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.

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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.

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January 7, 2015

City of London office market reaches the highest volume of lettings for 15 years

by Sara Bean • Facilities management, News, Property

Central London leasing activity hit the highest volume since 2007 last year, while the office market in the city reached its highest volume for 15 years. Take up of central London office space totalled 12.4 million sq ft, when 12.7 million sq ft was let; which is 15 per cent ahead of 2013 totals. According to the latest research by Cushman & Wakefield, while all areas of the capital saw an upturn in activity during 2014, the City of London market recorded the highest volume of lettings for 15 years, with 7.2 million sq ft of transactions completed compared to 7.4 million sq ft in 1998. West End lettings reached 4.0 million sq ft; on a par with the last peak in 2007. Even Docklands saw take-up double in comparison to 2013 to exceed 1.0 million sq. ft for the first time since 2010; and the serviced office sector is thriving.

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December 30, 2014

BBC Wales exchanges contracts on new Cardiff headquarters

by Mark Eltringham • Architecture, News, Property

BBC Wales has exchanged contracts with the developer of its new 150,000 sq. ft headquarters in the centre of Cardiff. Although still subject to final planning consent and the approval of BBC executives, the building is an anchor site in the Foster + Partners masterplanned Central Square regeneration project and work is confidently expected to begin in the middle of 2015 for completion in 2017 with full occupancy expected the following year. The new building will be home to some 1,000 staff and has been targeted to achieve a BREEAM excellent rating. Developers Rightacres expect the Central Square mixed use project to provide around 1 million sq. ft of office, residential and retail space, creating one of Wales’ largest property developments and regeneration schemes in the heart of Cardiff on the site of the current bus station.

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December 22, 2014

The latest Insight newsletter is now available to view online

by Sara Bean • Facilities management, Flexible working, Newsletter, Property, Workplace, Workplace design

In the latest issue of the Insight newsletter which is available to view online; Mark Eltringham takes issue with a growing intolerance of sitting, and counsels against making wild predictions about the effect wearable tech will have on the workplace. Maciej Markowski says homeworking brings easily measurable benefits, but can also diminish creativity and Charles Marks argues that the important point of flexible working is that staff are empowered to work in ways that are best for them. Adam Burtt-Jones examines the relationship between workplace design and its culture; Andrew Brown looks at the impact of the soft landings principle and Sara Bean reveals that the quality of management in the UK has seen little improvement over the last decade. Sign up to the newsletter via the subscription form in the right hand sidebar and follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

December 18, 2014

Revised plans approved for development of iconic BBC Television Centre

by Sara Bean • Facilities management, News, Property

New office space aimed at occupiers in the creative sector is included in Stanhope and Mitsui Fudosan’s planned redevelopment of the former BBC Television Centre in west London. The London Borough of Hammersmith and Fulham have granted planning permission for the revised plans for the mixed use development of the iconic building; to include the demolition of the existing Stage 4 and 5 office buildings and their replacement with a more sustainable and efficient new ten storey office building with improved facades, designed by architects AHMM. A change in use from residential to commercial has also been approved for a new nine storey office building fronting Hammersmith Park on the site of the old BBC restaurant block, with an overall increase in office accommodation across the site from 350,000 sq ft to 519,000 sq ft.

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December 16, 2014

Central London office take-up hits highest level since 2010

by Sara Bean • Facilities management, News, Property

Take-up in the central London office market is expected to hit its highest level since 2010, bolstered by a massive increase in demand among firms in the Professional and the tech, creative and new media sectors. These sectors are forecast to employ a further 110,000 people across Westminster, the City of London, Southwark and Tower Hamlets in the next decade, which is expected to further increase demand. According to DTZ’s latest Central London Offices Update overall office take-up is expected to reach 14.5m sq ft in 2014; up by 30 per cent on the five year average and at the highest level recorded since 2010. However , availability has continued to fall, with just 9.5m sq ft of office space currently remaining – the lowest level since 2001. This restricted availability is leading to a higher level of competition for space which is driving up rents. (more…)

