Metropolis Office Mover Leads in June 2018

Metropolis ran 562 business leads on ‘office movers’ in June 2018. If all reported moves were added together the total would exceed 14 million sq ft of office searches and transactions, researched by Metropolis’ unique market-led intelligence research team, last month.

London was the largest region with 240 business leads during month, but there were also strong showings from the South East (60),  Scotland (51) North West (43) and Yorkshire (35) . 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 562 June leads, included those on occupiers Amazon, British Airways, Barclays, Scottish Office and WeWork.

The June 2018 leads included 171 ‘identified requirements’, including 84 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 171 searches, 100 were newly posted office searches, not previously notified to clients.

The most recent research also included 160 ‘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, mentioning ‘Metropolis Blog’

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Cityoffices – Offices Taking Off

The 15 year old website http://www.Cityoffices.net is the sister leads provider to the market leading Metropolis Property Research.

With the office construction sector booming in London and awakening in UK regional cities, there is a huge volume of tenders being sought and awarded as every role from architects, planners and engineers to service consultants, letting agents and acoustic consultants are being appointed on a daily basis.

Looking back over September 2015 this Cityoffices bulletin just looks at news of some of the schemes (there are 120 schemes at either construction or demolition stage in London, with over 200 planning consents in the pipeline) which have progressed in the last month and some of the schemes which developers are likely to progress in the next 2-3 years. The 25 London news stories and many regional updates in September, are backed up with full project details, including teams where appointed, on the database and included:

In London

  • Demolition started at a major mixed use site in Victoria, SW1;
  • a Southbank office block was put up for sale, with tenants vacating in mid-2016, Development team to be appointed;
  • a new planning application for a mid-size refurbishment close to the Bank of England;
  • a new start on a mixed-use scheme in Bloomsbury;
  • a historic island site demolition in Midtown to provide a new office scheme;
  • consent for a refurbishment of a large former publishers office in EC4;
  • a major Mayfair office development gets underway;
  • news of the latest major pre-lets on office schemes in central London

Outside London

  • Consent for major central Birmingham scheme;
  • Liverpool sees its largest Grade A letting of the year;
  • Manchester application to redevelop a former law firm’s offices;
  • application for a Bristol science research centre building;
  • contractor appointed to refurbish a Glasgow office scheme;
  • new application in Leeds to refurbish and extend a block due to be vacated in 2016;
  • phase 2 of a successful Newcastle scheme
  • major Edinburgh scheme is pre-let

These are just a sample of the many office projects that Cityoffices reports on each month and backed up with full histories and contact names and numbers where available. No other information provider can match a fraction of Cityoffices’ coverage.

If you would like to know more about annual Cityoffices subscriptions from only £750 email Andy King at andy@metroinfo.co.uk

Construction costs rising

Construction costs for London projects are rising’, according to Aecom’s just-released 2014 London Contractors Survey.

The firm polled main contractors with a combined UK turnover of almost £7bn, plus 16 major subcontractors. The survey concluded that contractors are beginning to decline to tender on up to one in three higher risk projects and push up quotes on others.

Contractors including Laing O’Rourke, Mace, Kier, Brookfield Multiplex, Skanska and Willmott Dixon took part in the survey. Most of which are lined up to start major London office schemes in 2015, as featured in Metropolis and Cityoffice’s recent London Skyline survey.

Metropolis and Cityoffices calculate that there are already 80 london office projects scheduled to start next year, with more schemes at an earlier stage, which could also still start in the next 12 months. The likelihood is that contractors will enjoy more choice over projects to tender for.

The Aecom survey also found contractors moving towards earlier procurement. Some contractors are still proposing lump sum, single stage tender, but the client will pay higher costs.

Refurbishments schemes or complex projects which bring substantial risk for contractors are also attracting fewer bids from contractors according to Aecom.

Penalties for late completion of projects, which were relatively common in 2013, have now largely disappeared.

Aecom is forecasting that 2014 will record 5-6% tender price inflation in London, and is predicting inflation of 5.1% in 2015 and 5.3% in 2016. In previous years prices were falling.

Labour shortages are now the primary driver for price rises, especially in brickwork-related trades. Aecom is predicting that electrical engineers will be the next specialists to see strong pick-up in demand.

The Aecom survey also found that London contractors have on average already secured 71% of their turnover for 2015, which is higher than the 67% secured for 2014 at the same time last year.

Metropolis is forecasting a further rise in speculative projects in 2015, with an increased level of refurbishment and fit-out work driven by a strengthening pipeline of schemes and a large number of occupiers looking to tie-up deals.