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BCO predicts how Brexit might impact on demand for office space to 2022

BCO predicts how Brexit might impact on demand for office space to 2022

Commercial property occupiers remain cautious about the future, and hard data indicates that demand has, so far, been largely unaffected by Brexit, claims a new report from the British Council for Offices (BCO) . ‘Brexit and its Potential Impact on Office Demand’, examines how Brexit might impact on demand for office space on a national and regional basis through to 2022. According to the report, almost one year on from the Brexit vote the situation is one of uncertainty, feeding through to slower growth, with ‘an almost palpable sense that choppy waters lie ahead, particularly with regard to trade and movement of labour’. However, businesses continue to make long-term investments in the national economy and even in the City, some large investment banks have committed to large new office buildings. There is much variation in the relative performance of the UK’s major office centres, though, with some expanding and others apparently in decline.

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What we may be missing about IBM’s decision on flexible working

What we may be missing about IBM’s decision on flexible working 0

In May, the Wall Street Journal reported that IBM had announced that it was obliging a significant number of its staff to give up on remote working and instead move back to corporate offices, many of them regional hubs. Although we had been aware of the change in policy since February, the issue only went viral as a result of the WSJ story. Comparisons were quickly made with Yahoo’s poorly received decision to summon staff back to its corporate HQ in 2013 and commentators expressed dismay that such a major corporation would be willing to return to the command and control structures of a previous era, especially given its sector and track record of encouraging flexible working. What such commentary missed was a particular nuance of the story that might suggest this is more of a continuation of existing IBM policy than they have been given credit for.

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The self employed have to rely on each other as government offers almost no support

The self employed have to rely on each other as government offers almost no support 0

The self employed are turning to one another for business and financial support, according to new analysis by the RSA think-tank. Commissioned by the Federation of Small Business (FSB) to examine how self-employed workers might manage the risks they face, the RSA report claims that growing numbers of workers are turning to collective sick-pay funds to manage ill health, cash pooling schemes to deal with late payments and micro-loan services to plug gaps in bank finance.  The RSA’s report, The Self Organising Self Employed concludes that, to date, both the state and the market have struggled to keep pace with the rising numbers of the self employed. Although successive governments have been vocal in their admiration of people who strike it out alone, holding up their attributes as ‘self-starters’ and ‘strivers’, this had led to a ‘non-interventionist, hands-off policy agenda, with the self employed broadly left to their own devices’.

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Millennials most likely to have left their jobs by the end of this month 0

An exodus of staff is expected at the end of June, claims a new study which predicts that 36 percent of employees will have left their jobs by the end of this month. Research from Robert Half UK entitled: ‘It’s time we all work happy: The secrets of the happiest companies and employees’ finds employees in London and the East of England are most likely to have left their roles by the end of June with nearly half of Londoners (49 percent) and 42 percent of those in cities like Cambridge, Norwich and Peterborough admitting they anticipate quitting their jobs in the first six months of the year. This trend is being driven by the millennial generation (aged 18–34), who despite experiencing above average levels of happiness (71.7) and interest (71.3) in their roles, are more likely to have left their jobs (49 percent) compared to a third of 35–54 year old’s and a fifth (21 percent) of those aged over 55. (more…)

Firms remain optimistic despite political uncertainty, Brexit and automation

Firms remain optimistic despite political uncertainty, Brexit and automation 0

Britain’s start-up businesses are more optimistic about the future than those in the US, Europe and Asia, despite the uncertainties caused by Brexit, according to research by EY. According to the company’s Growth Barometer, half of UK businesses less than five years old expected to grow by more than 11 per cent this year. Almost a quarter were forecasting growth of more than 26 per cent. The findings are based on a survey of 2,340 middle market executives across 30 countries, reveal that in spite of geopolitical tensions, including Brexit, increasing populism, the rise of automation and artificial intelligence (AI) and skilled talent shortages, 89 percent of executives see today’s uncertainty as grounds for growth opportunities. What’s more, 14 percent of all companies surveyed have current year growth ambitions of more than 16 percent.

