Recently in Birmingham Category
Jones Lang LaSalle's Big 6 Office Market Outlook Breakfast this morning was packed out.
If that's a sign no-one really knows what's going on in the region then I don't know what is.
Things learnt from this morning's presentation: Manchester has completely overtaken Birmingham as the number 1 city (in terms of take-up, see pie chart below) this year; overseas investors are 'irrantional and emotional' (JLL's words not mine); and they need a bigger room for next year's breakfast.
Headline bullet points are below:
London been the driver but, have seen job creation in wider regional economy.
Regional job creation winners: Leeds & Manchester, led by professional services.
Others have more reliance on public services so are losing a bit more ground.
Grade A take-up for all the Big 6 grade would fit in the Shard with 100,000 sq ft left over.
Birmingham deals down 5% Grade A down 40%
Bristol Grade A down 80%. JLL will be passing round a hat later for the Bristol agents
Edinburgh Grade A up 60%
Glasgow deals up grade A down 60%
One city seen more pre lets than anywhere else in big 6 and even London - yes, you've guessed it Aberdeen. Out of town rents £27 per sq ft and JLL believe it will remain buoyant and robust. Take up was 850,000 sq ft in 2012, but there is no Grade A supply left.
Drivers Jonas Deloitte published its annual UK crane survey today and the findings make for depressing reading but won't cause too much surprise. Looking at the key UK cities: Birmingham, Manchester, Leeds, Edinburgh and Glasgow it finds that construction starts have dropped 36% in the 12 months to July compared to previous 12 months period.
Offices, retail and residential schemes (over 10,000 sq ft) are the hardest to find with most activity restricted to student housing and education (click on diagram for a bigger version).
Out of the five cities, it is Birmingham which has seen the most activity, jumping from 8 to 14 starts in 12 months. The comprehensive refurbishment of Five Brindleyplace is the most notable office scheme but this is eclipsed by the huge redevelopment of New Street Station which will include a 250,000 sq ft John Lewis.
At the other end of the scale are Scotland's two biggest cities: Edinburgh and Glasgow. Neither has seen any construction starts although both have projects underway - Edinburgh had a relatively busy crane survey last time around. Most notable development that is already underway is Edinburgh city council's speculative office development Atria which completes early next year.
It is a similar picture for Glasgow in that there is development activity already underway, mainly around the 2014 Commonwealth Games site in the East End.
You can read the full report on DJ Deloitte's website
Published June 30, 2012
Analysis of key projects
David Thame, freelance writer, 01544 262 896
Mark Simmons, freelance writer, 07787 561032, firstname.lastname@example.org
Analysis of the sector and working practices for property people in Birmingham
Elaine Cavanagh, freelance writer, 01225 444875
Analysis of the sector
Graham Norwood, freelance writer, 07779 595964 Graham.email@example.com
Please send up to date statistics for the offices, retail and industrial market to Stacey Meadwell, regional editor, 0207 911 1819, Stacey.firstname.lastname@example.org
Please contact the writers directly for more details about their individual features by Friday 1st June, 2012
Knight Frank released its amusingly named ROMP report yesterday (that's Regional Office Market Presentation - just don't google ROMP on its own on your office computer - well maybe a colleagues) in which it compares and contrasts the market performance in 11 regional cities around the UK.
One of the most interesting graphs within the report shows Q1 2012 take up vs the average quarterly take up for 2011 ie how well has each city done this year so far? Now you have to look at the figures in context but before we do that here is how the 11 cities rank in terms of take up in Q1 2012 vs its 2011 quarterly average:
- Leeds +50%
- Glasgow +32%
- Edinburgh +23%
- Manchester -5%
- Liverpool -11%
- Bristol -16%
- Sheffield -29%
- Cardiff -40%
- Aberdeen -165%
- Birmingham -209%
- Newcastle -376%
Glasgow and Edinburgh on the other hand, while having had storming starts to Q1 compared to everywhere else, actually didn't have great 2011 for office take up so they are coming from a lower base.
The flip side of that is Aberdeen which looks like it has had a terrible start to the year when in fact it had a phenomenal 2011 recording the highest average quarterly take up of all 11 cities and it still ranks the fifth highest take up for Q1 2012.
And then there is Newcastle, while there was a brief filip last year, office take up in the city actually peaked in 2004. Ouch.
And there it is, ladies and gentlemen. Another MIPIM is drawing to a close. Final meetings are concluding and preparations for dinners and parties are underway.
The UK cities have been here in greater numbers this year shouting about enterprise zones and development proposals. I've learnt that there is still a lot of the nitty gritty to work through on the EZs before they will finally fly, if indeed they do prove to be more than government window dressing. Sheffield's LEP chair James Newman was still negotiating details with the Treasury a couple of days ago.
