UK Commercial Property News: December 2010

Wednesday 29 December 2010

Barclays financial hub increase commercial property marketing in Glasgow

Glasgow has been one of the success stories among regional cities in the past decade and continues to attract blue chip companies. Top of the list is Barclays and its creation of a global hub at the International Financial Services District for its Barclays Wealth and Barclays Capital, which will bring 600 new jobs.

The relocation has been helped by a government grant of £6.6 million under the Regional Selective Assistance programme. Gordon Matheson, leader of Glasgow City Council, said that Barclays’ decision to expand substantially its presence “is testament to the availability and quality of the people it has employed here over a number of years. It also underlines the city’s status as a major UK centre for financial services and shows how successfully Glasgow can compete for blue chip inward investment.”In fact, take up this year has been quiet with the third quarter at 12,816 sq.metres (137,960 sq.ft.) for Greater Glasgow with the majority of deals relatively small. But the final quarter will be different, said Mike Buchan of Jones Lang LaSalle. “We anticipate a strong final quarter with the city centre being in line with the 5 year average.”

An example of the strength of Glasgow is that Scottish & Southern Energy stepped in to buy the 5,574 sq.metres (60,000 sq.ft.) 1 Waterloo Street from the developer Stockland for £25 million at a time when the law firm Shepherd Wedderburn was on the point of leasing office space there. It now has to look elsewhere.

This is the second time in the year that an occupier has been forced out of a building it was negotiating to lease because of a sale. In the former case the National Farmers’ Union bought Clarion for its own occupation despite a large part of it being under offer of Maclay Murray Spens, the law firm.

The Scotland Commercial Property Register

The Scotland Commercial Property Register for Sctoland is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space, Serviced Offices and Commercial Property in Scotland . You can also find the latest commercial property news for Scotland.

Edinburgh’s Commercial Property Mood Swings to the Positive

The mood in Edinburgh is lightening as the office market eases itself out of the recession. “The first quarter was better than anticipated,” said Craig Watson of Jones Lang LaSalle, ”which was helped by a couple of substantial deals, 5,111 sq.metres (55,000 sq.ft.) to the Scottish Qualification Authority band 3,715 sq.metres (39,984 sq.ft.) to NHS West Lothian.” Broadly speaking, the demand is for smaller units but Watson said “the encouraging change is that we are seeing enquiries for larger units. There is also a broader range of companies, from IT to financial services, seeking space.” Looking ahead the market will become increasingly dominated by the fact that there are no new offices under construction and none are likely to be completed until at least 2013.”That means a move towards a stronger landlord position away from the dominance of tenants,” Watson added.

From that will follow a decline in the incentive packages which Watson noted will come back later in the year and have probably reached their peak now. Stewart Taylor of CB Richard Ellis is encouraged by the shorter time scale on deals and a growing awareness that new space will not come through for some years. “There has been increased demand for flexible space, such as at Heriot Watt Research Park.” “Confidence has increased in the financial and banking sector,” added Taylor,”and with the prospect of a shortage of prime space they are holding onto offices.” What is interesting is that the dire predictions on the fall-out from the problems of the HBOS and the Royal Bank of Scotland have failed to materialise, adding further to the improved mood.

Equally as encouraging is that occupancy at Edinburgh Park has increased and is now up to 92%, said New Edinburgh Limited (NEL). The latest letting is to the technology company Agilent which has taken on enough space for an additional 200 staff. NEL’s Pamela Grant commented: “Edinburgh Park has reached another exciting stage and this surge in occupier activity is testament to its success. There continues to be a strong interest from new occupiers.”

Pioneering Commercial Property in Leith

The pioneering Tax Incremental Finance (TIF), which will make its debut in the UK as part of the funding for a £700 million regeneration of the waterfront at Leith, Edinburgh’s port, could be the answer to stalled revitalisation plans in other parts of the country. The Scottish government has given the go ahead (and is considering similar schemes in Glasgow and North Lanarkshire) and will contribute £84 million to the overall cost to finance key infrastructure investment against future increases in business rates income.

The concept is that regeneration and all that goes with it will attract more businesses to the area, thus increasing tax revenues. John Handley of planning consultants DPP said: “TIF schemes are much easier to get off the ground in Scotland following the devolved tax raising powers of the Scottish Parliament. There would need to be a change in primary legislation for such schemes to work in England and Wales to allow local authorities to direct tax revenues in this way.” Meanwhile, there has been an improvement in the office take up in the third quarter in Edinburgh, reports Jones Lang LaSalle, with a 30% rise over the previous three months to 15,793 sq.metres. Although the level of enquiries declined compared with March-June, this may be due to uncertainty over the government’s spending cuts. The supply situation is easing after peaking at the end of 2009 and will continue to do so because of a lack of new development (as in the rest of the UK). An important deal was the letting at Waverley Gate which has remained stubbornly empty for years.