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EU announces plans for free Europe wide WiFi network

EU announces plans for free Europe wide WiFi network 0

The main institutions of the European Union have agreed a plan to offer free Wi-Fi connectivity to public spaces such as parks, squares, public buildings, and hospitals all over Europe. The European Parliament, Council and Commission have reached an agreement regarding the decision to fund the WiFi4EU project. The project will provide “every European village and every city with free wireless internet access around the main centres of public life by 2020”. A budget of €120 million has been allocated to pay for the setup and operating costs of the project. The EU expects between 6,000 and 8,000 regions will be offered the chance to take part. They will receive funding to buy, install and maintain the Wi-Fi for three years while cities and towns will have to use their own funds for internet services. WiFi will only be made available in areas where a similar free public or private Wi-Fi network is not currently available. Andrus Ansip, the vice president in charge of the Digital Single Market, praised the agreement between the Parliament, Council and Commission saying:    “The Digital Single Market strategy aims to build a fully connected Europe where everyone has access to high-quality digital networks. The WiFi4EU initiative will improve connectivity in particular where access to the internet is limited. WiFi4EU is a welcome first step, but much more needs to be done to achieve high-speed connectivity across the whole EU territory – such as improving Europe-wide coordination of spectrum and stimulating investments in the high-capacity networks that Europe needs.”

Settings and serendipity define workplace design at Clerkenwell Design Week

Settings and serendipity define workplace design at Clerkenwell Design Week 0

Because a vast show like Clerkenwell Design Week is about as easy to digest as a whale omelette, visitors often find themselves discussing with other people what is worth seeing and, perhaps more importantly, what they think its themes are. At this year’s show, the fine weather meant it was possible for people to occupy the pavements with a drink and share a general feeling that in terms of workplace design, there were few, if any, standout products and that most of the themes were now pretty well understood.

There was a great deal of talk about the need for privacy, the creation of a choice of settings in which to work, the influence of the coworking movement, wellbeing, agile working, Millennials, the intersection of design idioms from the domestic and commercial worlds and planned serendipity. These are now familiar subjects and, with the exception of a largely false narrative about Millennials, all in tune with the main concerns of occupiers and employees. They may be familiar but we should celebrate the fact that this in itself signifies not only growing sophistication in the demands of buyers but also the way we address workplace issues as a sector. Most tellingly, there is one common factor at the heart of each of the concerns addressed in the designs on show; people.

This marks a profound shift from the old hierarchical constraints that used to define office design. The idea that a building should be carved up and shared out semi-permanently between individuals based on their job and status for set periods of time now looks more and more archaic as each day passes. The modern workplace can be pretty much anything it wants to be and we should not take that for granted just because it’s been said before.

Boss Design

Boss Design

Encapsulating these ideas was a brand new range from Boss Design called Atom designed by Simon Pengelly. The business model of Boss has always meant it found itself at the intersection of various forms of design with a portfolio of products that could be used in a variety of settings, but Atom offers a fully resolved menu of elements that make the idea explicit.

Where once modularity in furniture design meant that parts fixed and tessellated, it now refers to a more freeform interpretation. This isn’t Lego modularity but something more organic, ingredients rather than parts.

The designs are very much focussed on people. These are the sorts of products that invite people to work in the ways that suit them best. Designers and office buyers are given the elements needed to offer employees choices but without any sense that solutions are prescriptive. As Simon Pengelly explained, it’s all very well having collaborative space but it only works if you’ve then got a space to do something with the ideas you’ve just shared. This was the best resolved system of products at the show and one very finely attuned to 21st Century office life.

Boss Design

 

Steelcase

The world’s largest office furniture manufacturer was pursuing similar themes while also sharing the stage with Microsoft, a firm with which it has just announced a global partnership agreement, focussed in large part on the forthcoming Surface Hub, previews of which were available at the event. The main focus of the firms’ approach was how work settings can be integrated with technology to produce working environments that foster creativity. In the accompanying presentation, we were told not only that this will be the main focus of office design in the coming years as machines take on most of our process driven work, but also that if office furniture firms want to survive the century, they’ll need to be talking about far more than office furniture which is perfectly true and equally applies to the whole workplace sector. This is not a time for one trick ponies.

