Finishes and Interiors Sector (FIS) is delighted to announce the appointment of Damian Hill to the newly created role of Technical Projects Manager, following the retirement of its Technical Director Joe Cilia. A seasoned professional with over 30 years of experience in the interiors sector, Damian brings a wealth of
Leading North West property services company, The Momentum Group, has announced a series of key hires across the business, including two new directors, as the company focuses on the next stage of its growth following a successful 2024. Jacqui Saunders has been appointed as Director of Momentum Manage, with a
Lidl is ramping up its UK expansion with nine new store openings within a month, marking a strong start to 2025. Most of the new locations will open their doors in February as the retailer continues to grow its presence nationwide. New stores are set to launch in Canning Town,
Leeds Bradford Airport (LBA) has announced that it has awarded the Contract for Phase 2 of construction works on its £100m regeneration project to Farrans Construction, as it continues to transform its terminal facilities to dramatically improve the passenger experience and help unlock economic growth for the region. With the
Workplace consultancy Blueprint Interiors has completed a full interior design and fit out for Inizio’s new office in Ashby-de-la-Zouch. Inizio, a global market-leading commercialization partner that specialises in healthcare, was formed in 2022 out of the combination of Ashfield Health and Huntsworth, under private equity firm Clayton, Dubilier & Rice
The report from the National Retrofit Hub, developed in partnership with Impact on Urban Health, exposes the urgent need to improve energy efficiency in the private rental sector (PRS). With 4.5 million households renting privately in England[1] and a shocking 1 in 4 renters living in fuel poverty[2], the report
Business Secretary Jonathan Reynolds, alongside Housing Minister Matthew Pennycook, has met with top construction CEOs to discuss how planning reforms can drive industry growth and investment. During the discussions, the Business Secretary emphasised the crucial role of planning and construction in the Government’s economic strategy. Industry leaders from real estate,
Real estate investor, developer and asset manager, Firethorn Trust, has exchanged contracts with Curlew Capital’s CST2 Fund to acquire the Poland House development site in Stratford, East London. With planning permission to create modern, purpose-built student accommodation (PBSA), Firethorn will deliver 284 high-quality student beds at the site. Accompanied by
Lifschutz Davidson Sandilands will present its draft masterplan for Bristol’s Western Harbour on Monday 10thFebruary, setting out detailed proposals for the city’s western gateway. Western Harbour is one of the most iconic places in the UK with supreme views of the Avon Gorge and Clifton Suspension Bridge and its spectacular harbour
Rents for prime office space* across the globe rose by 0.3% and fit out costs by 0.2% in the final quarter of 2024, says Savills, as demand for top quality office space continues to grow in many markets around the world. According to Savills in its latest quarterly Prime Office Costs
Finishes and Interiors Sector (FIS) is delighted to announce the appointment of Damian Hill to the newly created role of Technical Projects Manager, following the retirement of its Technical Director Joe Cilia. A seasoned professional with over 30 years of experience in the interiors sector, Damian brings a wealth of technical knowledge and leadership to FIS during an exciting time of transformation. As part of this transition, Jim Parlour has been promoted to Head of Technical, progressing from his previous position as Technical and Vetting Manager. These changes form part of FIS’s commitment to evolve and expand its technical support services for the £10 billion finishes and interiors sector. In his new role, Damian will play a pivotal role in supporting FIS as the leading technical authority for the finishes and interiors sector. His primary responsibilities will include managing technical projects, collaborating with the FIS team, members, and external stakeholders to enhance and update technical resources, and ensuring that FIS continues to deliver high-quality technical guidance, training, and support for the sector. “I am absolutely delighted to be joining FIS and look forward to working with the exceptionally talented team and all members of this amazing sector,” said Damian Hill. “Having spent 30 years within the interiors industry, I am excited to bring my knowledge, experience, and passion to continue the great work FIS does for its members in promoting quality, collaboration, innovation, safety, and best practice.” Hill’s extensive background in the interiors industry includes 24 years at SIG, where he held various roles across sales, business development, and training in core interior