| 1. |
INTRODUCTION |
6 |
| 2. | EXECUTIVE SUMMARY AND FUTURE PROSPECTS |
8 |
| 3. | ECONOMIC ENVIRONMENT |
13 |
| 3.1 | GDP |
13 |
| 3.2 | INFLATION & INTEREST RATES |
14 |
| 3.3 | UNEMPLOYMENT |
15 |
| 3.4 | HOUSEHOLD CONSUMPTION |
15 |
| 3.5 | HOUSING & CONSTRUCTION |
16 |
| 3.6 | STERLING |
18 |
| 3.7 | POPULATION PROFILE |
19 |
| 3.8 | CONCLUSIONS |
21 |
| 4. | THE COMMERCIAL OFFICE MARKET IN THE UK |
22 |
| 4.1 | PERFORMANCE OF THE COMMERCIAL OFFICE SECTOR IN THE UK |
22 |
| 4.1.1 | Office Occupiers by End Sector |
23 |
| 4.2. | LONDON OFFICE MARKET |
24 |
| 4.2.1 | Central London & City |
24 |
| 4.2.2 | West End |
28 |
| 4.2.3 | Docklands |
29 |
| 4.3 | REGIONAL OFFICE MARKETS |
29 |
| 4.3.1 | Birmingham |
31 |
| 4.3.2 | Bristol |
31 |
| 4.3.3 | Cardiff |
32 |
| 4.3.4 | Edinburgh |
33 |
| 4.3.5 | Glasgow |
33 |
| 4.3.6 | Leeds |
33 |
| 4.3.7 | Liverpool |
34 |
| 4.3.8 | Manchester |
35 |
| 4.3.9 | Newcastle upon Tyne |
35 |
| 4.4 | BUSINESS PARKS IN THE UK |
36 |
| 4.4.1 | Performance of the Business Park Sector |
38 |
| 4.4.2 | Office Space/Office Parks in Regeneration Areas |
39 |
| 5. | CONSTRUCTION MARKET FOR COMMERCIAL OFFICES |
42 |
| 5.1 | CONSTRUCTION MARKET OVERVIEW |
42 |
| 5.1.1 | Value of Output - Construction New Work |
42 |
| 5.2 | CONTRACTORS OUTPUT IN THE COMMERCIAL OFFICE SECTOR |
43 |
| 5.2.1 | Impact of Rising Materials Costs on Office Construction |
45 |
| 5.3 | COMMERCIAL OFFICE – NEW DEVELOPMENT PIPELINE |
46 |
| 5.3.1 | Central London Office Pipeline |
46 |
| 5.3.2 | Regional Office Development Pipeline |
50 |
| 5.3.3 | Office Refurbishment/Fit-Out Market |
51 |
| 6. | FACTORS AFFECTING THE MARKET |
54 |
| 6.1 | OVERVIEW |
54 |
| 6.2 | PLANNING LAWS |
54 |
| 6.2.1 | PPG4 – Planning for Economic Development |
54 |
| 6.2.2 | PPS6 – Planning for Town Centres |
56 |
| 6.3 | SUSTAINABILITY AND ‘GREEN OFFICES’ |
57 |
| 6.3.1 | CO2 Emissions from Buildings |
57 |
| 6.3.2 | Key Environmental Legislation |
58 |
| 6.3.3 | BREEAM Offices |
59 |
| 6.3.4 | Sustainability Code for Non-Domestic Buildings |
60 |
| 6.3.5 | Green Incentives for Developers |
61 |
| 6.3.6 | Sustainability Issues for the Commercial Office Market |
61 |
| 6.4 | USE OF OFFSITE TECHNIQUES IN THE COMMERCIAL OFFICE MARKET |
63 |
| 6.4.1 | Application to the Commercial Office Sector |
64 |
| 7. | CONSTRUCTION MARKET SUPPLY IN THE OFFICE SECTOR |
67 |
| 7.1 | STRUCTURE OF THE CONTRACTING INDUSTRY |
67 |
| 7.2 | LEADING CONSTRUCTION CONTRACTORS IN THE COMMERCIAL OFFICE MARKET |
69 |
| 7.2.1 | Overview |
69 |
| 7.3 | KEY CONTRACTOR PROFILES |
70 |
| 7.4 | FIT OUT CONTRACTORS IN THE COMMERCIAL OFFICE SECTOR |
80 |
| 7.5 | LEADING ARCHITECTURAL PRACTICES IN THE OFFICE MARKET |