Appropriately Steelcase offered up a number of settings to give people the chance to work creatively including a Respite Room. Offices may exist to bring people together but we always need time away from them.

Steelcase (and top)

 

Connection

Connection was one firm that made the link between wellbeing and domestic and commercial design explicit with a soft seating system called Hygge. This is a reference to the modish Scandinavian practice of hygge, which cleverly taps into our ongoing fixation with all things Nordic and our belief that they have a unique insight into how to achieve a work life balance and look after themselves. The firm was also on point with its new co.table which again expresses the overlap between domestic and commercial design as well as the increasing adoption of agile working models. Connection was also addressing the issue of acoustics and privacy with its elegant system of rooms, now a well-established requirement for shared spaces.

Connection

 

Spacestor

Another firm characterising the intersection of domestic and commercial design as well as the creation of room settings, Spacestor launched their new Palisades room divider system. Not screens but the sort of dividers used to break up space, as well as store and display objects. Spacestor were also showing their work pods, including options defined as railway carriage and phone booth.

Spacestor

 

Sit/stand workstations

Now almost as ubiquitous as the bench desk, sit/stand workstations have become mainstream in the UK as they have been for quite some time in parts of Scandinavia. In part this is down to the medicalisation of sitting down as a result of some well thought out but – in my view – slightly off the point PR. But it is also a signifier that firms are interested in the wellbeing of their staff, an issue about which it is impossible to be cynical.

So Staverton, Humanscale and others had nice products on show, but it is evident that as is true with bench desks (and toilets, come to that), the product itself exists in pretty much its purest form as it is. It is a worksurface with an actuator to make it rise and fall. It’s a good product, but one which you can hardly expect to see evolve.

Staverton

 

Task seating

Conversely, the design of task chairs has actually returned to a simpler form. Over the past 20 or more years, there had been a race to see who could offer users the most adjustments. So, where once the chair merely went up and down and rocked, every part of it had to be adjustable in at least one dimension and preferably three. An arms race, if you will. The result was a proliferation of controls around and underneath the seat.

Over the past few years, we have seen a reversal of this in favour of something more intuitive. Typical of this new generation of chairs are the se:joy from Sedus, Trinetic from Boss Design, various designs from Humanscale (who, it could be said, catalysed the development of chairs that work with the body rather than an instruction manual) and, new this year, the EVA chair from Orangebox which claims that by ‘refining the chair to just a few controls has allowed us to focus on maximising the range of adjustment it offers’. Counter-intuitive maybe but they’re right.

Orangebox

 

Flooring

Innovation in carpet design tends to come about as a result of the interrelationship of new materials and manufacturing technology and the designs each manufacturer can derive from them. There are some great products on the market, and each one has a separate narrative woven around it, if you’ll forgive the pun. These can range from the use of colour and trends forecasting, to environmental concerns, the crafts movement, biophilia and printing techniques.

In typical fashion, the major flooring showrooms at Clerkenwell Design Week had lively events programmes that highlighted trends in the market and are perhaps somewhat less product focussed than furniture showrooms. So, Interface focussed on the positive effects that design can have on people, Milliken hosted a series of events including a Design in Education debate with Jay Osgerby and Annie Warburton and Shaw Contract hosted several CPD accredited talks including one rejoicing in the title “Using virtual reality as a participatory approach for evolving spaces in our cities”.

Porcelanosa

 

Socialising

And, of course an event like Clerkenwell Design Week would be nothing without the chance to have a drink and a chat with friends and colleagues. The event this year was blessed with blue skies and temperatures in the high twenties, which is a mixed blessing if you’re hosting parties at one of the showrooms. Despite concerns that the warm weather would mean people swapping bars for studios, all the events seemed incredibly well attended, including those at Vitra and KI.

This is, of course one of the main aims of such exhibitions, to bring an industry together as one and with one voice, at least this year with regard to the aims and concerns of workplace occupiers and the people who work for them. In all senses, an event about people.

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Paul Goodchild is the Design Director of Fresh Workspace.

