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Satisfying stakeholders in an ever changing business environment - - PowerPoint PPT Presentation

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Satisfying stakeholders in an ever changing business environment Prepared by The Property Directors Forum Agenda Thursday 3 December, 2015 9.30 Registration, Networking & Coffee 10.00 Welcome & Introduction to the Property

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Satisfying stakeholders in an ever changing business environment

Prepared by

The Property Directors Forum

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Agenda – Thursday 3 December, 2015

9.30 ‐ Registration, Networking & Coffee 10.00 ‐ Welcome & Introduction to the Property Directors Forum – Nick Cook 10.10 ‐ Presentation by Simon Carter, Head of Corporate Property at National Grid “Delight stakeholders, reduce carbon and save cash – how to get it all?” 10.40 ‐ Presentation by Angus McIntosh, Economic & Property consultant and Visiting Professor at Oxford Brookes University – “Property, Economy and Technology ‐ how it may impact on logistics occupiers.” 11.10 Presentation by Nick Cook, Managing Director Avison Young – “Industrial & Logistics Market Review” 11.30 ‐ Brief for the Round Table Debates – Crispin Manners 11.35 ‐ Round Table Debates – “Satisfying stakeholders in an ever changing business environment” 12.10‐12.50 ‐ Round Table Presentations 12.50 Summary – Nick Cook & Crispin Manners 13.00 Networking & Lunch

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Aims & Objectives

The Property Directors’ Forum is an exciting initiative expressly for the benefit of Property Directors of business occupiers with premises in the UK and Europe. The Forum’s goals are to:‐

  • Allow you and your peers to network without sales people or suppliers present.
  • Provide Property Directors of occupier businesses with more of a VOICE in the market.

The RICS, CoreNet et al are great but the Forum is exclusive to you and your interests.

  • Provide an environment where Property Directors or Directors in charge of property can

swap ideas, how to tips, learn inside tricks and generally be exposed to the latest thinking.

  • Expose Directors to good speakers, but not at a sales level. More aspirational and

strategic.

  • Help Directors communicate better with their boards and to have property more

properly recognised as a contributor.

  • Allow Directors to be informed about new legislation and risks that could affect their

portfolios.

  • Provide a degree of charity and reciprocity.
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Introduction by Nick Cook

■Welcome to new members ■Update on our sponsor

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Partnership. Performance.

Avison Young Overview

June 2015

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Avison Young

A different kind of commercial real estate service business

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Background Facts

  • The fastest growing real estate services business in the world
  • Avison Young’s roots are in Canada (No.3) and the 7th most

recognised real estate brand in USA

  • 73 offices and over 2100 staff
  • Its business has grown 12 fold in the last 7 years
  • Now open in 5 countries – Canada, USA, Mexico, UK, Germany with

further expansion planned

  • Operating and advising clients in 30 countries worldwide
  • Organic growth has contributed to around 30% of revenues
  • Industry names join every week
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Why is it Different and So What?

  • The firm’s equity is in the hands of a broad base of Principals - AY

can play the long game & not be transaction led

  • Ownership structure creates the incentive for collaboration - can align

solutions with client objectives

  • Avison Young is Principal led and client centric – clients come first
  • Intelligent solutions that deliver a better client experience and better

results – experienced people view client problems in the round

  • Avison Young University has been created to invest in all our people.

Not just the young! – the quality of staff is an asset for our clients

  • Avison Young is passionate about its culture and social

responsibilities – old values are back!

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Canada’s Best Managed Companies Award

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Presentation by Simon Carter, Head of Corporate Property, National Grid

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“Delight stakeholders, reduce carbon and save cash – how to get it all?”

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Introduction

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Who we are

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What we are out to achieve

  • Fit for purpose
  • Benchmarked
  • Safe, reliable, sustainable

and productive

  • Asset management plan (10

years) and business case driven

  • Under-utilised buildings
  • RIIO
  • Old world workspace
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The starting point!

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The physical product

Smart WorkSpace

  • Real flexibility
  • Reduced cost
  • Reduced energy and carbon usage
  • Improved workplace effectiveness
  • Increased productivity
  • Delighted staff
  • Brand visibility

All employees sharing space at 75-80% From 11-12sqm to 7-8sqm pp. 27% incl. in capacity. 16% reduction in energy usage

12% to 42% of footprint support spaces 8% increase in performance 8% increase in satisfaction in the workplace

increased visibility of brand story throughout

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The art of engagement

Test to destruction! Live pilot with 250 staff

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Why it works

  • Tested to destruction – the pilot was not

just a marketing suite

  • Real investment in change management –

not just a handful of workshops but really walking the halls

  • All stakeholders involved – not just down

to a handful of change agents

  • An effective balance between a standard

layout/components and unique elements

  • Design really used as a change tool – the

space plan became the platform for change discussions

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Measuring the impact

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Phase 1 results 2011‐2013

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Embedding measurement

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Phase 2 – connecting to business performance

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The challenge set by National Grid

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Our approach

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The study at a glance

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And the cognitive tests told us something else …

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Summary

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Strategies we’re deploying to drive sustainable change

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What’s next: Our latest example …

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Thank you

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QUESTIONS

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Economic Policy:

Real Estate Forecasting Limited

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Greece today: fiscal conservatism in action

Real Estate Forecasting Limited

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Ultra‐Low long term bond interest rates Impact of QE funding – April 2013 and 2015 ()

Real Estate Forecasting Limited

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Central Bank Economics: Monetary Policy re‐heated

Real Estate Forecasting Limited

Janet Yellen, Mari Draghi, Mark Carney & Haruhiko Kuroda

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Interest rates started falling 8 years ago

Real Estate Forecasting Limited

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Inflation, Deflation and Interest Rates: how does Monetary Policy cope with each?

