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Relocation in the UK has fallen as a result of the recession. Companies are driven less by cost pressures to relocate and multinational companies, particularly Japan, have slowed their rate of inward investment. The Organisation of Economic Co-operation and Development measures the amount of inward investment at $33.8 billion, 1/5th of total investment in the European Community. The UK is criticised for its refusal to accept the European Community social chapter and is accused of trying to gain an unfair advantage over other members by keeping wage costs artificially low.

The recession in the European property industry is deepening, although there are positive signs in the eastern European sector. It was thought that the European single market would stimulate demand for property, but companies have not centralised their operations as much as anticipated and increased competion between European cities for businesses have caused prices to fall. An analysis of the property markets in each individual European country is also presented.

Attempts at improving energy efficiency are motivated by environmental concerns rather than fears of fuel shortages as in the 70's. In September 1992, the World Engery Congrees in Madrid revealed that there would be no energy shortage until 2020. There is no consensus, however, amongst industrialised nations as to the relationship between carbon dioxide emissions and the greenhouse effect. Whereas the European Community pledged to reduce its emissions to the 1990 level by 2000, the US would not commit itself to any target at the Earth Summit.

The UK property industry is suffering from a lack of investment, both domestic and foreign and the increasing number of company failures has meant that less office space is needed. In London, 1/5th of office space is unoccupied and the development of new retailing outlets is exacerbating the problem of excess supply. An evaluation of the property industries of the individual regions of the UK is also made.

A decline in the number of companies relocating from London is predicted from 1992, because the advantages of doing so have been lost by the recession. These included lower rents, cheaper labour and lower staff turnover. The initial cost of relocation may also deter many companies. It remains to be seen, however, whether the former trend will reemerge with recovery, or whether the channel tunnel will induce some to relocate on the continent.

A colourful map of London boroughs, published late last month, looks uncannily like an election record: blue in the middle, red aroundthe outside and a scattering of colourless 'undecideds'. Property [...]

LONDON by David Lawson London is bursting at the scams. That comes as no surprise to visitors fighting through traffic on their way in from Heathrow airport, nor long-suffering workers [...]

Ericsson, Swedish telecommunications equipment group, reversed an early rise to close 8.2 per cent lower at SKr6.70 as trading remained largely technical before the completion of its heavily discounted SKr30bn [...]

Ten years ago offices in Europe, led by UK companies, were moving out of cities into greenfield business parks. Cities were overcrowded and could not provide big, efficient buildings required [...]

When dotcom turned to dotgone, much of the real estate industry appeared more relieved than upset. While vociferous pioneers were claiming that wired buildings, internet dealing and brash new tenants [...]

Pension funds are like grizzly bears: immensely powerful but only looking for prey within easy reach. However, when local foraging becomes increasingly difficult, they look further afield. Some have been [...]

One of the Europe's biggest banks faced a tricky problem last year while reviewing the clutch of businesses it had accumulated over many years of M&A activity. On the one [...]

It is well into the evening before Stephen Musgrave can spare time to talk about the impending collapse of London's office markets. Office hours are too crowded with planners, tenants, [...]

Agents have been overloading transatlantic phone lines in the last couple of months trying to separate fact from rumour over US banks' suffering under the slowing global economy. Financial giants [...]

Britain's measures to limit car use - the toughest in Europe - are hitting office parks hard, leaving the UK at a competitive disadvantage with other countries. Many office parks [...]

There must be few people who would equate the City of London with Milton Keynes. But the financial powerhouse of Europe shares one crucial similarity with the south Midlands new [...]

One might think that soaring rents should send agents and developers happily to their beds each night. But when a record-breaking deal for Pounds 80 a sq ft leaked last [...]

A 'defining event' for the industry, or 'sheer lunacy'? The reaction to real estate companies investing in technology start-ups has managed to touch both extremes, depending on how you interpret [...]

Every decade or so, a new kind of demand emerges from nowhere to re-invigorate the real estate market. Shopping malls, business parks, retail warehousing and factory outlets each carved new [...]

It is unlikely that many retail landlords found time to attend the Information Technology World Congress in Taiwan early last month, but perhaps such events should be given priority in [...]

One of the world's most distinguished economists presented a stark challenge to the real estate industry recently: co-operate or die. If banks like Goldman Sachs, Morgan Stanley and Salomon Smith [...]

It is not long since suburban retail malls were the ultimate symbol of prosperity. They remain eagerly welcomed in developing countries but attitudes have changed in economically advanced nations as [...]

Analysts spluttered over their corn flakes last month when a throwaway line in the morning news briefings appeared to shake the foundations of real estate investment logic. Managers of Bluewater [...]

Long faces among property fund managers greeted the change of government in the last UK general election. This was not antipathy towards the new political regime, recognised as far more [...]

Non-property companies have always been ready to act as developers. Victorians built their own mills and department stores while insurance giants tailored grandiose headquarters between the wars. The tradition continues [...]

Drivers crawling along London's Western Avenue may be forgiven for failing to realise that a future free from this daily grind may lie behind the rows of suburban housing running [...]

Ask any top real estate consultant how much private investment is flowing into London. 'Insignificant,' says one. 'This city belongs to big institutions.' 'Check the auction rooms,' says another, conjuring [...]

For decades, the Marks & Spencer flagship store on Oxford Street has been considered among the world's prime retail pitches. What more could be asked than the sector's top name [...]

More than 4m sq ft of offices, homes and leisure development are mapped out around Paddington Station. Such big numbers would normally stir emotions: after all, this is about the [...]

Research in the UK construction industry now tends to focus on practical applications, such as energy conservation and the comfort of the users of buildings, rather than on pure research. There is now strong demand for more energy-efficient, user-friendly buildings, and significant developments are emerging in these areas. The Building Research Establishment, for example, has recently constructed a complete office block which will serve as a live project.

