Search Results for: real estate

May 5, 2017

Regional office take up in UK’s major cities hits five year low ⁰

The latest research from real estate adviser GVA claims that Q1 2017 office space take-up across the UK’s ‘Big Nine’ regional office markets was at its lowest level for five years. At 23 percent below average, activity was particularly low in the city centre market where only Cardiff recorded above average take-up. Out-of-town markets were more resilient however with Bristol, Edinburgh, Liverpool and Newcastle recording above average take-up. Professional services made up 28 percent of all take-up over 5,000 sq. ft. in the city centres during Q1, slightly higher than the usual profile, led by legal and engineering firms. Deals to universities in Cardiff and Bristol meant that the education sub-sector made up 15 percent of activity. It was a strong quarter for the Technology Media and Telecom (TMT) sector, which increased its share to 18 percent compared to an average of 13 percent, while recruitment companies were also very active (9 percent of take-up).

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May 1, 2017

Fresh concerns raised about council investments in commercial property market ⁰

by Mark Eltringham • Comment, Property, Public Sector

As we reported last month, the level of investment in commercial property undertaken by UK local authorities is raising serious concerns within both central government and the real estate sector. Now, a fresh warning has been issued by the former business secretary Sir Vince Cable that councils face potential bankruptcy if the property bubble bursts. In recent years councils have faced an average 37 percent real term cut in government funding and so have taken to borrowing large sums at low interest rates from the Treasury’s Public Works Loan Board to reinvest in commercial property ventures. The move has already been identified as risky by the Government’sown Public Accounts Committee and Cable joins a chorus of voices in expressing doubts.

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April 24, 2017

WeWork extends property as a service offering as IBM takes on entire coworking building ⁰

by Mark Eltringham • Facilities management, News, Property, Workplace design

In a deal of enormous significance for the commercial property and workplace sectors, IBM has agreed a deal with coworking giant WeWork to take on all the space at its 88 University Place office in New York. Although originally targeted at startups and freelancers, especially those working in the creative and technology sectors, a growing number of corporate clients are seeing the appeal of coworking space in a fast changing world and now make up over a fifth of WeWork’s membership worldwide. Meanwhile, in moves that are sure to have major implications for the corporate real estate and facilities management market, WeWork has also announced plans to become a major real estate investor and introduce a wider range of FM services. The firm already operates in 135 locations spread across 44 cities in 14 countries.

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April 24, 2017

Commercial property lenders should drive sustainability through financial innovation ⁰

by Mark Eltringham • Environment, News, Property

The commercial real estate finance sector is witnessing a dramatic shift in attitudes towards the issue of sustainability, according to a new report from the Better Buildings Partnership. It claims that major commercial property lenders are already exploring new opportunities that go well beyond traditional risk management through sustainability initiatives that ‘drive new business, strengthen customer relationships and improve the data they hold on the buildings in which they have underwritten’. The report, Beyond Risk Management: How sustainability is driving innovation in commercial real estate finance, is sponsored by CREFC Europe, GeoPhy, ING Bank and Lloyds Bank Commercial Banking, and claims to reveal pioneering examples of how lenders are incorporating sustainability into their core business activities.

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April 11, 2017

Demand for flexible office space is set to grow in London’s outer boroughs ⁰

by Sara Bean • Facilities management, Flexible working, News, Property

London’s office workers are looking for shorter commutes, demanding more collaborative and networking opportunities while at work and better access to green space, retail, leisure and wellness; all of which could present a huge opportunity for the less congested outer London boroughs, a new report suggests. According to Savills latest London Mixed Use Development Spotlight, as employers and employees alike demand more from their workplace and their work- life balance, London’s outer boroughs could reap the benefits by providing greater flexible office space and affordable homes at a variety of price points. According to Oxford Economics, employment in sectors that tend to occupy co-working spaces is set to rise by 20,000 people in the outer London boroughs over the next five years, which equates to a gross additional need of 1.6 million sq ft (148,644 sq m) of office space.

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April 6, 2017

Designing space for virtual collaboration in an untethered world ⁰

by David Woolf • Case studies, Premium Content, Technology, Workplace design

Working with colleagues across different geographies and time zones has become the norm since an increasing number of organisations now integrate and seek collaboration at a global level. Interestingly, according to Cisco, 62 percent of workers now regularly collaborate with people in other countries. These globally integrated enterprises (GIE) aim to draw in the best talent from across the world, delivering maximum innovation and efficiency. The rise of global and distributed teams has been further encouraged by the popularity of remote working, with 71 percent of office workers now choosing greater flexibility to work from various locations instead of travelling to the office everyday . And the trend only looks set to gain pace, with 56 percent of senior leaders in large global companies expecting global teams to increase in the next one to three years.

