CRE City
What are the key trends for various different types of user areas in cities?
What are the issues? What are the considerations? How are these interrelated?
Costs abroad have risen
whereas secondary UK
rents are stable. Would
relocation to a secondary
UK market be more viable?
Are there any occupiers
with surplus space who
would be willing to get
rid of space for low rents
due to surplus property,
IAS37 liability and
ongoing rates issues?
Opportunities for grants?
KEY
Issue
Consideration
Traditional call centre in a
UK out of town business park
is too expensive. Looking
overseas, but where? Delhi
rents are now higher than
rents in Newcastle.
Where is the next cost
effective talent hub? Will
entering the market create
critical mass, which in turn
pushes up future prices?
OLD ENERGY
SECTOR REFINERY
CORPORATE
CAMPUS
OFFSHORING?
AAA rated energy sector
operator owns a large
petrochemical processing site,
now surplus to requirements.
Mitigating environmental liability,
could this risk be mitigated by a
joint venture or partnering with
a specialist? Large sites require
municipal stakeholder engagement
— relationship management and
community involvement is key.
Eventual strategy for sale needs
to protect purchasers from any
ongoing environmental risk.
Huge sites suited business
requirements 10 years ago,
but now a more mobile
workforce requires a more
decentralised model.
Staff morale is low as
office feels empty — look
into a smaller hub location
and more integrated
remote working strategy.
Would partnering with the
landlord or a developer
be a practical solution to
dispose of a surplus site?
Recurring data centre
issues and expenses.
The ‘Node Pole’ – data centre
off-shoring to cooler climates
and remote locations with
fewer security issues.
Healthcare
giant has
surplus data
centre space
— how can
they turn this
into revenue?
Owner occupied
office, aware of sale
and leaseback idea,
but unsure of options
and considerations
for ‘future proofing’.
OUT OF TOWN
BUSINESS PARK
ROAD-SIDE
SERVICE
STATION
Pharmaceutical research facility and main
office in out of town business park. The
facility needs to be rebuilt and expanded.
Would it be better situated near a university
town for recruitment? What would be
the cost effective solution? Would a
university consider partnering to aid
recruitment or drive research facilities?
TMT occupier initially took space
in periphery location due to low
rents — has now become TMT
sector giant and wants to relocate.
Relocate office for talent retention
and recruitment. Re-planning
trend. How do they deal effectively
with existing lease liability?
Here?
‘TRENDY
PERIPHERY’
ONSHORING
?
CBD
LIAM NICHOLLS
Portfolio Strategy,
Global Occupier Services
+44 (0)20 3296 3350
10 DTZ | In Situ
