April 14, 2022

Office costs creep up, but not because of higher rents

Higher fit-out costs and service charge growth, not rent rises are set to increase office occupier costs in 2022, claims a new report. Savills analysis of Q1 22 Prime Office Costs (SPOC) in global markets around the world has shown that higher fit-out costs, reflecting material and labour cost inflation, are beginning to creep through in some office markets. While overall there has been no movement in the position of cities in the rankings since the end of 2021, says Savills, some markets are experiencing rising costs in fitting out space and increased service charges. According to Savills this trend is most evident in Chinese cities, Kuala Lumpur, and in North American cities at the moment, but other markets across the globe are set to follow suit in the coming quarters.

Jeremy Bates, head of EMEA occupational markets at Savills, comments: “From higher prices for raw materials to increasing labour costs to keep up with rising inflation, it’s likely that most office occupiers will have to pay more to rent and fit-out their space in global cities this year.

“Whilst rent is the usual indicator of increasing cost, service charge rises and higher capital expenditure will represent the largest contributions towards increased occupier costs in the coming quarters. Even in markets where landlords tend to pay for fit-outs, these costs will eventually be passed on to occupiers later in the form of higher rents. Nonetheless, for many office occupiers the expense is unlikely to deter them from selecting top quality spaces in prime central business districts to attract and retain talent, although they are carrying out extensive data gathering exercises on how employees are using space before making decisions on exactly how much to take.”

Savills says that overall headline rents have, on average, remained flat in local currencies and the increasing additional costs have yet to appear across many markets, according to the international real estate advisor, with fluctuating exchange rates due to increased uncertainty producing the appearance of declining costs for many markets in Dollar terms during the first quarter of 2022, while in local currencies they have broadly remained consistent with Q4 2021.

April 13, 2022

The cargo cult of modern office design

by Mark Eltringham • Comment, Workplace design

The idea of the cargo cult derives from anthropological observations made about the behaviour of societies that encounter more technologically advanced societies. In particular it is rooted in those rituals and objects created by Pacific islanders in an attempt to attract modern goods and technology and generally earn favour with people who they thought could prevent terrible events. More →

April 13, 2022

Experimentation is the name of the game

by Eugenia Anastassiou • Comment, Facilities management, Flexible working, Workplace design

Uncertain times call for different measures and approaches, the old rules and playbooks are no longer applicable – so what are you going to do? Sit around, stagnate, hanker after old solutions trying to manipulate and squeeze them into new, unknowable, untried paradigms? No! One thing human beings are fairly good at is evolving and adapting to new and unknown situations and as we all know, being flexible and accepting change creates resilience and ensures survival. More →

April 12, 2022

The colour of magic in office design

by Mark Eltringham • Comment, Workplace design

In the Discworld series of novels, the author Terry Pratchett introduces us to the colour of magic. He calls it octarine, a sort of greenish purple, described as ‘the undisputed pigment of the imagination’. It’s all fanciful but, in fact, such unseeable colours exist for the human eye. They are seemingly invisible to us most of the time because of the limitations of our vision and not just because they exist outside of the usual visible spectrum. More →

April 12, 2022

Sustainable office design relies on everybody sharing knowledge

by Harsha Kotak • Comment, Environment, Workplace design

Back in 2018, I launched a group called Women in Office Design. I wanted to inspire and empower women involved in the profession of office design and creation. The opportunity to develop and enhance my skills and understanding was a fundamental reason why I formed WOD. Reading and research is beneficial but it’s important to take the time to reach out to others in the industry, especially on the most important issues of our day such as sustainable office design. More →

