Search Results for: commercial

December 8, 2015

Six human resources costs you might avoid by choosing the right office ⁰

by Darren Bilsborough • Comment, Property, Workplace, Workplace design

According to a report from Colliers International, the majority of commercial office space in Australia and New Zealand is occupied by government departments and firms working in the business services, finance and insurance sectors. Other than government and the Not for Profit (NFP) sector, a prime motivation for every CEO, business owner and manager is the search for increased profitability. In most instances, a business has three pathways to increasing profitability. The first is through increasing turnover or sales (assuming the cost base remains equitable), the second is through reducing costs, and the third is by improving productivity. I have previously written quite a lot about the relationship between office space and productivity increases, but this article will explore one of the most insidious elements associated with any businesses cost base (including government) and that is staff turnover.

December 8, 2015

Linear equations are no longer enough to determine the size of offices

by Mark Eltringham • Comment, Facilities management, Furniture, Technology, Workplace design

In 2013, the US Census Bureau announced that the official human population of the Earth had exceeded 7 billion for the first time. This provoked people to raise concerns that were couched in Malthusian pessimism. Although people might have assumed we’d left behind this kind of flawed thinking, there is obviously something appealing about the idea that exponential population growth is unsustainable when resources increase only in arithmetical terms. We’ve got a problem but what we should have learned in the two centuries since Thomas Malthus first popularised the idea is that there are complex factors that can influence the resources we need to survive, not least in terms of greater efficiency in the way we produce them. A similar debate is also apparent in the way in which the commercial property market is able to offer the right sort of buildings for modern organisations.

December 1, 2015

Despite its drawbacks, LiFi has the potential to revolutionise office design ⁰

by Paul Goodchild • Comment, Facilities management, Technology, Workplace design

During 2016, we can all expect to be hearing a lot more about a new technology called Li-Fi, which uses light to transmit high speed data. Li-Fi has already been trialled extensively in lab conditions and now for the first time it has been installed in an office in Tallinn, the capital of Estonia. It may even be substantially quicker than standard Wi-Fi. The people behind it claim it is already able to transmit data at a rate of 1 GB per second, which is around 100 times faster than Wi-Fi. Using light as a medium, however, does mean its main drawback is that it cannot penetrate walls. Designers and managers may also have concerns that the way it transmits data – basically by flickering the light from an individual LED like a massively sped up signal lamp (pictured) – but the developers claim this is completely imperceptible to the human eye and so has no consequences for individuals.

December 1, 2015

Regional office market takes off, with Bristol and Manchester in demand ⁰

by Sara Bean • Facilities management, News, Property

Demand for prime office space in key regional business hubs is strengthening, driven primarily by the professional services sector, according to a review of market trends in the UK property markets by Cushman & Wakefield. Manchester is the strongest performing regional office market, with several large transactions recently completed, but a number of other cities, such as Bristol, are also in hot demand. The Thames Valley, South East and West Midlands have been the strongest performing regions in 2015, and prime rents in the top office locations have reached new highs, with further growth forecast. While overall take up is being constrained, to a certain extent, by the lack of prime stock new commercial property developments are picking up as a result, but are still some way below what is required to meet demand levels and cities such as Glasgow, Manchester and Birmingham have all seen reductions in availability rates.

November 27, 2015

Built environment crucial to attaining emissions targets say RICS of COP21 ⁰

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

The built environment has a vital role to play in helping governments meet their carbon dioxide (CO2) emissions targets says RICS – ahead of the 21st Conference of the Parties or COP21. This begins on Monday, when 196 governments meet in Paris for the climate change summit hosted by the United Nations. Buildings are some of the biggest emitters of CO2 accounting for one-third of global greenhouse gasses. Commercial and residential buildings also account for 40 percent of the world’s energy consumption. RICs is working with members in the land, real estate and construction sectors to find solutions across the property lifecycle to support more sustainable business practices, and will be in Paris to join stakeholders from governments, industry and civil society to support efforts to reach an agreement. The commitments made at the summit could have far-reaching repercussions for the built environment, and the global economy more generally.

November 19, 2015

Dubai office market shows signs of cooling down over the next year ⁰

by Sara Bean • Facilities management, News, Property

The Dubai office market is showing signs of cooling, following a strong growth period, with average rents remaining unchanged during the first three quarters of 2015 across all the city’s major submarkets and free zones. Clutton’s Winter 2015/16 Dubai Commercial Market Outlook report revealed prime, secondary and tertiary office rents stand at AED 250 psf, AED 130 psf and AED 70 psf, respectively. However, micro-markets, which are often as small as specific buildings, buck wider trends, such as Emirates Towers (AED 310 psf) and The Gate District (AED 225 psf). Banks, financial institutions, law firms, construction companies and technology-media-telecoms (TMT) firms are the most active occupiers, with the city’s free zones remaining the primary target. This is because the free zones continue to be dominated by multinational organisations, with take-up activity intrinsically linked to business performance in their home markets.

