Search Results for: london

July 12, 2016

Skyscrapers in London will be hardest hit by new business rates ⁰

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

As we reported yesterday there are plans afoot to surround the ‘Walkie Talkie’ winner of last year’s Carbuncle Cup with other tall building. However for organisations interested in occupying a London skyscraper it’s worth noting that according to Colliers, businesses in London’s twenty tallest skyscrapers can expect to pay an extra £50 million under forthcoming major changes to business rates. In a data analysis published recently, Colliers has assessed the likely effects of forthcoming business rates changes – floor-by-floor – on the occupiers of London’s twenty tallest buildings. Overall, firms will need to cough up an extra £50m as business rates bills go from £194m to £243m over the next three years. And the infamous ‘Walkie Talkie’ at 20 Fenchurch Street, and now fully occupied – will see the largest increase with office occupiers and luxury rooftop restaurants faced with a business rates bill of over £19m by 2019, an increase of £5.1m compared with current levels.

July 11, 2016

London planning to hide Walkie Talkie with…more tall buildings? ⁰

by Mark Eltringham • Architecture, Cities, News, Property

It was Frank Lloyd Wright who said ‘a doctor can bury his mistakes but an architect can only advise his clients to plant vines’. His words will be ringing in the ears of London planners who have decided they need to do something about the blight of Rafael Viñoly’s reviled Walkie Talkie building at 20 Fenchurch Street, according to an article in the Architect’s Journal. The building was last year’s Carbuncle Cup winner and has been held responsible for creating wind tunnels in the streets at its base and even frying people, shops and cars around it with reflected solar rays. Remarkably, the solution offered by planners appears to be to surround it with other tall buildings to hide it (while also creating new office space). Gwyn Richards, head of design for London, told the AJ: ‘One issue that has been brought to our attention is whether it would be preferable to have the Walkie Talkie effectively moved into the cluster so that it is less assertive. We are hearing from stakeholders saying that it would benefit the cluster to bring it into a tightly knitted group.’

June 23, 2016

Demand for professionals to fill London’s creative hub remains high ⁰

by Sara Bean • Cities, News, Technology, Workplace

As we reported last week, the success of the tech and media sector in London is driving the Capital’s offices market. Now new research has shown that demand for professionals in London’s creative occupations remains high, with over a third of jobs in the sector found within the UK’s main creative hub. The latest Professional Recruitment Trends report from the Association of Professional Staffing Companies (APSCo) based on data provided by Burning Glass, claims that 33.5 percent of all creative occupation postings were found in Greater London. The South East ranks second with 16.1 percent of creative roles followed by the West Midlands in third with an 8.1 percent share of total job postings. The list of ‘in demand’ skills for creative roles is mostly dominated by coding and programming languages. However the report suggests that the skills in the highest demand, excluding those specific to IT based roles, are communication, creativity and writing.

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

London market for flexible workspace outstrips conventional space ⁰

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

The UK market for flexible workspace has grown 11 percent in just the last 12 months. The main driver of the upsurge is inevitably London, which saw the biggest increase of flexible space at 16 percent and now represents a third of the whole UK market. According to the new research by The Instant Group, traditional occupier inquiries for London grew at a lower rate (nine percent), meaning the supply of flexible workspace in London has outstripped conventional office space by some margin over the last year; a trend the report suggests that seems set to continue into the future. Double digit growth for flexible workspace was also been seen across the UK’s regions, with suburban locations seeing some of the UK’s most aggressive growth in terms of workstation rates and inquiries, despite a 12.5 percent increase in supply, as occupiers have chosen cheaper locations with good transport links over the highly competitive market in central London.

June 15, 2016

Edinburgh most attractive city for commercial property investors outside London ⁰

by Mark Eltringham • Cities, News, Property

Edinburgh is the most attractive British location for commercial property investment outside of London, according to new research by law firm and real estate consultancy Morton Fraser. Research amongst investors by the law firm’s commercial real estate division ranks a list of ten British cities outside of London according to their attractiveness as investment options. Edinburgh, Bristol and Manchester are the most appealing regional locations for investors, based on an indexed score of how many more investors found them attractive propositions compared to those who did not. However, the remaining seven cities did not appeal to the majority of investors, with more rating them an unattractive investment proposition rather than an appealing one. Aberdeen is rated the least attractive location for investors, coming after its energy-dependent economy was hit by falling oil prices, leading to thousands of job losses and the contraction of the oil and gas industry.

