Search Results for: financial

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.

January 12, 2015

Aging workforce driving uptake of flexible working in UK firms

by Mark Eltringham • Flexible working, News, Workplace

A growing number of employers see flexible working arrangements as an important tool for meeting the needs of their aging workforce, according to a new report from insurance industry trade association Group Risk Development (GRiD). The report highlights how changing attitudes, demographics, longer life expectancy and the abolition of the UK’s Default Retirement Age three years ago have encouraged employers to look at how to foster the wellbeing and meet the needs of older employees. Over a quarter (27 percent) of the 500 UK businesses who took part in the study had introduced flexible working specifically to meet the needs of their ageing workforce and many (22 percent) of employers said dealing with an ageing workforce was among their top three wellbeing issues.

January 7, 2015

City of London office market reaches the highest volume of lettings for 15 years

by Sara Bean • Facilities management, News, Property

Central London leasing activity hit the highest volume since 2007 last year, while the office market in the city reached its highest volume for 15 years. Take up of central London office space totalled 12.4 million sq ft, when 12.7 million sq ft was let; which is 15 per cent ahead of 2013 totals. According to the latest research by Cushman & Wakefield, while all areas of the capital saw an upturn in activity during 2014, the City of London market recorded the highest volume of lettings for 15 years, with 7.2 million sq ft of transactions completed compared to 7.4 million sq ft in 1998. West End lettings reached 4.0 million sq ft; on a par with the last peak in 2007. Even Docklands saw take-up double in comparison to 2013 to exceed 1.0 million sq. ft for the first time since 2010; and the serviced office sector is thriving.

January 6, 2015

Government should accept that self employment is the new normal for many

by Mark Eltringham • Flexible working, News, Workplace

The Government should develop more policies that meet the needs of the growing numbers of self-employed in the UK and across Europe. That is the message of a new report from think tank The Institute for Public Policy Research which points out that while 40 percent of the rise in job levels since 2010 has been in self-employment, the Government should accept this is not a blip but a structural change in the way many people work and develop appropriate policies to meet their needs. The report argues that self-employment is already the new normal for some 4 million UK workers and the Government should take steps to ensure their pensions, training and earnings are in step with the rest of the workforce.

December 11, 2014

New report uncovers habits and habitats of London’s workplace tribes

by Mark Eltringham • Cities, News, Workplace

City workers have been proven to ‘work hard and play hard’ more than those in other areas of Greater London, according to an extensive study of the capital’s office workers. Those in the Square Mile have the longest hours (45.3), spend most nights out drinking (two) and as a consequence suffer from the highest number of hangovers on a weekly basis. The findings are part of a research project by Avanta Serviced Office Group, to reveal the contrasting habits, characteristics and lifestyles of those working in different areas. The study questioned over 1,500 office workers across the city and found: City of London workers are most likely to ‘work hard and play hard’, often snoozing in the workplace at lunchtime to catch up on their sleep; weary West Enders are out-shopped by workers in the City; Islington is the cycling and social media capital of London; and Croydon has the most office romances.

December 9, 2014

New Scotland Yard sold to Emirati investors for £370 million

by Mark Eltringham • News, Property, Public Sector

Illustration: @SimonHeath1

The buyer of the Metropolitan Police’s Scotland Yard headquarters building has been confirmed as Abu Dhabi Financial Group (ADFG). The sale of the home of the Met as part of a huge shake-up of the police’s estate was first announced last year and last month news emerged that a buyer had been found, although details of the sale were withheld. The sale of the site to the Emirati investment group for £370 million is reported to be some £120 million more than the original asking price set by London Mayor Boris Johnson. The current building has been home to the Met since 1967 but the Mayor’s office felt the sale and freeing up of resources could benefit the force’s frontline operations. The sale is part of a wider shake-up of the police estate in London which has already seen the sale of 32 buildings, raising £125 million. The restructuring programme is expected to complete in 2016 and is estimated to save around £60 million each year in running costs.

December 9, 2014

Government must beef up the way it manages outsourced contracts

by Gary Watkins • Briefing, Comment, Facilities management, Public Sector

Any poorly-performing facilities management contract can result in financial and reputational loss, but where a government contract has been mismanaged, and there is a thirst for information on how the public purse has been spent, the repercussions can be major and the casualties high. The UK Government is the biggest spender on FM services, with £40 billion of outsourced contracts each year. However, in a recent report from the Public Accounts Committee and National Audit Office, contract management came in for stinging criticism. Evidence of overbilling, capacity issues, and poor governance and recordkeeping led to a very clear message that the Government must beef up its contract management. Procurement and contract management have been viewed traditionally as low-status in the civil service and, as a result, have been at the mercy of administration cuts and lack of investment.

