Metropolis Leads in May 2018

Metropolis ran 557 business leads on ‘office movers’ in May 2018. If all reported moves were added together the total would exceed 17 million sq ft of office searches and transactions, researched by Metropolis’ unique market led intelligence research team. London was the largest region with 245 business leads during month, but there were also strong showings from the South East (71),  North West (45), Yorkshire (39) and Scotland (37) . Business services and financials services were the largest business sectors planning relocations or agreeing moves during the month.

The relocation leads covered the whole UK and provided details of the size of the office occupier, company likely move dates, a description of the reasons for the move, its business sector and full contact details including an address for written inquiries, at least one telephone number and in most cases an email address. Some of the largest planned moves and top picks amongst the 557 May leads, included those on occupiers Chinese embassy, Barclays Bank, Telehouse, Societe Generale and Publicis.

The May 2018 leads included 154 ‘identified requirements’, including 83 in London. Which means that the company confirmed to researchers that it has current or future plans to search for alternative office space. Of these 154 searches, 110 were newly posted office searches, not previously notified to clients.

The most recent research also included 166 ‘potential movers’ which were mainly longer-term leads on occupiers, considering a relocation, but the occupier has yet to make a final decision on whether to search.

Most of the remaining stories covered companies that have just signed for new office space and have set a move date, including some large pre-lets and companies inviting tenders for fit-out contracts. The shortest planned move date is just over a month away, whilst the longest was late 2020.

Recent research by Metropolis concluded that a conservative estimate of ‘live’ business tender opportunities on the database in recent months, exceeded £1bn of business.

If you would like some information on flexible Metropolis subscription packages, then please email Andy at andy@metroinfo.co.uk

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Fit-Out Market Review

CBRE has just published its latest 2018 European Fit-Out Cost Review. Amongst its conclusions are:

Nearly three quarters of companies in the region have looked to boost the space efficiency of existing buildings in the past year, according to CBRE’s Occupier Survey. CBRE expect further evolution of workplace strategies and new approaches to flexible working over the coming years.

Trends include: Space designed to foster more effective collaboration (generating ideas and driving innovation); Space with improved environmental qualities (temperature, lighting, décor, etc.), more attention to ‘wellness’ and smarter use of technology.

In terms of furniture, CBRE say careful planning and programming is essential. This usually involves a move consultant working with client to identify and understand the current set-up, to plan for and accommodate activities critical for business continuity, movement of employees, furniture and equipment. The move consultant will implement a comprehensive communications plan.

In terms of removals CBRE estimate costs in central London vary between 24 euros for a basic move (agile working) within a floor to 136 euros per person for a full desk and IT move between buildings.

In terms of Lease reinstatement (also known as‘dilapidations’), CBRE estimate 200-240 euros per square metre in central London.  assuming moderate wear based on a 1,000 sq m office.

In terms of procurement and interior build, CBRE estimate 25-30 weeks for a UK location for a medium specification 1,000 sq m fit-out project.

CBRE also outline the implications of potential tax savings across various EMEA countries, based on a total expenditure of €2,500,000 for a CAT B fit-out.

CBRE estimate that typical fit-out costs for a 1,000 sq m office range from 1,000 euros per sq m for a low budget move to 2,200 euros per sq m for a high budget London move. These costs would include Cat B fit-out, furniture, security, AV, IT, fees and contingency.  These costs would be around 20% cheaper in Manchester or Glasgow.

Metropolis leads provide a stream of notifications on fit-out tendering opportunities and contract awards. It has published 100 such leads in the last 3 months.