Search Results for: development

March 1, 2016

Rents and refurbishment activity rise, as office shortage hits UK cities ⁰

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

Last week we reported that the shortage of office space in London was driving up demand within the UK’s regional office markets. Now a new report claims there is under a year’s supply of Grade A space available in the regions which will result in rental inflation. Bristol and Cardiff are predicted to see largest rises at 12 percent and 9 percent respectively. According to Savills’ Regional Office Market Review & Outlook report, average take-up across the UK is currently at 4.6 million sq ft, and availability down 18 percent on 2007 levels. Although speculative development has risen by 129 percent over the last year to approximately 3.5 million sq ft, with 28 percent pre-let it is expected that this will largely be absorbed in first two quarters of 2016. This lack of available space has driven demand for value-add office opportunities to help plug the gap, with January 2016 marking the forty-first consecutive month of refurbishment activity.

(more…)

February 26, 2016

War for talent and dwindling supply in London boosts regional office market ⁰

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

London office supply is at an all-time low according to JLL’s latest research, with around 18 million sq ft of offices required, but less than 7 million sq ft under construction. This is one of the reasons why 2015 saw a surge in pre-leasing activity across the Big 6 regional office markets, comprising Birmingham, Bristol, Leeds, Manchester, Glasgow and Edinburgh, with 850,000 sq ft let across 17 transactions compared with 15 over the five years from 2010-14. The survey shows that rental growth and refurbishment are key themes with refurbishment schemes totalling 800,000 sq ft will be delivered in 2016, with a further 10 new schemes totalling one million sq ft due to start. Greater convergence between HR and real estate also means the war for talent is a factor influencing occupier decision making. CEOs continue to cite a shortage of skills as a concern, as many Gen Z students are expected to leave their first job within a few years.

(more…)

February 23, 2016

Technology can help you manage workplace wellbeing on a global scale ⁰

by Sara Bean • News, Technology, Wellbeing, Workplace

There are global patterns to health and wealth risks; but while technological developments are enabling employers to connect to employees on a global basis, too many are still confining their benefits strategy by region. This is according to research by Aon Employee Benefits which shows that three quarters (75 percent) of employers believe they are responsible for improving the health and wellbeing of their workforce – yet one third do not fully utilise data analytics to drive their corporate wellbeing strategies. The report argues that technology should be better utilised to manage employees’ health and wealth on a global scale. Says head of broking, health and risk proposition, Matthew Lawrence: “Employers want to take responsibility for health and wellness. They are recognising that the multi-generational workforce presents challenges as well as opportunities. But the health needs of different ages and demographics mean employers and businesses really need to get to grips on effective strategy implementation, especially on an international – rather than national – scale”.

(more…)

February 18, 2016

The UK public sector workplace is disempowered and can’t cope with change ⁰

by Mark Eltringham • Flexible working, News, Workplace

A new report claims that the typical public sector workplace in the UK is dysfunctional on a number of levels. That is not the conclusion of some right wing think tank, but instead comes from Civica’s Invigorating the Public Sector Revolution report, commissioned in partnership with Society of Local Authority Chief Executives and Senior Managers (SOLACE). Based on a survey of 276 senior and middle management staff, a mere 7 percent of respondents said that the public sector offered an empowering working culture and just 25 percent believe their management teams have the skills and attitudes to lead the organisation over the next ten years. Of particular concern was the ability of organisations to cope with change. Just under half (47 percent) of those surveyed believe their leadership team lacks the management skills needed for ‘a period of massive and accelerating change’.

(more…)

February 15, 2016

The death of the office meme does not fit with a thriving property market ⁰

by Mark Eltringham • Comment, Flexible working, Property, Workplace design

You don’t have to look very far to find somebody or other proclaiming the death of the office. A quick Google search will come up with over 73 million results for the past year alone. This has been going on for decades, but a search engine now gives us a far better idea than the occasional feature in a trade magazine of just how the idea has evolved into a full-blown meme. The narrative has become so entrenched that the people who use it – typically the ignorant, the self-interested, the lazy and the ill-informed – rarely have their premise challenged. Usually it is an idea appended to some disruptive and supposedly apocalyptic trend and, at the moment, office kryptonite comes in the form of coworking, where once it was flexible working or mobile technology. And yet, for all the non-fatal wounds these innovations have inflicted on the traditional office, the idea of people travelling to work alongside each other in shared buildings endures.

(more…)

February 15, 2016

Employers must meet productivity challenges of paying Living Wage ⁰

by Sara Bean • Facilities management, Flexible working, News, Workplace

A quarter of private sector employees will be directly affected by the implementation of the new National Living Wage, (NLW) over double the proportion of public sector employees. The research, conducted by the Social Market Foundation in partnership with Adecco Group UK & Ireland, warns these employers will need to overcome significant productivity challenges in order to cope with the cost. The NLW cut-off at age 25 means businesses will be faced with potential discrepancies in wages across their younger workforce. While almost a fifth (18 percent) of employees who will benefit from the NLW are younger workers surprisingly, workers aged 50 or over will make up a third. Part-time workers make up around half of the workforce in severely affected workplaces. The research also found that the workplaces severely affected by new National Living Wage tend to have low-skilled employees and are much less likely to offer in-work training.

