK programme will offer investors a chance to tap into a well-established pool of talent and a business-friendly and low tax economy. The initiative is a joint venture between Tech City, the Department for Business, Innovation and Skills, and the Department for Culture, Media and Sport. HQ-UK will simplify and quicken processes for visa applications and setting up UK bank accounts. The programme will also highlight the UK’s high skilled tech savvy workforce, the Government’s commitment to the development of programming skills in schools and the second largest labour market in the EU.

February 12, 2015

RIBA calls for next Parliament to focus on the built environment

by Sara Bean • Architecture, News, Property, Public Sector

The Royal Institute of British Architects (RIBA) has called on all parliamentary candidates to focus on the built environment in the forthcoming general election. Along with a renewed focus on building more quality homes and schools, RIBA is campaigning for improving the planning process; developing flood-proof communities; delivering energy efficient buildings and retrofitting those that are not; and providing a good quality built environment to accommodate an ageing population and encourage more people to become healthier. The #BuildaBetterBritain campaign is based on RIBA’s report and recommendations, Building a Better Britain: A vision for the next Government. RIBA has created a campaign website to enable architects and constituents to find and make contact with their candidates.

February 5, 2015

Digital economy spreads nationwide but London still dominates

by Mark Eltringham • News, Property, Technology

The UK Government has published what it says is the first comprehensive analysis of the UK’s digital economy clusters as part of an ‘interactive data project’ called Tech Nation*. The project shows the development of digital businesses by region across the UK. The project has been developed by Tech City UK, the government’s flagship organisation focused on the UK’s digital economy. The project suggests that there are now nearly 1.5 million jobs in the UK digital sector with around three quarters (74 percent) of them outside London. While the Government is keen to portray this as a nationwide success story, this still means that there are twice as many jobs per head in London’s digital sector as the national average and, as we reported earlier, the Government’s rollout of fast broadband to rural areas remains woefully inadequate.

February 5, 2015

Buoyant demand for commercial property across Europe, claims report

by Mark Eltringham • Company news, News, Property

Europe’s commercial property market ‘sizzled’ during 2014, according to a new report by Real Capital Analytics (RCA). Europe saw 213.1 billion euros of commercial real estate transactions in 2014, a rise of 13 percent over 2013. Paris led France to a 31 percent rise, although the French capital accounted for three quarters of demand. In contrast, demand in London fell 3 percent as high prices led investors to British regional markets, with the UK market overall up 16 percent. A similar trend emerged in Germany, where volumes in Berlin, Munich and Hamburg fell, while markets in the Ruhr, Cologne and Stuttgart strengthened. Most improved were commercial property markets in Ireland and Spain, where investment volumes soared 89 percent and 134 percent respectively.

February 3, 2015

Development of urban infrastructure held back by city leaders

by Mark Eltringham • Cities, News, Property, Public Sector

The main obstacles to the implementation of urban infrastructure are those raised by the organisations and people who do most to champion them. That is the standout finding of a new report, Urban Infrastructure Insights 2015, published by the Economic Intelligence Unit and FCC Group. The survey of more than 400 business leaders and policy makers worldwide found that a majority believe the greatest impediment to the development of urban infrastructure is a lack of will and skill amongst civic leaders and officials. Lack of political will was cited by 40 percent of respondents, alongside a lack of skills among officials (39 percent), and poor governmental effectiveness (34 percent). Lack of funds was cited by 34 percent. Policy makers were especially scathing about city leaders with more than half citing their lack of skills and knowledge.

January 29, 2015

Latest commercial buildings listings illuminate changing world of work

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

The latest fourteen buildings to be listed as part of the Post-War Commercial Buildings Project have been announced by the UK Government’s Department for Culture, Media and Sport. The project was initiated by English Heritage in 2011 as a way of recognising the significance and diversity of commercial buildings and acknowledging their unique proneness to change. According to English Heritage the latest fourteen Grade II listed entries (as well as a number of others assessed but deemed of lesser significance) also highlight how the design of commercial buildings reflected the changing world of work up to the cut off point of 1984. Although the projects are predominantly in the South East, there are listings for commercial buildings in Leeds, Newcastle-upon-Tyne and Birmingham.

