Search Results for: brexit

July 28, 2016

Brexit ‘passporting’ rights will affect City office property market ⁰

by Sara Bean • Facilities management, News, Property

Occupier demand for commercial offices may cool as a result of the Brexit vote, with recruitment and expansion slowing, particularly in central London, according to the latest UK property snapshot from Colliers. However, despite the current economic and political climate, unique and premium properties in the City of London should remain insulated against downward rental pressures, as landlords remain bullish on rents and incentives for the best quality units; while given the low vacancy environment and anticipated constraints on new supply, new Grade A offices are still set to perform well. Average net effective rents in the West End are set to fall over the next 6-12 months, but with new supply already below trend and potential speculative schemes being delayed, downward pressure may be short-lived. For the future, retaining ‘passporting’ rights to the single market will be an important issue for the City during Brexit negotiations. To view the full report click here.

July 25, 2016

Office of the future? + Vaping room call + UK will avoid Brexit recession ⁰

by Sara Bean • Cities, Facilities management, Flexible working, News, Property, Technology, Workplace

In this week’s Newsletter; Mark Eltringham on the narrow focus in descriptions of the ‘office of the future’; Maciej Markowski argues the need to keep an open mind on the open plan office; and Neil Franklin finds the ethics of everyday working life are the subject of two new surveys. News of a new device that can store more data than ever; many employees believe their workplace is not making best use of latest technology; and a new research report focuses on smart cities and the future of the built environment. Public Health England advises employers to set up vaping rooms for e-cigarette users; Brexit won’t lead to crash in commercial property say experts; and young workers are ill prepared for office politics. Download our new Briefing, produced in partnership with Boss Design on the link between culture and workplace strategy and design; visit our new events page, follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

July 19, 2016

UK should avoid severe recession and property crash after Brexit vote ⁰

by Mark Eltringham • Comment, Knowledge, News, Property

UK growth had already eased from around 3 percent in 2014 to around 2 percent before the EU referendum due primarily to slower global growth, but the Brexit vote to leave the EU is likely to lead to a significant further slowdown. UK GDP growth is forecast to decelerate to around 1.6 percent in 2016 and 0.6 percent in 2017 according to PwC’s main scenario in its latest UK Economic Outlook report. Quarter-on-quarter GDP growth could fall to close to zero in late 2016 and early 2017 in this main scenario, but is then projected to recover gradually later in 2017 as the immediate post-referendum shock starts to fade. The UK would avoid recession in this scenario, although the report notes that uncertainties around this view are significant, with alternative scenarios showing GDP growth in 2017 of anywhere between +1.5 percent and -1 percent. But even this latter relatively pessimistic scenario would not be a severe recession of the kind seen in the early 1980s or in 2008-9.

July 15, 2016

ICE makes the case for infrastructure ahead of Brexit negotiations ⁰

by Neil Franklin • Cities, News, Property, Public Sector

In a new report Brexit – The Case for Infrastructure, the Institution of Civil Engineers has set out the business case for the valuable contribution which infrastructure makes to the economy and argues that the UK should not lose sight of this as it begins negotiations for Brexit as it leaves the European Union. The report claims that high quality, high performing infrastructure is vital for economic growth and improved quality of life. It points to transport, communications, energy and housing as being central to spreading opportunity across the whole country. It also makes the case that infrastructure acts as a catalyst for social and economic inclusion, encouraging greater participation in society from people of all walks of life. In particular, during uncertain or volatile economic times, continued investment in UK infrastructure can help provide economic stability, facilitate inward investment and drive economic growth.

July 4, 2016

New office market briefing remains cautious about impact of potential Brexit ⁰

by Mark Eltringham • Comment, Company news, Knowledge, Property

JLL has published a new briefing document to look at the possible impact of the recent Brexit vote on the UK’s office market. The report’s main claim is that the underlying economic fundamentals in the UK remain solid in comparison to previous downturns, and, while expectations are unsurprisingly being downgraded, there is still no need for occupiers or landlords to become too concerned at the moment before the full details and effects of the UK’s exit from the EU become apparent. The document also suggests: occupiers are taking stock, so flexibility is likely to become fundamental to near term decision making. Longer-term impacts or benefits of Brexit are still to play out; office occupier demand in London will be subdued in the near term although low vacancy levels, coupled with an increasingly diverse occupier base, should prevent a dramatic fall in rents compared to previous market corrections; hotels will benefit from weakened sterling and increase in tourism although they may see costs increase.

June 29, 2016

Brexit; a round-up of latest thoughts from the property and workplace sectors ⁰

by Mark Eltringham • Architecture, Cities, News, Property

Whatever your opinions on Brexit, there’s no doubt that it has created a range of frequently turbulent knock on effects in the workplace, commercial property, design and architecture sectors. We’ve shared some of the latest views on the next page to go with the initial reactions delivered by a still shell-shocked world that we published last Friday. One thing seems pretty clear is that for most firms, including those in the commercial property sector, there is no rush to judgement and most are prepared to continue business as usual while so much remains undecided. For the same reasons, the FT is reporting that some developers are putting projects on ice until they have more certainty and a report from researchers Green Street suggests that the eventual decision to leave the EU will result in a substantial fall in real estate values. Meanwhile, CIBSE is the latest organisation to calm fears about the impact of the UK leaving the EU.

