The rise of flexible working and the phenomenon of renting desks rather than whole spaces is changing the way commercial property is managed.
It’s likely that an increasing number of large commercial spaces will be altered and converted into smaller units. These would be designed specifically to attract smaller tenants, including sole traders, start-ups and SMEs. Continue reading →
Design trends in the workplace are continuously developing. Creating an environment that helps employees work to the best of their ability, collaborate effectively and maintain productivity is a constant challenge.
With Millennials (born between 1980 and mid-2000s) taking over as the largest group in the workplace and Generation Z (born between 1994 and 2010) starting their careers, we’re looking ahead to many seismic changes when it comes to how and where we work. Continue reading →
The uncertainty surrounding Brexit and the ongoing negotiations has led to questions over the future of every sector of business. And commercial property is no different.
Following the vote in June 2016, investment in commercial property did fall somewhat. Hotels, office space and retail properties took the biggest hit. However, there is still plenty of demand from tenants and, while initial numbers suggested tentative behavior, it could be a market correction, not a crash. Continue reading →
Fresh evidence indicates that demand for UK commercial property increased in the third quarter of 2016. Richard Carr comments.
Commercial property is becoming increasingly critical to the British economy, now accounting for 10% of the country’s net wealth. Data from PIA (Property Industry Alliance) indicates that the combined value of the UK’s commercial property stock rose by 11% from 2014 to 2015, to reach £871bn. Continue reading →
Recently released statistics indicate that following the fall-out from the UK’s decision to leave the EU (Brexit), demand for Central London office space is now picking back up. Richard Carr comments.
Demand for Central London office space is now picking back up.
Central London is the beating heart of the UK economy. Many global firms have their European headquarters in Central London. This allows global companies to benefit from the UK’s advantageous business laws and taxes, while providing easy access to the EU’s +500m-strong single market.
Experts worried that Brexit would damage Central London’s commercial real estate market, believing that global firms may flee to continental cities like Frankfurt and Paris. These fears were compounded by Prime Minister Theresa May’s announcement that the UK will opt for ‘hard Brexit,’ prioritising sovereignty over the single market. Did this spark an exodus of global firms from Central London?
Leading industry body the Property Industry Alliance (PIA) recently released landmark research. According to PIA, the collective value of UK commercial property climbed to an all-time high last year.
According to PIA, the collective value of UK commercial property climbed to an all-time high last year.
British commercial real estate remains attractive to both domestic and foreign investors. Towards the close of 2015, research carried out by Propertydata suggested that UK commercial property investment would reach record highs of around £70bn. PIA’s recently released figures indicate that high investor demand sent the collective value of British commercial real estate soaring an all-time high in 2015.
Some experts believed that the UK’s decision to vote to leave the EU, would damage London’s commercial property sector. The theory was that overseas investors, who are critical to the market, would begin to shy away from London, as it would no longer be able to serve as a springboard to the EU. New figures have shown Richard Carr that this theory does not seem to hold water.
Overseas investors comprised 78% of commercial real estate bought in Central London
In the aftermath of the referendum, the value of the British Pound dropped to its lowest point since the 1980s. Prime Minister Theresa May recently announced that the UK will adopt a ‘hard Brexit’ policy, potentially cutting it off from the EU’s single market and costing the UK up to £66bn per year. After this, the value of the Pound dropped to a lower point against the dollar.
This has been good for foreign investors, as they now receive more Pounds for their currency, increasing their buying power. A recent report from Arcadis suggests that current market conditions are great for overseas players looking to invest in London’s commercial and residential property sectors. Figures from Savills shows that investors are now flooding into London’s commercial real estate market.
The Federation of Master Builders (FMB) has blamed a lack of available and viable land in the UK as to why small and medium sized builders are struggling to deliver new homes, according to propertywire.com.
Is land really an issue for construction firms?
It’s the second year in a row that a large proportion of SME house builders have cited a lack of land for not building more homes. The FMB’s research found that two thirds of SME house builders believe there isn’t enough viable land in the UK.
Furthermore, they cited problems with the planning system and difficulties accessing finance as other challenges.
Property Developer Richard Carr understands the problems and also agrees with their complaints regarding under resourced local planning authorities, as he believes the government should be doing more to help councils.
Poole-based property developer Richard Carr is annoyed and disappointed to read that developers are being blamed for the country’s housing supply crisis.
Property Developers aren’t to blame for the housing crisis
Richard Carr has been in the industry for three decades and believes the problems start and end with the government and the restrictions that they place on developers, which slow down and prevent properties being built.
However, after analysing recent research independent think-tank Civitas has claimed that councils have granted enough planning consents to meet the government’s target of building one million new homes by 2020.
Civitas’ editorial director, Daniel Bentley, told planningportal.co.uk: “Local authority planning departments have been under enormous pressure in recent years and are frequently blamed by developers for holding up housebuilding.