Search Results for: commercial

August 24, 2015

Demand for commercial office space in UK cities continues to surge ⁰

by Mark Eltringham • Cities, News, Property

According to the latest quarterly update from property advisors Knight Frank, demand for commercial office space in the UK’s regional markets remains remarkably strong, driving upward pressure on rental prices and increasing the demand for new commercial property developments. According to the report, demand is up by around a half compared to the previous quarter, with Birmingham enjoying the largest increase of around 400 percent. Strong economic growth is reflected in healthy occupier demand, which saw a total of 2.08m sq ft taken up in the three months to the end of June, which was 51 percent ahead of the first quarter and 49 percent above the five year quarterly average. The stand out let was HSBC’s at Birmingham’s Arena Central development (top) which accounted for fully half of the city’s take up of space and which we reported here.

June 24, 2015

Construction work completes on UK’s greenest commercial building

by Mark Eltringham • Architecture, Environment, News, Property

Morgan Sindall has completed construction of what is claimed to be the UK’s greenest commercial building, the Enterprise Centre at the University of East Anglia. The building boasts record-breaking sustainability credentials including both BREEAM Outstanding and Passivhaus accreditations. It has been designed to maximise the use of low embodied carbon materials over a projected 100-year life span. The building incorporates an innovation lab, a 300-seat lecture theatre, flexible workspaces, teaching and learning facilities, as well as business ‘hatcheries’ and incubator units for small businesses and start-ups in the low carbon sector. The developers believe that by placing like-minded academic and private sector occupiers side by side, the centre will foster innovation, stimulate smarter ways of working, promote industry standards and create new sustainable supply chains.

June 9, 2015

National increase in number of commercial property new builds for 2015

by Sara Bean • Facilities management, News, Property

There has been a strong start to the year for non-residential construction, with the annual total starts for new builds and existing projects rising by 7.9 percent over the first three months. According to JLL and Glenigan’s latest Commercial Construction Index Q1 outperformed same quarter in 2014 – with new building activity increasing most in Yorkshire & the Humber (30.6%) during Q1, boosted by the Hammerson’s Victoria Gate scheme in Leeds. In Scotland, building is up (28.1%), in Wales by 24.4 percent and the East Midlands has seen a 24.2 percent rise. Greater South East (London, the South East and the East of England) saw the volume of new builds rise 7.3 percent from £11.2bn to £12.0bn. However, construction has fallen in the North West (-14.2%) and the West Midlands (-9.2%), while across the UK refurbishments and extension projects have declined slightly.

May 19, 2015

Shared office space is redefining commercial property and the workplace

by Charles Marks • Comment, Property, Workplace design

Hive by Connection

The changing way we work presents particular challenges for the development of commercial property as well as those who specify, design and occupy workplaces. As has been highlighted many times before, the days are gone when designing an office was largely determined by the number of people who occupy it and the main determinant of the space needed for them was the size of their desks based on their status and what they did. Now, those are just some of the characteristics that need to be taken into consideration when creating workplaces, alongside others such as how much meeting and shared office space is needed, whether certain people need a dedicated workstation at all, how to give them choices about where they work and with whom and how the building can adapt to changing teams and objectives.

May 6, 2015

TfL to occupy first commercial property at International Quarter

by Sara Bean • Architecture, Company news, News, Property

Construction is to begin this summer on the first of a number of office buildings planned for the second stage of the International Quarter, a £2.1 billion mixed-use development in Stratford in East London. Transport for London (TfL) has signed a pre-let with Lend Lease and London and Continental Railways (LCR) to occupy all of the space in the 265,000 sq ft commercial property. An estimated 3,000 TfL workers will relocate to the International Quarter’s new offices and, once completed, an estimated 25,000 people will work at and visit the site each day. The developers claim they are in discussions with other tenants about moving to The International Quarter – which, at a total of four million square feet, will be one of the largest new commercial property developments in the capital.

April 29, 2015

RICS reports surge in investment and demand for commercial property ⁰

by Sara Bean • Facilities management, News, Property

Demand for commercial property in the UK is growing close to its fastest pace since 1998. The latest RICS UK commercial market survey shows that there was a surge in investment and tenant demand in the first quarter of this year, which suggests stronger economic growth over the remainder of 2015. The UK had its 10th consecutive quarterly acceleration of demand, with 46 percent of respondents reporting greater interest. However, the availability of commercial property declined, with 38 percent of RICS’ surveyors seeing fewer properties on the market, the impact of which is higher rents. This is particularly apparent across the industrial and office sectors. Looking ahead, respondents expect the office sector to perform most strongly; with London leading the way, despite some concerns over the valuation of prime property in the capital.