April 10, 2022

Facilities Managers should be seen as stewards of corporate culture

by Pierre Guelen • Comment, Facilities management

The pandemic has irrevocably changed the way we work. Once considered a place simply to do business, the office is fast becoming a ‘lifestyle choice’ among young people who value more than just a desk. Instead, they want an engaging, healthy, and resilient working environment where they can socialise, make friends, and build connections to help their career and wellbeing thrive. In fact, an EY study found that 90 percent of Generation-Z value the human connection in the workplace above salary when it comes to their at-work communication. A recent Gallup survey even found a tangible link between having a best friend at work and productivity: those who have a best friend in the office are twice as likely to be engaged in their role and company. More →

April 8, 2022

The Metaverse in the workplace: Meta’s wobble may affect how we use emerging technologies

by Neal Riley • Comment, Technology

There has been much talk over the past two years of the adoption of hybrid working for elephant-in-the-room reasons and it is now the case that the practice is being widely adopted by many organisations. Knocking at our office doors now is the next big talking point in terms of technology: the Metaverse. There has been much speculation recently on how this collective, virtual open space, which incorporates environments including those in which to shop, learn, be entertained and, of course, work, will evolve. It has been described as the ‘next chapter of the Internet’ and is created by the convergence of virtually enhanced physical and digital reality. More →

April 5, 2022

Hybrid working burnout is inevitable, say third of workers

by Jayne Smith • Flexible working, News, Wellbeing

Over one in three (36 percent) UK workers believe burnout is an inevitable part of their career, according to new data based on 2,000 UK knowledge workers. The figure, which rises to 41 percent of managers was noted by UK workers as a natural part of career progression by those who had experienced it. UK employees are feeling isolated at home when part of a hybrid working culture and they’re struggling to balance priorities and establish clear boundaries. More →

March 29, 2022

MIPIM revival offers up a pale, stale imitation of life (but there’s hope)

by Freddie Steele • Comment, Property

If a week is a long time in politics, then two years in real estate is practically a lifetime. Time enough for an opportunity for MIPIM, the property world’s annual gathering in Cannes to reset itself post-pandemic. Unlike back in London where British Land had offered up space for Ukrainian care packages at its Paddington Central Campus and Quintain also pledge to make space at its Wembley Park space (as reported by Estates Gazette), unfortunately such correct reading of the room wasn’t the case on the Croisette. More →

March 29, 2022

Making sense of an uncertain but energetic return to some sort of normal

by Eugenia Anastassiou • Features, Flexible working

The first Omnirama event on the 23rd of March launched the series exploring different factors challenging the world of work in a time of prevailing uncertainty. Underlying Ominirama’s raison d’etre is that recent events have turned the status quo on its head with some major structural and systemic changes taking place. Nobody seems to have any clear idea of how to deal with this enormous transformation in the ways we work All the playbooks and all the guidance that we have all relied upon for so many years have now gone out the window. More →

March 29, 2022

The Great Resignation and what is really happening

by Carlos Carillo-Tudela et al • Features, Workplace

The ‘Great Resignation’ is a buzzphrase that first appeared in May 2021, and has struck fear into the hearts of employers ever since. Coined in the US, the term refers to the unprecedented rise in the number of workers resigning from their jobs following the pandemic. There has since been a huge amount of research trying to work out why this has happened. Are workers quitting work entirely, as the pandemic makes us re-evaluate our priorities? Or are they quitting to pursue their dreams in a different career? More →

March 25, 2022

The compadre of teleworking, with Jack Nilles

by Freddie Steele • Features, Flexible working, Podcasts

In episode four of Workplace Geeks, Chris and Ian cross seven time zones to learn from the father of teleworking and environmental activist, Jack Nilles, about the multi-disciplinary research project that led to his 1976 book ‘The Telecommunications-Transportation Trade-off: Options for Tomorrow’. Teleworking has been proven to be an effective and valued part of hybrid working solutions since the 1970s. The barriers to implementation are rarely, if ever, technological or economic: they are cultural, often specifically managerial, and always have been. Despite this, tried and tested change methodologies can overcome these challenges. Now, more than ever, we need to embrace the many benefits of teleworking, not just for organizational and personal gain, but also as part of our strategies to address the climate emergency. More →