Overview of the London Commercial Property Market – 2nd Quarter 2016

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The London commercial property market started the year with moderate rental growth levels and a slight decrease in investment levels. As expected, the second quarter of the year has been marked by the results of the EU referendum vote, which has had a direct effect over the property market creating a rather volatile situation in most property sub-markets, but especially in those with high levels of foreign activity, such as London.

Although there seems to be no agreement on the long-term effect of the uncertainty caused by the referendum results, most analysts agree that a weaker pound may attract foreign investors who want to add to their portfolio by acquiring commercial properties in London while the exchange rates are favourable. See below for a detailed report on the latest trends affecting the London commercial property market during the past 3 months.

Office Market

During the second quarter of 2016, monthly office take up rates were just under 1 million square feet, below the past decade’s historical average (1.1 million). May was the best month for the office market, with over 900,000 square feet of office space taken up. There were virtually no changes in availability rates, and according to researchers at CBRE, 12.9 million square feet are currently available in the British capital.

Post-EU referendum uncertainty has affected the office market, as a number of prospective investors have put enquiries on hold, while others who already own office properties in London are debating whether they will move their operations elsewhere. Rental value growth has been directly affected by these events, as growth rates have dropped to their lowest index of the past 3 years in areas like Midtown and the West End. Continue reading “Overview of the London Commercial Property Market – 2nd Quarter 2016” →

Advice for Growing Businesses – Expanding Office Space Requirements

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A growing business presents both challenges and rewards. While as a business owner you are proud to see your enterprise grow, that success presents challenges of its own. A growing business needs more room for employees, storage and other space. An office needs to be able to work for you and meet your business needs. When you are hiring more staff or need more room as your operations expand, here are a few tips to help you as you outgrow your space.

Home to Offices: Making the Transition

Many small businesses start in a home office, especially if you are an owner-operator or sole trader without employees. While you have the option of signing up to a virtual office or using hot desks and other temporary office solutions, there reaches a point where you might not be taken seriously without a dedicated office space to meet with clients, customers and others.

As businesses grow, commercial premises become a necessity of doing business. There are also practical benefits of having your own office space. You can have your own address for commercial purposes, as well as dedicated phone and IT systems. You also benefit from meeting space and accommodation for your employees.

When to Make the Move

Whether you are moving from your home office or smaller business accommodation, there are a number of reasons why you might opt to upgrade your office space. Obvious signs that you should move include noticing that you are running out of space to provide services, produce your goods, or accommodate your staff, customers and clients. You might also recognise the need for better facilities, such as improved IT systems or enhanced meeting spaces. Generally, the main reasons for making a move are the lack of space to do business or you are hiring more people. Continue reading “Advice for Growing Businesses – Expanding Office Space Requirements” →

Social Media and the Workplace

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Social media platforms are being used by an increasing number of the population. A recent study has shown that nearly 60 per cent of the UK’s population has at least one active social account, and the average Internet user in the UK spends 2 hours a day on social media platforms. These figures show that social networks are increasingly becoming an integral part of our personal and professional lives, and this has caused concern among many employers. The use of social media in the workplace is usually frowned upon because of the generalised belief that it can damage a company’s reputation and decrease productivity. But exactly how much truth is there to that belief?

Social Media in the Workplace: Myths and Facts

A Microsoft study published in 2013 revealed that contrary to what most managers believe, the use of social media at work can actually increase productivity. The 2-year study pointed out that in the not-so-distant past, many managers believed that the use of e-mail at work was also a distraction and a drag on productivity, but as time went by companies have come to rely on this form of digital communication as an integral part of their business routine. Could the same happen with social media? According to the study, it is already happening. One of the key findings had to do with how employees use social media. While management assumed that they were using it for personal reasons, the study found that nearly half of all employees surveyed were in fact using social media as a teamwork and collaboration tool.

Another Microsoft survey studied the behaviour of nearly 10,000 employees in 32 countries and found that 50 per cent were using social media to share and review work-related documents, 47 per cent to communicate with clients, and 31 per cent were doing so to promote work-related initiatives and programmes. Overall, more than 50 per cent of employees aged between 18 and 44 claimed that using social media had helped them become more productive. It’s interesting to note that productivity increases were highly dependent on industry sector, with media, publishing, hospitality, and IT being the most likely to benefit, and government, financial services, and retail the least likely. Continue reading “Social Media and the Workplace” →

Overview of London’s Commercial Property Market – 1st Quarter 2016

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During the past two years, the London commercial property market has performed strongly, ending on a high note in December 2015. However, and as expert analysts predicted, 2016 is set to bring about some qualitative changes into the capital’s commercial property market. Below you will find a detailed overview of how the market has fared during the first quarter of the year.