Good working relationships and less stress are key to workplace happiness

Good working relationships and less stress are key to workplace happiness 0

Less stress and better workplace relationships are the reason why the happiest regions to work in the UK are Yorkshire and the Humber; while uninteresting work is the reason why employees in Scotland and the South are the most unhappy. Research into workplace happiness by Happiness Works on behalf of Robert Half UK claims that 77 percent of employees in Yorkshire and the Humber are the happiest employees in Britain, well above the national average of 63 percent. Those questioned find their work more interesting (74 percent), get on with their team (88 percent), have good friends in the office (72 percent) and suffer less stress (38 percent). Britain’s most unsatisfied employees are those working in Scotland and the South of England, with 17 percent of employees saying they are unhappy at work and one in six expressing their work is not interesting. Over a quarter of those in South (27 percent) don’t have good friends in the office or don’t get on with their teams and one in seven (14 percent) in Scotland feel the same. However, employees in Scotland (63 percent) and the South (65 percent) do believe they have a good work-life balance.

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The new normal arrives for the commercial property sector

The new normal arrives for the commercial property sector 0

wework-coworking-new-yorkTraditionally, the two principle vectors for change in the commercial property market have been lease lengths and space standards. Both have shrunk markedly over recent years, subject to the miniaturising effects of technological and cultural change. Even so, the effects of this contraction have taken place within an existing paradigm so have been easily understood, if not always acted upon.So it has been that major property organisations such as the British Council for Offices and CoreNet have been able to produce guides and reports based on well understood principles and without challenging the business models and assumptions of developers, landlords, workplace designers and occupiers. For most the challenges remained the same, not least how to resolve the sometimes conflicting timescales of people, place, property and technology that is the defining tension at the heart of office design and management.

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Europe needs national renovation strategies for buildings, coalition claims

Europe needs national renovation strategies for buildings, coalition claims 0

Europe must lead the world in cutting greenhouse gas emissions from existing buildings if it is to meet the ambitions of the Paris Agreement, claims BUILD UPON, a coalition of over 300 businesses and organisations from across the continent. The coalition – which includes cities, public authorities, property developers, manufacturers and energy utilities, as well as trade associations, NGOs and universities – is backing the need for ambitious ‘national renovation strategies’ that set out clear targets, milestones and measures on transforming existing buildings. The intervention comes as EU member states near the deadline to publish updated strategies to renovate their buildings, which account for around 36 percent of Europe’s total greenhouse gas emissions, and as political decision-makers grapple over the future of EU energy laws for the construction sector.

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WeWork extends property as a service offering as IBM takes on entire coworking building

WeWork extends property as a service offering as IBM takes on entire coworking building 0

In a deal of enormous significance for the commercial property and workplace sectors, IBM has agreed a deal with coworking giant WeWork to take on all the space at its 88 University Place office in New York. Although originally targeted at startups and freelancers, especially those working in the creative and technology sectors, a growing number of corporate clients are seeing the appeal of coworking space in a fast changing world and now make up over a fifth of WeWork’s membership worldwide. Meanwhile, in moves that are sure to have major implications for the corporate real estate and facilities management market, WeWork has also announced plans to become a major real estate investor and introduce a wider range of FM services. The firm already operates in 135 locations spread across 44 cities in 14 countries.

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Rents start to surge in Australia’s thriving high rise commercial property market

Rents start to surge in Australia’s thriving high rise commercial property market 0

Australia can justifiably claim to lead the world in thinking about office design and management right now, but it may be coming at a cost as rents surge for high rise office space in its major cities. The cost of renting office space in the skyscrapers of Sydney and Melbourne (pictured) is rising faster than in any other major global city, as a lack of space pushes up rates. The costs of space have yet to hit the heights of tall buildings in cities like Hong Kong, but Knight Frank’s Skyscraper Index claims that the cost of renting space in the upper floors of skyscrapers in Melbourne had risen by 11 per cent to £40.98 per square foot per year in the six months to the end of last year, while those in Sydney had risen 10.1 per cent to £78.39 per sq ft.

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