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April 5, 2017

Corporate occupiers turn to coworking space to keep down property costs ⁰

by Neil Franklin • Facilities management, News, Property, Workplace design

Demand for coworking spaces is growing at an average of 10-15 percent per annum across all regions as firms look to cut their real estate costs by embracing the concept based on shared work spaces and collaboration. That is the key finding of a new report from Cushman & Wakefield. As the trend gains momentum, according to the study, developers are increasingly incorporating the aesthetic and function of such flexible working environments into mainstream building design. However the main driver of uptake continues to be concern about the cost of renting offices in prime locations and it is no surprise that coworking is focussed on major globalised cities.

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March 31, 2017

America’s corporate occupiers streamline portfolios due to economic uncertainty ⁰

by Sara Bean • Facilities management, News, Property, Technology, Workplace

While talent continues to reign supreme on the list of top concerns for US companies a growing number of respondents to CBRE’s annual Americas Occupier Survey cited economic uncertainty as a top challenge, up from 36 percent in 2016 to 52 percent. As a result, 87 percent of corporate occupiers report that they are managing to this uncertainty by disposing of surplus space and/or implementing more efficient workplace designs to prepare their portfolios for the future. Only 26 percent of respondents expect to expand their portfolios over the next two years, down from 38 percent in the 2016 survey. Approximately one-half of the 2017 survey’s respondents indicated that the size of their portfolios would remain stable with 2016 levels. However, while uncertainty is driving many real estate decisions, creating a workplace experience focused on talent remains top of mind for the majority of occupiers surveyed.

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March 30, 2017

AHMM completes work on New Scotland Yard for Metropolitan Police ⁰

by Neil Franklin • Case studies, Company news, Workplace design

Architects Allford Hall Monaghan Morris (AHMM) have completed design work on the new headquarters for the Metropolitan Police Service (MPS) in London. The practice claims that the design ‘supports cultural organisational and conveys a new image for the MPS by creating a building that looks to engage with public and media alike’. The £60m new headquarters is a re-modelling and extension of the Curtis Green Building, a 1930s riverside site in Westminster, central London currently owned by the MPS. AHMM’s design includes the addition of new entrance and rooftop pavilions and a reworking of the existing accommodation. The new entrance is designed ‘to create a welcoming and non-institutional yet secure front door’ and reinstates the iconic revolving sign. The project has been completed as part of a major rethink of the organisation’s corporate real estate strategy.

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March 28, 2017

Post Brexit UK sets out its case at MIPIM 2017 ⁰

by Anna King • Cities, Features, Property

Cannes-based international real estate fair MIPIM has always been a magnet for cities, determined to extoll their virtues to investors, developers and occupiers, but this year the UK was in charm overdrive. Buoyed no doubt in part by the presence of the UK government’s Department of International Trade (DIT), waving its ‘open for business’ flag for UK PLC, many of the towns and cities that would normally have ploughed their own furrow, instead came together to leverage critical mass. So Bradford and Leeds combined, conurbations across the central belt conjoined on a Midlands pavilion, and so on. Whether it was panic or confidence, the net result was an unusually prominent UK presence, up a quarter on last year. Of course the UK is just one nationality among the 24,200 real estate and city professionals from 100 countries who come together in Cannes every March.

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March 13, 2017

Workplace strategy, automation and flexible working rising up the corporate agenda ⁰

by Mark Eltringham • Facilities management, Flexible working, News, Property

Corporate real estate occupiers must do more to embrace flexible working and identify the sources of competitive advantage offered by their workplaces, according to the newly published Corporate Real Estate (CRE) 2017 trends report from JLL. The study highlights the key issues affecting corporate property needs and requirements this year, and offers occupiers some advice on how to deal with them, including how real estate strategy affects organisational perfomance. As well as flexible working and real estate strategy, the report also considers the consequences of automation, which it suggests will have a significant impact on the way workplaces are designed, occupied and managed within just a few years,

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February 21, 2017

What you need to know about changes to business rates and lease renewals ⁰

by Alex Watt • Comment, Facilities management, Legal news, Property

Business rates are a substantial overhead for many businesses, and therefore those occupying a property need to be aware of the impact of the 1 April rates revaluation and the forthcoming changes to the rates valuation appeals process. The revaluation may affect the level of compensation payable to some business tenants seeking to renew their leases. Current business rateable values took effect in England and Wales on 1 April 2010, based on rateable values on 1 April 2008. However, the Valuation Office Agency (VOA) is revising rateable values on 1 April 2017. While the rateable value of some properties is reducing, others (for example many London retail and restaurant premises) face a significant increase. You can check the draft values on the VOA website to see whether your property is due to change.