London Commercial Property Market Q1 2016: An Overview

Moderate rental growth has been the key theme emerging from the commercial real estate activity that has taken pace in London over the past quarter. Rents have remained relatively flat across all sub-markets (but especially so in the office sector) despite the rising interest rates. Investment activity also slowed down during Q1, and on this front average returns on commercial property were in the region of 7.5 per cent, slightly lower than 12 months ago. The slowdown has been evident in capital growth rates too, which averaged 2.9 per cent for central London offices, 4.1 per cent for retail properties, and 1.6 per cent for industrial space.

Another important theme that has emerged during the first quarter of this year relates to the impact that the so-called Brexit could have on a market where a large percentage of transactions are backed up by foreign investors. The vast majority of commercial property experts agree that commercial property prices would drop substantially should the UK leave the European Union. Britain’s exit could also result in a dramatic decline in the amount of foreign capital pouring into the London market. In fact, some market analysts affirm that European investors are already putting large-scale property purchases on hold – and may continue to do so until the vote takes place in June. Nevertheless, and until then, enquiries and demand for London properties should remain relatively strong, especially when compared to regional markets. Continue reading “Overview of London’s Commercial Property Market – 1st Quarter 2016” →

What does the 2016 Budget mean for London businesses?

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Over the past few days, the details and potential impact of the 2016 Budget have been one of the most discussed topics throughout the United Kingdom in general and among London-based businesses in particular. The British capital has always been considered the country’s main economic engine and a hub for entrepreneurship and innovation, and many predicted that the Budget would focus on solidifying the city’s prominent position in this respect, fostering a culture of investment and enterprise.

Continue reading “What does the 2016 Budget mean for London businesses?” →

Top London Tech Conferences for 2016

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Conferences attract the best minds in tech, as well as the latest and most innovative products. They are opportunities to showcase the latest gadgets, concepts and services in the technology sector. Conferences in London also provide an opportunity to network and connect with others in the sector, resulting in new leads and partnerships. Here is a list of some of the most influential and significant tech conferences being held in the UK’s capital during 2016.

Bett Show 2016

Bett 2016 is a free event at Excel London that showcases the latest technology in the education sector. Held from January 20 to 23, the conference and tradeshow provides educators and others with an opportunity to learn about the latest technology tools that can add new layers to the classroom and learning in general. It is an opportunity to try the latest technology and hear from experts in the industry. The event also provides educators to meet with peers from around the world to discuss how technology is and will transform the way we teach and learn.

Website: www.bettshow.com
Twitter: twitter.com/Bett_show

SkyTech 2016

With drones becoming more and more popular for personal use, they are also becoming important tools for businesses to deliver improved services. On January 27 and 28 at the Business Design Centre, SkyTech will help advance the unmanned aerial vehicles (UAV) commercial industry in Europe with a two-day business-to-business conference and exhibition. In its second year, the event includes national and international speakers, workshops, product launches and marketing opportunities for the UAV community.

Website: www.skytechevent.com
Twitter: twitter.com/skytechevent

Finovate Europe

Dedicated to effective uses of mobile technology, Finovate Europe is being organised on February 9 and 10 at Old Billingsgate. The conference looks at mobile tech in both private and public sectors, providing a forum to explore the future of banking and finance technology (‘fintech’) in Europe. Covering a broad range of financial technology issues, the agenda includes demo sessions and networking opportunities. FinovateEurope attracts start-up and established companies as well as financial institutions with new fintech innovations. With a selection process focused on novelty and potential, participants will be treated to a diverse and innovative conference. Continue reading “Top London Tech Conferences for 2016” →

The Business Benefits and Economic Boost : Crossrail Eastern Section

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Crossrail will provide a broad range of economic benefits to London, as well as other areas of the South-East of England and across the United Kingdom. The estimated benefit of project to theeconomy will be at least £42 billion, according to Crossrail. The new transport corridor will also spur new business development, employment opportunities, and improved commuting times.

The Eastern section of Crossrail will stretch from Stratford in East London to Shenfield in Essex. As part of the project, a number of rail stations will see improvements to provide better transport gateways. Improvements to stations will also help promote development and regeneration in the neighbouring area, particularly within a kilometre of the station. Improvements along the 25-kilometre, 15.5-mile route are planned for Brentwood, Chadwell Heath, Forest Gate, Gidea Park, Goodmayes, Harold Wood, Ilford, Romford, and Shenfield stations. Other stations along the eastern section of the Crossrail route include Manor Park, Maryland, and Seven Kings. Continue reading “The Business Benefits and Economic Boost : Crossrail Eastern Section” →

The London Commercial Property Market: An Overview of 2015

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4th Quarter – Commercial Property Market in London

As 2015 comes to an end, it’s time to sum up the key trends that have characterised the commercial property market in London over the past 12 months. The latest RICS UK Commercial Market Survey highlighted the growing demand experienced across all commercial property sectors, and in particular with regards to office and industrial properties. As expected, increased demand has resulted in higher prime rental values across all sectors. These averaged a 9.4 per cent increase in office rental prices, 7 per cent for retail stock, and just below 4 per cent for industrial properties (1).

