ISSUE 10 APRIL 2018 FGBUR NETT.CO.UK
INSIDE THIS ISSUE
In this edition of Property Matters we feature an update on business rates following on from the recent Scottish Budget, Christopher Yannaghas looks at how important it is to plan ahead when it comes to managing commercial property and we look at the relationship between oil price and the office and industrial property markets. We are delighted to have Sandy Manson, Chief Executive of Johnston Carmichael as our guest contributor. Sandy gives a
thought provoking insight into building offices fit for the future and gives his take on what the key priorities are for professional business firms looking for office space in 2018 and beyond. We hope you enjoy reading this latest edition and if we can assist you on Commercial Property Matters then please do not hesitate to contact us.
ISSUE 10 APRIL 2018
Welcome This edition of Property Matters comes to you as we hope to see the green shoots of spring coming through the ground after what has felt like a particularly long winter, that hope is mirrored for our local economy which does continue to show signs of steady if unspectacular improvement.
Richard Noble & Graeme Nisbet
RETAIL CHALLENGES CONTINUE Whilst our office and industrial property markets are largely influenced by local factors the retail property market is under pressure due to structural changes in the sector, online retail is still growing year on year and leisure time is being spent on non retail activities. Many retailers have struggled to adjust their bricks and mortar portfolios, this is now happening with leases not being renewed and requirement lists being culled resulting in too many shops for too few requirements. Only the very best retail locations are holding up in terms of rents and occupation levels. The rates burden is taking its toll on retailers who are also asking landlords to look at reducing rents. The recent high profile failures of Maplin and Toys R Us and the restructuring of New Look illustrate the challenges and they are set to continue as retailers with far too many stores or those who fail to stay relevant struggle to compete with the very best operators. A retailer who may have had a portfolio of 500 stores 5 years ago will see themselves streamlining to 150/
200 stores offering a better in store experience together with a strong online offer - multichannel is the only way to future-proof the business. GRADE A OFFICES The office market remains challenging, there still being a significant imbalance between supply and demand. Pricing remains extremely competitive with landlords being prepared to be flexible in their attempts to attract tenants. There appears to be a move towards quality and open plan accommodation rather than traditional cellular space due to the efficiencies, amenity and sustainability aspects that are afforded in new Grade A space. All of The Capitol, The Silver Fin and Marischal Square have benefitted from this preference for quality space and it is anticipated that this will continue to be a feature of the market in the short to medium term. PEOPLE We are grateful to Sandy Manson for his thought provoking piece this edition - a reminder of how important the people
in your business are. I am delighted that we now have the experience of Graeme Nisbet round our Board table and also that he has taken up the role as Head of our Agency Team. Holly Wyatt joined us as a Property Manager in November last year and we have another new recruit in the Property Management Department with Freya Eardley coming in as another Property Manager. We are looking for growth in all areas of the business and these recent appointments of enthusiastic people keen to achieve results hopefully demonstrates that. THE FG BURNETT TEAM Whether itâ€™s in the area of acquisitions and disposals, property management, building consultancy, rent reviews, lease advisory, rating or valuation we want to engage with you to discuss your needs Property Matters to all of us at FG Burnett. Richard Noble, Managing Director email@example.com
NEW APPOINTMENT FG Burnett is delighted to welcome Freya Eardley to the team.
Christopher Yannaghas & Freya Eardley
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Freya joins us as a Property Manager within our Property Management Department and brings with her experience gained in previous roles, in particular Premises Management. Freya will be responsible for a wide-ranging portfolio of assets across both the commercial and residential sectors and will assist in the ongoing growth of our business.
their career prospects in a company based on cultural fit, making it as important as any other branding tools in the drive to achieving overall business success.