(more…)

February 11, 2016

Manchester set to run out of Grade A office space this year, claims report ⁰

by Mark Eltringham • Cities, News, Property

Manchester could completely run out of ready to occupy, Grade A office space this year, according to a new report from Colliers International. The snapshot of the commercial property market in the city claims that take-up of space in Manchester during 2015 was over a third (37.5 percent) above a ten year average and the rate of occupation by both UK and overseas firms was double that of the previous three years. As a consequence, the local property market is currently unable to keep pace with demand and the availability of Grade A space declined by 61 percent during the year to reach its lowest level since 2006. There is now just 216,000sq ft of Grade A stock available to let in Central Manchester, with major new developments in the key Spinningfields district (above) and elsewhere not expected to complete until later this year and into 2018. Even some of these spaces are already let, according to the study.

(more…)

February 10, 2016

Moderate growth for global commercial real estate predicted in 2016 ⁰

by Sara Bean • Facilities management, News, Property

US and European office markets will tighten further in 2016 as demand for space outpaces a limited number of new developments, according to CBRE Group’s 2016 Global Real Estate Market Outlook. However, the extent of tightening in individual cities will depend strongly on local job growth in major office-using industries. Global prime rents across the three major property types—office, industrial and retail—are expected to grow 2.2 percent on an annual basis, according to estimates from CBRE’s Global Rent Index. The Americas, thanks to the strength of the US property sector, is expected to see commercial real estate rents rise 3.4 percent in 2016, as consumption growth and rising employment, combined with comparatively limited new supply levels, simulates demand. Rents in EMEA are forecast to rise by 3.2 percent thanks to a combination of increased consumer spending, pent-up demand for commercial space and anticipated further monetary easing by the European Central Bank.

(more…)

February 9, 2016

Better workplace design and management could save the NHS £1 billion ⁰

by Mark Eltringham • Facilities management, News, Property, Public Sector, Workplace design

The National Health Service could make around £1bn in savings if it made better use of its estate, including more efficient workplace design, according to Lord Carter’s wide-ranging 18-month review into the operations and productivity of the NHS. The wide ranging review claimed that a total of £5bn could be saved by adopting a range of best practice standards. Carter examined 32 hospitals as well as looking at systems in the US, Germany, Australia, Italy and France for the report. Among the differences highlighted were variations in the use of floorspace, with one trust using 12 percent for non-clinical purposes and another using 69 percent. Overall, the review suggests that the NHS could save £1bn by 2020 via from the better management of estates, such as lighting, heating and the utilisation of floor space. The challenges of running the NHS estate efficiently have been something of an issue for some time, as we have reported.

(more…)

February 8, 2016

CIPD joins forces with the UK Government to tackle workplace cyber security ⁰

by Neil Franklin • Legal news, News, Technology, Workplace

Human resources has a key role to play in improving the cyber security of UK workplaces. That is the key challenge addressed by a new joint initiative from the Chartered Institute for Personnel and the Development and the Department of Culture, Media and Sport. Data breaches cost companies up to an average of £1.46 million are often a result of human error and malice, according to the CIPD. The initiative includes a free online course called Cyber Security for HR professionals as part of a wider initiative to promote the importance of cyber security at work, as well as the critical role that HR has to play in ‘mitigating the competency and behavioural risks present in the workplace’. Government figures released last year indicated that the costs associated with the most severe breaches now start at £1.46 million for large businesses, up from £600,000 in 2014, and can reach up to £310,000 for small businesses, up from £115,000.

(more…)

February 5, 2016

Employers believe Millennials are the most demanding workers ⁰

by Sara Bean • Comment, News, Wellbeing, Workplace

It seems unfair to brand Millennials difficult, when you consider they are the less experienced generation of workers, but new research suggests they require more hand holding in the workplace. When asked about workers they’ve dealt with, 48 percent of bosses felt that millennials were more reliant on detailed targets and required regular progress meetings in order to stay motivated. However, the majority of bosses (89 percent) agreed that these demands indicated that millennials were highly career driven. Over one third (39 percent) named generation X as the most self-sufficient, as this group required less guidance, with Baby Boomers a close second (34 percent). Millennials were also cited as the generation most incentivised by reward and praise (41 percent), followed by Generation X (26 percent), Baby Boomers (22 percent) and Generation Z (11 percent), while Generation X had the biggest desire for a work life balance (37 percent).

(more…)

February 4, 2016

Maturing TMT sector fuels demand for office space in Central London ⁰

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

The Technology, Media and Telecoms (TMT) sector was the largest source of demand for office space in Central London in 2015, for the fifth consecutive year finds the latest Knight Frank London Report, Canary Wharf is set to have the strongest Central London office rental growth in 2016 with an increase of 12.8 percent. This is followed by Shoreditch at 10 percent and Midtown at 9.6 percent. Affordability is the main driver, along with the development of Crossrail, integrating Canary Wharf with the rest of Central London, and a general shortage of available offices across London pushing tenants seeking high quality affordable offices eastwards. Expansion by TMT firms is contributing to the shift, as they are increasingly seeking larger offices. Shoreditch’s increase in office rents will principally be driven by Tech sector expansion as the more mature, established heavy weight tech firms have firmly established a London rival for California’s ‘Silicon Valley’ in the area.

(more…)