Energy companies are divided over the need for a mid-period review (MPR) within the present eight-year price control for businesses operating both in electrical energy and gasoline transmission, and fuel distribution. Big six provider British Gas and consumer body Citizens Advice are heading up the decision for an MPR for
According to global real estate services provider Savills, the take-up of warehouse space around Heathrow Airport amounted to 1.14m sq ft (105,909 sq m) in 2015, a significant 17% drop from the previous 12 months. Availability across the airport presently stands at 2.07 million sq ft (192,309 sq m) and primarily based
James Tee from mobile app agency Sonin explains how connected technology is currently making an impact in households and why construction firms need to plan ahead for the future. The influx of Internet of things (IOT)/connected devices, apps and software is evidently making its mark on the construction industry. From
Most recently, Bruntwood has announced the appointment of CBRE and Knight Frank as the joint agency team for the City House redevelopment positioned above Leeds City Train Station. With Bruntwood’s investment into City House is underway, it is anticipated that the project will be completed by May, 2017, with the
BDC 319 : Aug 2024
Energy companies are divided over the need for a mid-period review (MPR) within the present eight-year price control for businesses operating both in electrical energy and gasoline transmission, and fuel distribution. Big six provider British Gas and consumer body Citizens Advice are heading up the decision for an MPR for all three sectors to establish whether the existing price control is appropriate. That call will take into account whether providers are offering value for money to consumers as well as addressing what has been described as the systemic “outperformance” of network operators according to their required outputs. In its recent submission on the potential MPR to the regulator, Ofgem, British Gas conceded: “We recognise that much has changed since the first round of RIIO price controls were finalised which, in turn, has significantly impacted consumers’ interests”. Charity and consumer lobbyist, Citizen’s Advice reported that the average return on investment for network companies in T1 and GD1 is “well in excess of what appears appropriate for such low-risk investment” – a stonking 9.4%. The charity went on express its support for an MPR and it represents “an opportunity to identify the root causes of outperformance, for both transmission and gas distribution.” It was only last November that Ofgem recommended an MPR, asserting that, over the last 12 months, it had recognised some issues with price control management that an MPR could address. Issues identified included by the body included: network output measures, strategic wider works submissions, and incentive on both consumer and stakeholder sides. Ofgem didn’t, however, establish any points for gas distrbution that required reform. As could be predicted, network operators have welcomed Ofgem’s findings on gas distribution while disagreeing with its support for a transmission-focused MPR, insisting the issues identified could be resolved without a sector-wide review. Trade body the Energy Networks Association (ENA) chipped in, saying the changes resulting from the price control are “within the range of uncertainty anticipated in the design of RIIO-T1 and can be managed through the existing uncertainty mechanism,” adding that an MPR runs the risk of creating two four-year price controls and may “undermine longer term investor confidence.” “Our transmission operator members would urge Ofgem to consider the longer term customer interest when assessing the scope of the RIIO-T1 MPR and not just the short terms benefits within the last four years of this price control,” ENA said. Distribution and transmission operator, SP Energy Networks was the single provider to say it would support Ofgem’s decision if an MPR get the go-ahead. The company did however add that it felt the issues could be resolved more successfully with the employment of specialist firms and bodies. SP Energy networks went on to insist that, “as a matter of fairness”, all companies – not just distribution – ought to reviewed if an MPR does go ahead.
According to global real estate services provider Savills, the take-up of warehouse space around Heathrow Airport amounted to 1.14m sq ft (105,909 sq m) in 2015, a significant 17% drop from the previous 12 months. Availability across the airport presently stands at 2.07 million sq ft (192,309 sq m) and primarily based on the five-year average take-up of 1,394,832 sq ft (129,584 sq m) with last year’s decrease blamed on a tightening of good quality supply around core locations. Based on this current trend, Savills believes there’s just 1.4 years of remaining supply. However, Bonnie Minshull, Director at the South East industrial team at Savills, admits measures can improve the situation. “Although there was a drop in take-up last year, we still saw significant activity in the Heathrow market. A number of speculatively developed schemes, including Prologis Park Heathrow and SEGRO’s Stockley Close, were either let or under offer within 12 months of practical completion, which reflects the strength of demand for Grade A units in prime locations.” Indeed, occupational demand remains strong despite the lack of available space, with 487,795 sq ft (45,317 sq m) of Grade A stock coming through the site last year. That’s the highest number since 2011. In line with high demand, prime rents have additionally continued to rise. Savills predicts that rents are prone to improve further when quite a few new schemes come to the market later in 2016, with SEGRO’s last unit at The Portal quoting £17.50 per sq ft (£188 per sq m). At the moment, alongside The Portal, a number of new schemes are set to finish in 2016, which is able to bring a total of 1.02 million sq ft (94,761 sq m) to the market. Developments including Heathrow Logistics Park, Skyline, and Prologis Park West London will all assist to alleviate the present scarcity of premium inventory over 50,000 sq ft (4,645 sq m). “Despite there being several new schemes in the pipeline, space is likely to remain constrained for the foreseeable future,” remarks Minshull. “If freight volumes continue to grow as forecast, our research predicts that Heathrow will need up to 14m sq ft of extra warehouse space by 2030 to meet requirements. “Furthermore, to date the third runway hasn’t really featured on occupiers’ radars, however if the north-west runway, as recommended by the Davies commission, gets the green light this summer, construction is expected to commence as soon as 2019. As a result, we expect to see businesses in buildings which are likely to be compulsorily purchased start to look for alternative premises sooner rather than later, which is likely to lead to even further demand.”
