December 10, 2013

Sale of premier real estate portfolio More London announced

by Sara Bean • Company news, News, Property

More London has been sold to Kuwaiti firm St Martins Property Group for approximately £1.7 billion, according to Reuter’s sources. Owners London Bridge Holdings said it had originally intended to refinance More London (which is located adjacent to Tower Bridge and opposite The Tower of London), by the early summer of 2014 but had been persuaded to capitalize on “a highly attractive offer,” the details of which it has not yet disclosed. In a statement London Bridge Holdings said the transaction had underscored its success in transforming “a blighted, brown field site into a vibrant and vital global business centre.” The site was acquired in 1998 and is now a fully managed estate, with occupiers that include the Greater London Assembly – housed in City Hall, as well as PwC and Ernst and Young.

December 6, 2013

Don’t be caught by surprise by the hidden costs of commercial property

by Richenda Oldham • Comment, Facilities management, Knowledge, Property

According to Colliers International’s recent Global Investor Sentiment Report, 2014 will see an increase in commercial property investor confidence, with 74 per cent of UK based investors saying they were more likely to risk investing across all property sectors, although offices remain the most popular category to invest in. Yet despite this vote of confidence, it seems strange to report that the real costs involved in property acquisition and maintenance, are frequently overlooked by the purchasers. It appears that businesses often have a patchy knowledge of the range of costs involved in owning or leasing commercial real estate, which is surprising when you consider that a company’s biggest single investment next to its workforce is commercial property.

December 3, 2013

Built environment vows to improve accessibility for UK’s 12m disabled people

by Sara Bean • Facilities management, News, Property

Six of the top professional institutions that represent architects, town planners, surveyors, engineers and facilities managers have committed to improving accessibility for the country’s 12 million disabled people. To mark International Day of People with Disabilities, built environment institutions, including the Royal Institution of British Architects (RIBA), the British Institution of Facilities Managers (BIFM) and Royal Institution of Chartered Surveyors (RICS), have signed up to the Built Environment Professional Education Project; to change the curriculum so inclusive design becomes a requirement of all built environment accredited courses at universities and colleges. The aim is to have nearly one third of all built environment professionals proficient in inclusive design within 10 years. More →

November 29, 2013

Revival in UK commercial property driven by high tech enclaves such as Cambridge

by Mark Eltringham • News, Property, Technology

As we reported recently, it’s not just technology firms in London’s creaking digital enclaves that are driving recovery in the economy and commercial property markets. The UK is home to several hothouses of innovation and talent and the cluster of technology firms and related businesses in Cambridgeshire – inevitably Silicon Fen – are contributing to the highest level of commercial real estate activity in over six years, according to a survey we reported recently from property advisor Savills. The Cambridge arm of the firm is reporting that as well as new projects, schemes that were shelved during the recession are coming back online. Now in an interview in local magazine, Business Weekly, Savills has described how the national recovery is manifesting itself in one of the UK’s high tech hotspots.

November 28, 2013

RICS ‘Think Strategic’ campaign opens with advice to FMs on cutting costs

by Sara Bean • Facilities management, News, Property

The Royal Institution of Chartered Surveyors (RICS) has published the first in a series of monthly articles offering practical advice from leading industry professionals for FM practitioners. It marks the beginning of RICS new ‘Think Strategic’ campaign designed to encourage FM professionals to think and act more strategically by providing the tools to develop an FM plan that will directly feed into their wider corporate objectives. The idea is to help FM leaders demonstrate the value of the profession to business and gain a competitive advantage. Click the link Why cutting FM costs can have a business-wide impact to access the first of the articles, which are all available to download for free from the RICS website. More →

November 25, 2013

Over half of managers ‘constantly worried’, with real estate most stressed sector

by Sara Bean • News, Property, Workplace

Over half (51 percent) of managers say they feel ‘constantly worried’ and a disturbingly high number (40 percent) have experienced depression as a result of being stressed. The research, which was carried out by YouGov to support Bupa’s Healthy Minds programme polled the views of 6,000 employees across a range of industries, job levels and regions. It found that real estate is the UK’s most stressed sector, with more than half of workers (54 percent) feeling the pressure and a further one in five struggling to cope (20 percent) and worried about the effect of stress on their health (22 percent). With one in six adults experiencing a mental health problem at any given time, the impact on businesses is significant in terms of staff absence, productivity and performance.