BUILDING AN OFFICE FIT FOR THE FUTURE With recent reports that demand for office space in Scotland’s three largest cities exceeded two million sq.ft in 2017; what are the key priorities for professional services businesses looking for office space in 2018 and beyond? As Scottish-based businesses continue to thrive in the face of a challenging economic and political landscape, and Scotland remains an attractive place to do business; demand for the country’s prime office space is higher than ever. However, the demand is not just for more space. It’s for the right space. ‘Traditional’ offices are becoming a thing of the past with an office’s design now playing a significant role in reflecting corporate culture and ultimately a company’s Employer Brand. In professional services, as millennials enter the workforce and baby boomers leave; employees’ demands are changing. And with the great generational shift now underway in the workforce, modern technology is fast becoming the catalyst behind one of the biggest shake-ups the office has ever seen – from design to location and from sustainability to well-being. So, what are the key requirements for the future of professional services when it comes to workspace and how will landlords have to adapt to stay relevant? CULTURAL FIT There is no question about the role of culture in running a sustainable business. People are the most important asset to any business, and more and more job seekers, especially millennials, determine
Each person is driven by different motivations to work – work environment playing an important role. If we want to effectively increase brand awareness and scale the business, it’s time to put more focus on people and office space. With millennials effectively reshaping the workplace, the ‘traditional’ office model will be transformed as developers refocus on their tenants’ need to recruit a younger, more creative and collaborative workforce. However, you cannot change a culture by changing the workspace, no matter how dynamic. It’s important, not to forget that the workforce is made up of a range of generations who have different expectations, so spaces need to reflect the people who work in them, rather than the other way around. There needs to be a good balance. SOCIAL AND NETWORKING OPPORTUNITIES Does the space encourage and foster relationship building and colleague engagement? We spend a lot of time at work so getting to know others around us has a significant impact on feeling at home in a space, and being more motivated. Business collaboration can also be key to innovation so being able to talk to a diverse mix of colleagues from different parts of the business is essential and can add a lot of value to your business or create new opportunities. FLEXIBILITY Professional services firms are likely to continue to reduce space as the workforce becomes more agile, spending less physical time at their formal office. We have seen an evolution in the workplace which is moving the focus away from where employees work to what they actually do. A highperformance workplace for professional services will consist of a variety of settings that cater for, and enhance, the working lives of their people and provide different environments for different phases of work. The best, innovative technology will be fundamental, helping to enable
communication and mobility wherever work happens, providing world-wide connectivity and giving the office a different focus of face-to-face engagement with clients and colleagues. Flexibility will be a high priority when it comes to future-proofing office space, factoring in the ability to accommodate head-count shifts and evolving work styles cost-effectively under the same roof.
LOCATION AND FOOTPRINT Accessibility and travel time are important to clients and employees alike, so a central location that’s convenient to access is an important consideration for professional services firms when trying to ensure their workplace is an attractive option when compared to their competitors. Additionally, the social agenda will be a big driving force for future generations when choosing an employer. A green workspace with a clear agenda to encourage sustainability is an important factor. There’s no doubt, planning for the office of the future is being driven by millennial preferences and the workplace of tomorrow may well look very different to the one you’re sitting in now. However, by emphasising the need for a mix of work space design that promotes collaboration among all generations and diverse talents in the workplace, all companies can ultimately benefit from the new way in which people are working. Remaining flexible and adaptable are key to achieving success in such a dynamic environment. Sandy Manson is Chief Executive of Johnston Carmichael, Scotland’s largest independent firm of Chartered Accountants and Business Advisers.
JOHNSTONCARMICHAEL.COM FGBUR NETT.CO.UK
ISSUE 10 APRIL 2018
BUSINESS RATES UPDATE – 2018 SCOTTISH BUDGET As we approach the start of the 2018/19 financial year, it is worth noting that there will be a number of changes to the current business rates regime, as outlined in the 2018 Scottish Budget and the Scottish Government Implementation Plan prepared in response to the recommendations contained within the Barclay Review of non-domestic rates.
NEW BUILD New build properties will no longer enter the valuation roll until they become occupied; thereafter, the occupier will benefit from 100% rates relief for a period of 12 months.
THE PRINCIPAL CHANGES CAN BE SUMMARISED AS FOLLOWS
NURSERIES A new relief will be introduced for day nurseries which will offer 100% relief for properties which are wholly or mainly used to provide care for pre-school children.
TRANSITIONAL RELIEF Transitional rates relief will continue into 2018/19 for most hospitality subjects throughout Scotland and office properties in Aberdeen and Aberdeenshire only. This will apply to subjects which suffered very high RV increases at the 2017 Revaluation and will restrict increases in rates payable from 2017/18 to 2018/19 to a maximum of 12.5% in real terms (15.88% in cash terms).
FRESH START RELIEF Fresh Start Relief which applies to shops, offices and hospitality subjects (hotels, restaurants, public houses etc.) with RVs up to £65,000, have been vacant for some time and are then re-occupied, will be expanded to include industrial buildings and they will now require to be vacant for just 6 months (previously 12 months) in order to qualify. The relief available will be increased from 50% to 100% for a period of 12 months.
