February 9, 2018
Record office take up in Edinburgh last year, boosted by burgeoning tech sector
Demand for office space in Scotland’s three largest cities pushed overall take-up beyond 2m sq ft last year, aided by a solid final quarter of occupational deals in Aberdeen and Glasgow, and an all-time record year for Edinburgh. Scotland’s offices market in 2017 reach ed2.4 million sq ft, 14 percent above the 10 year average, according to the latest Scottish Office Spotlight from Savills. In Edinburgh (city centre and wider market) office take-up amounted to a record 1.1 million sq ft boosted by the ongoing growth of tech in the city. According to data from Stack Overflow, the Scottish capital saw a 19 percent increase in data scientists employed in the city centre over the course of 2017. Activity places further pressure on supply with only 220,000 sq ft of Grade A now available which Savills suggests will push top rents to £34 per sq ft in 2018. Keith Dobson, director in the business space agency team at Savills in Edinburgh, says: “The soon to be completed 40,000 sq ft office scheme at 2 Semple Street will ease pent up demand come Q2 2018, whilst The Mint Building and Capital Square will complete in 2019 and 2020 respectively.”
Most people who work in HR now recognise how essential technology is for delivering more strategic value to their organisation, but a new report suggests that HR teams are not prepared to meet the 
There have been 18 months of faltering net effective rents within the commercial office market in the Capital since the Brexit referendum, with ten of the 18 Central London office submarkets monitored in Cluttons’ latest London Office Market Outlook report registering rent falls in the final quarter of 2017, buoyed by additional incentives such as contributions to fit out costs and even delayed completions becoming commonplace in many locations. The report also raises concerns about the potential for an oversupply of serviced offices within the Capital. However, despite this and a perception that Central London offices are currently fully prices or possibly over-priced, by both occupiers and domestic investors, London remains a resilient city, continuing to attract high volumes of overseas capital. Employment growth is of course expected to be influenced by both the levels of GDP growth during 2018 and the Brexit divorce proceedings, which in turn will affect rental values. But says the report, aside from concerns over Brexit, there is no evidence from recruitment agencies to suggest a current, or planned exodus of finance and banking professionals from the City.
If the Government is to deliver its plans of driving digital transformation to improve the UK’s public services it must make a step change in procurement within central government and the wider public sector. That is one of the main findings of 
The proportion of flexible space within occupier portfolios will continue to increase in 2018; a growing adoption of technology will redefine buildings, workplaces and portfolios; and it will be a year of decision for many businesses regarding Brexit. These are among the ‘UK Property Predictions 2018’ report from JLL which covers a range of different topics, with a particular focus on UK corporate occupiers. The report claims that traditional static portfolio concepts are being redesigned to incorporate new formats of space, co-working and a more fluid and diverse range of space options that support creativity, innovation and collaboration. 
December 21, 2017
Commercial property is undergoing tech disruption, but not as some believe
by Polly Plunket-Checkemian • Comment, Facilities management, Property, Technology
According to a recent report, executives in the commercial property sector have significant reservations about emerging disruptive technologies such as Big Data and predictive analytics, augmented and virtual reality, Blockchain and driverless vehicles, but see huge potential for process automation. Disruption is a strong word. It conjures up apocalyptic images and radical interventions leaving unrecognisable outcomes in its wake. Big terms like artificial intelligence, Internet of Things (IoT) and big data bring equally big expectations. For those of us at ground level, it’s hard to see the cumulative impacts of the many changes taking place around us. It’s also hard not to share the same view expressed above. Future-gazing is nice to a point, but board level conversations like to take signposts from what is actually happening around them as well, and the commercial property sector is no exception. This sector is undergoing profound disruption but not necessarily from Silicon Valley’s headline grabbers.
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