Many companies are now looking at ways of reducing costs, and are particularly considering their expenditure on energy. Some architects and designers are responding by suggesting that air conditioning, an area where costs have risen by almost 50% over the last 10 years, could be abandoned altogether. The Building Research Establishment is now studying the viability of a return to naturally ventilated buildings.

UK building services cost more than they need to because consumers do not want to pay more more efficient and environmentally sound buildings with insulation and other energy saving measures. This may change as more attention is focused on energy costs in business. Air conditioning is expensive and demand was over-estimated in the 1980s so office systems are run below capacity. Some companies are waiting until clients move in before providing services, allowing clients greater control, and engineers more chance to produce an efficient system.

Considerable cost savings can be made if water from underground is used to heat and cool buildings. This technology is set to become increasingly significant as energy efficiency becomes a key element in determining a building's value. Rocks below ground remain at a relatively constant temperature, regardless of the season, and this means that water extracted from these rocks represents a valuable source of heat. Similarly, the constant temperature of this water means that it can be used to cool buildings in summer.

European developers of commercial property are exercising considerable caution, matching supply closely with each individual market rather than building speculatively. Office buildings are still under construction in Paris, France, London, England, and Brussels, Belgium, but commercial property development in other European cities has slowed down. High levels of construction work in some places have not boosted the overall level of commercial property activity.

The property market in the West End of London, England, seems to enjoying buoyant demand, with demand outpacing supply as large firms seek substantial new space. However, unlike the earlier property boom in the West End, occupiers seem to be taking more time to ensure they choose the right space at the right price. There is also a gap between the rents achieved in prime areas and rents in other areas. There is also a discrepancy between the size of space available and the size which is in demand: over 85% of available West End space is under 10,000 sq ft.

A growing number of commercial premises in the West End area of London, England, are being converted to residential property. The trend reflects the growing recognition that many buildings will never again be suitable for commercial purposes, since upgrading them to meet occupiers' needs would be too costly. Some 15-25% of buildings are obsolete according to some estimates.

Business parks could play a major role in changes to corporate management of property matters before the end of the 1990s, according to Patrick Deigman, Chief Exec of leading UK business park developer Arlington. Deigman believes that occupiers do not want to be bothered by property issues, but want to focus on their core operations. Business parks offer economies of scale and also easier planning of communal services, since most parks are owned or controlled by one decision-maker. Business parks have also been shown to help firms increase their efficiency.

The UK property sector is becoming less competitive as an investment medium and property now accounts for under 6% of managed funds' portfolios, only one third of the level in the 1980s. The property sector is now lobbying for new types of vehicle for investing in property, in particular real estate investment trusts similar to those in the US. However, government approval has not yet been given, largely due to the impact the trusts' tax-exempt status would have on tax revenues.

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There is still strong demand for office parks in the UK, and this will be little affected by the government's new planning guidelines which seek to restrict out-of-town development. Councils have already allocated large amounts of land to office parks, and any shortages will not force large firms back into the centre, but will merely boost office park values. The move towards out-of-town office parks began in the 1980s and was linked to costs. However, relocation decisions now depend less on headline costs and more on achieving quality buildings and surroundings to attract staff.

Business parks have long lagged behind other property sectors in attracting institutional investment, but this may now be changing. In 1995, development spending rose by 18 million pounds sterling, with net investment totalling 33 million pounds. The outlook is good for the rest of 1996, with purchases and lettings both rising. Investor interest in business parks has now moved from development to buying standing investments.

The UK business park sector seems to be thriving, with several large lettings having been announced recently, but under the surface the sector is less buoyant. Although bigger, high-profile developments are enjoying strong growth, many other sites are failing to attract tenants. There is also little speculative development taking place. The impact of new government planning guidelines on business parks is also unclear: developers should now focus on town centres, with any out-of-town schemes being linked to public transport.

The UK property industry is uneasy about the government's U-turn on planning policy, since the new policy contains many basic inconsistencies. The government has now turned its back on developments such as greenfield shopping centres, which depend on car usage. Instead, the new policy advice is for development to be pushed back into towns where it should be linked to public transport. However, businesses are unwilling to choose a town centre location unless there is parking provision, especially given the lack of government commitment to public transport.

There is growing investor interest in commercial property in the UK regions, with the proportion of investment being taken by the provinces doubling to nearly 30% of total commercial property investment in the first six months of 1996. A total of $195 million was invested in the regions during that period. This new focus is partly due to improved research and more sophisticated analysis methods to help investors make decisions.

Construction industry researchers in the UK are now beginning to realise that the most intelligent buildings are those which closely meet the needs of their occupiers, rather than simply those with very levels of technology. Research is therefore now taking into account how occupiers use their buildings, ensuring that productivity can be maximised. Particular emphasis is also being placed on reducing running costs.

The UK property facilities management market has grown significantly in the last few years, and is now estimated at around 47 billion pounds sterling, excluding IT services. Of this figure, some 20 billion pounds has bee contracted out, giving businesses cost savings of up to 20% and the public sector cost savings of 7%. However, the future direction of the industry remains unclear, with some people believing its future lies not just in providing services, but also in deciding what services are needed and arranging them.

UK facilities management (FM) firms seem set to diversify into the residential sector. Until now, the residential market has not seemed suitable for FM firms, since most homes are owned by individuals, while letting agents tend to take care of investment properties. However, many investors now want to improve standards in response to the growing competition as new rented property appears on the market. Tenants are also demanding improved services. Another promising sector for FM firms is to find, manage and maintain homes for large firms seeking staff accommodation.