products. Most recently, as Ocula Partitions Technical and Training Manager since 2018, he has overseen product development, performance testing and certification, compliance, and systems training. Hill has also been an active member of the FIS Partitions and Pods Working Group, staying up-to-date on the latest developments and providing valuable insights to help shape the future of the sector. Commenting on the new role, Jim Parlour, Head of Technical at FIS, said: “Damian brings a wealth of experience as a technical communicator, having provided functional training to hundreds of staff in all interior construction product disciplines. We are looking forward to accelerating our development of the FIS e-learning platform, advancing competence standards for estimating, procurement, and design functions, as well as receiving project management support for all our technical activities and membership vetting efforts.” The addition of Damian Hill to the FIS leadership team, alongside Jim Parlour’s promotion, marks a key step in FIS’s efforts to enhance its technical support and resources for the finishes and interiors sector. For further information or for any questions please contact FIS at info@thefis.org or call 0121 707 0077. Building, Design & Construction Magazine | The Choice of Industry Professionals
Leading North West property services company, The Momentum Group, has announced a series of key hires across the business, including two new directors, as the company focuses on the next stage of its growth following a successful 2024. Jacqui Saunders has been appointed as Director of Momentum Manage, with a remit to grow the Group’s property management division across the North West and South East. With over 20 years’ experience, Jacqui was previously Associate Director at Network Space, and held positions at The Arch Company and Savills. The second senior hire is Jyssica Murphy, who has joined as Health, Safety, and Quality Director, overseeing The Momentum Group’s strategy across the business. Jyssica brings a wealth of experience, including her previous role as Building Safety Regulatory Lead at the Health and Safety Executive (HSE). She has also worked at Redrow Homes, Torus and as a consultant for a wide array of Construction and Refurbishment Projects. In addition to the two new directors, Momentum Advise has strengthened its team with the appointment of Stella Costa as Senior Project Manager, James Blackmore as Project Manager, Lucas Smith as Trainee Project Manager and Claudia Watson as Graduate Project Manager, to support the division’s growing portfolio of retail delivery projects following the team’s recent geographical expansion. Momentum Build has also welcomed Nick Barrett as Construction Project Manager to help facilitate further growth as the team diversifies its client base across retail, leisure, residential, and parking facilities. Whilst Momentum Manage has appointed Jo Miller as Property Manager. Chris Bliss and Chris Renshaw, Co-founders and Directors of The Momentum Group, commented: “The success of The Momentum Group is driven by its people and, as we grow, we remain committed to attracting and retaining the very best staff. Jacqui Saunders and Jyssica Murphy bring not only renowned sector expertise, but the senior leadership skills that will help to drive our growth. Together with our other heads of the individual businesses and our board advisors, Yvonne Emmett Cannell and Ian O’Doherty, we are in a great position to expand, diversify and, ultimately, thrive.” Jacqui Saunders, Property Management Director, said: “Momentum Manage already plays a part in making great places; places that people, be they shoppers, workers or residents, actively want to spend time in. There is an opportunity, however, to expand our client base, not only in the North West, but across the UK. The company has the ambition and ability to do that, and I am very excited to be leading the team to make it happen.” Jyssica Murphy, Health, Safety and Quality Director at The Momentum Group, added: “The Momentum Group’s values and culture reflect what I believe matter in a business, so to join now, as the company pushes to achieve its next stage of growth, is very exciting. Working with Chris, Chris and the rest of the senior leadership team, I will ensure the Group delivers exemplary health, safety and quality standards, while also supporting its commitment to operating sustainability.” With the seven new hires, The Momentum Group now employs over 60 people, with the growth in the team reflecting a very strong 12 months for the company. 2024 saw the company become a B-Corp Certified business; the delivery of Momentum Build’s second project for leading leisure operator, Gravity MAX, in Westfield Stratford; and the facilitation of the second Building Sustainable Cities Beyond 2023 Conference, held by the Liverpool City Region Sustainable Property Group, which The Momentum Group founded. Building, Design & Construction Magazine | The Choice of Industry Professionals