The outlook has been enhanced by the expansion of Tesco and Virgin’s financial operations who are both seeking office space. Tesco has short listed six properties for a 3,716 sq.metres requirement. It needs to move in early 2011. Virgin is seeking a smaller space, though that would be considerably larger than its initial office at Venue Studios.

Birmingham Commercial Property Looking Forward

At the moment the major question in Birmingham is how much of its future, and ambitious, regeneration plan it can start in the near future. There has been a lot achieved so far and few people would not wish to see the improvement process continue. But there is a squeeze on government spending and a cautious commercial property industry. Of immediate interest will be Irish developer Ballymore’s quest for a partner for the second phase of the 55,740 sq.metres (600,000 sq.ft.) Snowhill scheme, which is already partially completed but will need an investment of another £110 million.

The interesting point is that the block (just over half the total scheme) is 60% pre let to the law firm Wragg & Co.Adding spice to the situation is that One Snowhill has been sold to the German fund Commerz for £126 million, a yield of 6.2%. It would appear to be an ideal moment to complete the block (probably by 2012) because the lack of speculative building means that a shortage of prime space will occur. Savills is now marketing Two Snowhill. Adding to the uncertainty is that the original plan for the £6 billion regeneration of the Eastside has been put on hold because the plan for a high speed rail link to London is to be routed through the area.

There is another level of uncertainty because the new government’s squeeze on spending might hit the rail proposal. Eastside is part of a grand plan (Big City Plan) costing £17 billion to improve Birmingham, details of which are due to be published in September. One action taken recently was to go back to the drawing board for architect Glenn Howells’ master plan for the 420 acre regeneration. Head of Birmingham Regeneration Waheed Nazir isclear that “private sector involvement is the bedrock of the delivery of the Big City Plan (BCP). We need far more private/public sector relationships to jointly deliver the plan.”

The Midlands Commercial Property Register

The Midlands Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space, Serviced Offices and Commercial Property in the Midlands . You can also find the latest commercial property news for the Midlands.

Property Developments Waiting For Croydon

The question for Croydon is whether the transport improvements will hasten the large mixed use developments that are waiting for pre lets. Part of the problem is that the town has such a large amount of old office space. Like every other part of the UK, Croydon needs new Grade A office buildings to pull in blue chip tenants. Jerry Taylor of Stuart Edwards Fullermoon said, ”Croydon desperately needs a new building because over the past few years we have not had a corporate office building to satisfy the demand of the market.”

One recently refurbished office building, Impact House, is now being marketed aggressively by agent Sinclair Clark and marketing consultancy White Label. The 16 storey property, which is owned by the Portuguese company Tricos Immobiliaria, is the first new or virtually new office block completed in Croydon for nearly two decades. Vanessa Clark of Sinclair Clark commented: “There have been some fine office developments taking place recently in Croydon and Impact House is virtually a new build. We wanted to make sure the key agents got an opportunity to see these buildings for themselves and spread the word that Croydon is great place to do business.”

The Kent, Surrey and Sussex Commercial Property Register

The Commercial Property Register for Kent, Surrey and Sussex is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space, Serviced Offices and Commercial Property in Kent Surrey and Sussex. You can also find the latest commercial property news for this region.

Kent Commercial Property Market is Growing Slowly

Judging from the latest surveys and research the improved economy in the region which was apparent in the first months of the year has slowed bringing concerns about the long term recovery of the commercial property market.

Yet the level of activity in some areas, such as Bromley, belies the gloomy picture. It would appear that one level below the major transactions, there is a healthy market.

The official side comes in a survey by Markit for the South East England Development Agency (SEEDA) which showed that in the third quarter business activity weakened compared with the first half bringing a modest expansion in output. In September the Business Activity Index rose from 51.9 in August to 52.6, still in positive territory.

The good news is that employment increased for the fifth month out of six with a sharper trend in job creation. This would indicate that business remains confident about the recovery and is hiring to cope with future growth. The next stage is to see how this view is affected by the government’s spending cuts. SEEDA’s Paul Lovejoy commented: “The survey reinforces our view of continuing modest expansion of business activity. Weaker demand and continuing increases in input prices have led to a slowdown in manufacturing growth but it is encouraging to see an increase in investment in capacity and a slightly faster pace of expansion in the service sector.”