Real Estate Forecasting Limited

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World Oil Prices 1994 to 2015

Real Estate Forecasting Limited

20 40 60 80 100 120 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q4 2015

Oil Price

Oil Price

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Q E Favours Real Estate

Real Estate Forecasting Limited

£ loans outstanding Real Estate £135 Billion Manufacturing £22 Billion

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The Economics of QE

Real Estate Forecasting Limited

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Gross Public Debts Still Rising (% of GDP)

Real Estate Forecasting Limited

Maastricht target = 60%

Paying off debt?

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Debt – the elephant in the room that the world can’t deal with

Real Estate Forecasting Limited

Total Net Debt % GDP (Private AND Public) USA 800% France 500% UK 1,000% Italy 250% Spain 1,100% Ireland 1,400% Greece 1,600%

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‐ the tiger economies with too much sovereign

  • wealth. Funds ($bn) end 2014

Real Estate Forecasting Limited

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Budget Deficit Continues: % GDP 2012 & 2015

Real Estate Forecasting Limited

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Investment?

Real Estate Forecasting Limited

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Employment & Self Employment

Real Estate Forecasting Limited

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QE = greater inequality

Real Estate Forecasting Limited

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The Wealth Gap – UK but also globally

Real Estate Forecasting Limited

Since 2005 ‐ Poorest 20% now have 57% less

financial wealth, richest have 64% more

The age wealth gap: older get richer ‐ younger have to rent

2003 2013 Own 65+ 65% 75% 25‐34 60% 40%

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Fewer first time buyers + more older affluent = store closures

Real Estate Forecasting Limited

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Winners

Real Estate Forecasting Limited

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Real Estate Forecasting Limited

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Real Estate Forecasting Limited

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Relocation Analysis: the THREE challenges

Real Estate Forecasting Limited

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London Tech City – (Silicon Roundabout & Tech cluster)

Real Estate Forecasting Limited

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The Property Boom

Creates large net tax surplus, extra 100,000 pa, increasing congestion

Real Estate Forecasting Limited Cheese Grater Shard Tower 42 “Nat.West Tower” Heron Tower Gerkin Swiss RE Canary Wharf Walkie “scorchie” Talkie

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Real Estate Forecasting Limited

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Jaguar – Range Rover Evoque – owned by TATA of India manufactured Halewood, Liverpool

Real Estate Forecasting Limited

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Liverpool2: greater trading efficiencies – parts of the

new Merseyside SUPERPORT

Real Estate Forecasting Limited

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‘Biggest Ship ever on Thames’ docks at London Gateway port

Real Estate Forecasting Limited

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European logistics fruit bowl – Amsterdam, Frankfurt,

Paris, Milton Keynes & Northampton

Real Estate Forecasting Limited

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Real Estate Forecasting Limited

Next & Argos

1985 in‐town & 2015 out‐of‐town

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British Retail Consortium

Real Estate Forecasting Limited

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The Aldi & Lidl Revolution – Lidl named Grocer of the

Year for the first time – Guildford & Sheffield

Real Estate Forecasting Limited

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Economic Growth 2011‐2016 UK growth has been accelerating

Real Estate Forecasting Limited

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Economic Growth

Real Estate Forecasting Limited

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The economic & financial risks ahead

Real Estate Forecasting Limited

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UK Rental Value Growth, % pa

Real Estate Forecasting Limited

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UK Commercial Property since 2000 The Boom is over

Real Estate Forecasting Limited

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UK Commercial Property since 2000 The 2014 Boom is Over

Real Estate Forecasting Limited

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UK Commercial Property: Total Investment Returns by Sector

Real Estate Forecasting Limited

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UK investment yields ‐ %: 1918‐2015

initial property, equity dividend & long gilts Comfortable Risk Premium between Property & Gilts

Real Estate Forecasting Limited

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Commercial Property Investment Market:

Total returns (Rent & Capital Change) % pa 2007 to November

  • 2015. Property far less volatile.

Real Estate Forecasting Limited

Source: Real Estate Forecasting Q4 2015

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Property – smoke, mirrors, debt and technology

Real Estate Forecasting Limited

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QUESTIONS

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Industrial Market Review by Nick Cook Principal, Managing Director ‐ Avison Young

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The face of 21st Century Retail

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Introduction

 The market  Specification  Low carbon  Acquiring space

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Market facts

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Take‐up of units above 100,000 sq ft in the Midlands

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Supply of Units above 100,000 sq ft in the Midlands

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Prime rents

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Prime big shed specification

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Low carbon

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Acquiring space

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Design and build programme

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Conclusion

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QUESTIONS

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Round Table Debates

Introduced by Crispin Manners

■ Debate Topics are on each table ■ Table facilitators please ensure you allocate sufficient time to debate each question ■ Please nominate a presenter per table ■ Please use the flip charts ■ Each table will have 5 minutes to present their conclusions to the room ■ A confidential survey will be distributed after the presentations for you to complete

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Satisfying stakeholders in an ever changing business environment

Round Table Debates Presentations

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Summary

Nick Cook & Crispin Manners

■ Round Table Presentation – Summation ■ Networking & Lunch

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Thank you for attending

See you 9th June 2016

Bring a friend Join our LinkedIn Group and carry on networking!