Lidl is ramping up its UK expansion with nine new store openings within a month, marking a strong start to 2025. Most of the new locations will open their doors in February as the retailer continues to grow its presence nationwide. New stores are set to launch in Canning Town, Preston, Walsall, and Wombourne, while larger, upgraded stores will reopen in Blantyre, Cwmbran, Oldbrook, Wells, and West Ealing. These follow Lidl’s first store opening of the year in Northampton and a successful run of 10 new stores in the lead-up to Christmas. Richard Taylor, Chief Development Officer at Lidl GB, said: “As we step into the new year, we’re keeping up the momentum with nine brand-new, state-of-the-art stores, bringing an enhanced shopping experience to new communities and those we’ve proudly served for an average of 26 years. After a record-breaking Christmas, where millions of households turned to Lidl, these openings highlight the ever-growing demand for our unbeatable value and quality. And this is just the beginning – we have even more store openings planned for 2025 and look forward to welcoming both loyal and new customers in the months ahead.” Lidl’s expansion comes on the back of its most successful Christmas yet, with nearly two million more shoppers choosing the discounter compared to previous years. Festive season sales surged by 7% year-on-year, surpassing £1 billion for the first time. Building, Design & Construction Magazine | The Choice of Industry Professionals
Leeds Bradford Airport (LBA) has announced that it has awarded the Contract for Phase 2 of construction works on its £100m regeneration project to Farrans Construction, as it continues to transform its terminal facilities to dramatically improve the passenger experience and help unlock economic growth for the region. With the terminal extension (Phase 1) due to handover in Summer 2025, the refurbishment of the existing terminal (Phase 2) of LBA: REGEN is expected to complete in Winter 2026, setting up an exciting period of development for the airport. Farrans is a leading building and civil engineering contractor which operates across the UK and Ireland. The company is already on-site completing Phase 1 of the project which involves the construction of the 9,500m2, three-storey terminal extension (pictured). Passengers will benefit from more seating, faster security, new shops and eateries, and a larger baggage reclaim area and immigration hall, as well as improved access for passengers with restricted mobility. In Phase 2, Farrans will be undertaking a full refurbishment of the existing terminal. Works will be delivered in multiple sub-phases to minimise disruption to customers and allow the airport to operate as close to normal as possible. Improvements include the creation of new staircases, lifts and escalators to provide an open plan feel which will complement the new lighter and brighter terminal extension. Remodelled internal spaces will allow improved passenger movement and there will be brand new security and arrivals facilities, World Duty Free and shops, bars and restaurants. By 2030, the regeneration has the potential to create 1,500 new direct jobs at LBA and 4,000 new indirect jobs, as well as contribute a total of £940 million to the local economy*. The regeneration will also help LBA to further decarbonise its operations, as outlined in the airport’s 2030 Net Zero Carbon Roadmap, with the installation of new all electric heating, lighting and machinery, including new baggage belts. It is expected that airlines attracted by the regeneration will accelerate the deployment of their newest, quietest and most efficient aircraft at the airport, in turn reducing the overall environmental impact of LBA’s operations. Vincent Hodder, Chief Executive of Leeds Bradford Airport, said: “We’re delighted to be working with Farrans on Phase 2 of our LBA: REGEN project. We’ve already created a strong working relationship with the team on Phase 1 and as we transition into Phase 2, we’re excited to be able to take our customers along with us on this journey. “It’s also an opportunity to let our customers know that while this important work gets underway, there will be temporary changes to the terminal while we deliver this new and improved customer experience. LBA: REGEN is the first major improvement to our terminal since its opening in 1968 and is long overdue. It’s vitally important to upgrade LBA to the world-class facility Yorkshire deserves.” Cathal Montague, Regional Director at Farrans Construction, said: “We are pleased to be continuing our strong working relationship with Leeds Bradford Airport as they progress with this important improvement project which will have long term benefits for this region. Our experience in the aviation sector has enabled us to work collaboratively with our client to ensure the airport’s operations have continued without disruption, and