The problem that is looming for the commercial property market is that the cut in the public sector is hitting activity. For example, in its latest survey Savills said that development activity fell at its fastest rate for the past 18 months in September.

It said: “Both public and private sector activity reduced. The contraction in the public sector was notably sharp, with pace of decline the sharpest since December 2008. The decrease in the private commercial development was comparatively moderate.” The fact that development in central London has increased markedly in the past year is a guide to what can happen in the region most affected by the capital.

The Kent, Surrey and Sussex Commercial Property Register

The Commercial Property Register for Kent, Surrey and Sussex is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space, Serviced Offices and Commercial Property in Kent Surrey and Sussex. You can also find the latest commercial property news for this region.

Thames Valley Commercial Property Lacking Confidence

By now the expectation would be for a faster pace of improvement in the Thames Valley because of its high level of occupiers in the high technology sector. But in fact the stronger UK economy has only produced a muted recovery. The missing ingredient seems to be confidence in the state of the UK economy and here it is reasonable to put the new coalition government in the frame. They have been putting out so many horrendous statements about how much spending will be cut that private companies have held off decisions until the situation is clearer. Decisions about taking new space because of outdated buildings or potential expansion of business have been delayed. That includes purchasing new telecommunications and computer equipment. That said, take up has risen and in the case of Reading, top rents held up. In Bracknell there are plenty of potential deals around.

As far as the economy in the south east is concerned a report from Markit for the South East England Development Agency (SEEDA) showed that activity had slowed in August and was even below the UK average for the first time since January. Another negative indicator is that private sector employment fell at a time when input prices are rising. Paul Lovejoy of SEEDA commented: “The latest survey shows that the bounce in business activity and demand seen earlier in the year has not been sustained during the summer. It is encouraging to see that manufacturing is holding up relatively well, what we also need is a stronger recovery in service sectors across the region.” Further evidence underlines the fragile state of the economic recovery, even if some international organisations are forecasting that the UK will have faster growth than most European countries. The CB Richard Ellis index shows that the all property total returns slowed marginally in August to 0.8% bringing the annual figure to 12.3%. CBRE’s David Wyllie said: “This month’s returns confirm the growing mood of reflection among investors.”

The Thames Valley Commercial Property Register

The Thames Valley and Heathrow Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space in Thames Valley , Serviced Offices in Thames Valley , Commercial property in the Thames Valley area. You can also find the latest commercial property news for the Thames Valley region.

Thames Valley’s Green Park Property Boosted by USA Giant

Sentiment in Reading has been lifted by the letting of 500 Brook Drive, an 11,148 sq.metres (120,000 sq.ft.) property on PRUPIM’s Green Park to Quintiles, the US pharmaceutical services group. This means that Quintiles will take over Wyeth’s pre let agreement at Green Park for a purpose built headquarters which it signed in 2007. The change came because Pfizer bought Wyeth. This deal underlines the fundamental attractions of the Thames Valley and Green Park in particular for high technology companies. The deal means that Quintiles will leave three buildings totalling 9,290 sq.metres (100,000 sq.ft.) in Bracknell (Station House, Ringside and the Columbia Centre).

The importance of the transaction is that it is half the total of office lettings achieved in the Western Corridor in the first quarter of 2010. According to Stephen Head of Hicks Baker, total lettings in the first eight months of the year in Reading were 20,063 sq.metres (215,973 sq.ft.), the second largest being only 1,208 sq.metres (13,000 sq.ft.) in Bridge Street Plaza to SAB Miller. At the moment there are 226,676 sq.metres (2.44 million sq.ft.) available. Head said: “The Quintiles deal means we are 68% ahead of 2009 and, in fact, the performance in Reading has been better than in other Thames Valley towns. Top rents have held up well and there is a suggestion that Adobe will pay £312 a sq.metre (£29 a sq.ft.) for 4,645 sq.metres (50,000 sq.ft.) in Market House.” Also under offer are two deals totalling half that amount. Head said: “This is a pivotal point in the market in the next six-eight weeks because we have flat lined since the summer. But I sense there is increasing activity.”

The Thames Valley Commercial Property Register

The Thames Valley and Heathrow Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space in Thames Valley , Serviced Offices in Thames Valley commercial property in the Thames Valley area. You can also find the latest commercial property news for the Thames Valley region.

Renting Commercial Office Space in London - Top 10 mistakes

Moving your business into new office space in London sounds exciting but there are a number of pitfalls that many businesses have found which has proved expensive and resource-intensive to rectify. Here are a few key areas that you need to think long and hard about before you may the big move.