12 MONTH DELAY There will also be a 12 month delay before rates are increased when an existing property is expanded or improved.
RATE POUNDAGE The rate poundage applied to rateable values up to £51,000 to calculate annual rates payable will increase by 3% from 46.6p to 48p. The large business supplement which applies to properties with RVs over £51,000 will remain at 2.6p so the combined rate poundage for larger properties will rise from 49.2p to 50.6p (+2.8%).
SMALL BUSINESS The small business bonus scheme which provides rates relief up to 100% for properties with RV up to £15,000 will continue in its present form.
It should be noted that the sums awarded under the various relief schemes outlined above may be restricted under EU State Aid regulations. For further advice regarding rates relief and any other business rates issues, please contact Scott Strachan or Moira Gordon. By Scott Strachan firstname.lastname@example.org
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AWPR/B-T ROADS PROJECT LIGHT AT THE END OF THE TUNNEL FOR THE COMPENSATION CLAIMS
Courtesy of The Press and Journal
The construction works for the Aberdeen Western Peripheral Route/ Balmedie-Tipperty (AWPR/B-T) roads project commenced in spring 2015 and it is being anticipated that they will be completed in summer 2018 with 55km (34 miles) of new dual-carriageway becoming fully operational around Aberdeen. However, the recent demise of Carillion, which was one of the three joint venture parties developing the project, may have put a spanner in the works as it is understood that Carillion was a major force in the construction of Scotland’s largest construction project and also a major funder thereof. Accordingly, the rippling effects of the demise of Carillion are likely to be felt for some time yet. For many years now, FG Burnett has been advising many of the directly affected property owners who have had either all or part of their property compulsorily acquired by Transport Scotland, the promoter of this huge public work. Whilst some of the compensation claims have been settled, it should be noted that the majority remain outstanding and these are primarily those where part-only of a property was compulsorily purchased. Whilst the owner is entitled to the open market value of the land acquired, he/she is also entitled to compensation for the reduction in the open market value of the retained property taking into account all the adverse effects of now living beside what is likely to be a very busy and noisy dual-carriageway. This compensation element is known as Injurious Affection and we consider that this (potentially quite substantial) element of compensation can only be accurately assessed and quantified once the AWPR/B-T roads project is in full operation. Accordingly, the advice given to such clients prior to the construction works commencing was that a policy of “wait and see” should be adopted. Further, those clients are also entitled to claim compensation for any costs, expenses and losses incurred as a consequence of being disturbed during the construction work phase. Unfortunately, many of the
affected property owners have been badly affected through restricted access to their retained lands, interference with water and electricity services, poorlyconstructed replacement fencing and gates as well as loss of profitability. It can perhaps be appreciated that until such time as the construction works are completed and literally “the dust has settled”, then the disturbance element of the compensation claim is also difficult to accurately assess: hence, an additional reason for playing the waiting game. Notwithstanding the above, the compensation legislation allows for such affected parties to make applications for payments to account in respect of their compensation claim and these are known as Advance Payments of Compensation. Advance Payments represent 90% of Transport Scotland’s assessment of the likely compensation due; thus, many clients have already received part-payment of the compensation to which they are due However, as stated above, it will only be after the construction phase has been completed and the AWPR/B-T project is fully operational that it will be possible to enter into formal negotiations with Transport Scotland, and its agent the Valuation Office Agency, in order to agree full and final settlements of the individual compensation claims. Once this has been achieved, then a balancing payment will be made taking into account the aggregate of all Advance Payments previously made. Whilst there is, at present, no definitive date for final completion of the construction works, it is anticipated that sections of the new dual-carriageway will open over the forthcoming months with the whole scheme being operational some time in summer 2018; once this happens, then this will trigger the instigation of the formal compensation assessment process. It should be noted that if agreement over the amount of compensation due cannot be amicably agreed, then there is an independent arbitration body that would decide upon the matter. This is the Lands Tribunal for Scotland and it may be that, in due course, applications may have to
be made to protect the client’s position. It is understood that over 400 property interests were compulsorily acquired by Transport Scotland and that the majority of the resultant compensation claims still remain outstanding and will be until such time as the AWPR/B-T becomes fully operational. Accordingly, it can be appreciated that it will to take some time after this major public work has been completed before those property owners who have been directly affected by this huge undertaking will be properly and fully compensated for all the losses etc. that they have suffered and we will endeavour to ensure that all our clients receive the compensation monies to which they are due. Our fees in this regard are payable by Transport Scotland over and above any compensation that may be due so clients are not out of pocket. It should also be noted that property owners who had no land compulsorily acquired from them but are likely see a reduction in the open market value of their property as a consequence of the operation of the AWPR/B-T scheme also have rights to claim compensation. These rights are however limited in nature and any claim for compensation can only be lodged after the first year anniversary of the commencement of the scheme and within a five-year period thereafter; in addition, there is also the potential for affected residential property owners to seek a reduction in their Council Tax banding. Consideration of these issues is still some time in the future but there will be informative articles within future editions of Property Matters. The whole of the North-East of Scotland looks forward to the opening of the AWPR/B-T scheme and the ability to use the new dual-carriageway system which is expected to stimulate the local economy and substantially improve the opportunities for further economic development in the region in order to provide continued prosperity for us all.