November 14, 2015

Where to have great ideas + Workplace professions + London’s office market ⁰

by Sara Bean • Facilities management, Flexible working, Newsletter, Property, Wellbeing, Work&Place

In this week’s newsletter; Giuseppe Boscherini explores the growing importance of creativity at work; Mark Eltringham argues that the three professions of the workplace, HR, IT and FM need to adapt and notes a growing disconnect between a firm’s earnings and the number of people it employs. In commercial property, demand for office space in London continues to overwhelm its availability, with English regions outside the Capital leading construction growth. High job demands, stress and job insecurity are among the main reasons why people go to work when they are ill, and data shows the Internet of things will connect 6.4 billion objects next year. You can also download the new issue of Work&Place and access our first Insight Briefing, produced in partnership with Connection, which looks at agile working in the public sector. Visit our new events page, follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

November 12, 2015

English regions outside the Capital lead construction growth ⁰

by Sara Bean • Facilities management, News, Property

The construction industry has returned to growth after six months of contraction, according to figures released by industry analysts Glenigan. Its latest Index also found that the value of projects starting on site are higher than a year earlier for the first time since March, fueled by growth across the industry; with housing, civil engineering and non-residential building sectors all up on a year earlier. Non-residential starts as a whole were up 4 percent on a year earlier, as growth in private sector activity offset continued weakness across the public sector. Industrial, office, retail and hotel and leisure starts all registered growth. Although UK construction has moved back into growth, it is the English regions outside of the Capital which are seeing most activity. London, Wales and Scotland last saw growth in March this year and South West England hasn’t recorded a rise in starts since May 2014.

November 11, 2015

Record construction of London office space, but supply shortfall remains ⁰

by Sara Bean • Facilities management, News, Property

Demand for office space in London continues to overwhelm its availability and in spite of record levels of construction, according to two new reports. The latest CBRE Monthly Index claims that rents in Central London’s booming office market grew by 10.3 percent in the year to October 2015, the first time annual growth has hit double digits since April 2008. Despite rapidly rising rents, take-up of offices in Central London continues to outpace the 10 year average. The capital saw 1.1 percent growth in October, with 3.6m sq ft of space snapped up by businesses in the third quarter of 2015, with a further 3.8m sq ft currently under offer and expected to complete before the end of the year. Change could be on the way however as the latest biannnual London crane survey from Deloitte claims that the amount of office space being built in central London has risen by a fifth in six months, the highest level for seven years.

November 9, 2015

Business success is progressively less related to employment levels ⁰

by Mark Eltringham • Comment, Technology, Workplace, Workplace design

If you want to understand exactly how the economy has changed over the last few decades, one of the most important statistics is also one of the least remarked upon. It is the growing disconnect between a firm’s earnings and the number of people it employs, a statistic that puts paid to the lie that people are an organisation’s greatest asset. Once upon a time, of course, there was a direct correlation of one sort or another between the a firm’s revenue and the number of people it employed and consequently the amount of space that it took up. This was especially true for the world’s great manufacturers and other industries engaged in what was once proper work; moving, creating, destroying and maintaining things. Growth and success meant more employment and more space. There were economies of scale but the upshot was more or less an arithmetic progression in employment based on earnings.

November 9, 2015

Non-death of the office + Property owners lag behind + New issue of Work&Place ⁰

by Sara Bean • Insight Briefings, Newsletter, Property, Wellbeing, Work&Place, Workplace

In this week’s newsletter; Philip Ross says the main driver of the growing convergence of HR, IT and FM roles will be the availability of data to make informed decisions and Mark Eltringham gives a number of reason why office has an enduring appeal. In news; HR guru Cary Cooper warns about the deleterious effects of email on productivity and wellbeing, a third of home workers fear they’ll get fat, commercial property owners are not keeping up with tenant’s needs and the launch of a new study to develop a prototype UK scheme that mirror’s Australia’s ‘design for performance’. You can also download the new issue of Work&Place and access our first Insight Briefing, produced in partnership with Connection, which looks at agile working in the public sector. Visit our new events page, follow us on Twitter and join our LinkedIn Group to discuss these and other stories

November 3, 2015

Less than one year’s supply of office space now available in Central London ⁰

by Sara Bean • Facilities management, News, Property

Office occupiers are being forced to search further afield from traditional London commercial property centres as the vacancy rate of office space in Central London falls to a 15 year low. According to research from BNP Paribas Real Estate, at just 4.68 percent of total stock, the level of supply during the third quarter of the year was just 10.29m sq ft; equivalent to less than one years’ supply at current levels. Take-up to the end of September reached 10.78m sq ft, 18 percent above the long term trend, whilst the investment volume of £11.91bn is 28 percent ahead of the average. The West End’s office market was boosted by several large transactions involving Media Tech firms and take-up in Q3 2015 reached 1m sq ft, making the third quarter the busiest so far in 2015. The City is still attracting media tech companies, but there’s been a resurgence in traditional City occupiers from the professional sector.