The retail market benefited from exceptional levels of consumer confidence, which are at their highest since the late 90s. Annual change rates for retail rents in the West End averaged 14 per cent, whereas in the City they stayed at 4 per cent (2). Citywide, rental growth averaged 13.2 per cent. Vacancy rates dropped to 3 per cent, a figure that stands in stark contrast with this year’s national average at 14 per cent. Another key trend this year had to do with the performance of the industrial market, which experienced a boost as the e-commerce sector solidified its presence (3).

Office Market – Q4 2015

During the last quarter of 2015, the London office market has continued to display robust activity levels. At the beginning of Q4, year-to-date take up levels amounted to 9.7 million square feet, a figure that represents a 3 per cent increase over last year’s values. Most transactions involved firms involved in sectors like professional services, media and technology, and banking.

According to research data published by BNP Paribas, during November and December the main trends affecting the London office market were above-average leasing activity and a surge in investment levels. Vacancy rates dropped to 4.28 per cent in November, although this figure is likely to increase with the delivery of more than 7 million square feet of Grade A space over the course of 2016. Year-to-date take up rates reached 12.40 million square feet in early December (4). Continue reading “The London Commercial Property Market: An Overview of 2015” →

Quirky, Cool Christmas Office Party Ideas in London

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With only a few weeks left until Christmas Day, most office managers and business owners are busy organising their annual Christmas office party. Year after year, the festive season presents us with an opportunity to reward our staff and show our gratitude for a whole year of hard work. Corporate Christmas parties are also effective at building team spirit and motivating employees, in addition to being a great PR and marketing exercise.

But perhaps this year you’d prefer to organise something more interesting and memorable than the typical office Christmas lunch or dinner party. If you’d like to bring your team together by doing something fun and completely atypical, read through the suggestions below and learn more about some quirky, cool Christmas office party ideas in London.

Underground Crazy Golf at Waterloo
Underground Crazy Golf is set to become one of the most popular corporate day out experiences in the British capital. We are all familiar with Christmas golf breaks, which can be as appealing as they are costly. If you are looking for a more affordable way to celebrate Christmas with your staff and do not want to leave golf out of the equation, Underground Crazy Golf is the right choice for you. Continue reading “Quirky, Cool Christmas Office Party Ideas in London” →

The Business Benefits and Economic Boost: Crossrail Western Section

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Crossrail will result in a range of substantial economic benefits to London, the South-East and the UK. According to Crossrail, the economic impact of the new transport corridor will be at least £42 billion. It will also promote new business development and employment opportunities, as well as improved commuting times for those living and working along the corridor.

Running from Paddington in Central London to Heathrow Airport and Reading, the western section is set to open in 2019. A number of stations will be enhanced along the route, while new stations will open at Acton Main Line, Southall, West Ealing and Hayes & Harlington. These improvements are also encouraging development and regeneration, providing new places to work and do business along the Crossrail corridor. Other stations along the western section of Crossrail include Burnham, Ealing Broadway, Hanwell, Heathrow Airport, Iver, Langley, Maidenhead, Reading, Slough, Taplow Twyford, and West Drayton. Crossrail will help support the regeneration of town centres such as Ealing, as well as other areas including Southall.

One of the most significant impacts of the western section will be on the residential market. By reducing travel times, Crossrail will help increase house prices along the route. This will increase the appeal of several areas, such as Ealing. Ealing Broadway Station is being refurbished, while the town centre is subject to extensive regeneration plans including an upgrade to the Ealing Broadway Shopping Centre. These improvements are attracting commercial property developers to Ealing, with major schemes including the St. George’s development on New Broadway.

Shorter commute times will also help attract new commercial development to the area around five Crossrail stations within Ealing. The new link will help make Ealing an attractive alternative to areas along the M4/A4 corridor in West London. According to Crossrail, 44 per cent of planning applications for development within a kilometre of the five stations in the London Borough of Ealing cited the project as a justification for moving forward. For example, the Southall Gas Works will bring 3,750 new homes and 525,000 square feet of new commercial and community space close to Southall station. The development of the 83-hectare brownfield site will also include a new primary school. Continue reading “The Business Benefits and Economic Boost: Crossrail Western Section” →