Office design uk, office interior design consultancy - Morgan Lovell

City office space demand surges in Scotland

Morgan Lovell — 2012-02-02T12:00:00.00+00:00

Scotland’s two biggest cities saw demand for office space rapidly increase in 2011, by 19% in Edinburgh and by 14% in Glasgow, a survey has revealed.

Workstation prices rose on average in both areas as larger companies moved in, taking space and forcing price increases.

The survey by search service officebroker.com also found businesses were demanding larger space and suggested that firms had raised average requirements in offices by just under two workstations on 2010.

The service reported a 28% rise per workstation in Edinburgh to £315, making the Scottish capital the most expensive spot in a city centre for serviced office space outside central London. And in Glasgow, a 21% price rise in office space year-on-year came to a £206 average per workstation.

Activity in these areas in the two major cities reflects the changing needs of companies during uncertain times, said Chris Meredith, UK head of sales at officebroker.com.

Flexibility is a chief concern for all sizes of company given the increasing amount of larger companies in the market, said Mr Meredith.

City lacks grade A offices: report

Morgan Lovell — 2012-01-19T12:00:00.00+00:00

Southampton’s financial and professional services companies are missing out on inward investment because of a "distinct shortage" of top-level office space, a property company has reported.

Premises with a grade A office fit-out are sorely lacking in the Hampshire city, the report by Jones Lang LaSalle shows.

Michael Green, who runs the company’s Southampton base, said vacancy rates for offices in the city are high but premium space is in short supply, pointing out that "the pipeline of new schemes has dried up".

He went on: "This will have consequences, not least on the city’s ability to attract or retain footloose inward investors from the financial services and professional sectors."

Mr Green said a "serious supply shortage" of grade A office space will become more apparent in 2013-14 "before new schemes are capable of attracting funding and are then built out".

Office targets creative industries

Morgan Lovell — 2012-01-17T12:00:00.00+00:00

Permission is being sought for a new three-storey office development made from shipping containers at the Seabraes site in Dundee.

The scheme, for Scottish Enterprise, is aiming to being in more creative industries to the former railway goods yard site.

The plan is hoped to be a pilot scheme for similar office redevelopment, and if successful, nine other such blocks could follow. The design seeks to provide "low-cost, energy-efficient and flexible work pod spaces for young, start-up companies in the creative industries".

Its added: "Most digital media/creative users will use office-type buildings. It is suggested that the 2004 masterplan concept of relatively large, single floor-user buildings is no longer appropriate. The completed market analysis has largely determined future building requirements for small, flexible work units."

Working in conjunction with Abertay University, which has strong links to Dundee’s digital media and video game sectors, planners found that most business start-ups would require space of only up to 1,000 square feet.

JLL issues business lease event warning

Morgan Lovell — 2012-01-03T12:00:00.00+00:00

Property agents Jones Lang LaSalle has warned that more than 14 million sq ft of office space in Britain is approaching either expiry or a break clause in the lease.

It is thought that this could pose a significant threat to commercial property market recovery if firms see this as an opportunity to downsize.

JLL revealed that over the next five years there will be 6.2m sq ft of expiries and breaks in London, while there will be another 8m sq ft in other big cities.

Although the company has warned the importance of these lease events "cannot be overstated" there is a "greater propensity to extend and restructure" leases among firms.

But, with the City workforce expected to remain flat, developers of new office buildings in London have been targeting companies with lease events as potential tenants.

Some of the businesses expected to look for London-based office space this year include LinkedIn, Saatchi & Saatchi and Prudential Regulatory Authority.

The office space required for those expansions is expected to be just 775,000 sq ft, which JLL has warned would see the take-up of office space fall below the 10-year average.

70% of UK offices 'of poor quality'

Morgan Lovell — 2011-12-20T12:00:00.00+00:00

Research indicates that nearly 70%, or 721 million sq ft, of all office space in the UK is categorised as being of poor quality, and therefore might benefit from undergoing some sort of office refurbishment.

Real estate adviser DTZ’s report categorised prime office space as grade A , with good-quality secondary office space rated as grade B and poor-quality secondary office space given a grade C rating.

Some 85% of office space in the minor UK markets is of a grade C quality, whereas only 54% of office space in central London was rated in this category. This is because land in central London attracts a higher price than anywhere else in the country and therefore offices need to be of a higher quality to reflect the higher premium.

In most markets, grade C office space exceeds the total amount of grade A and B office space. In total, grade A office space accounts for 9% of the UK market, while 22% of the UK’s offices are of grade B quality. Excluding the main office markets, garde A and B offices account for just 4% and 11% respectively.

