Commercial Office Construction Market Report UK 2007

Table of Contents

1. INTRODUCTION

2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS

3. ECONOMIC ENVIRONMENT

• 3.1 GDP
• 3.2 INFLATION & INTEREST RATES
• 3.3 UNEMPLOYMENT
• 3.4 HOUSEHOLD CONSUMPTION
• 3.5 HOUSING & CONSTRUCTION
• 3.6 STERLING
• 3.7 POPULATION PROFILE
• 3.8 CONCLUSIONS

4. THE COMMERCIAL OFFICE MARKET IN THE UK

• 4.1 PERFORMANCE OF THE COMMERCIAL OFFICE SECTOR IN THE UK
  • 4.1.1 Office Occupiers by End Sector
• 4.2. LONDON OFFICE MARKET
  • 4.2.1 Central London & City
  • 4.2.2 West End
  • 4.2.3 Docklands
• 4.3 REGIONAL OFFICE MARKETS
  • 4.3.1 Birmingham
  • 4.3.2 Bristol
  • 4.3.3 Cardiff
  • 4.3.4 Edinburgh
  • 4.3.5 Glasgow
  • 4.3.6 Leeds
  • 4.3.7 Liverpool
  • 4.3.8 Manchester
  • 4.3.9 Newcastle upon Tyne
• 4.4 BUSINESS PARKS IN THE UK
  • 4.4.1 Performance of the Business Park Sector
  • 4.4.2 Office Space/Office Parks in Regeneration Areas

5. CONSTRUCTION MARKET FOR COMMERCIAL OFFICES

• 5.1 CONSTRUCTION MARKET OVERVIEW
  • 5.1.1 Value of Output - Construction New Work
• 5.2 CONTRACTORS OUTPUT IN THE COMMERCIAL OFFICE SECTOR
  • 5.2.1 Impact of Rising Materials Costs on Office Construction
• 5.3 COMMERCIAL OFFICE - NEW DEVELOPMENT PIPELINE
  • 5.3.1 Central London Office Pipeline
  • 5.3.2 Regional Office Development Pipeline
  • 5.3.3 Office Refurbishment/Fit-Out Market

6. FACTORS AFFECTING THE MARKET

• 6.1 OVERVIEW
• 6.2 PLANNING LAWS
  • 6.2.1 PPG4 - Planning for Economic Development
  • 6.2.2 PPS6 - Planning for Town Centres
• 6.3 SUSTAINABILITY AND ‘GREEN OFFICES’
  • 6.3.1 CO2 Emissions from Buildings
  • 6.3.2 Key Environmental Legislation
  • 6.3.3 BREEAM Offices
  • 6.3.4 Sustainability Code for Non-Domestic Buildings
  • 6.3.5 Green Incentives for Developers
  • 6.3.6 Sustainability Issues for the Commercial Office Market
• 6.4 USE OF OFFSITE TECHNIQUES IN THE COMMERCIAL OFFICE MARKET
  • 6.4.1 Application to the Commercial Office Sector

7. CONSTRUCTION MARKET SUPPLY IN THE OFFICE SECTOR

• 7.1 STRUCTURE OF THE CONTRACTING INDUSTRY
• 7.2 LEADING CONSTRUCTION CONTRACTORS IN THE COMMERCIAL OFFICE MARKET
  • 7.2.1 Overview
• 7.3 KEY CONTRACTOR PROFILES
• 7.4 FIT OUT CONTRACTORS IN THE COMMERCIAL OFFICE SECTOR
• 7.5 LEADING ARCHITECTURAL PRACTICES IN THE OFFICE MARKET
• 7.6 LEADING DEVELOPERS IN THE OFFICE MARKET

TABLES AND CHARTS

• TABLE 1 UK OFFICE DEVELOPMENT PIPELINE (SQ. FT ‘000)
• CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1990-2010
• CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1990-2010
• TABLE 4 EXCHANGE RATE FLUCTUATIONS 2000-2007 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES
• CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 (‘000)
• CHART 6 UK OFFICE MARKET - OCCUPIERS BY END SECTOR (FLOOR-SPACE TRANSACTED IN Q2 2007)
• CHART 7 LONDON OFFICE RENTS Q2 2006 - Q2 2008 (£/SQ. FT.)
• CHART 8 CENTRAL LONDON OFFICE TAKE-UP (MILLION SQ. FT.) Q4 2002 - Q2 2007
• CHART 9 LONDON OFFICE MARKET - OCCUPIERS BY END SECTOR (FLOOR-SPACE TRANSACTED IN Q2 2007)
• CHART 10 WEST END OFFICE MARKET - OCCUPIERS BY END SECTOR (FLOOR-SPACE TRANSACTED IN Q2 2007)
• TABLE 11 REGIONAL OFFICE MARKETS DEVELOPMENT PIPELINE 2007 - 2009 (SQ. FT. ‘000)
• TABLE 12 UK BUSINESS PARKS - TOTAL OFFICE SPACE (SQ. FT MILLION)
• TABLE 13 UK BUSINESS PARKS - SPACE UNDER CONSTRUCTION Q2 2006 & Q2 2007 (SQ. FT. ‘000)
• TABLE 14 TOP URBAN REGENERATION SCHEMES IN THE UK - % OF COMMERCIAL OFFICE SPACE
• CHART 15 VALUE OF CONSTRUCTION OUTPUT NEW WORK 2002-2012 (£ BILLION)
• TABLE 16 CONTRACTORS' OUTPUT IN THE COMMERCIAL OFFICE SECTOR 2002-2012 (£M)
• TABLE 17 INCREASE IN BUILDING MATERIALS PRICES JULY 2006 - JULY 2007
• CHART 18 CENTRAL LONDON OFFICE DEVELOPMENT PIPELINE 2007-2010
• TABLE 19 LONDON OFFICE MARKET - DEVELOPMENT PIPELINE STATISTICS
• TABLE 20 CENTRAL LONDON - PRINCIPAL COMMERCIAL OFFICE SCHEMES IN DEVELOPMENT
• CHART 21 REGIONAL OFFICE DEVELOPMENT PIPELINE 2007-2010
• TABLE 22 REGIONAL OFFICE MARKETS - DEVELOPMENT PIPELINE STATISTICS
• TABLE 23 CONTRACTORS OUTPUT - INTERIOR REFURBISHMENT 2000-2011 AT CURRENT PRICES (£M)
• TABLE 24 FIT-OUT COST FOR COMMERCIAL OFFICE SECTOR (BY END USE) (£/SQ. FT.)
• CHART 25 CO2 EMISSIONS FROM PROPERTY AND PROCESSES BY SECTOR
• CHART 26 OFFICE TYPES - RENEWABLE ENERGY COSTS AS % OF TOTAL BUILDING COSTS
• CHART 27 % COMMERCIAL DEVELOPMENTS USING TOILET PODS 2001 - 2007
• TABLE 28 MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2006
• TABLE 29 LEADING CONTRACTORS' SHARE OF COMMERCIAL SECTOR CONSTRUCTION WORK IN 2006 (£M)
• TABLE 30 LEADING ARCHITECTS IN THE COMMERCIAL OFFICE MARKET
• TABLE 31 LEADING DEVELOPERS IN THE COMMERCIAL OFFICE MARKET