83 |
| 7.6 | LEADING DEVELOPERS IN THE OFFICE MARKET |
85 |
|
TABLES AND CHARTS |
| TABLE 1 | UK OFFICE DEVELOPMENT PIPELINE (SQ. FT ‘000) |
9 |
| CHART 2 | INTEREST RATES AND INFLATION (CPI) FROM 1990-2010 |
14 |
| CHART 3 | PDI & SAVINGS RATIO AT CURRENT PRICES 1990-2010 |
16 |
| TABLE 4 | EXCHANGE RATE FLUCTUATIONS 2000-2007 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES |
19 |
| CHART 5 | AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 (‘000) |
20 |
| CHART 6 | UK OFFICE MARKET – OCCUPIERS BY END SECTOR (FLOOR-SPACE TRANSACTED IN Q2 2007) |
23 |
| CHART 7 | LONDON OFFICE RENTS Q2 2006 – Q2 2008 (£/SQ. FT.) |
25 |
| CHART 8 | CENTRAL LONDON OFFICE TAKE-UP (MILLION SQ. FT.) Q4 2002 – Q2 2007 |
26 |
| CHART 9 | LONDON OFFICE MARKET – OCCUPIERS BY END SECTOR (FLOOR-SPACE TRANSACTED IN Q2 2007) |
27 |
| CHART 10 | WEST END OFFICE MARKET – OCCUPIERS BY END SECTOR (FLOOR-SPACE TRANSACTED IN Q2 2007) |
28 |
| TABLE 11 | REGIONAL OFFICE MARKETS DEVELOPMENT PIPELINE 2007 – 2009 (SQ. FT. ‘000) |
30 |
| TABLE 12 | UK BUSINESS PARKS – TOTAL OFFICE SPACE (SQ. FT MILLION) |
37 |
| TABLE 13 | UK BUSINESS PARKS – SPACE UNDER CONSTRUCTION Q2 2006 & Q2 2007 (SQ. FT. ‘000) |
39 |
| TABLE 14 | TOP URBAN REGENERATION SCHEMES IN THE UK – % OF COMMERCIAL OFFICE SPACE |
41 |
| CHART 15 | VALUE OF CONSTRUCTION OUTPUT NEW WORK 2002-2012 (£ BILLION) |
42 |
| TABLE 16 | CONTRACTORS’ OUTPUT IN THE COMMERCIAL OFFICE SECTOR 2002-2012 (£M) |
43 |
| TABLE 17 | INCREASE IN BUILDING MATERIALS PRICES JULY 2006 – JULY 2007 |
46 |
| CHART 18 | CENTRAL LONDON OFFICE DEVELOPMENT PIPELINE 2007-2010 |
47 |
| TABLE 19 | LONDON OFFICE MARKET – DEVELOPMENT PIPELINE STATISTICS |
48 |
| TABLE 20 | CENTRAL LONDON - PRINCIPAL COMMERCIAL OFFICE SCHEMES IN DEVELOPMENT |
49 |
| CHART 21 | REGIONAL OFFICE DEVELOPMENT PIPELINE 2007-2010 |
50 |
| TABLE 22 | REGIONAL OFFICE MARKETS – DEVELOPMENT PIPELINE STATISTICS |
51 |
| TABLE 23 | CONTRACTORS OUTPUT - INTERIOR REFURBISHMENT 2000–2011 AT CURRENT PRICES (£M) |
52 |
| TABLE 24 | FIT-OUT COST FOR COMMERCIAL OFFICE SECTOR (BY END USE) (£/SQ. FT.) |
53 |
| CHART 25 | CO2 EMISSIONS FROM PROPERTY AND PROCESSES BY SECTOR |
58 |
| CHART 26 | OFFICE TYPES – RENEWABLE ENERGY COSTS AS % OF TOTAL BUILDING COSTS |
62 |
| CHART 27 | % COMMERCIAL DEVELOPMENTS USING TOILET PODS 2001 - 2007 |
66 |
| TABLE 28 | MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2006 |
68 |
| TABLE 29 | LEADING CONTRACTORS’ SHARE OF COMMERCIAL SECTOR CONSTRUCTION WORK IN 2006 (£M) |
70 |
| TABLE 30 | LEADING ARCHITECTS IN THE COMMERCIAL OFFICE MARKET |
84 |
| TABLE 31 | LEADING DEVELOPERS IN THE COMMERCIAL OFFICE MARKET |
86 |