we will be putting in place similar plans as we move forwards into Phase 2. “Our team is fully invested in the complete delivery of this regeneration project and I am pleased that we will be remaining on site to see the work come to completion at the end of Phase 2. Leeds is an important region for our business, we are all frequent users of LBA and we are looking forward to working together with the airport’s team on the successful delivery of the next stage of the project.” This year, the airport is expected to contribute a total of £460 million to the local economy, directly employing 2,100 people and indirectly supporting 4,500 jobs. *data collected from York Aviation analysis. Building, Design & Construction Magazine | The Choice of Industry Professionals
Workplace consultancy Blueprint Interiors has completed a full interior design and fit out for Inizio’s new office in Ashby-de-la-Zouch. Inizio, a global market-leading commercialization partner that specialises in healthcare, was formed in 2022 out of the combination of Ashfield Health and Huntsworth, under private equity firm Clayton, Dubilier & Rice (CD&R). Ashfield Healthcare opened its first office in Ashby-de-la-Zouch back in 2002. Marking a new chapter for Inizio in the region and continued investment in people and communities across the UK, the company took the lease of Excelsior House on Excelsior Road, just off junction 13 of the M42. With 18,000 sq. ft. across two floors, Blueprint Interiors were briefed to create a workspace that integrated teams, enabled collaborative working, offered creative and flexible spaces, and a place Inizio could welcome clients. The space now includes areas for diverse working styles and activities, such as hot-desking areas for collaboration and interaction across teams and departments, private spaces for focused work and confidential conversations, and a state-of-the-art control for hybrid and virtual events. In line with the company’s core values, the project had clear sustainable goals. The building’s EPC A rating was maintained, existing furniture was repurposed, and recycled products made from ocean plastic were installed. Other features of the fit out included exposed ceiling designs, sustainable bespoke furniture pods and meeting rooms named after Ashby’s traditional trades, such as Smithy, Forge and Cooper. Kate Kelly, Managing Director UK & Ireland at Inizio Engage, said: “The new office has truly transformed how we work. It’s an engaging, sustainable space that brings our Inizio Engage teams together and adapts perfectly to our evolving needs. Every detail reflects our unique culture and values, creating an environment where our people want to spend time because they feel empowered to succeed.” Chloe Sproston, Creative Director at Blueprint Interiors, said: “Having worked with Ashfield Healthcare before it became Inizio, it was fantastic to be supporting them again on their impressive new office space. Just six minutes from our own HQ, the Inizio team were pleased to have sourced a local partner, echoing its sustainable and community focusses. “After immersing ourselves in the Inizio business and culture, we interviewed stakeholders to gain a view of the company’s aims and ambitions. With a clear sense of the project goals, we set to work to create a dynamic workspace that met the needs of the evolving business. “The space we designed brings people together and reflects the culture of the teams based out of the Ashby-de-la-Zouch location. With areas for different styles of working and socialising, alongside sustainable practices, Inizio has a workplace which enhances its wellbeing, diversity and inclusion and environmental policies.” As fit out designer, supplier and main contractor, Blueprint Interiors worked alongside Gleeds as project manager. Emma Wiggin, Director at Gleeds, said: “We were pleased to provide project management services on this exciting new space for Inizio. It was fantastic to work alongside them and other project partners to help achieve their ambitions for an office that truly serves their purpose. It was also great to lead on the delivery of a project that prioritised circularity, which aligns with Gleeds’ focus on sustainable practices in construction.” Blueprint Interiors follow the WELL Building Standard; a universally recognised benchmark which puts mental wellbeing and emotional health as key considerations when creating productive workplaces. The Standard helps organisations to optimise their workplaces around the health and wellbeing of their people, which allows teams to be their very best selves. Building, Design & Construction Magazine | The Choice of Industry Professionals
