November 25, 2014

UK business centres market continues to flourish, claims BCA and IPD report

by Mark Eltringham • Flexible working, News, Property

A new report has revealed just how important the growing business centres market is to the UK economy. According to the report from the Business Centre Association and Investment Property Databank the market is now comparable to the City of London both in terms of the number of people employed and the amount of office space it occupies. The report also outlines both the market’s robust health during the recent economic downturn and ongoing growth in response to increasing customer demand and the changing market for office space. The sector now boasts that it provides a home to some 80,000 businesses employing more than 400,000 people who occupy around 70 million sq. ft. of space including landmark developments such as the Regus No 1 Poultry centre in the City of London (above) and generate around £2 billion of income for the economy. The report, produced in conjunction with Snapdragon Consulting, found that the serviced office sector in the UK now represents around one third of the global market.

November 21, 2014

CIBSE updates guide to engineering maintenance and management of buildings

by Sara Bean • Facilities management, News, Property

Updated guidance for designers, maintainers, facilities managers and building owners on the operation and maintenance of engineering services has been issued by CIBSE. Guide M: Maintenance Engineering and Management supersedes the first edition published in 2008 to provide best practice for those who have responsibility for the management and maintenance of the engineering services in a building. It is written for anyone involved in the design and construction of buildings to raise awareness of the implications their decisions have on management and maintenance. The main areas of revision relate to legislation changes and changes in best practice. The guidance continues the work of the CIBSE Maintenance Task Group chaired by Joanna Harris, and intends to close the gap between design and operation by bringing maintenance into a sharper focus and helping building and property operators become more aware of their responsibilities and duties. The ultimate aim is to help clients by managing their expectations and maximising impact from their annual spends on maintenance and management of buildings.

November 20, 2014

Land Securities takes full control of Thomas More Square for £85.3m

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

Land Securities has taken full control of Thomas More Square, in London’s E1 for £85.3 million. It acquired the 50 per cent share it doesn’t already own from an affiliate of its joint venture partner the Ontario Teachers’ Pension Plan Board. The Thomas More Square Estate, which is located between St Katharine Docks and London Dock – totals approximately 4.2 acres and includes six office buildings incorporating retail, leisure and parking. Land Securities was granted planning permission in June 2014 for a comprehensive refurbishment of Building 3 at Thomas More Square and a redesign of the estate’s public realm. The plans for the 570,000 sq ft estate include 200,000 sq ft of fully refurbished office and retail space in Building 3 which will include a new double height entrance and an extensive business lounge. Tenants Ipsos MORI and Mitsui O.S.K. Lines (“MOL”) have already let 97,000 sq ft of Building 3 on 15 year leases with 10 year breaks; while a further 100,000 sq ft will be available from mid-2015. More →

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.