Search Results for: commercial

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.

November 19, 2014

Commercial property market sees significant shift in attitudes to green building

by Mark Eltringham • Environment, Legal news, News, Property

The UK commercial property market is experiencing a major attitudinal shift towards green buildings according to GVA’s fifth Green to Gold report. The biannual survey questions commercial property investors on their understanding of market perceptions of the value of sustainability criteria and gauges their attitudes towards regulation and related issues. The latest edition of the study published this month claims that the market ‘no longer views sustainability as a nice to have’ with more than half of those questioned considering green building credentials as a key driver of investment performance. Perhaps unsurprisingly this belief strengthens with regard to longer term investments. The research also found that nearly all (94 percent) of those surveyed now had a sustainability policy in place at either the organisational or fund level and 59 percent of respondents said that three quarters of their portfolios have been assessed against sustainability criteria, compared with just a quarter in 2012.

September 12, 2014

Rate of UK commercial property activity slows to weakest for 15 months

by Sara Bean • Facilities management, News, Property

The UK commercial property sector grew for the 24th consecutive month in August, but at its weakest rate since May 2013. According to the latest Total Commercial Development Activity Index from Savills, which monitors the overall performance of the UK commercial property sector, the rate fell from +27.7% to +11.9% in August, the weakest expansion in 15 months. Commercial work continued to rise in the private and public sectors however, and despite growth slowing substantially in both cases, commercial developers in the UK remained optimistic. Anecdotal evidence linked this to positive expectations of increased public sector activity and client interest in new projects. Although solid overall, the growth of refurbishment activity in August was the least pronounced since May 2013 and following 17 successive months of growth, panellists reported stagnation in office fit-out activity as well. More →

August 27, 2014

Lack of regional commercial property could hamper UK growth

by Sara Bean • News, Property

Although construction is on an upward trend, the development of commercial property lags behind, and the situation is particularly challenging in the West Midlands. According to JLL and Glenigan’s inaugural Commercial Construction Index, total construction starts by value, year end Q2 of 2014 were 15 per cent down compared to Q2 of 2013 at £2.03 billion. Graham Taylor, director of JLL’s Birmingham Buildings & Construction team, explained that the volume of commercial property being started has not risen substantially since the recession. Birmingham, Leeds and Manchester are already experiencing a shortage of Grade A office space – with much of the shortfall due to a drop in construction activity compared to the early to mid 2000’s. He said: “Rising corporate confidence means that many companies are looking to upgrade their workplaces. The corporate world is increasingly recognising that well-designed modern offices can be a key driver of productivity and staff retention, two major strategic concerns.”

June 27, 2014

Government must solve problem of London’s wasted commercial property

by Paul Statham • Comment, Facilities management, Property

The UK Government needs to act on the growing issue of wasted commercial property space in Greater London, and it needs to do so as a matter of some urgency. Statistics from the Department for Communities & Local Government (DCLG) show that since 1998, a worrying 58 per cent of London boroughs have seen vacancy rates either increase or stay the same. What is most concerning for businesses in the London region is that this rising figure, coming at a time when commercial rents are soaring, has gone unchecked since 2006, the time at which the DCLG stopped collating the data because of budgetary cuts. One of the worst performing boroughs is the City of London, which has seen a 100 per cent increase in vacant commercial properties during the period from 1998 up until the point at which the DCLG stopped publishing data.

June 18, 2014

Lack of joined up thinking hampers efforts to reduce commercial property energy consumption

by Mark Eltringham • Environment, Facilities management, News, Property

A new report commissioned by the Green Construction Board, Property Industry Alliance and UK Government claims that efforts to tackle energy consumption in commercial property and reduce the associated emissions of greenhouse gases needs a new approach to the way policies are understood, monitored and enforced. The warnings come in a paper produced by Deloitte which suggests that while the associated potential for savings and a wide range of environmental and economic benefits are beyond question and the Government has the will to make them happen, there is a lack of cohesive thinking in current policies and legislation coupled with a shortfall in innovation and investment. When the report was commissioned last year, it was done so on the basis that buildings remain the UK’s largest contributor to carbon emissions, with energy use in non-domestic buildings accounting for 17 per cent of the total.

June 16, 2014

Demand for London commercial property pushing occupiers into earlier relocations

by Sara Bean • Facilities management, News, Property

The revival of London’s financial, professional and business sectors, along with sustained demand from the TMT (Technology, Media and Telecoms) market is resulting in increasing demand for commercial property across Central London. This along, with a restricted supply of existing stock, due to conversion of office to residential usage is prompting many occupiers into making relocation decisions well in advance of a lease break or expiry. Cluttons’ London Property outlook for the second quarter of this year shows that rental costs are increasing in response to sustained demand, with a west to east migration by occupiers in evidence. Many tenants are also relocating from London’s West End to the Southbank area; while further out, ‘fringe’ areas such as Stratford are drawing tenants. More →

June 3, 2014

Commercial property helps fuel rise in number of new construction projects

by Sara Bean • Facilities management, News, Property

Construction growth in the three months to June was at its highest peak since the start of the year, driven by a renewed strengthening of non-residential properties, according to new figures from industry analysts Glenigan. Following reports from the Confederation of British Industry (CBI) that the economy is growing at its fastest pace since its records began in 2003,the Glenigan Index, which covers the value of projects starting in the UK over the previous three months, is 20 per cent higher than a year ago. Its non-residential index is up by 24 per cent compared to the same period in 2013, the strongest rate of growth seen since the three months to January of this year; largely fuelled by the private sector, with the industrial, office and hotel and leisure sectors all seeing healthy improvements. More →