But it feels like there has been more to say this year and that concrete things are starting to happen. Derby council has put money into kick starting the first spec office scheme in the city for 20 years - off the back of a meeting it held down here in Cannes a handful of years ago.
Newport is close to announcing an anchor tenant for its Friars Walk retail scheme and planning is due to be submitted at the end of the month. Manchester has launched a search for development partners for a medi-park and Birmingham has shortlisted three developers for its Digital Plaza hub.
On the one hand there haven't been as many leggy models adorning the Russian and Eastern European stands but on the other it doesn't feel quite as austere as last year. There seems to have been more champagne on offer, there have been some really fancy canapes and treats around (no cuddly toys though as far as I can tell) and developers have had dinners in very nice restaurants.
It's not goodbye MIPIM but au revoir, I'm sure we'll all be back again next year.
Finally the sun started shining in Cannes - the wind was still a little chilly but outdoor cafe's were populated and al fresco dining attracted the masses rather than a brave few.
And the brighter weather certainly added an air of enthusiasm to those showcasing their cities and companies. Chris Oglesby speaking on the Leeds stand said the company was on the prowl for new properties in the city as its existing portfolio is 99% full. He also said development of City House by the station would commence when they'd secured a pre-let of just 30%.
Meanwhile on the Manchester stand it was an announcement about not announcing. NOMA's David Pringle had the gathered crowd, myself included, on tenterhooks as he built up to what we thought would be an announcement of a development partner for the company's 4m sq ft regeneration project, only to say that they still haven't found the right partner. He did, however, add that it wouldn't stop them progressing the development.
Manchester and Leeds were pitted against Birmingham and London in the EG/GVA UK cities debate (see video coverage online next week). All the panellists - Manchester's Sir Howard Bernstein, London's Sir Edward Lister, Leeds' Neil McLean, Birmingham's Mike Whitby and GVA's Stephen Hollowood were all trying hard to keep feelings of rivalry to a minimum.
There was lots of talk of working together and mentions of UK plc but Sir Howard couldn't resist one quip. Sir Ed was talking about how the rest of the country benefits from London, giving the example of the capital's new fleet of double decker buses which are to be made in Northern Ireland. Sir Howard, who was sat next to Sir Ed, responded: "I'm gratified for the acknowledgement that places exist outside London and thought for a moment you were going to say you were sending us a fleet of double decker buses."
Elsewhere Tom Bloxham was spotted in his trade mark hat and summery white Birkenstocks on the Birmingham stand for the Icknield Port Loop regeneration presentation. British Waterway's vision for the site which includes 1,150 homes sounds right up Urban Splash's street and, as a development partner is to be sought at the end of the year, perhaps that is why Tom was there?
So that was a taster of day two, one more day to go and lets hope the sun is out again.
You can see some of todays snaps plus the pics from the UK cities debate below.
It's half past five in the London Pavilion and it's rammed. The tuesday afternoon arrivers have descended in their masses and an already buzzing MIPIM feels like it is off and running at full pelt (cold and grey weather must be playing a part in encouraging people indoors too).
This year the UK cities are out in force and with Enterprise Zones to promote and development money to find, the competition to shout loudest is hotting up. Sheffield and Leeds have already scheduled events that overlap later in the week and Birmingham and Manchester have both got crammed schedules of events on their respective stands.
I haven't visited the Manchester stand yet but certainly Birmingham gets points for its snacks on offer: glass bowls full of Cadbury's chocolate.
Brum city council's Mark Barrow was well prepared to brief me about progress on the city's Enterprise Zone, despite having only just registered. I was treated to a sneak peek of his presentation which he had on his iPad - definitely the device of choice this year.
The Edinburgh stand, as usual, is tempting visitors with regular whisky tastings and also rather tasty rum and raisin tablet (fudge for those from south of the border). Another duo fresh from registration were Montagu Evans' Hugh Rutherford and Edinburgh city council's Dave Anderson both of whom were full of enthusiasm with the former saying he was confident about the market this year due to pent up office demand.
Meanwhile back in the London Pavilion, the battle is more about models - not the leggy type but the development type. There are at least four including the huge and very impressive central London model which gives a interesting glimpse of what the capital could look like with several proposed towers. The Nine Elms follows on a close second with some impressive towers of its own and a faithful reconstruction of Battersea Power Station - wonder if that will make it into the future?
You can see pics from the London Pavilion and all the other days delights by clicking on the slide show below.
Other MIPIM posts you might like:
The EG team is up in Birmingham today at the city's Think Tank for our Question Time Midlands
Editor Damian Wild is chairing and joining him on the panel is:
Waheed Nazir, director of planning and regeneration at Birmingham council
Bill Oliver, Chief Executive St Modwen
Andrew Whelan, Santander regional director real esatte midlands
Barry Allen, head of office and regional director Midlands, Savills
Ian Taylor, commercial director Marketing Birmingham
We'll be live blogging so expect typos and grammatical errors.