June 15, 2016

Tech sector drives demand for office space in London’s City fringes ⁰

by Sara Bean • Cities, News, Property, Technology

London’s City Fringe market, the once ‘cheap’ office location of Central London has matured into a leading global tech address and, with a number of new mixed use developments underway and more planned, its success is set to continue. According to data from Savills, average Grade A rents in the area have increased by 87 percent in the last six years with the best new office space now trading at a discount of only 3.5 percent to the same quality of building in the City Core (a saving of circa. £1 per sq ft). According to Savills research, the first quarter of 2016 saw average Grade A rents in the City Fringe reach £59.42 per sq ft (compared to £61.60 per sq ft for non-tower Grade A office buildings in the City Core). This pattern is accelerated by new office developments including Derwent’s White Collar Factory and Helical Bar / Crosstree’s Bower Development, both EC1, and key deals to Adobe, BGL Group, Stripe Limited and CBS Interactive.

June 8, 2016

Mayor of London moves to open up more office spaces for startups ⁰

by Neil Franklin • Cities, Flexible working, News, Property

It is telling that one of the first issues to be addressed by incoming London Mayor Saddiq Khan is the problem the capital’s thriving startups have in simply finding a place to work. Although the measures outlined in the new London Plan are aimed primarily at addressing London’s housing crisis, they also include measures to deal with the reduction in the amount of viable office space available following the relaxation of planning rules which allow developers to more easily switch existing office stock to residential use. The costs of office space in London is a growing concern for all sectors, but falls especially hard on startups. According to a recent study by SpareOffice, even the use of coworking space is an issue, with average monthly fees of £357 per person. Now the mayor has announced that he will put new measures in place to help protect and expand office space for small businesses, start-ups and entrepreneurs in London.

June 1, 2016

Financial sector is rationalising real estate to remain in London ⁰

by Sara Bean • Cities, Facilities management, Property

A relentless drive to cut costs is forcing financial services occupiers to focus on reducing real estate costs and adopting strategies to use their space more efficiently in Central London. According to research from CBRE there has been an ongoing move by big banks to relocate non-core functions outside of Central London, as seen in HSBC’s decision to move 1,000 head office staff from London to Birmingham. However despite the inherent challenges, banks continue to cite client needs, recruitment, profile and presence as key reasons to keep office space in the Capital. This is reflected in last year’s leasing figures with banking and finance occupiers leasing 3.2m sq ft, 4.9 percent above the 10-year average. There are a variety of compromises companies may make as part of rationalisation strategies to maintain their position in London. Consolidation is an ongoing trend. But it is not a one size fits all approach.

May 27, 2016

Canary Wharf bucks London’s Brexit office market slow down ⁰

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

Canary Wharf has outperformed the Central London office market during the past 12 months, with rental growth reaching 26.7 percent, ahead of Mayfair and St James’. It seems Canary Wharf’s high quality purpose built space, coupled with its relative affordability when compared to the rest of London, has helped attract significant deals in recent months. The most notable deal during Q1 was Thomson Reuters take up of 300,000sq ft in St Martin’s 5 Canada Square. Faisal Durrani, Cluttons head of research, explained, “It was only a matter of time before the area began to draw in occupiers, particularly from the City and City fringes. It’s a market that has undersold itself and its full potential is yet to be realised but we may be approaching a significant turning point in its attractiveness. In recent months, the Central London market has experienced Brexit nervousness and general settling of the market but Canary Wharf has bucked this trend.”

May 17, 2016

London’s central office market peak driving change for other zones ⁰

by Tobi Crosbie • Cities, Comment, Facilities management, Property

There are plenty of good reasons to believe that London’s Central office market has hit its peak. Rents are at an all-time high in the majority of core office locations and whilst the start of 2016 has seen rents rise, there is certainly a clear steadying of the pace. According to our own data, the Landlord’s quoted rents for offices across the entire Central London market. Core offices such as Mayfair and St James’s have reached levels of £150 per square foot (pfs) in Q1 2016 compared with £120 per square foot in Q1 2015 a rise of 25 percent in 12 months. That does sound excessive, until this is compared with the rises seen East of the city in so called ‘fringe markets’ of Clerkenwell, Old Street and Shoreditch. Here the rents have become eye watering. In Q1 2015, the prime quoting rent in Shoreditch had reached £55 psf. In Q1 2016, this number had reached £75 psf highlighting an increase in 12 months of over 35 percent.

May 12, 2016

Office construction at highest level in London for eight years ⁰

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

Office construction in the Capital is at its highest level for eight years, according to Deloitte’s latest London Office Crane report, which measures the volume of office development taking place across central London. Recognising that the low supply of available office space across central London offers a limited choice for tenants, developers have responded by starting a record number of new schemes since the last survey. The latest results show that the volume of office construction has increased by 28 percent over the past six months to 14.2 million sq ft the highest level since the beginning of 2008. In just 18 months activity nearly doubled from 7.7 million sq ft in 2014. The financial sector has leased the largest share of office space under construction in the latest results, accounting for 2.3 million sq ft, or 39% of the let space while currently accounting for 38 percent of the space let, the TMT sector is a leading occupier group.