Hans Vrensen, DTZ’s global head of research, said: "This analysis is an initial step towards sizing the non-prime market. This is important given that non-prime property is collateral for much of the circa £300 billion real estate debt in the UK."

Aberdeen 'leads Scottish office market'

Morgan Lovell — 2011-12-16T12:00:00.00+00:00

The Aberdeen office space market outperformed Scotland’s other major cities in the third quarter of 2011, new research indicates.

Figures from CBRE reveal that more Aberdeen office interiors were taken up in the three-month period than in the previous two years.

However, take-up of office space in the city was lower than the first two quarters of 2011.

New office space now makes up 17% of the market, with most of the city’s 761,631 sq ft of space classed as second hand.

In comparison to the Aberdeen statistics, CBRE said that the take up of office interiors in Glasgow reached 91,670 sq ft in the third quarter, while in Edinburgh it peaked at 103,717 sq ft.

The Scottish capital saw a 52% drop in the uptake of office space between the second and third quarters of the year.

Lack of quality space in Midlands

Morgan Lovell — 2011-12-07T12:00:00.00+00:00

There is a lack of quality office space in the Midlands, a new report has revealed.

But the area is oversupplied with secondary and tertiary stock, according to research from national commercial property firm Lambert Smith Hampton. The report reveals that rental levels for office space are likely to remain static for the next 12 months, at least, in the West Midlands.

It said: "Availability levels have remained high in the Midlands, although prime office space continues to be limited and most availability is of lower grade stock."

The findings showed there is only 300,000 sq ft of prime space available in Birmingham as the region faces a shortage of grade A office space as demand is far outstripping current supply and the shortfall is being made up by secondary and tertiary stock. The report also discovered that the market is Nottingham is over-supplied with such space.

Although there are no strict rules on what makes office space prime, secondary or tertiary, prime office space is normally found in the heart of a city and the office design is of a very high standard with top-quality materials used.

It is predicted that the only growth in the office space rental market during 2012 will be in Central London and certain other parts of the South.

Council hails West End office boom

Morgan Lovell — 2011-11-30T12:00:00.00+00:00

Despite the tough economic climate, building contractors still see central London as a great place to invest in new office developments.

The Crane Survey’s half-yearly report found that the number of commercial building projects in the West End is on the up, and higher than at any point during the last two years.

London now has around 2.3 million sq ft office floorspace earmarked by developers, with some of it considered to be of the highest standard.

Westminster City Council said it is a great boon for central London that it is bucking the national trend and attracting investment.

Councillor Jonathan Glanz described it as great news for local businesses.

He said: "In tough times this shows the endeavour, hard work and entrepreneurship of workers and business in this area will help us to continue to buck the national trend.

"As a council we must however ensure that all developers are sensitive to the needs and wishes of local residents as any construction work take place. We want to ensure that Westminster is a great place to live as well as to work."

London to see 'improved' office take-up

Morgan Lovell — 2011-11-29T12:00:00.00+00:00

With the Olympics fast approaching, London has many reasons to expect a vibrant 2012.

And now it seems that there is good news afoot for the capital’s office space sector too, with experts predicting that the market will benefit greatly from pent-up demand and an emerging trend for office relocation within the city.

Cushman and Wakeman’s new report, which was issued on the back of weak take-up in London’s office sector, suggested that the second half of next year is destined for mass improvements in particular areas, with newly developed sites such as Clerkenwell and Shoreditch looking particularly promising.

This is in part down to the continuation of a theme for thrifty firms relocating from the West End to the other side of the city.

Around half of the London companies quizzed on their strategy for 2012 for the report said they were looking for ’opportunistic growth’, with a smaller amount (17%) targeting ’aggressive growth’.

Lighthouse Global carried out the research of 500 large UK companies, almost half of which have their main presence in London.

City office take-up passes 2010

Morgan Lovell — 2011-11-25T12:00:00.00+00:00

Office space take-up in Aberdeen this week surpassed that of 2009 and 2010, CBRE has reported.

The real estate giant said in its report on office space in Scotland that the rise came despite take-up in the third quarter of 2011 being considerably down over the previous two quarters, to 43,790 sq ft.

It reported 761,631 sq ft of total availability in the city, mostly in the second hand market. Only 17% of the total available space was taken up by Grade A newly completed space.

In Glasgow, third quarter take-up showed a 58% increase on the previous quarter, reaching 91,670 sq ft. It almost matched the same period in 2010 when the third quarter saw 98,235 sq taken.

Major deals in the third quarter saw Mercer take 33,551 sq ft at G1 and Barclays Bank 20,346 sq ft at Tay House.