Paul Campbell kicks off the debate: significant household growth is it time to start loosening the greenbelt?
Wahid: much debate last 20years on this. we want to review the greenbelt but we want to protect it so get regeneration of the city, number of brownfield sites want to develop on.
Barry: inevitable that it will be loosened. volume of housing projected are just not deliverable
Bill: I don't think releasing the greenbelt will be the answer the nppf it has a duty to look at brownfield first.
Ian: inevitable some pressure on greenbelt but wahid is right
Andrew: got to make sure there is infrastructure there it has to be the whole package
Bill: This gov seems to be changing policy more than previous ones it is speed of planning that affects development. Past 10years there feels like there is a presumption to refuse so i welcome a change on that. in all i think it is good but any change creates confusion while the changes bed down.
The delay in implementation is confusing I think it will come through we just want to get on with things. Granting planning is only part of the problem, you can't blame the planners for everything.
Wahid: anyone that reduces 600 pages down to 50 there is always going to be some worry. Generally welcome the nppf it will simply some of the planning
Barry: I think generally it is welcomed paradox gov wanting to push the process down to the smallest common denominator but realising that there is a problem with NIMBYISM.
This week's round-up is more like a Martina Cole novel than a property review, with villians and champagne bars all hitting the headlines. It's also one year on since the creation of LEPs and respected research and policy unit Centre for Cities, aren't impressed. Below we've trawled the web for all the best property coverage of these stories, and more, and rounded them up here.
LEPs: limited progress and boards are bloated and slow, says study
Happy birthday LEPs! It's one year since the government created LEPs and their first present on Friday was a report from Centre for Cities saying LEPs had made limited progress. The Insider, reporting on the study, said eight have yet to have their boards recognised by the government and only two have produced a long term strategic plan. Five do not have a dedicated website. Most have appointed huge boards and advisory teams which could add a level of bureaucracy and process that might slow decision-making.
Ouch! As such it wasn't the best day for former Northern Foods chairman Lord Haskin to be announced as the head of Humber LEP.
Some pounced to counter the attack with Andy Wood, head of New Anglia LEP, defending their record in the EADT24. He said the LEP was a "small but focused board with a clear set of priorities."
With all the furore surrounding LEPs its seems some are already missing the RDAs.
RDAs: Come back all is forgiven
A senior lawyer in Nottingham said he thought parts of the business community in Nottingham were missing the East Midlands Development Agency (EMDA).
"It helped give everyone a focal point, and I certainly didn't regard it as one of the regional development agencies that would be done away with," Iain Blatherwick, managing partner at Browne Jacobson told the Insider. "Now that the LEP is manned with volunteers, I think it gives everyone a better understanding of the role EMDA played."
The D2N2 LEP - which represents Derby, Derbyshire, Nottingham and Nottinghamshire.
- now need some quick wins, he added, to gain credibility.
Simon Morris jailed
If you want it bad enough then take it, says the strapline on Martina Cole's novel. It seems Simon Morris, the disgraced property professional and former Leeds United director, did and he had his heavies help him. On Tuesday he was jailed for 18 months for his part in a blackmail plot against a former business partner.
By Wesdnesday the Yorkshire Post was reporting that his trial would be reviewed for irregularities. The criminal cases review commission now have three weeks to report back.
And because it's Friday and we like a bit of champagne-induced cheer on the Focus desk we couldn't resist this story.
Manchester's private members' club The Circle Club is looking to set up champagne bars in Liverpool One, Birmingham's Bullring and Bristol Cabot Circus. MD Craig Ince said trading was up 20% on forecast. Recession? What recession?
Cushman and Wakefield issued its European cities monitor today, the report that names the top cities in Europe by asking over 500 companies what they think.
Glaringly obvious is the lack of UK regional cities in the top ten. While Germany has three (Munich, Berlin and Frankfurt) and Spain has two (Madrid and Barcelona) London is the only UK city to make the grade. OK, so London is number one but what's happened to Birmingham and Manchester or the Welsh and Scottish capitals?
You have to track down to 16th place before Manchester appears (down 4 places on the previous year), Birmingham pops up at 18th with Leeds (28th), Glasgow (30th) and Edinburgh (31st).When the same research was done back in 1990 Manchester was at 13th place and Glasgow was at 10th, two decades of development and boom economics (although more recently bust) have actually hurt the city.
Travel to any regional city and the inward investment agencies, developers and local agents will be at pains to emphasise their cities competitiveness because of their cheap offices and abundant staff, their connectivity to the rest of the UK and Europe, their world class reputation. And yet, our regional cities continue to fail to make the grade in rankings like this which track occupiers opinion of just these things.
Cushman's also asked companies about their expansion plans, looking at how many companies were looking to set up offices in the next five years and where. The UK's results are below and speak for themselves. Click on the image to see a larger version of the map.