November 19, 2014

Commercial property market sees significant shift in attitudes to green building

by Mark Eltringham • Environment, Legal news, News, Property

The UK commercial property market is experiencing a major attitudinal shift towards green buildings according to GVA’s fifth Green to Gold report. The biannual survey questions commercial property investors on their understanding of market perceptions of the value of sustainability criteria and gauges their attitudes towards regulation and related issues. The latest edition of the study published this month claims that the market ‘no longer views sustainability as a nice to have’ with more than half of those questioned considering green building credentials as a key driver of investment performance. Perhaps unsurprisingly this belief strengthens with regard to longer term investments. The research also found that nearly all (94 percent) of those surveyed now had a sustainability policy in place at either the organisational or fund level and 59 percent of respondents said that three quarters of their portfolios have been assessed against sustainability criteria, compared with just a quarter in 2012.

November 12, 2014

2015 looks set to deliver lowest volumes of London office space in 20 years

by Sara Bean • Facilities management, News, Property

The total amount of office space under construction in central London is down to 7.7 million sq ft, with next year looking to deliver the lowest volumes of space in twenty years. However, according to the London Office Crane Survey, published by Deloitte Real Estate, 22 new schemes (2.1 million sq ft) have started construction in the last six months, almost double the volume of new space started compared to the previous six months. Steve Johns, head of City leasing at Deloitte Real Estate, said: “The sharpest rise in construction starts is in the City of London, where ten new office buildings are now underway. This includes over a million sq ft in the City core and over 500,000 sq ft in ‘tech city’, accounting for three quarters of the volume of space across all the new schemes we’ve recorded. The West End has also seen 10 new starts, adding 462,000 sq ft to the development pipeline, while Southbank, Midtown and Docklands have seen no new construction this survey.”

November 11, 2014

City of London’s iconic building the Gherkin, sold to Brazilian billionaire

by Sara Bean • Architecture, News, Property

The Gherkin, otherwise known as 30 St Mary Axe, has been sold to The Safra Group, controlled by Brazilian billionaire Joseph Safra. Although the financial terms of the deal agreed with Deloitte, the receiver for the London property were not disclosed, it is reportedly to be around £700m. Designed by Norman Foster, the 180-metre office tower encompasses approximately 50,000 square meters of office space and is the second-tallest building in the City of London. It was completed in 2004 for Swiss Re, which still occupies half the space, along with law firm Kirkland & Ellis. Safra Group said that the acquisition: “Is consistent with our real estate strategy of investing in properties that are truly special – at the best locations within great cities. While only ten years old, this building is already a London icon that is distinguished from others in the market, with excellent value growth potential. We intend to make the building even better and more desirable through active ownership that will lead to a range of enhancements that will benefit tenants.”

November 10, 2014

Stockholm is Europe’s top tech start up location, claims interactive report

by Mark Eltringham • Cities, News, Property, Technology

A new study by videoconferencing firm Atomico shows that the European centre for billion dollar technology start ups in Europe is Stockholm, followed by London and Berlin. The interactive visualisation from the survey shows that Stockholm is second only to Silicon Valley as a successful founding location for successful Internet businesses with a current market valuation of over $1 billion founded since 2003. Silicon Valley remains in a completely different league to locations on the rest of the planet with 53 startups, followed by Beijing with 17, New York with seven and Stockholm with five. London, meanwhile, has only three tech start up businesses in the £1 billion category despite its reputation as a hotbed of tech entrepreneurialism, the same number as Berlin. According to the report, Stockholm’s ability to foster successful tech startups is even more impressive based on its population of around one million, which makes it the second most prolific per capita location worldwide,with 6.3 billion-dollar companies per million people compared to Silicon Valley with 6.9.

November 7, 2014

The new issue of the Insight weekly newsletter is now available to view online

by Mark Eltringham • Facilities management, Newsletter, Property, Workplace design

The new issue of our weekly newsletter is now available to view online. With an unmistakable focus on workplace design, this issue sponsored by Fresh Workspace, sees Tony Ash of Vitra UK question why the Government isn’t doing more to curb the furniture copycats who brazenly steal other people’s intellectual property; Alison Kitchingman of Milliken looks at how architects and designers have used organic design to reflect the way people actually move around a building; Justin Miller of Wellworking considers a startling 20 percent leap in the number of people reporting musculoskeletal disorders in the UK; Anna King looks back on Orgatec and its key themes; Sara Bean reports on the rapidly declining availability of Grade A commercial property across the UK; and Mark Eltringham considers the science behind what makes offices so motivating for people. If you don’t already receive a copy, please sign up using the simple subscription form in the right hand sidebar and don’t forget to follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

November 6, 2014

Nationwide availability of office space declining at fastest rate since 1990s

by Sara Bean • Facilities management, News, Property

The availability of office space across the country has declined for the sixth consecutive quarter and at its fastest pace since the late 1990s, according to the latest RICS Q3 Commercial Market Survey. One in five said more than 10 per cent of office space in London is now earmarked for residential conversion. Twenty per cent of respondents report that a rise in transactions of commercial properties being sold with Permitted Development Rights (PDR) had led to more than 10 per cent of available commercial properties being earmarked for conversion into residential use. At the same time, over half (51%) of surveyors reported a growth in demand for office, industrial and retail space, with two thirds suggesting that if PDR exemptions are not extended then the availability of commercial properties will fall further. Demand for commercial space has risen across the whole of the UK, with 32 per cent saying availability across office, retail and industrial properties had fallen, while demand has risen to a net balance of 44 per cent. More →

