Inaugural Annual Lecture 11 Feb 2015
For the very first of a planned series of annual Lectures, we were lucky enough to secure Steve Norris as our speaker. Both a UK politician and an experienced businessman, Steve is best known for his long involvement in transport more...
Impact of Energy Act Revealed
The impact of the government’s 2011 Energy Act has been revealed by CoreNet Global’s UK Chapter and SEGRO.The two bodies presented a research document this morning on the impact of the act, which will become effective on 1 April 2018. After this date, it will become unlawful to let buildings with an EPC rating of F or G. From April 2016, it will be unlawful for landlords to turn down requests from occupiers to improve the energy efficiency of their buildings. Findings were gathered following discussions with organisations who in total occupy more than 4.4m sq ft of space.
The key findings were:
- While the corporate sustainability agenda is a key concern, awareness of the act and aspects of the Green Deal itself are not current priorities for the occupiers surveyed.
- Most corporate organisations regard 2018 as being a long way off, in corporate planning terms.
- However, the act could have a significant impact on values, particularly for older stock.
- Most organisations do not have a wider plan for dealing with the act. Generally speaking, buildings are being dealt with on a building-by-building basis as and when lease events occur.
- One of the key areas of preparation is gaining a full picture of the energy performance of occupied space, which means having EPCs prepared.
- There are areas of ambiguity over who ultimately pays for improvements to comply with the Act.
- One of the most problematic areas of the act appears to be in multi-let buildings where the interests of different occupiers might not all align; where some services (such as air handling) are shared from central plant. It is likely that such issues will be resolved through test cases rather than great clarity within the act.
A list of recommendations were also provided:
- The most basic step is to gain a full picture of EPC ratings across an occupied estate. Without this base data it will be impossible to assess the extent of exposure and corporate risk.
- Once this base data collection is complete, it will be possible to ‘map’ building ratings onto lease and ownership situations to understand where pinch points will occur. This exercise should include a consideration of impacts on valuation and disposability of properties.
- It will then be possible to assess a cost-benefit appraisal of options, both in terms of upgrading buildings and retention/disposal strategy.
- Where F-rated and G-rated buildings are identified, three broad options present themselves. First, if the buildings are to be retained and there is no leasing activity anticipated, then in theory no action need be taken. It would however, be prudent to understand the potential corporate risk.
- Secondly, if buildings are to be retained but leasing activity is anticipated (for example, sub-leasing or assignment) then an improvement programme should be developed.
- This will involve a capital expenditure programme and will identify ‘soft’ opportunities for works (such as lease breaks or planned preventative maintenance programmes).
- Thirdly, if the buildings are to be disposed of, then a strategy for disposal before 2018 needs to be prepared. This will recognise the pricing impact of the energy rating.
- Given possible future direction of Government policy, it might also be prudent to assess risk exposure to E-rated buildings. While there is no such suggestion yet, should legislation tighten a new round of improvements will be required, and there could be benefits in dealing with these in the short-term.
- Where improvement programmes are decided upon, then the Green Deal should be investigated in order to understand whether it might form part of an improvement programme.
Kate Dean, director of offices in the Thames Valley for SEGRO, said: “The results of this research indicate that the legislation itself and the far reaching implications for the real estate industry are not well known. This presents an opportunity for landlords and occupiers to work together to seek clarity on some of the more ambiguous aspects of the Act and work in partnership to deliver a clear set of industry guidelines.”
Steve Probert, president of CoreNet Global UK Chapter, said: “Corporate occupiers are well advanced in their sustainability agendas but the act and its implications are less well known. Even though the 2018 deadline seems a long way off, there are a number of steps businesses can and should be taking before then to ensure compliance – this research is designed to raise awareness and help companies start taking the first steps needed.”
Awards Breakfast 2012
John Pienaar, the BBC’s Senior Political Correspondent, presented the UK Chapter Awards at the inaugural Breakfast held at the Institute of Directors on Tuesday 27 November 2012.
Find out who won the Awards here.
Round Table Discussion - 19 November 2012
At the roundtable organised by Instant, the flexible office specialists, and supported by CoreNet Global UK, the emphasis of the debate was very much driven by the mantra of organisations working "anywhere, in any way".