June 24, 2016

Procrastination + Transparent office design + That Brexit thing ⁰

by Sara Bean • Facilities management, Flexible working, Legal news, Newsletter, Technology, Wellbeing, Workplace, Workplace design

In this week’s Newsletter; Sathesh Alagappan outlines the impact on UK employment law following the Brexit vote; Mark Eltringham looks at taking transparent office design to new extremes; and why, according to Dr Piers Steel, this is the golden age of procrastination. Over a third of jobs in the tech and creative sector found within the Capital; a lack of trust precludes employees from donning wearables in the workplace; and new liability rules for the automated workforce of sophisticated ‘smart’ robots. News that 15 percent of organisations in the UK don’t place any focus on the mental health and wellbeing of employees; small firms more likely to adopt virtual working and both UK and US staff routinely work beyond their contracted hours. You can download our Insight Briefing, produced in partnership with Connection, on the boundless office; visit our new events page, follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

June 24, 2016

Property and workplace experts have their say on the Brexit outcome ⁰

by Mark Eltringham • Architecture, Comment, Facilities management, Property, Workplace, Workplace design

Well, the results are in and the UK’s electorate has voted by a narrow margin for the country to leave the EU. There are likely to be other developments but whatever you make of the UK’s decision to vote to leave the EU – and I think it’s fair to say most independent people think it’s inexplicable – there’s no doubt that it will have a profound impact on the UK’s economy, relationship with the world, culture, working conditions and markets. What it will mean in practice won’t be apparent for months or years, of course, but that hasn’t stopped experts who work in the property, workplace, design, legal, HR and architecture sectors having their say on its potential implications. We’ll look at these specific issues in more detail going forward but for now, here’s a round-up of those we have so far, which we’ll keep updated throughout the day as the dust settles on what will prove to be a momentous decision for the UK, Europe and rest of the world.

June 23, 2016

How could UK employment laws be affected by the outcome of the Brexit vote? ⁰

by Sathesh Alagappan • Comment, Legal news, Workplace

The result of yesterday’s EU referendum vote will dominate the UK’s political scene for months now and the outcomes will be followed with particular interest by business owners, who currently have to adhere to a range of employment laws that either originate from the EU itself or have been developed within the context of our membership of the organisation. Therefore, a vote for Brexit today could fundamentally change the way businesses operate in the UK. This is particularly true given that a large amount of the UK’s employment law has its roots in Brussels. Article 153 of The Lisbon Treaty set the precedent for this. It allowed the EU to create a base level of legislation that applies to all facets of the workplace. This includes working hours, workers’ rights, and health and safety. Individual nations are free to supplement this with their own legislation. For example, the minimum wage is an example of employment legislation that is independent of the EU.

June 22, 2016

Brexit uncertainty leads to drop in cost of living rankings for UK cities ⁰

by Sara Bean • Cities, Facilities management, News, Property

UK cities have dropped down the ranking in Mercer’s annual Cost of Living Survey this year as Brexit fears weaken the value of the Pound, whilst the Euro stays strong against the Dollar. Although the UK’s capital remains in the top 20 costliest cities worldwide, London (17) has dropped five places, whereas Aberdeen (85) and Birmingham (96) have fallen seven and 16 places respectively. Further down the list, (119) has dropped 10 places and Belfast (134) three. The survey finds that factors including currency fluctuations, cost inflation for goods and services, and instability of accommodation prices, have all contributed to the cost of expatriate packages for employees on international assignments. Mercer’s survey covers 209 cities across five continents with Hong Kong ranking highest, pushing Luanda to second place. Ranking 3rd, Zurich is the most expensive European city, followed by Singapore (4) and Tokyo (5).

June 21, 2016

London office rents predicted to stay strong provided there’s no Brexit ⁰

by Sara Bean • Cities, Facilities management, News, Property

The continuing imbalance between the supply and demand for office space throughout London is resulting in a shift in the balance of negotiating power away from tenants, according to the latest London Office Update from Carter Jonas. Rents across Central London have, on average, risen by over 50 percent over the last five years in the West End, Midtown and South Bank office markets, and by over 30 percent in the City of London. Rent free periods have typically fallen by up to six months over the same period. In the next 18-24 months, the trend will continue to be higher rents and shorter rent free periods as availability remains low. While some occupiers may leave London altogether, others may adopt a ‘spoke and hub’ strategy, whereby back office functions relocate to peripheral, lower cost, areas while ‘client facing’ operations are retained in Central London. This prediction assumes that Britain rejects Brexit however, and there are no major economic shocks.

June 16, 2016

Most likely scenario of a Brexit vote is minimal impact on employees ⁰

by Sara Bean • Comment, Legal news, News, Workplace

A more nuanced and balanced view from both leave and remain campaigns on how the EU Referendum will affect employees is needed, a leading HR authority has warned. Commenting on how the outcome of the EU Referendum will affect employees, Professor of Human Resources Chris Rowley, at Cass Business School, said: “The deluge of increasingly extreme polar dichotomy arguments and claims regarding possible post-Brexit life also applies to the critical area of work and employment where the Remain and Leave camps have some of their greatest internal tensions and contradictions. Both sides betray a lack of historical and contemporary grounding and analysis of both employee relations and politics. One problem is that there is much counterfactual argument of causation – what would have happened anyway.” In the short term and possibly even in the longer term he says that a Brexit vote would be unlikely to impact employment law, as so much is already enshrined at work.