November 3, 2014

Scalpel achieves excellent rating under new BREEAM environmental standard

by Mark Eltringham • Environment, News, Property

The first building to achieve an excellent rating under the new BREEAM UK New Construction 2014 standard is Kohn Kohn Pedersen Fox’s design of the Scalpel tower in the City of London. The £500 million building at 52 Lime Street is a 190m tall 35-floor office tower which is set to open in 2017. The new building was granted planning consent in early 2013 and will offer around 500,000 sq. ft. of commercial space in the City. Andrew Reynolds, managing director of developers WRBC Development, said he was “delighted” the scheme had received such a high rating under the new BREEAM environmental standard. Our team is determined to deliver a high performance building that is not only architecturally superb but creates a pleasant and productive environment for those who will be working there.” Gavin Dunn, director of BREEAM, said: “this achievement demonstrates a genuine commitment by the project team to deliver a high-quality development that will benefit the building owners and occupiers into the future.”

November 3, 2014

BIM adoption set to soar in UK and US over next two years, claims report

by Mark Eltringham • Architecture, Facilities management, News, Property, Technology, Workplace design

Building owners are embracing building information modelling (BIM) as a powerful technology benefitting the design process, managing project schedules, controlling costs and minimizing project errors, according to the recent McGraw-Hill Construction SmartMarket Report “The Business Value of BIM for Owners”. The latest report focuses on the business value of BIM from the perspective of building owners in the United States and United Kingdom for whom the technology has been deployed. Initially adopted as a design tool and later evolving into an important tool for contractors, its adoption among building owners is expanding, the report claims, and that building owners are becoming more directly involved as “their power is even greater to align BIM use with their specific goals, engage more effectively with all stakeholders and extend the value of BIM beyond construction into facility management.” The study claims that 40 percent of US owners and 38 percent of UK owners expect that more than 75 percent of their projects will involve the technology in just two years.

November 2, 2014

The safety regulations to consider when designing a new workspace

by Tom Grey • Comment, Legal news, Property

There’s no doubt about it, designing and managing a new workspace is a challenge at the best of times. With so many different aspects to consider, designers must create a space that is both aesthetically pleasing to work in, while ensuring that the safety of the people working in the building, and the public exposed to the redesign work, is being prioritised. Designing and managing a building project is a lengthy process that requires meticulous planning to make sure you are fully equipped. The Health and Safety Executive (HSE) is frequently assessing the safety credentials of refurbishment projects and has demonstrated in the past that it is not afraid to dish out hefty fines to companies that fail to abide by the UK’s health and safety laws. Avoid any unwanted surprises by doing your homework, completing a risk assessment and creating a strategy of how you will complete the project in a safe, efficient manner.

October 28, 2014

Four-building Hammersmith office development acquired by AXA

by Sara Bean • Company news, News, Property

A 193,000 sq ft (17,930 sqm) office property based in Hammersmith West London has been acquired by AXA Real Estate. 77 Fulham Palace Road comprises four buildings: Hamlet, Horatio, Ophelia and Elsinore and is currently let to 19 tenants. It has a wide range of floor sizes across the four buildings and unusually for Central London has 221 parking spaces. Given a current lack in supply of Grade A office space in West London, AXA has indicated that it will increase the current floor space at the property by 18,900 sq ft (1,755 sqm), and transform it into Grade A office space. This expansion would be undertaken alongside a planned refurbishment of some of the buildings, to enhance their overall functionality and design, adding to the current facilities on offer. Huw Stephens, Head of UK Transactions at AXA said: “At 77 Fulham Palace Road we have identified an opportunity, through a number of asset management initiatives, to add value to a core, well located asset in London. By utilising the expertise of our local asset management teams, we will be able to improve the tenant mix, whilst delivering investment performance to our clients.”

October 28, 2014

New BREEAM environmental standard launched for UK office refurbishment and fit-outs

by Charles Marks • Architecture, Environment, Legal news, Property, Workplace design

The Building Research Establishment (BRE) has launched the latest addition to its flagship sustainability accreditation scheme. Launched fully at MIPIM UK, the Building Research Establishment Environmental Assessment Method (BREEAM) Refurbishment and Fit-Out 2014 standard has been in development for around two years, a period which has included consultations with some of the UK’s largest commercial property occupiers, end users as well as a full assessment of a pilot project at BRE’s base near Watford. It joins existing BREEAM standards as a way of assessing the sustainability of office refurbishment and fit-out projects in the UK and overseas. The standards were tested on a simulated refurbishment project at the BRE site and achieved, in the words of the organisation, “significant savings as well as many other positive learning outcomes”. Firms which took part in the two year development and consultation period included Lloyds, Boots, Legal & General and The Green Investment Bank.

October 22, 2014

Two new office developments worth £77m for construction firm

by Sara Bean • Company news, Facilities management, Property

Construction group Galliford Try plc, has been appointed to two new major office contracts worth a combined £77 million. Its been selected as preferred bidder by Northamptonshire County Council to build its new headquarters in Northampton in a £38 million project. The new 17,600 sqm four-storey building is intended to consolidate the council’s existing offices in the town, and regenerate an area on the south side of the town centre. In addition to the office space, a café will be created together with extensive hard landscaping around the site. Galliford Try is also to deliver a new office building at Sutton in Surrey for offshore engineering company Subsea 7. The £39 million project creates a new 150,000 sqft Category A office space and associated facilities on the site of the former Brighton Road car park. Galliford Try Executive Chairman Greg Fitzgerald commented: “We have a strong reputation in the office sector and we look forward to providing these two clients with the first class facilities they require.”