Office Size
If you’re unsure about the size of the office space you require then don’t rent somewhere based on looks and facilities alone. If find an office that is too small you will have to move again in the near future if your business begins to grow. If you office space is tool large you will end up paying for space that you are not using which is inefficient and could prove a costly mistake.

A basic rule of thumb is to use 7 square metres for each employee. If you have a call centre then you may be able to get away with less. Don’t take more space than you need to unless you are planning to expand or the space is offered at a fantastic rate.

If you are a small business you could try renting serviced offices until you find the right location and set up for your requirements. Serviced offices are slightly more expensive but tend to have shorter leasing agreements which means you have the flexibility to move should you need to. There are plenty of serviced office locations in and around London so finding a lease to suit you should be fairly easy.

Cost of Premises
Make sure you never rent offices that you do not think you can afford. Business can fluctuate rapidly throughout the year so don’t use your current trading as an indication of the future. Changes out of your control, such as the increase in VAT, can have a considerable impact on your business so be wary and only rent what you can afford. It is better to know you can afford to relocate to larger offices further down the line than having to see out an expensive leasing contract that you can’t afford. Don’t get carried away by the glamour of some London offices. There are plenty of opportunities to negotiate down on price.

Location of Premises
When moving into your new London office space you need to think carefully about the location. Ask yourself if this is a good location for your business, its future growth, customers and your employees. If you rent office space in a cheap location with limited transport links, below par facilities and with a poor crime record you will struggle to find staff who will want to work there. Finding the right location is very much a balancing act. Try to weigh up costs against what you need and what your employees expect.

If your new office space is outside Central London you may struggle to find a high calibre of staff and you may also lose your existing staff. London does act as a magnet for talent and the more central you are, the easier it is to find them. Obviously, this comes at a cost.

On the flip side, there are also benefits to being situated just out of town. Many young people cannot afford to live in the centre of London so basing your business on the outskirts can also be advantageous. Any further than 10 miles from the centre of town, however, can limit your appeal.

Poor Transport Links
Nobody likes spending 2-3 hours getting home from work each day. Therefore, make sure that you new offices suit you and your employees. If you already have people working for you, try to be as accommodating as possible to their needs and their family’s needs. You will never please everybody but if you can base your decision around your most valued employees then you give yourself the best chance of keeping them.
Regardless of common belief, London has very good transport links but due to the sheer number of people, some days feel like a complete ‘rat race’ and journeys can take far longer than expected. Think about transport back in the event of bad weather or disruption. Can your employees get into work via train, bus, tram, bike, car share, etc?
Also think about your customers. How often do they visit your business premises? Does a location with poor transport links hinder the perception of your business?

Poor I.T Infrastructure
So you have now found the office that you think is perfect for your business but have you investigated the I.T and telephony infrastructure? Before you move into your new office space you need to make sure you have the systems to support your business. If you have no or limited broadband access, limited phone connections or connection points, you business may suffer as a result. Installing new systems and terminals is not a 5 minute job so make sure your new offices have, at the very least, the same set up as your current location. If you overlook this factor you could frustrated your employees and lose your customers. Do not underestimate the potential damage caused by a poor I.T infrastructure. Try to negotiate this before moving in if the current systems are of a poor standard.

Limited Parking
If you are based in London it is highly probable that some of your employees will travel to work by car, unless you are in the congestion zone that is. Parking is a serious considering for those who live away from easy accessible transport links or for those who live further out of town. Make sure you ask your existing employees how they plan to travel to work and see if you can negotiate parking spaces into the price. If you have forecasted to grow your workforce then remember to do the same with your parking allocation. Expecting employees to pay to park on a daily basis is not viable. How your workforce travel into work is not necessarily down to you but making sure they are happy when they reach work is. Try to research other local parking facilities available and maybe try to share parking spaces with a neighbouring business.

Poor Natural Light
This sounds like an obvious one but nobody can function effectively in a poorly lit office with no windows or limited light. Basement offices can seem like a good idea but lack of natural light, especially in the winter months, can depress your workforce. Light is important if you are to maintain a good mood in the office and a positive environment. Make sure your new office space has plenty of natural light and also invest in artificial lighting to brighten up the place. Plants will also help to maintain a positive atmosphere.

Lack of Security
Your staff should be like your family and your belongings valued like your essentials at home. Therefore, high level security should not be underestimated. Make sure you back up everything all your systems information in another location and invest in an alarm system that will trigger an alert to the police within seconds should there be a break-in or fire.