In Edinburgh, the take-up in the third quarter reached 103,717 sq ft, which represented a 53% drop on the second quarter’s 202,000 sq ft.

City office ownership revealed

Morgan Lovell — 2011-11-22T12:00:00.00+00:00

Office space in the capital is dominated by owners from overseas with 52% control, a survey has discovered.

A Who Owns the City study revealed the figure and found overseas owners increased their stake in the City property market dramatically in recent years. They now account for 66% - more than three-fifths - of purchases by value in the last three years, compared with 1980 when ownership levels by foreign investors was only 8%.

Germany was the main external investor with 16% of proprietorship, Development Securities’ report said. The US came next with 10%. Middle East ownership rose to 6% although that of the Japanese dropped to 2%.

The capital is reported to be the city that attracts more inward office investment than anywhere else in the world.

The tough economic times had clearly not deterred London’s appeal to foreign investors, said Michael Marx, chief executive of Development Securities. He said quality and transparency of city offices appealed as a "safe haven" for foreign buyers. They, in turn, deepened market liquidity.

"It could be argued that these overseas investors, now in the majority, are critical to future values in the City," said Mr Marx.

Office refurbishment 'way forward'

Morgan Lovell — 2011-11-14T12:00:00.00+00:00

Office refurbishment will be key as the office property market in London flat lines in the coming months.

Analysts Jones Lang La Salle have said the supply gap in 2013 to 2016, being exacerbated by the current economic environment, "will provide opportunity for those who can speculatively develop or refurbish existing stock, as when the occupational market returns choice will be limited and competition will increase driving rental returns".

The company expects leasing markets across central London to be flat in 2012, but predicts rental growth will return during 2013.

Low supply coupled with a build up of demand will provide the ideal setting for office makeovers over the next 24 months, the analysts said.

The team, led by Neil Prime, head of office, made an optimistic forecast for the next five years - it said London’s office market will outperform both European and global competitors markets. The analysts did, however, acknowledge that the market may experience short term volatility.

Office activity levels 'match 2010'

Morgan Lovell — 2011-11-10T12:00:00.00+00:00

The 2011 performance of the UK regional office market is likely to mirror that of last year, new research suggests.

Year-end activity levels are likely to be very similar to those recorded in 2010, Jones Lang LaSalle indicated.

In the third quarter of the year, the organisation believes that the take-up of office interiors totalled more than 1.5m sq ft in the eight key markets covered by its study.

While volumes were 36.3% lower than they were during the same three-month period of last year, they were up by 22.9% on the statistics from the second quarter of 2011.

Jones Lang LaSalle’s national office agency chairman, Chris Hiatt, said: "Overall leasing activity across the eight regional office markets in Q3 2011 was boosted by a number of larger deals in the western corridor region. In contrast, Bristol city centre saw no office leasing activity over 10,000 sq ft to be concluded."

He added that caution is likely to be exercised by office occupiers in the medium term.

Office space take-up gains momentum

Morgan Lovell — 2011-11-09T12:00:00.00+00:00

The London commercial property sector gathered momentum in the three months to September, data has indicated.

Take-up of office space in central London increased by 26% in the third quarter, its strongest performance of the year, according to research by real estate consultancy CB Richard Ellis.

But spokesman Adam Hetherington warned that take-up continues to lag behind central London’s 10-year average of 2.9 million sq ft - where it has languished since the end of 2010.

The Docklands registered the most spectacular rise, notching a huge increase of 1,155% to hit 400,000 sq ft over the third quarter, while the City improved from 744,000 sq ft in the second quarter to 900,000 sq ft.

Mr Hetherington said: "While take-up has been generally weak throughout the year, the jump in leasing levels across almost all central London markets over the third quarter has been a positive sign."

Office space take-up 'to fall off'

Morgan Lovell — 2011-11-07T12:00:00.00+00:00

This year’s take-up of office space in Bristol is unlikely to hit 2010 levels as rents stay static, but investment has soared according to a report.

The flat occupier market was below last year’s levels, having slowed down because of fewer large requirements this year, said the study from BNP Paribas Real Estate.

Total take-up in Bristol centre to the end of the third quarter was 311,100 sq ft. This was a drop of 13% on the same period last year, as revealed in the adviser’s Bristol Office Market Autumn Report.

Meanwhile, there was a 233,500 sq ft take-up in the out-of-town market, clocking a drop of 23% on 2010.

Availability levels stayed at 2.2m sq ft in the city centre and 1.2m sq ft out of town, said the study.

The leading international real estate adviser said it was confident that Bristol’s economic diversity would underpin the office sector throughout next year, even though the occupational market was more difficult this year than last.