December 11, 2014

Corporate real estate executives planning for growth finds CoreNet survey

by Sara Bean • Facilities management, News, Property

Global corporate real estate executives report that economic conditions improved again in the third quarter and they remain optimistic about economic growth. This is according to the most recent findings of the CoreNet Global Economic Index; a statistical measure that reveals trends and confidence levels within the corporate real estate (CRE) world. The survey, which takes advantage of the unique perspective that CRE executives have of the overall economy was conducted among a targeted group of 220 senior level managers of corporate real estate at Fortune 1000 companies globally. The survey measures the overall optimism that these executives have with respect to their own companies, as well as the economy at large. There were positive responses on their own company’s prospects for growth and expansion: many were likely to increase their real estate portfolio as a result of more employees and there was optimism regarding the global economic outlook over the next quarter.

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December 10, 2014

Barclays converts underutilised offices into free co-working spaces

by Mark Eltringham • News, Property, Workplace design

Social enterprises, business start-ups and community groups will be offered free co-working space by Barclays as part of an initiative called Hatch, developed in partnership with charity 3Space. The programme aims to transform underutilised Barclays’ properties into office space for social entrepreneurs, early stage local businesses and community groups, charities and other qualifying organisations. The first Hatch project has opened its doors in Oxford (above), with a further three set to open in 2015. 3Space claim that Hatch will provide for a unique combination of creative, social and community needs, helping more people get their business ideas off the ground, experiment and share ideas as well as access advice on business and technology. The spaces should also provide a central hub for communities, hosting local events and meetings.

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December 10, 2014

We should bring the soft landings idea back to Earth with a bump

by Andrew Brown • Comment, Facilities management, Property

Soft landings, hit the ground running, smooth handover, transition phase: whatever words you choose to describe the process the principle is the same. Managers and occupiers of a building – any building, want it to function properly. But why is this apparently so hard for anybody to achieve? Soft landings feels more like tainted love right now. So, think back a few steps and imagine you’re buying a brand new, shiny new-build house. It doesn’t come with an instruction manual, but it is a house – what’s not to know about it. But even new homes have issues. Maybe cracking in plaster, gaps around architraves, doors not closing smoothly and heating systems that is noisy and untested. In the trade it’s called snagging. You call the builder up, you make a list he comes round your new house and checks the list and then argues about the repairs.

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December 9, 2014

New Scotland Yard sold to Emirati investors for £370 million

by Mark Eltringham • News, Property, Public Sector

Illustration: @SimonHeath1

The buyer of the Metropolitan Police’s Scotland Yard headquarters building has been confirmed as Abu Dhabi Financial Group (ADFG). The sale of the home of the Met as part of a huge shake-up of the police’s estate was first announced last year and last month news emerged that a buyer had been found, although details of the sale were withheld. The sale of the site to the Emirati investment group for £370 million is reported to be some £120 million more than the original asking price set by London Mayor Boris Johnson. The current building has been home to the Met since 1967 but the Mayor’s office felt the sale and freeing up of resources could benefit the force’s frontline operations. The sale is part of a wider shake-up of the police estate in London which has already seen the sale of 32 buildings, raising £125 million. The restructuring programme is expected to complete in 2016 and is estimated to save around £60 million each year in running costs.

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December 5, 2014

Bouygues wins £27 million office fit out contract in City of London

by Mark Eltringham • Company news, News, Property, Workplace design

Bouygues UK has been awarded a major new design and build contract by developers Morgan Capital Partners LLP. The award comes hot on the heels of the handover of another major office refurbishment at 71 Queen Victoria Street, which is a stone’s throw away from the new site at 45 Cannon Street, in the heart of London’s financial district. The deal will see the demolition of existing offices and the construction of a new eight-floor office building including a Category A office fit out and the addition of 13,000sqm of retail space on the ground floor. As part of the works, the entrance to Mansion House underground station will also be refurbished as it sits on the site. Bouygues UK is aiming for a BREEAM Excellent rating on the project. Demolition is already being carried out on site, with Bouygues scheduled to begin construction work in the New Year. The project is due for completion in 2016.