The report from the National Retrofit Hub, developed in partnership with Impact on Urban Health, exposes the urgent need to improve energy efficiency in the private rental sector (PRS). With 4.5 million households renting privately in England[1] and a shocking 1 in 4 renters living in fuel poverty[2], the report underscores the stark realities of a housing market failing its tenants and the environment. The report delivers a clear message: without immediate action, the PRS risks falling further behind other housing sectors, leaving millions of renters in cold, inefficient homes. This report explores these challenges and proposes a supported pathway to improved housing that considers the needs of both landlords and tenants Addressing poor living standards and fuel poverty Millions of renters in the private rental sector are living in substandard conditions, with poorly insulated homes leaving tenants exposed to the harsh realities of fuel poverty and inequality. Currently, 1 in 4 renters[3] in England struggle to afford their energy bills, a crisis exacerbated by rising costs and the inefficiency of older properties. Many tenants face daily challenges to keep their homes warm and healthy, while landlords often lack the necessary support to make significant improvements. “This situation highlights a systemic issue” commented Cara Holmes, National Retrofit Hub Technical Programme Manager. “The private rental sector risks falling behind other housing tenures, leaving renters trapped in a cycle of inadequate housing and energy insecurity. Tackling this problem requires a coordinated effort to raise standards, improve living conditions, and ensure fair outcomes for both tenants and landlords.” Supporting Landlords to Drive Energy Efficiency Improvements[CH1] The report highlights the practical challenges landlords face in balancing their financial goals with the need to improve their properties’ energy efficiency. Many landlords view their properties as long-term investments. As one landlord explained, “I got the property because it was the best investment compared to putting my money into a savings account.” While many are committed to maintaining their properties and complying with regulations, the report reveals that landlords often see regulations as a target to meet rather than an opportunity to exceed. “If I’ve had an EPC assessment on my property and it’s below the requirements, I’d want absolute clarity on what my options are to bridge the gap between where I am and where I need to be,” said another landlord. Financial barriers remain a significant hurdle for many. “I don’t have a mortgage, so extending it isn’t an option. The issue would be interest rates and over how many years,” one landlord noted. The findings underline the importance of providing landlords with practical, accessible solutions to retrofit their properties effectively, ensuring they can balance their investment goals with the urgent need for energy efficiency improvements. A call for bold action The report calls for immediate updates to Minimum Energy Efficiency Standards (MEES), setting ambitious yet achievable targets to: However, raising standards alone is not enough. Landlords need a robust package of support to enable meaningful change, including: To ensure tenants are not left behind, the report also calls for stronger compliance and enforcement measures, including: Join the conversation and take action The National Retrofit Hub and Impact for Urban Health invite policymakers, landlords, and industry professionals view the report and take part in conversations about the future of energy efficiency in the private rental sector. Building, Design & Construction Magazine | The Choice of Industry Professionals
Business Secretary Jonathan Reynolds, alongside Housing Minister Matthew Pennycook, has met with top construction CEOs to discuss how planning reforms can drive industry growth and investment. During the discussions, the Business Secretary emphasised the crucial role of planning and construction in the Government’s economic strategy. Industry leaders from real estate, planning, construction, and infrastructure were invited to share insights on recent planning system reforms, ongoing barriers to growth, and how government intervention could unlock new opportunities. Jonathan Reynolds said: “Our construction sector is a cornerstone of the UK economy, supporting thousands of jobs and playing a key role in our Plan for Change as we push to get Britain building. With the stability of our upcoming Industrial Strategy, we’re committed to working closely with industry to ensure our reforms deliver real benefits to communities nationwide. Meetings like this are essential in identifying and addressing planning challenges to drive growth and investment.” The Government has already taken steps to accelerate planning approvals and stimulate growth, including the publication of an updated National Planning Policy Framework (NPPF) in December. This follows extensive industry engagement, with over 3,000 responses to its Industrial Strategy green paper consultation helping to shape future policy. Looking ahead, the Government will unveil a 10-year Infrastructure Strategy and the 2025 Spending Review, providing long-term certainty for investors and the construction supply chain. Building, Design & Construction Magazine | The Choice of Industry Professionals