January 29, 2015

Collaborative workspace concept is being embraced in the City

by Sara Bean • Facilities management, Flexible working, News, Property

It looks like the collaborative workspace concept is gaining credence beyond the tech start-up fraternity. British Land has announced it is to partner with Central Working, a members’ club which provides growing businesses with infrastructure, support and tools, to open a new club, Central Working City, at 4 Crown Place, next to Liverpool Street station. The move reflects a growing demand from start-ups and entrepreneurs for more collaborative workspaces in the area.The new club will occupy 11,000 sq ft across three floors of the five storey building. Following an extensive fit out the new club will offer members a mixture of shared working space, break out rooms, permanent offices and outdoor space. Profits from the club will be shared between British Land and Central Working.

January 26, 2015

Latest figures show record last quarter for UK commercial property investment

by Sara Bean • Facilities management, News, Property

Investment in the UK commercial property sector totalled £20.5bn in the final quarter of 2014 – a 26 per cent increase on the previous quarter and the highest quarterly performance on record. The demand for Central London offices was a key driver for this as in the final quarter of the year, investment in this sector more than doubled from the previous quarter. The latest edition of Lambert Smith Hampton’s UK Investment Transactions report reveals that investment in the UK regions increased overall by 41 per cent to £21.1bn for the year as a whole – the second highest figure on record. Overseas investors continue to be the largest buyers of UK commercial property, with investment from the US more than doubling year on year and interest from the Far East also increasing significantly. Click here for more information.

January 21, 2015

Reports highlight the UK economy’s geographical and digital divides

by Mark Eltringham • News, Property, Technology

The divides in the UK economy are not only geographical, but also technological. That is the conclusion of two new reports into the country’s economic makeup and the differences that mark out the North and South of the UK as well as its rural and urban economies. While the Centre for Cities 2015 Outlook report has focused attention on the North South divide with widespread media coverage, the Federation of Small Business (FSB) has also identified a second split between the digital economies of urban and rural areas. The former report paints a picture of a two-speed economy and a widening gap between South-East England and the rest of the UK while the latter highlights the damage done to businesses in rural areas as they struggle to cope with sub-par broadband.

January 20, 2015

New Hammersmith mixed-use scheme to accommodate 2,000 workers

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

Legal & General has appointed Land Lease Property to develop a £75 million mixed-use scheme on London’s Hammersmith Road. The development, designed by Sheppard Robson, will feature 242,000 sq ft of Grade-A office space over 10-storeys, which can house up to 2,000 workers. The office space has been designed to maximise natural daylight and features outdoor roof terraces. The entire 350,000 sq ft site retail frontage will be stepped back from Hammersmith Road, with a new landscaped plaza at the front that leads through to a podium garden. A business lounge and café will form part of the retail element, which totals 13,000 sq ft, to help enhance the public areas and encourage social interaction for workers. Construction is set to start in early January 2015 with completion expected in summer 2017.

January 13, 2015

Investors priced out of London commercial property turn to regions

by Mark Eltringham • Cities, News, Property

According to a report from Reuters, foreign competition in the London commercial property market is forcing local investors to invest in regional cities to tap rising rents there, with many making purchases privately to avoid auctions or even building office blocks from scratch. Commercial property in London has become a popular safe haven for investors from places such as Russia, China and southern Europe as a result of the financial crisis, and office prices have bounced back strongly from the lows. From a $4 billion battle for control of the Canary Wharf financial district to the creation of the capital’s tallest building, The Shard, thanks to oil money from the Gulf, many of London’s landmarks have had a helpful overseas financing hand.

January 12, 2015

Availability of office space in Central London has fallen by half since 2009

by Sara Bean • News, Property

The amount of available office space in Central London has fallen by almost half since 2009, new figures reveal. The latest end of year research by Deloitte Real Estate show that the availability of office space has fallen 14 per cent over the last 12 months, and warned that rents will probably rise by around six to over eight per cent as a result. In an analysis of the submarkets across the West End, Deloitte reports that Victoria has seen the greatest decline in available office space, falling 46 per cent in just 12 months. While the City of London market has not seen as dramatic a decline in available space, hovering around five million sq ft throughout 2014, it still remains at its lowest level for seven years. This is despite over 3 million sq ft of new office space completing construction during 2014 – a new high.