Make sure your doors are reinforced; your fire doors are locked at night and your windows are securely fastened and can withstand a potential break-in. You should also check for rotten frames or corrosion that could lead to windows or doors being easily removed by burglars. Security cameras are also recommended so you can record evidence in the event of a break in.

A break-in can seriously damage or even ruin your business. Make sure you take the correct steps to protect it, especially on the day you move in. Some burglars will watch you move in and then strike before you are settled. Don’t be a victim!

Poor Disabled Access
Every business premises should have easy disabled access in and out of the building. Without these access points you may limit yourself with regards to attracting new talent so make sure you have ramps, toilets and lift access if applicable. The Disability Discrimination Act states that you must make sure you have facilities of the same standard for people with disabilities as you have for those without. If these facilities do not already exist then try to negotiate the installation with your prospective landlord.

Unsafe Location
If you want to attract strong talented staff then you need to make sure your office location is a safe environment for them to travel to and from. Therefore, research your preferred choice to ensure your staff will be safe when they leave at night. Remember, winter months can be dark, especially if people leave the office late so easy access to local London transport with strong street lighting should be sufficient.

The London Commercial Property Register

The London Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space in London, Serviced Offices in London and commercial property in London. You can also find the latest commercial property news for the London region.

Attracting the Best Staff with the Right London Office Location

What should you be thinking about? What should I avoid? Where are the suggested best London office locations?

When choosing your next London Office location you should not only think about a convenient location for yourself but also your staff and your future staff. It is all far too easy to pick a location based on your own personal preferences as a boss and also based on the budget available at the time.

The important thing to remember when planning your next office move is that, if your business is growing and you are planning to expand in the near future then your office location can act as a magnet or a deterrent to new staff candidates. Everyone likes glamorous offices with all the luxuries and London is full of them but if they are difficult to reach then you will not attract or keep your staff for very long.

On the opposite side of the coin, if you have poorly lit, designed and decorated offices, then you staff will not be happy or productive working in that way. It is really a case of striking a balance and you need to take a number of factors into account when making this important decision. If you rush into it you may find that your business suffers because you are unable to attract the right calibre of employee to take your business forward.

London Transport Links

Transport is of major importance because if you staff are unable to get to work on time then you will lose productivity. If they take a long time to get home then their enthusiasm may suffers and they may become unhappy. London has great transport links but some routes can become overcrowded at times. You will never be able to satisfy everyone but you want to make sure your current employees are kept in the loop and your new ones have the easiest journey possible in to work. So, before you make your decision you need to ask yourself the following questions:

Does my planned office location offer easy links in and out of town?
Where will the majority of my staff be coming from?
Are there any businesses nearby that have staff I could attract?
Are there usually serious traffic issues around this location?
Do the trains run frequently or do they break down?
Is the walk to the office from the car park or station safe for my employees?

Environment and Social Setting

The surroundings of your new London offices can be a major plus or negative for your staff. The social side of any business can help bolster it and give you stronger foundations for productivity. Everyone needs time to unwind either at lunchtime or after work and enabling your employees to interact outside work can strengthen their relationships inside work. Convenient facilities and places to socialise nearby, whether it be cafes, sandwich shops, restaurants, pubs or bars, can have a massively positive impact on staff morale. What’s more, you can also use these facilities for meetings which, in itself, can be a positive mood enhancer.

The social side of work is especially important during the Winter months because the dark and cold weather can make it difficult for your employees to socialise if your offices are located away from an civilisation. If you are a small company then you have more flexibility to find the right location than if you are a larger business. London has a mass of areas to explore which means you will never be short options for your new office.

Surrounding Businesses

In many instances it can help the success of your business if you are located in an area where competitors also reside. In London, the core media, advertising, financial and I.T companies are located in their respective districts around the City. Being located at the hub or the centre of your industry can help you to keep your finger on the pulse of the latest developments, find partners with complimentary services or technologies and attract the best staff from your competitors. It is often a tough play-off because your competitors can approach your staff also but if your business is in a strong position with some fantastic offices then you give yourself the best chance of building a supreme workforce.

Good London Office Locations: Some locations in London are better than others depending on your requirements. Here are a few examples of good areas and their particular strengths.

Socialising – Covent Garden Offices, Soho Offices, Mayfair Offices, Marylebone Offices, Holborn Offices.

Car Transport Links – Chiswick Offices, Putney Offices, Hammersmith Offices.

Train Links – London Bridge Offices, Paddington Offices, Euston Offices, Charring Cross Offices, Kings Cross Offices.

More Affordable London Offices Acton Offices, Wembley Offices, Croydon Offices.