James Tee from mobile app agency Sonin explains how connected technology is currently making an impact in households and why construction firms need to plan ahead for the future. The influx of Internet of things (IOT)/connected devices, apps and software is evidently making its mark on the construction industry. From how management in the office are communicating with workers on site to the way that companies are now tracking employee progress. These growing trends are altering the shape of the sector as we once knew it. We can now even check and remotely disable the batteries on our most popular working tools through our smartphones. From an operations perspective we now have the capability to continuously boost internal efficiency and productivity. But the question is, what about marketing and sales? What impact will connected technology have on that? As the Internet of Things (IOT) and connected devices become more accessible we’re beginning to see various industries leverage the technology, such as healthcare, transport and indeed construction. Like Dewalt’s Bluetooth batteries these devices stand alone and can be controlled by using a mobile application located on a smartphone, tablet or wearable device. IOT and connected devices are also making their mark outside of enterprise sphere, and this is where construction businesses should begin to take note. As humans we’re becoming increasingly accustomed to turning to mobile to seek the answers to our everyday ‘problems’, and expect ‘solutions’ up-front. The Consumer Electronics Show (CES) earlier this year showed that manufacturers and well-known brands are beginning to react to this increasing need for instant results by releasing smart home gadgets of their very own. From heating thermostats to smart locks to kitchen utilities these products are designed to provide ‘solutions’ for homeowners, with the quantity of these devices set to exceed the 90 million mark by this time next year. These unveilings at CES came at a time when consumers/homeowners gave their strongest indication yet that the prospect of a smart home was more preferred than opposed. According to a survey by Better Homes and Gardens magazine 64% of people stated that they were interested in having smart technology installed in their homes. Research has also shown that the prospect of connected technology in the household significantly increases the appeal of buying a property, in fact there’s an element of expectation during the search process. A survey by Coldwell Banker and CNET Smart Home Survey from August last year indicated that 81% of current smart-home device owners stated that they would be more willing to buy a home that has connected technology already in place. If you’ve recently visited a home in the United States chances are it’s probably closer to being deemed a ‘smart home’ than the last property you visited here the United Kingdom. According to online statistics portal Statista the United States currently top the charts in terms of global ‘smart home’ revenue and household penetration, with the United Kingdom sitting fifth in that respective chart. Despite not being as prominent in the market as the United States it’s inevitable that the increased demand for connected homes will soon be crossing the Atlantic, meaning that connected- plans should now start to be put in place. There is already a growing demand in the United Kingdom for IOT and connected devices in the transport, healthcare and energy sectors. Since July last year the UK government have been encouraging cities and businesses to apply for up to £10m grant for a “single collaborative research and development project to demonstrate the capability of IOT in a city region”. Its aim is for citizens to benefit from “environmental improvements, economic opportunities, and more efficient delivery of services” through IOT solutions. Proposed developments will vary from smart lighting, lower noise pollution examples, enhanced passenger journeys and reduced emissions, which will undoubtedly shine light on the benefits that such technology can bring. By 2020 there will be 21 billion connected devices globally according to a report by Gartner. Although it’s difficult to project the ratio that smart-home products will make up of this figure, it would be a fair assumption to make that based on recent findings, the property and construction industry will play a prominent role. As for any construction project the key to its success is maintaining efficiency and productivity throughout whilst producing a desired product at the end, which will generate a return of investment. By considering IOT and connected devices you’ll be reacting to the inevitable shift in buyer demand, which we’ll begin to notice in the not so far future. This article was produced by Sonin.
Most recently, Bruntwood has announced the appointment of CBRE and Knight Frank as the joint agency team for the City House redevelopment positioned above Leeds City Train Station. With Bruntwood’s investment into City House is underway, it is anticipated that the project will be completed by May, 2017, with the development providing a complete 119,210 sq ft of versatile space designed with modern enterprise in mind and full floors obtainable of 9,630 sq ft. The redevelopment itself is essential to the long-term regeneration of the gateway to Leeds and Bruntwood will continue to partner with Network Rail on the redevelopment of the train station in order that, sooner or later, City House might be linked to the station with direct entry onto the concourse itself. Craig Burrow, Director at Bruntwood, stated: “With work now underway at City House we were keen to secure a strong agency team who could work with us to communicate our vision to future occupiers. It is an incredibly exciting project and we are delighted to welcome our agents on board.” Alex Hailey, Associate Director of Office Agency for CBRE Leeds, explained: “Bruntwood’s wider vision for the future of workspace is being brought to life in one of the city’s most prominent buildings and we anticipate high levels of interest from a diverse occupier mix.” Eamon Fox, Partner at Knight Frank, mentioned: “City House is a once in a generation development in Leeds, and will become an exemplary working environment for our target occupiers. Our workplace is central to most of our lives; City House embraces the changing world of workplace and technology to deliver offices and workspace to meet the needs of business today and into the future.”