Figures on office take-up in London

Morgan Lovell — 2011-11-02T12:00:00.00+00:00

Space planning experts have nearly 10,000,000 square feet of office space to work with in Central London, a new report suggests.

The research by commercial property agents Knight Frank shows that this figure is down on the area recorded two years ago and no speculative developments are in the pipeline.

There was also a drop in the level of investment turnover across the capital, as it fell to £2 billion. It is believed that this has been constrained by a lack of available space at the start of the year.

However, take up of office space was up to 3.2 million square feet this autumn and there was also a rise in the volume of transactions across all size brackets. This translates to a 40% jump compared to take-up during the summer and puts the level back on track to meet the long term average.

The availability of office space has continued to fall, according to the report and it now stands at 15.9 million square feet - representing a vacancy rate of 6.9%. This finding is supported by a continued downward turn in speculative construction, which now totals 4.7 million square feet.

West Quay scheme is recommended

Morgan Lovell — 2011-11-01T12:00:00.00+00:00

Poole planners have recommended that the West Quay scheme should be approved.

A special committee meeting on Wednesday will try to reach a final decision on the project, which includes 377 apartments in six blocks, commercial and office space and a statement tower.

However, local authority officials have come under fire for their recommendation, with residents accusing them of "betraying" the future of Poole.

Vision for Poole, which is the product of four residents groups coming together, has outlined its strong opposition to the regeneration scheme put forward by Neptune Consultants.

The group has pointed out that 300 residents have completed detailed questionnaires, with 592 signing a petition saying the office design was not compatible with the area.

Chairman Terry Stewart said: "Planners have chosen to ignore the very clear opinions of Poole residents and have ignored many of the breaches of the sacrosanct planning core strategy.

"This bodes ill for the rest of Poole’s development which in total is 3.5 times the size of the old town."

Meanwhile, Stephen Thorne, head of planning at Borough of Poole said although there will be policy tensions, it is their job to reconcile them.

City's office space take-up plunges

Morgan Lovell — 2011-10-21T12:00:00.00+00:00

The take-up of office space has fallen by 40% in Manchester compared with 2010’s figures, despite a massive leasing deal, a report has revealed.

Hotel provider Late Rooms leased 11,757 square feet of workspace at the landmark Peninsula building, and the Iraqi Consulate bought 26,699 square feet of offices at 1 Norfolk Street. The figures came in a report from the Office Agents’ Forum.

In another study, Drivers Jonas Deloitte found rental rates showed a small rise of 50p to £29 per square foot.

The small drop in take-up in the third quarter compared with the previous one was not unexpected, said Alex Russell, spokesman for the Manchester Office Agents Forum. It was typical of the time of year in any market as summer is always quieter, he said.

Mr Russell added that occupier demand has remained steady and the forum saw a significant rise in new enquiries during September and October. With deals like the KPMG letting due to formally exchange, the end of year take-up results are set to be better than forecast, particularly compared with other cities, he said.

South Manchester’s office space market shows improvement with the let space reaching just over 184,000 square feet, said the report.

Highest crane to finish skyscraper

Morgan Lovell — 2011-09-26T12:00:00.00+00:00

Europe’s tallest building, which is to accommodate sought-after office space, will be completed with the use of Britain’s highest ever crane.

The crane, which will tower 317 metres or 1,040 ft above ground level, is to be put in place at the building site to complete the spire of The Shard, near London Bridge.

At this fullest extension it will stand seven metres above the skyscraper’s eventual peak of 310 metres. The construction currently stands at 244 metres and workers will use the crane to finish the top 23 floors, from a total of 95.

The Shard will be the tallest building in the European Union, surpassing the current record-holder - One Canada Square at London’s Canary Wharf which is 235 metres or 773 ft high. One Canada Square was completed in 1991.

The completed Shard skyscraper will also be the 45th tallest building in the world

Go-ahead for city centre offices

Morgan Lovell — 2011-09-19T12:00:00.00+00:00

A 200,000 sq ft office block and multi-storey car park in central Manchester have been granted planning permission.

The Embankment Greengate office design hopes to create a new business hub next to the River Irwell by Victoria Station, which will be accompanied by space for some 445 vehicles.

Construction is expected to begin next year on the first phase of the development at the site of the former Exchange Station.

The scheme is a partnership between Ask Developments and Network Rail and is an area deemed key for regeneration and space planning by Salford City Council. It aims to see the 101 Embankment office block ready for use by Spring 2014.

Director of Ask Developments, Alan Burke, said: "The continued strength of the occupier market in the city centre and the lack of new Grade A space likely to be available in 2013/14 gives both Salford City Council and ourselves the confidence that now is the right time to be planning speculative development."