December 8, 2014

Flexible working could boost economy by £90 billion, claims report

by Mark Eltringham • Flexible working, Knowledge, News

The widespread adoption of flexible working in the UK could boost the economy by as much as £90 billion each year according to a new report from mobile tech firm Citrix and the Centre for Economics and Business Research (Cebr). The study of 1,272 British knowledge workers claims that their ‘best case scenario’ calculation is based on saving UK workers £7.1 billion in commuting costs and over half a billion hours spent travelling. This would add around £11.5 biliion annually to the economy. The report also suggests that an even greater boost to GDP could come from the introduction of a large number of currently unemployed and underemployed individuals such as the retired, disabled and stay-at-home parents. By tapping this pool of talent the report claims that the economy would benefit by up to £78.5 billion annually, equivalent to nearly 5 percent of GDP.

December 5, 2014

Bouygues wins £27 million office fit out contract in City of London

by Mark Eltringham • Company news, News, Property, Workplace design

Bouygues UK has been awarded a major new design and build contract by developers Morgan Capital Partners LLP. The award comes hot on the heels of the handover of another major office refurbishment at 71 Queen Victoria Street, which is a stone’s throw away from the new site at 45 Cannon Street, in the heart of London’s financial district. The deal will see the demolition of existing offices and the construction of a new eight-floor office building including a Category A office fit out and the addition of 13,000sqm of retail space on the ground floor. As part of the works, the entrance to Mansion House underground station will also be refurbished as it sits on the site. Bouygues UK is aiming for a BREEAM Excellent rating on the project. Demolition is already being carried out on site, with Bouygues scheduled to begin construction work in the New Year. The project is due for completion in 2016.

December 4, 2014

Most people will continue to work in traditional offices for foreseeable future

by Mark Eltringham • Flexible working, News, Technology, Workplace design

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The office remains the favoured location for work worldwide but there remains an ongoing mismatch between perceptions of the productivity and performance of flexible working employees and the reality, says a major new report from Dell and Intel. According to the Global Evolving Workplace Report based on a survey of nearly 5,000 employees worldwide, the idea that remote workers are less productive is particularly apparent in developed countries. In the UK, people are two times more likely to believe that colleagues who work from home are less rather than more productive. In Germany, 75 percent of respondents saw the ability to work from home as a special privilege. Meanwhile, of those employees surveyed in developing countries, over one-third (34 percent) see home workers as more productive, compared to 32 percent who believe they get less done.

December 3, 2014

Focus on the wellbeing of the occupants of the office, not that of the building

by Maciej Markowski • Comment, Facilities management, Wellbeing, Workplace

If you ask a typical corporation about their real estate strategy you will most probably hear a lot about rationalisation, minimising cost and synergy. Real estate strategy should include all these but a cost-cutting approach can be very short-sighted. Staff costs usually account to about 90 per cent of the business operating cost, while any improvement in staff’s productivity will have a stronger and more positive outcome than any cost saving on a building. The recently released World Green Building Council (WGBC) report Health, Wellbeing & Productivity in Offices developed with the support of JLL, Lend Lease and Skanska, clearly shows that the design of an office has a strong impact on the health, wellbeing and productivity of its occupants. It describes the impact of acoustics, interior layout, look & feel, amenities, air quality, thermal comfort, location, daylight and user control on occupants. But it doesn’t stop there.

December 2, 2014

Green manifesto challenges next government to deliver low-carbon economy

by Sara Bean • Environment, Facilities management, News

On the eve of the Autumn Statement, an influential business-led coalition of businesses, NGOs, industry associations and cross-party politicians has called on the next Parliament to tackle a range of environmental challenges affecting the UK economy and the built environment. The Aldersgate Group Manifesto identifies six target areas it says the next government must meet to build a growing, sustainable and resilient UK economy. It must accelerate the move to a competitive low carbon economy; prioritise energy and resource efficiency; improve our understanding and the state of our natural capital; equip the UK’s workforce with the right skills to benefit from the opportunities offered by the transition to a sustainable economy; increase financial flows towards low carbon and other environmental projects; and ensure the UK continues to benefit from progressive European environmental standards whatever the UK’s future relationship with the EU. More →