The London Commercial Property Register

Advantages of Serviced Offices in London

If you are a small business and you are looking to make the jump into London then serviced offices can be the best and most viable option for you. Moving office is often stressful and there are many variables which you need to think very carefully about. Location, rental costs, expansion and accessibility are the main aspects you need to take into account which is why serviced offices make an ideal choice for your next step and here are the reasons why.

Shorter Lease Agreement

Serviced offices usually have a very short time-frame on the rental agreement so if you ever need to move quickly on a another property, need larger premises because you are looking to expand or require a cheaper option you can move with as little as a week’s notice. You may pay slightly more in rent than standard office space but having the flexibility to move can be an added bonus for a new business where the business landscape is often unchartered. Immediately Availability Serviced offices are usually empty when you view them so you can move with immediate effect. When you are starting a new business, the last thing you want to do is spend large amounts of your time planning and executing your next business move. It can take your eye off the ball and arranging supplier contracts can seriously disrupted your business. Serviced offices usually come ready to go which telecoms and I.T infrastructure in place.

Fees on a Per Usage Basis

If you are unsure as to home much space you will require and about how many employees you will be taking on then serviced offices are perfect. You don’t want to pay for space that isn’t being used so have the flexibility to add new desks and offices to your operation is quick and cost-effective. What’s more, have you can upscale and downsize your office space in relation to the amount of business you have. This also enables you to work out an exact return on investment for taking on extra seats or space.

Basic Support Services

Serviced Offices offer your business the basic support services to help you get off the ground without having to employee more staff. You want your employee focused on the task at hand so being supported by secretarial services or a receptionist who can handle your calls, post or emails can be a real advantage. With many serviced offices you also have access to conferencing facilities and communal meeting rooms. Again, this means that you only need to use them when required and the cost is shared amongst the other businesses with the offices.

Modern I.T Infrastructure
If you are a business that is heavily reliant on a heavy duty I.T infrastructure you may struggle with serviced offices but, in most cases, the I.T and telephony systems available will handle anything you can throw at it. The serviced office industry in London is a very competitive world so they must ensure they have the best facilities available to win new tenants. This means that you can benefit from the fast fibre optic broadband and modern phone systems without the initial outlay and continued investment from your own business.

Clean and Modern Offices
Serviced offices are usually modern and clean compared to standard office space. It is important to have a fresh working environment and, although sometimes seemingly clinical, serviced offices are nearly always cleaned daily to maintain a high level of presentation. After all, serviced office companies are required to look after their existing clients whilst continually attracting new business.

Air Conditioning
Air conditioning can be a godsend in the hot summer months. In many instances, the windows do not open due to security and the construction of the buildings so air conditioning can give you that blast of cool air when you need it. The air conditioning is usually serviced on a regular basis with serviced offices.

Parking Facilities
Parking facilities can be a real convenience for those who travel into work by car but be prepared to pay extra for the spaces. Serviced offices usually charge by the facilities you use so this could become expensive. You may be able to negotiate parking spaces as part of your contract but think about the possibility of new employees when doing so.

Clean Toilets and Kitchen
It is never a nice task to have to clean your own toilets or kitchen at work so, with a serviced office, you never need to. The facilities are usually always immaculate and cleaned once or twice each day. Again, serviced offices rely on a good image and happy tenants so this all goes to your advantage.

They look professional
Serviced Offices in London are usually of a very high calibre so you are onto a winner when introducing customers or new employees. With modern surroundings and a clean environment they look more professional and give your small business a larger persona than your bedroom. Serviced offices also give you an indication of home your next offices should feel.

Summary
In summary, serviced offices make a great option if you are looking to make your first business move into London. The costs are all visible in advanced and much of the areas that causes people headaches have already been taken care of and you will have first-rate facilities at your disposal. Admittedly, you may pay a slight premium for the extra support services but it is certainly worth it before you get up and running. Having the ability to move quickly means that you can see how your business performs and then move to the right premises when you eventually find it.

The London Commercial Property Register

Wednesday 1 December 2010

North West Commercial Property in brief 2

Wrightbus, which has been awarded a contract for the new London bus which is to inherit the mantle of the much loved Routemaster, has opened an office on the South Preston Office Village. This part of Lancashire is regarded as a centre of excellence for the passenger transport industry. Wrightbus manufactures the vehicles in Northern Ireland.

The North West Commercial Property Register

The North West Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space in the North West, Serviced Offices in the North West and commercial property in North West. You can also find the latest commercial property news for the North West.

