Search Results for: economic

February 23, 2016

High demand in Dubai office market continues to sustain rents ⁰

by Sara Bean • Facilities management, News, Property

Office rents in Dubai’s main markets have remained strong as a result of continued high demand from both international and domestic occupiers, reports Cluttons, but despite a sustained demand, occupiers remain cost conscious and budget driven in the face of a softening global economic backdrop. Landlords, by contrast appear to be slow to react to a cooling market, with many reluctant to move on asking prices and others demonstrating a lack of flexibility for lease terms at renewal. The emerging gulf between market reality and landlords’ expectations is a concern, says Faisal Durrani, Cluttons’ head of research, “particularly for a market that is now starting to show signs of maturity.” The analysis of the performance of 22 submarkets across the city in the first quarter of the year reveals that 13 submarkets witnessed no change in starting rents in 2015, seven experienced notable increases and the remaining two lower limit rents decreased over the 12 months of 2015.

February 19, 2016

RIBA consults on the future use of its landmark Art Deco HQ building ⁰

by Sara Bean • Architecture, News, Workplace design

The Royal Institute of British Architects (RIBA) has launched an open consultation on the future use of its landmark Art Deco HQ building in central London. The first part of the consultation strategy is an online survey, to be followed by focus group sessions to gather more detail. RIBA Client Advisor, Sarah Williams said: “This survey is the start of a detailed process which will include defining the role that 66 Portland Place plays in the RIBA’s long term vision and values. Our detailed consultation will gather views and ideas from our members, staff and other users of the building including visitors, neighbours, meeting room clients, cultural partners, sponsors and patrons.I encourage everyone to participate to help us shape the use of this important building for the next 80 years.” Click here to participate in the survey and learn more about the consultation for 66 Portland Place.

February 10, 2016

Moderate growth for global commercial real estate predicted in 2016 ⁰

by Sara Bean • Facilities management, News, Property

US and European office markets will tighten further in 2016 as demand for space outpaces a limited number of new developments, according to CBRE Group’s 2016 Global Real Estate Market Outlook. However, the extent of tightening in individual cities will depend strongly on local job growth in major office-using industries. Global prime rents across the three major property types—office, industrial and retail—are expected to grow 2.2 percent on an annual basis, according to estimates from CBRE’s Global Rent Index. The Americas, thanks to the strength of the US property sector, is expected to see commercial real estate rents rise 3.4 percent in 2016, as consumption growth and rising employment, combined with comparatively limited new supply levels, simulates demand. Rents in EMEA are forecast to rise by 3.2 percent thanks to a combination of increased consumer spending, pent-up demand for commercial space and anticipated further monetary easing by the European Central Bank.

February 5, 2016

Embracing the inevitable rise of the robots in the workplace ⁰

by Gary Chandler • Comment, Flexible working, Technology, Workplace design

We often have reason these days to speculate on the truth of an idea known as Amara’s Law. First coined by the researcher Roy Amara it states that “we tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run”. But defining what we mean by short and long term can be very difficult when technology is changing so quickly. Nothing better illustrates this than the issue of how automation will transform society and workplaces. For the past few years, the effects have mainly been the subject of academic and scientific research alongside some lurid headlines in the mainstream media. So, a fairly typical 2013 paper from researchers at Oxford University assessed the risk faced by over 700 professions and discovered that nearly half of all jobs in the US could be categorised as at high risk of automation. Less academic studies such as a report published last year by Deloitte draw similar conclusions.

February 2, 2016

Record investment in UK commercial property in 2015, but trouble ahead ⁰

by Mark Eltringham • News, Property

A near record £67.5 billion was invested in UK commercial property in 2015, making it the second strongest year on record and 46 per cent above the 10-year average, according to research from commercial property analysts CoStar Group. Momentum slowed sharply in the second half of the year, with investment down 19 per cent from the previous year. According to CoStar, this reflects the fact that investment activity has been especially strong over the previous 18 months and good opportunities are harder to find, but also that global economic and political uncertainty are impacting investment decisions. Nevertheless, 2015 was a strong year for the UK’s Big Six regional cities. Office investment increased 16 per cent to £3.2 billion, which is the highest level since the recession and more than double the eight-year average. Foreign investors seeking standing assets and development opportunities underpinned much of this investment.

February 1, 2016

M25 office market returns to pre-recessionary levels as demand increases ⁰

by Sara Bean • Facilities management, News, Property

The ‘M25’ office market returned to pre-recessionary levels in 2015 as take-up reached 4.25 million sq ft, which is the highest recorded figure since 2007. Given the higher levels of demand in the regional commercial property market, take-up is predicted to reach 4.5 million sq ft for 2016. The research by Savills claims that the ‘Western Sector’ was the strongest performer in the market within the M25 during 2015, where 1.91 million sq ft was transacted, which accounted for 44 percent of total take-up. Improving economic conditions combined with a reduction in grade B and C office space, due to permitted development rights, meant that 62 percent of space transacted was for grade A space. Total supply currently stands at 18.34 million sq ft, which is a 7 percent decrease from 2014, not helped by the fact that approximately one million sq ft of office space has been converted to residential uses since 2014.

