In this fifth edition of CBRE’s Law in London report we analyse the way the largest 100 law firms in London are using their office space. Over the last five years there have been significant changes in how these firms are using their space, most notably a decrease in the amount of space per fee earner. This has been achieved by rethinking the way in which space is used; workplace strategy and technology have taken centre stage to enhance the quality of the working environment.
Take-up in February 2017 was 1.0 m sq ft, a rise of 92% on January; this was in line with the 10-year average. The largest transaction of the month saw Freshfields acquire 255,800 sq ft at 100 Bishopsgate, EC2. Availability rose by 4% to 14.7m sq ft, in line with the 10-year average. The level of under offers fell by 8% over the course of the month to stand at 2.1m sq ft.
Industrial sector outperforms for the sixth consecutive month Capital values increased 0.4% on average across UK commercial property in February 2017. All Property rental value growth was 0.2% over the month, compared with 0.1% in January. The Industrial sector continues to outperform the other main sectors with rental value growth of 0.5%.
Positive market sentiment continues in the first part of 2017, boosted further by the Government’s long awaited Housing White Paper. 2017 so far has seen a broader mix of deal structures. Completed investments remain scarce, although several significant opportunities are close to exchanging. Fewer forward funding transactions have translated into more land deals such as Get Living London’s purchase in Glasgow of the Merchant City site of and a growing propensity for “platform” deals, particularly from overseas investors and some Registered Providers with L & Q having secured Gallagher’s strategic land business with potential for 40,000+ homes. A more flexible stance by developers in fringe Zone 1/prime Zone 2 locations in London appears to be encouraging a number of investors in this part of the market.
As millennials become a larger segment of the workforce, grow in affluence and start forming their own families, it’s important to understand their true preferences and how their choices are impacting multifamily, office and retail real estate. To see a clearer picture of this generation chooses to live, work and play, CBRE conducted one of the most extensive and detailed global studies of millennials. In this paper we report the findings of the UK survey.