Transforming the Soapworks

Carlyle Group and Abstract Nikal Management have made a sensible decision in the light of the improving market by deciding to start the mixed use refurbishment of the Soapworks in Salford Quays. This is a major project, being marketed by Canning O’Neill, of close to 37,160 sq.metres (400,000 sq.ft.) at the former Colgate Palmolive factory and is the only major speculative scheme starting in the area.

The plan is for a mixture of Grade A offices, hotels, leisure and ancillary facilities. The first phase comprises the refurbishment of the former boiler house which should be viewed in the wider context of Peel’s nearby Media City which has a growing occupier list headed by the BBC and possibly ITN. Mark Canning of Canning O’Neill said: “There has been strong interest in the scheme and we are talking to a number of prospective tenants across a number of sectors.”

The North West Commercial Property Register

South Manchester Also Improves

South Manchester Business Park market has echoed the city centre and returned to a healthier tempo. The first nine months of the year saw deals of 38,423 sq.m. (413,648 sq.ft.) which is close to the figures for the whole of 2009.

Stockport has been enjoying this new positive perspective with a range of lettings. For example, Orbit’s Beckwith House has three new office tenants, continuing the process of filling up the refurbished building in the centre of the town.

Zoe Kirk of Orbit said: “The building offers high quality accommodation on a town centre location.” Orbit, which is part of the Emerson Group, has a portfolio of over 743,200 sq.m. (8 million sq.ft.). Also in Stockport, the national training provider, Synapse, has leased a wing of Langtree’s Kingsgate building, a 7 storey refurbished property. The excellent transport connections of Stockport played a prominent part in the decision by Synapse to locate there.

In comparison with south Manchester which has had rough periods in the past few years, Trafford Park remains high in the popularity stakes. We see that with the success of SEGRO which has two lettings there, one being to a new arrival. One of SEGRO’s largest customers, with a substantial amount of space, is AKW Group which has now leased an extra 7,308 sq.m. (78,666 sq.ft.) in two units at Wharfside. Tony Worthington of AKW, which is a storage and warehousing group, said: “The SEGRO team provided a quick and effective solution that has given us the flexibility to acquire additional space which is close to our existing site.”

The new occupier on the park is AMC Auctioneers who have taken the 3,328 sq.m. (35,817 sq.ft.) Unit A, Redwing.

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And Ask Wins Through

Ask Developments has revised the next stage of its town centre mixed use scheme for Urmston’s Eden Square which has brought an approval from Trafford Council’s Planning Committee. This means the scheme, once a Section 106 Agreement is signed, is closer to the start of construction with the changes following discussions with retailers who want larger premises than can be accommodated in the first phase of the project which is already operating. The changes will increase the attractions of retailing in Urmston, where there has already been a spate of lettings. Leon Guyett of Ask said: “Together with our partner, Trafford Council, this is a positive decision and will allow us to deliver a completed town centre scheme which will further enhance Urmston’s reputation as an attractive place to live, work and shop.” Kelly Paddick of Drivers Jonas, the planning consultant, said: “This marks the completion of a vital regeneration project incorporating three larger retail units and creates a real opportunity for a range of new businesses to locate in Urmston and create a truly vibrant town centre.” The hope now is that the new facilities will act as a catalyst and pull in companies but also spark off other regeneration projects in the town which is so conveniently located on the motorway network.

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Not a cloud in the sky

A clear advantage that Manchester has over many cities is its ever growing airport which now has over 60 airlines serving over 190 destinations throughout the world. Now with two full length runways and three passenger terminals, the airport has the capacity to grow well beyond its current total of 19 million passengers a year. Without doubt, this has given the North West a real international status, which is enhanced by such organisations as Manchester United (probably the best known football team in the world). This is only part of the story because the Manchester Airports Group (MAG) is the UK’s largest British owned airports operation with an annual passenger roll of 24 million through its network of Manchester, East Midlands, Humberside and Bournemouth. At the heart of the business is a property portfolio which has expanded to over £320 million with more than 200 buildings and 5,000 acres. That means it is a sizeable property company with 850 customers.

Clearly MAG is intent on expansion to meet the needs of all its airports. In the past decade one of the problems at the larges airport operator, BAA, has been a lack of major investment despite building Terminal Five at Heathrow. For example, MAG has an imaginative plan for Airport City to generate non-aviation income at Manchester. The long term lan aims to create an integrated business destination and transport hub, helped by improvements such as the new Metrolink to the city centre. The 15-20 year plan will transform 230 acres surrounding the airport into a mixed use development catering for a wide range of occupiers. At the moment the airport has offices of 27,356 sq.metres and 84,608 sq.metres of warehouses as well as hotels with 1,442 bedrooms.