Real estate investor, developer and asset manager, Firethorn Trust, has exchanged contracts with Curlew Capital’s CST2 Fund to acquire the Poland House development site in Stratford, East London. With planning permission to create modern, purpose-built student accommodation (PBSA), Firethorn will deliver 284 high-quality student beds at the site. Accompanied by generous amenities, including dedicated study spaces, common rooms, and a residents’ gym, the development will feature 35% affordable accommodation. A dedicated community space will also be delivered as part of the scheme. Designed by architects Henley Halebrown, Poland House will be developed to a target “outstanding” BREEAM rating, in line with Firethorn’s commitment to delivering sustainable, best-in-class assets. The site is the third PBSA asset within the growing Firethorn Living portfolio, following the acquisition of a 204-bed development in Hackney Wick last September, and a 230-bed scheme in Leith Walk, Edinburgh, where work is well underway. Marcus Weeks, Director and Head of Firethorn Living, commented: “With excellent connectivity in the heart of a thriving student community, which has been the focus of significant regeneration in recent years, Poland House is a high-quality addition to the Firethorn portfolio. “This acquisition reflects our ambition to deliver first class, energy efficient student accommodation in prime university locations, as demand for modern living spaces continues to outstrip supply. We are extremely well capitalised and actively seeking further opportunities in the Living market this year, including more PBSA and co-living sites in London and across the UK.” Situated on Stratford High Street, Poland House provides convenient access to the Queen Elizabeth Olympic Park, Stratford High Street DLR Station and Stratford Station, and sits within a 15-minute walk of both University Arts London and UCL East. Work on site will commence later in 2025 with completion due for the 2028/2029 academic year. Charlie Oliver, Managing Director of Curlew Capital, commented: “Our team has worked hard to successfully secure a planning consent to deliver best in class sustainability credentials and an excellent living and learning environment for the students who will live here, creating much needed high-quality accommodation. Curlew Capital, Savills and CMS acted for the vendor, Walker Morris acted for Firethorn Trust. For more information, visit www.firethorntrust.com Building, Design & Construction Magazine | The Choice of Industry Professionals
Lifschutz Davidson Sandilands will present its draft masterplan for Bristol’s Western Harbour on Monday 10thFebruary, setting out detailed proposals for the city’s western gateway. Western Harbour is one of the most iconic places in the UK with supreme views of the Avon Gorge and Clifton Suspension Bridge and its spectacular harbour infrastructure dominated by three huge, listed Bonded warehouses. Following Monday’s briefing with key community representatives and local councillors, there will be a period of public engagement from 11th February to 9th March 2025 to gather views and feedback. Alex Lifschutz, Founding Director of Lifschutz Davidson Sandilands says: “We are tremendously excited about the future of this amazing place and the next chapter in its rich history. Within the development area just next to the vibrant communities of Hotwells and Southville are incredible engineering artefacts – historic dock gates, the double decker Ashton Avenue Bridge, Plimsoll and Junction swing bridges, Brunel’s lock and Swivel Bridge. We want to make the area more accessible and enjoyable for those taking a leisurely stroll and for commuters or cyclists. We will vastly improve the green open space and waterside walks, planting hundreds of trees and improving ecology, at the same time installing flood defences to protect against the effects of climate change. This plan builds on the assets of Western Harbour and surrounding communities creating a dynamic place that will encourage movement through beautiful landscapes.” The masterplan proposes between 750 and 1200 new homes addressing Bristol’s acute housing need. A single tree lined road will replace the tangle of ramps and routes that cover much of the 33-hectare area at the westernmost end of Bristol’s Floating Harbour – removing the equivalent of 5 football pitches of tarmac. Under and around the new homes there will be community and cultural spaces, workplaces, independent shops and restaurants. The Bond warehouses will be upgraded and repurposed as improved Bristol archives open to the public and as loft homes. Pedestrian and cycle routes and greenspaces between the buildings will transform the area from a car dominated to people friendly place. Councillor Tony Dyer, Leader of Bristol City