November 19, 2013

RIBA says rise in architects’ workloads signals recession is coming to an end

by Sara Bean • Architecture, News, Property

The Royal Institute of British Architects (RIBA) says all the signs are that the recession is coming to an end, after recording the highest workload forecast figure for architects since its Future Trends Survey begin in January 2009. The RIBA Future Trends Workload Index sustained a significant increase this month, rising to +35 in October 2013 from +26 in September 2013. Welcome news also comes from the latest quarterly returns for the levels of actual work in progress which are now showing an annual increase for the first time since the financial crisis. RIBA practices reported an 11 per cent aggregate increase in workload between October 2012 and October 2013 and are increasingly optimistic about their medium term future work flows. More →

November 19, 2013

In pictures: plans revealed for East London iCity development

by Mark Eltringham • Company news, Property, Technology

Offices at iCity

While Parliament debates the reality or otherwise of the 2012 Olympic legacy, the firms behind iCity on the Queen Elizabeth Olympic Park in East London (above) have submitted detailed planning proposals and launched a new website to promote the development which they claim will become ‘a world-leading centre of innovation, education and enterprise’. The joint venture between property consultancy Delancey and datacentre operator Infinity SDC claims it will offer almost unlimited bandwidth connectivity and provide up to 400,000 sq. ft. of office space, including for digital start-ups, as well as a 250,000 sq. ft. datacentre, studio and production space and a convention centre. The plans have been drawn up Hawkins\Brown architects.

November 13, 2013

UK commercial activity growth at strongest rate since March 2007

by Sara Bean • Facilities management, News, Property

Improved client confidence, easier and greater access to funds, the general upturn in the UK economy and overall stronger demand have contributed to a 79-month high for the UK commercial property sector, according to a new survey from commercial property consultancy Savills. The Total Commercial Development Activity Index from Savills posted +30.2 per cent in October. This was supported by a return to growth in public commercial projects, while the pace of expansion in private commercial work reached a survey peak. UK total commercial activity rose at the strongest rate since March 2007, with the net balance registering +30.2 per cent during October. UK commercial developers also indicated that both public and private commercial office activity increased during the last month. Click here to see the full report.

November 12, 2013

UK commercial property lease lengths shorten to ten year low, claims report

by Mark Eltringham • News, Property

Lease lengths for commercial property fell to an historic low in the year to June 2013, while income, lost due to tenants going bust, hit an all time high, according to a new report from IPD. The IPD Lease Events Review measures over 93,000 leases, and 3,500 lease events across the UK. The 2013 edition found that over 80 percent of UK leases signed in the year to June 2013 were under five years in length, the highest level since measurement began and up from 55 percent over the last ten years. The average length of commercial property leases is now 5.8 years, down from 7.8 years in 2003, lower even than the 6.0 years in 2009 at the lowest point of the recession. Landlords have struggled to maintain cash flow and lost over 6 percent of their income due to a record numbers of defaults and insolvencies last year.

November 12, 2013

Best tall buildings in world competition winners announced by CTBUH

by Mark Eltringham • Architecture, Company news, Events, News, Property

The Council on Tall Buildings and Urban Habitats (CTBUH) has announced the winners of its Best Tall Building Worldwide competition. The overall winner was the China Central Television Headquarters in Beijing (above) which was also the regional winner for Asia. The other three regional awards went to The Shard, London (for Europe), The Bow in Calgary (Americas) and the Al Khatem Tower in Abu Dhabi (Middle East and Africa). The awards were presented in Chicago on 7 November with the winners chosen from 60 entries by a judging panel. A popular vote was taken on the evening which also saw the audience voting the CCTV headquarters as the best tall building. The overall winner award was presented to the building’s joint architect Rem Koolhaas, who famously included a chapter called ‘Kill the Skyscraper’ in his 2003 book Content.

November 6, 2013

Boom in London commercial property development, but demand still outstrips supply

by Mark Eltringham • News, Property

Office construction in the City of London is higher than it has been for five years, according to a report from Deloitte Real Estate. The London Office Crane Survey found that there are over 5 million sq.ft. of office developments at 23 schemes in the Square Mile including major landmark and well known buildings such as the Walkie Talkie and the Cheesegrater. Elsewhere in London, development is at a 4 year high in the central area which covers the West End, King’s Cross, Midtown, South Bank, Docklands and Paddington, with 71 schemes set to create some 9.7 million sq. ft. of new commercial property. The report claims that in 2014 alone, some 6.6 million sq ft of office developments will be complete in central London. More →