It brought together corporate occupiers, property company Derwent Valley, and consultants CBRE and Cushman & Wakefield.
There was a strange irony that the roundtable was held on the 17th floor of newly developed Heron Tower in the City of London, looking down on millions of square feet of offices that make up one of the globe’s leading financial centres.
Click here to read the full report.
Awards 2012 - Nominations
Nominations and entries for the 2012 CoreNet Global UK Chapter Awards are currently open.
These prestigious Awards represent tremendous achievement, leadership and innovation that will raise your profile within the industry. If you feel that you or your fellow colleagues have achieved something exceptional or that their work has really stood out within the industry, then make sure you nominate or enter.
We actively encourage participation across the full range of professions involved in both the demand and supply sides of corporate real estate and nominations can be made by UK-based in-house teams, service providers, landlords and other building or property professionals.
Nominations and entries are open in the following categories and there will also be a special Award presented on the morning for Significant Contribution to Real Estate:
- Corporate Real Estate Executive
- Corporate Real Estate Partnership
- Innovation and Sustainability
- Young Persons' Essay
The deadline for receiving Award nominations and entries is 14 September, and these must all be submitted online in presentation format. Click
here for more information on entry criteria and details.
Awards Christmas Breakfast - Tuesday, 27 November 2012
See who has won - join us at the Institute of Directors on Pall Mall in London for the celebration, support your fellow colleagues and nominees, and enjoy a champagne breakfast to toast their successes.
More details to follow soon!
Workplace Group visits National Audit Office
On Thursday 5th July, the Workplace Group meeting was held at the National Audit Office premises on Buckingham Palace Road in Victoria, London SW1. The National Audit office, a Grade II Listed 1930s building, was refurbished three years ago to high environmentally sustainable standards, achieving a BREEAM Excellent rating.
Robert McLean of PwC who chairs the Workplace Group, said: “The National Audit Office’s building is a great example of how a space can transform working practices and improve teamwork, with every member of staff working in an open plan environment. It also shows how workplaces need to evolve in line with market forces and economic impacts. "We want to make sure we fully understand the current needs and challenges of occupiers. Visiting premises, both newly refurbished and operational for some time, as part of our activities are excellent opportunities for us to do this,” he added.
Working Group is currently preparing for its session on global workplaces at the CoreNet Global UK Summit in September and a breakfast seminar in October, focused on inspirational workplaces.
Offer to CoreNet Global UK Members
Corporate Occupiers 2012 includes in-depth interviews with 30 major companies from the BBC to Google to Unilever. The 124-page report gives a definitive insight into the strategy of the major companies that will drive a recovery in the office market across the UK. Corporate Occupiers 2012 also offers a directory of contacts for 60 of the most senior key players in the sector including CEOs, partners and directors. For more details, click here.
Visit www.propertyweek.com/coporatecorenet to claim your £100 discount off the title as a CoreNet Global UK member.
Knowledge and Learning Groups
"The Corenet UK Chapter knowledge and learning management team has rationalised the current knowledge group structure to align with the four Corenet Global Community Groups. To find out more and join the groups, click on the links below."
Stuart Bowman
Divisional Director
hurleypalmerflatt & CoreNet Global UK Chapter Board Member
Online Conference A Showcase For CoreNet Global UK Chapter
What’s the most sustainable way to put on a conference? Hold it entirely online.
CoreNet Global UK Chapter president Ian Smith was among the line-up of key speakers at Sustainability Now, a two day online conference designed to drive forward innovation across the built environment.
Run by Building magazine, Building Design and Property Week, the packed conference agenda included thought-provoking speakers, influential players and best practice case studies.
Sustainability Now was first launched in 2008 and now takes place twice a year. The free-to-attend online conference and exhibition has consistently attracted over 3000 registrants and consists of two days of webinars, debates and comment on sustainability within the built environment.
Ian took part in a session around measuring and benchmarking building energy efficiency. He was joined in this session by CoreNet Global UK Chapter 2011 award winner Ruth Standring from Standard Chartered Bank, who chaired the webinar.
The event will be available on-demand for the next six months. Simply login to the event and navigate to the webinars or debates that most interest you.