Council, said: “We’ve listened to feedback and have adjusted our proposals for Western Harbour based on how people felt about the initial ideas shared back in the autumn. “We’re delighted to be able to retain Riverside Garden Centre in its current location and look forward to continuing our work with them to develop plans for how the garden centre will look in the future. “Ashton Meadows will remain a green open space linking Greville Smyth Park to the river and to the recreational spaces of Ashton Court and Leigh Woods beyond. The masterplan also sets out proposals to restore the wonderful heritage buildings of Western Harbour for public and residential use. Councillor Dyer said: “The Grade II-listed bonded warehouses, with refurbished and repurposed interiors, remain the dominant features of the skyline to the west of the city.” Councillor Andrew Brown, Chair of the Economy and Skills Committee and Harbour Committee, said: “By bringing together the well-established assets, heritage and communities in the area with a mix of new shops, cafés, cultural uses, creative workspaces and homes we can create a vibrant and sustainable neighbourhood.’’ Visit www.harbourhopes.co.uk for full details. The Western Harbour project is funded by the West of England Mayoral Combined Authority through the Investment Fund, administered by the Mayoral Combined Authority. The Lifschutz Davidson masterplan team includes: Building, Design & Construction Magazine | The Choice of Industry Professionals
Rents for prime office space* across the globe rose by 0.3% and fit out costs by 0.2% in the final quarter of 2024, says Savills, as demand for top quality office space continues to grow in many markets around the world. According to Savills in its latest quarterly Prime Office Costs report, in the fourth quarter of last year, average net effective costs rose slightly, by 0.1%, continuing a moderate upwards trend of 1.9% over 2024. London (West End), Hong Kong, and New York (Midtown) remain the top three locations in terms of costs of the 35 markets Savills examines. Savills says that several markets saw significant cost changes last quarter, notably Dubai and Los Angeles, which witnessed a 7% and 5% net effective cost to occupier growth, respectively, supported by strong demand. EMEA saw some cost increases last quarter, with 0.7% growthin net effective costs to occupiers. The 7% increase in Dubai is the largest of any market and the result of significant rental growth driven by constrained supply at the top end of the market combined with a growing number of new entrants seeking premium space. In Asia Pacific, net effective costs saw a decline of 1% in Q4 2024. China prime offices saw a fall of 2.6% while Sydney and Melbourne, at the other end of the spectrum, saw costs grow by 1.7% and 1.6%, respectively, as a result of reduced landlord incentives in Sydney and rental growth in Melbourne. North America saw 0.7% net effective cost growth last quarter, matching the pace of growth in EMEA. Los Angeles Century City, in particular, saw strong rental growth, largely due to intense demand for space. In the office market overall – both prime and mainstream, Los Angeles saw the highest reported leasing volumes in any quarter since Q1 2020, a testament to the elevated demand in the market in 2024. Overall leasing activity increased by 18% in H2 compared to H1 2024, says Savills. In its complementary Market Makers report, which examines the top 10 prime office occupier deals by size in the same 35 cities, the international real estate advisor found that just over half (54%) of the deals examined were either new leases or expansions, reflecting positivity among major occupiers and the resilience of premium office space. Just over a third (33%) of the deals were for space of the same size, while 13% reflected downsizing. Globally, finance overtook tech as the number one industry for H2 2024 deals (figure 2) for both deal numbers and area transacted. Rick Schuham, CEO of Global Occupier Services at Savills, comments: “Ultra prime offices remain a key strategic asset for many businesses globally and almost all industries saw an increase in square footage transacted in H2 2024 compared to the first half of last year. In 2025, we expect continued rent and leasing volume growth as the net effect cost growth we have seen across the world over the past year is set to continue for the foreseeable future.” Sarah Brooks, Associate Director in Savills World Research team, says: “Even with the darkest clouds seemingly behind us, fiscal and economic concerns will likely remain a top concern for businesses globally. Demographic and behavioural trends will also continue to drive activity in the prime office sector, as firms continue to compete for talent. This competition drives both site and city selection for global businesses and will remain a top priority for 2025.” Building, Design & Construction Magazine | The Choice of Industry Professionals