April 24, 2015

Rising commercial property costs driving small businesses out of London ⁰

by Mark Eltringham • Cities, News, Property, Technology

The vast majority of small businesses in London and other parts of the South East are considering relocating over the next five years because they are frustrated with the lack of appropriate facilities and soaring commercial property costs in the region. A new study from the University of Sussex’s business incubation network Sussex Innovation claims that nearly two thirds (63 percent) of small businesses, rising to 78 percent of technology startups, believe their future may depend on leaving the capital. The study claims this threatens the viability of the Government’s flagship Tech City hub just months after it announced a new scheme to attract firms to the area. The research is based on a study of over 500 business owners and leaders in London and the South East and was presented at the launch of Sussex Innovation’s new hub in Croydon.

March 16, 2015

Edinburgh and Manchester top UK’s regional commercial property markets

by Mark Eltringham • Company news, News, Property

With 2015 set to be a ‘stellar year’ for regional city growth, commercial property adviser GVA has compiled key statistics on Grade A office markets for the top nine UK cities. Manchester and Edinburgh topped the charts in terms of Grade A take-up in 2014, on 401,406 sq ft and 333,351 sq ft respectively, while Newcastle was at the bottom on 64,000 sq ft, just behind Liverpool on 67,199 sq ft. Edinburgh and Glasgow led the way in terms of immediately available space and Edinburgh also saw the largest leasing transaction in 2014 with the 108,564sqft deal signed by Standard Life Investment. Manchester (614,000) and Leeds (487,650 sq ft) top the heap in terms of Grade A space under construction. Meanwhile Manchester and Birmingham top the prime rent pile at £32 and £30 per sq ft for prime Grade A space respectively.

February 5, 2015

Buoyant demand for commercial property across Europe, claims report

by Mark Eltringham • Company news, News, Property

Europe’s commercial property market ‘sizzled’ during 2014, according to a new report by Real Capital Analytics (RCA). Europe saw 213.1 billion euros of commercial real estate transactions in 2014, a rise of 13 percent over 2013. Paris led France to a 31 percent rise, although the French capital accounted for three quarters of demand. In contrast, demand in London fell 3 percent as high prices led investors to British regional markets, with the UK market overall up 16 percent. A similar trend emerged in Germany, where volumes in Berlin, Munich and Hamburg fell, while markets in the Ruhr, Cologne and Stuttgart strengthened. Most improved were commercial property markets in Ireland and Spain, where investment volumes soared 89 percent and 134 percent respectively.

January 29, 2015

Latest commercial buildings listings illuminate changing world of work

by Mark Eltringham • Architecture, News, Property, Workplace design

The latest fourteen buildings to be listed as part of the Post-War Commercial Buildings Project have been announced by the UK Government’s Department for Culture, Media and Sport. The project was initiated by English Heritage in 2011 as a way of recognising the significance and diversity of commercial buildings and acknowledging their unique proneness to change. According to English Heritage the latest fourteen Grade II listed entries (as well as a number of others assessed but deemed of lesser significance) also highlight how the design of commercial buildings reflected the changing world of work up to the cut off point of 1984. Although the projects are predominantly in the South East, there are listings for commercial buildings in Leeds, Newcastle-upon-Tyne and Birmingham.

January 26, 2015

Latest figures show record last quarter for UK commercial property investment

by Sara Bean • Facilities management, News, Property

Investment in the UK commercial property sector totalled £20.5bn in the final quarter of 2014 – a 26 per cent increase on the previous quarter and the highest quarterly performance on record. The demand for Central London offices was a key driver for this as in the final quarter of the year, investment in this sector more than doubled from the previous quarter. The latest edition of Lambert Smith Hampton’s UK Investment Transactions report reveals that investment in the UK regions increased overall by 41 per cent to £21.1bn for the year as a whole – the second highest figure on record. Overseas investors continue to be the largest buyers of UK commercial property, with investment from the US more than doubling year on year and interest from the Far East also increasing significantly. Click here for more information.

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.