This substantial business supports 20,000 directly employed and a further 42,000 jobs in the North West, numbers which are set to grow. The latest expansion is for an 18,580 sq.metres transit shed at the World Freight Terminal in a three storey freight handling unit with office space. MAG has not neglected its other airports and is expanding bournemouth, where it has a new letting to Jet Engineering Technical Support, and East Midlands where construction has started on a £22 million 4 star Radisson Blue Hotel in partnership with Azure Property Group.

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North West Commercial Property in brief

A £30 million scheme to transform former brownfield sites in Haydock has started with a new business development site, Empress Park and an industrial zone at Boston Park which will pave the way for over 2,000 jobs. Morley Estates will undertake the mixed use scheme which has received £4 million from the European Regional Development Fund.

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Spinningfields Again

If any deal personified the strength of the city centre, then it is likely to be DWF Solicitors taking 7,710 sq.metres (82,995 sq.ft.) through Canning O’Neill in 1 Scott Place, Spinningfields. The law firm has taken the assignment from Guardian Media Group (GMG) while it, as part of the package of incentives, took DWF’s existing lease on the smaller Centurion House, Deansgate. GMC were advised by GVA Grimley. Conrad O’Neill commented: “We looked at a number of buildings (bothexisting and pre let opportunities) in some detail but 1 Scott Place clearly stood out as the favoured location due to a prestigious address and location, large floor plates and sufficient space to accommodate the firm’s forecast growth.” He added that the rent was “at a sensible market level, meaning that occupation costs are controlled.” He had taken the long view that “the availability of large chunks of Grade A space with large floor plates in good locations is drying up and if DWF did not move now, they would be faced with little option but to go down the pre let route, which means having to wait 2-3 years for the space to be ready and having to pay a much higher rent.”

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Light at the end of the tunnel

It may be hard going, but the market is returning to health as confidence oozes back into the system and developers start building again. Prime rents in Manchester city centre are stable at £306.66 a sq.metre (£28.50 a sq.ft.) but are likely to rise next year as the diminishing stock of Grade A space cuts in. Jones Lang LaSalle’s Andrew Gardiner commented: ”During the third quarter, occupiers in the city centre continued to concentrate on high end Grade A space, using lease events to exploit market conditions and upgrade their space. They are following two strategies of either moving into better accommodation at the same rent or similar accommodation at lower cost.” In fact the current period of recession has allowed companies to upgrade their space at reasonable cost in most parts of the country which will become less feasible as the vacancy rate falls.

In the case of Manchester this is 10.8%. In Gardiner’s view that will mean incentives will be cut in 2011 because of a lack of new development. This view has been reinforced by the figures for third quarter lettings of 65,747 sq.metres (707,719 sq.ft.), close to half of which was to the Co-operative Group.

The outcome for 2010 will be around 28% higher than in 2009, a reasonable result in a year of a recovering economy. What is certain is that Manchester remains high on the agenda of European and international companies seeking space in northern England. An example of this status is that it has moved up to 12th place in the European Cities Monitor compiled by Cushman & Wakefield in the Best Cities to Locate a Business. Andrew Timms of Edwards & Co said: “We have been doing well compared with other regional cities and it will clearly be a good year for the city centre office market.” He suggested that Grade B space was “something of a bun fight” because landlords need to improve the quality of their stock in the next year. His firm is currently involved in a number of substantial lettings which should be completed soon.

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Popular Spring Gardens

One property that has benefited from the increase in lettings is 19 Spring Gardens where there have been four recent lettings taking the occupancy rate to around three quarters. These add up to 975 sq.metres (10,500 sq.ft.) at close to the asking rent of £236.72 a sq.metre (22 a sq.ft.).

Claire MacDonald of King Sturge, joint letting agent with p3, said: “Building upon our recent success we expect shortly to announce additional lettings in the property. The proactive approach of the agency teams and especially that of the landlord Magnus has been a major factor in the lettings.”

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Active Media

Two sectors which have become active in taking new space in the region are ICT and the media. According to David Laws of Matthews & Goodman that is because: “They sense that there is an opportunity through the improvement of the economy and are gearing themselves up. We have three potential tenants all looking for space on the Crewe Business Park, for example.” In his view that is because these industries are going through “a sharp upward curve in technical change and growth.” Elsewhere in Manchester the strength of traditional sectors such as finance and law have helped city centre lettings, “which is relatively robust.” Laws is optimistic because the arguments about taking new space (such as an election, spending review etc) “are behind us and companies are in better shape after cutting costs in the recession.”

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