January 28, 2016

UK’s CEOs rate cyber security as greatest challenge for their company ⁰

by Sara Bean • Facilities management, News, Technology

Almost three-quarters (74 percent) of chief executive officers in the UK rate cyber security as the third biggest risk to their company; over regulation and geopolitical uncertainty. Yet commenting on the firm’s 19th Annual Global CEO Survey, released at the World Economic Forum in Davos, PwC cyber security partner Richard Horne has warned that UK companies and institutions remain vulnerable to cyber-attacks, and more needed to be done by boards to protect company data and systems. He said there appeared to be a disconnect between concerns at the top of business and the speed and consistency with which these security measures can be implemented within organisations. This vulnerability to attacks becomes more stark with the speed of technological change and the way organisations’ new digital initiatives present greater potential for attackers, arming them with both new tools and a wider range of targets.

January 22, 2016

Digital media is having ‘largely positive’ effects on professional lives ⁰

by Sara Bean • Flexible working, News, Technology, Workplace

The digitization of content and data, along with new digital communication technologies, has fundamentally changed the way work gets done, and affected the nature of the employment relationship. While it has a largely positive impact on peoples’ lives, including individuals’ ability to find work, learn and develop skills, and balance work and life, it can, in some cases, lower worker productivity and increase inequality. These are among the key findings from Shaping the Future Implications of Digital Media for Society – a report by the World Economic Forum conducted in collaboration with Willis Towers Watson and presented at the WEF 2016 annual meeting in Davos. In the study, which included a survey of more than 5,000 digital users from five of the world’s most important markets; Brazil, China, Germany, South Africa and the US, over half (56 percent) reported digital media has transformed the way they work, and two-thirds said digital media has improved their ability to do work.

January 20, 2016

Number of smart cities worldwide jumps 40 percent in past two years ⁰

by Mark Eltringham • Cities, Facilities management, News, Property, Technology

According to a new report from Navigant Research, the total number of identified smart city projects worldwide has grown from 170 in the third quarter of 2013 to 235 today. The report examines the current state of global smart city development, covering the related aspects of the smart energy, smart water, smart transportation, smart buildings, and smart governments sectors, segmented by region. The authors of the report claim that, as the benefits of smart cities become clearer, the number of projects and partnerships supporting the cause is rapidly increasing. In the last few years, city leaders, central government ministries, and technology and service suppliers have announced a range of new smart city initiatives, incentives, and product and service offerings, while more cities are moving from one specific technology interest to a broader range of solutions that have multiple applications.

January 19, 2016

Fourth industrial revolution will result in five million job losses by 2020 ⁰

by Mark Eltringham • Flexible working, News, Technology

Disruptive global employment trends, including flexible working, the rise of robots, other forms of automation and Big Data analytics will see over five million jobs disappear worldwide over the next four years, a new report claims. The World Economic Forum’s Future of Jobs report has calculated that current disruptive labour market trends, including improvements in artificial intelligence, cloud technology, the Internet of Things and flexible working arrangements, could lead to a net employment loss of more than 5.1m jobs in the 15 countries surveyed. The report estimated that new trends would result in a total loss of 7.1m jobs – two thirds of which are concentrated in the office and administrative functions – and a total gain of 2m jobs. The WEF surveyed those who it felt were best placed to observe the dynamics of workforces including heads of HR departments and CEOs in 15 developed and emerging economies.

January 19, 2016

Skilled migrants attracted to regional and city work hubs, not countries ⁰

by Sara Bean • Cities, News, Property, Workplace

Highly-skilled migrants are increasingly attracted to cities and regions rather than countries, the latest Global Talent Competitiveness Index has revealed. Silicon Valley, Dublin, Helsinki-Espoo, Dubai [pictured] and London are the real hubs, rather than the United States, Ireland, Finland, the United Arab Emirates or the United Kingdom. The index, produced by Adecco Group, INSEAD and the Human Capital Leadership Institute, ranks the factors driving the international movement of skilled migrants of 109 countries, covering 87 percent of the global population and 97 percent of global GDP. Switzerland is in top place, followed by Singapore and Luxembourg in second and third place. At seventh place, the UK is ahead of Germany and France, but behind top performers such as the United States and Canada. It also trails behind in terms of gender diversity; ranking 56th for female graduates and 71st for the gender earnings gap.

January 18, 2016

Managerial fairness key to successful business change, claims report ⁰

by Mark Eltringham • Knowledge, News, Wellbeing, Workplace

Managers are underestimating the impact they have on their workforce during a period of organisational change, according to a study from EMLYON Business School authored by associate professor Tessa Melkonian. The study claims that employees are more likely to cooperate in the process of a disruptive change if the management is seen to be fair in their treatment of staff. This will increase employees’ willingness to cooperate in long-term transitions and work harder to support the process. Over 600 interviews in 10 countries and thousands of questionnaires were carried out to gauge employee satisfaction and willingness to cooperate with change following the merger of KLM and Air France. During the interviews employees revealed they were more inclined to back change because of the example set by their CEO. Leading from the front remained a strong influence two years into the transition.