David Biggs, Network Rail’s property director, said: "The number of people using Manchester Victoria is set to double by 2019. This development, along with our plans for the station, will be key to the wider regeneration of the north of the city."

More offices being filled in Manchester

Morgan Lovell — 2011-09-13T12:00:00.00+00:00

Office occupancy rates in Manchester sharply increased in the second quarter of this year, despite a slow start to 2011, according to the city’s Office Agents Forum.

Take-up for April-June resulted in 174,978 sq ft being occupied, up 36% on the previous three months, suggesting more firms may be conducting an office relocation.

The total for the half-year is 304,000 sq ft, down 4% on the 317,000 sq ft occupied in the first half of 2010 in Manchester city centre.

Demand for Grade A office space is increasing in the city with just two years-worth of supply. Large-scale speculative development is expected to be announced for Manchester, increasing demand further.

Meanwhile, landlords of Grade A space are sitting pretty, allowed to be selective with their tenants as well as charge higher rates because of the low availability of offices.

A spokesman for the forum said: "Manchester continues to outperform other competing regional centres and should benefit from several large requirements likely to be satisfied before the end of the year."

Final Canary Wharf block to be built

Morgan Lovell — 2011-08-09T12:00:00.00+00:00

The final block in the Canary Wharf masterplan is to be built nearly 25 years after its conception.

The European Medicines Agency has already signed a 25-year lease for offices in the bottom half of the 20-storey 25 Churchill Place office design.

They will be charged £46.50 a square foot after a 37-month rent-free period.

Canary Wharf said its expects the 500,000 square foot building to take three years to compete, creating thousands of direct and indirect jobs in office design and fit out.

John Garwood of Canary Wharf said: "This is a very positive statement of confidence in the letting market, not just for Canary Wharf but for the whole of London."

Along with 25 Churchill Place, the group has also been granted planning permission for a further five buildings, which could open up a further five million-plus square feet of available office space in the area.

Office contract bidding announced

Morgan Lovell — 2011-08-04T12:00:00.00+00:00

Firms are to be invited to bid for an office-building contract under £33 million redevelopment plans at Bath and East Somerset Council.

The firm which wins the contract will build retail units, a library and new council offices in Keynsham, near Bath - a project which will see much consideration given to office fit out and office design.

The council has developed the plans in a bid to regenerate Keynsham and attract a greater number of investors to the town.

The move forms part of a wider economy drive at the council, with clever office design being weighed up in a bid to cut the amount of overall offices used by the local authority - from 12 down to four.

The council says that the changes will lead to a reduction in its carbon footprint among buildings by as much as 70%.

Firms will be invited to launch their bids from August 22.

Royal Mail plans office relocation

Morgan Lovell — 2011-07-04T12:00:00.00+00:00

The Royal Mail is seeking permission to complete an office refurbishment so that it can combine two of its operations onto one site in Surrey.

Its delivery office in Esher, Elmbridge, is due to close because it is located on land that has been earmarked for redevelopment into shops and restaurants.

The area of the town's Hight Street, which has long been considered an eyesore, is to be knocked down by developers after they received permission from Elmbridge Council in November last year.

Now, Royal Mail has submitted an application to move its delivery office to another of its offices in West Molesey, and is requesting permission to conduct an office fit out at this site to accommodate both operations.

Dominic Ellis, delivery sector manager, said they were hopeful that the application would be successful so plans could proceed.

He said: "Maintaining a high quality of service to our customers in the KT10 postcode area will remain our priority during these changes. We are currently looking at options for customers who need to collect mail from Royal Mail if this relocation goes ahead."

Copyright Press Association 2011

New plans announced for Chiswick office construction project

Morgan Lovell — 2011-05-24T12:00:00.00+00:00

New plans have been submitted for a 52,000 sq ft office construction project in Chiswick.

The Octopus scheme by London & Bath estates will see the delivery of new grade A office interior space should the development get the go-ahead, with amended plans now being submitted to local officials.

"I am confident that we now have a scheme that is right for Hounslow Council and for the local area. I now look forward to engaging with the council and embarking on the final leg of the Octopus's journey," commented Kim Gottlieb, managing director of London & Bath Estates.

Shaun McCarthy, chair of the Commission for a Sustainable London 2012, recently noted that office construction projects across the UK could learn from the lessons in sustainability that have been revealed through the construction of the new Olympic Velodrome for next year's London 2012 Olympic Games.

He argued that by using less material in the construction process, the developers have created fewer emissions, resulting in a greener build all round.

Posted by Paul Kelly