By Keith Petrie email@example.com FGBUR NETT.CO.UK
ISSUE 10 APRIL 2018
WHAT PRICE A BARREL OF OIL? It has long been held by the movers and shakers in Aberdeen’s property market that the health of the office and industrial property sectors in the North East of Scotland is inextricably linked to the price of a barrel of oil and the fortunes of the energy sector. Landlords enduring the pain of vacant buildings over the last 24 months when the oil price has been depressed would certainly testify to that. However, behind the myth is there any science to provide encouragement for the future?
Brent Crude Oil Price ($ per barrel)
Office & Industrial Take-Up (sq.m. (000’s))
— Office Take-Up — Industrial Take-Up — Oil Price
Figure 1 plots the movements in the oil price on a monthly basis since 2004 and compares and contrasts it with the annual take up figures for office and industrial property in Aberdeen over the same period. Low and behold the lines and patterns are very similar! In the normal course, the data suggests there is a time lag before movements in the oil price are reflected in the take up figures but exceptional events such as drop in the price of oil from c. $115 to $45 in 2014 – 2015 are met with an almost instantaneous response. It is clear however that at a strategic
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level when the energy sector is growing and expanding, activity and the frequency of office and industrial property deals in the North East of Scotland mirrors the oil price movement! Curiously, history suggests the office sector seems to be more sensitive to change in oil price than the industrial sector, the variance being between 185,000 sq.ft of take up in 2016 and 1.2m sq.ft in 2014. As a sector, industrial property has always been deemed to be a bit more resilient to oil price fluctuations, however the data would tend to question that, with the variance being between optimum take up in 2014 of c.1.2m sq.ft and the lowest take up being approximately 300,000 sq.ft in 2007. What is also interesting is that industrial take up in 2016 was contra to office take up, industrial spiking to approximately 600,000 sq.ft in 2016 whilst office take up dropped to an unprecedented low at 185,000 sq.ft. But is the take up of property the most reliable indicator of a market’s performance? Arguably, it is only one of several measures with which to gauge the effects of upward and downward movement in the oil price. Rents, both headline and net effective across the office and industrial sectors (the rent once incentives have been taken into account) are also important indicators.
Brent Crude Oil Price ($ per barrel)
Prime Headline Rent & Net Effective Rent (£ per sq.ft.)
— Office Prime Headline Rent — Office Net Effective Rent — Industrial Prime Headline Rent — Industrial Net Effective Rent — Oil Price
Figure 2 suggests that until the most recent cooling in the energy sector in 2014 both headline and net effective property rentals have continued to increase subject only to the occasional and short lived plateau.
For the first time since 1986/1987, landlords have had to compete for deals and be creative about the way in which they do them to encourage tenant interest. Drilling down to the financial reality, landlords in both the office and industrial sectors are now having to offer incentives, equivalent to anything from 6 to 12 months rent free for each period of 5 years certain, to persuade a tenant to sign up. Don’t get this wrong though, it is not a general rule or trend, each and every deal is struck on a building to building basis and dependent on the respective and relative strengths (and weaknesses) of the parties’ position. Equally, in a strong market landlords have had limited regard to empty property rates but in challenging times this has come more acutely into focus particularly from an industrial viewpoint with the change in legislation in 2016. Many have come to the conclusion that it is better to offer a potential tenant incentives and secure occupation than have a taxing liability the extent of which has already led to some landlords demolishing buildings!!
Why, the layman might ask, is this the case? Could it be explained away by the fact that Aberdeen’s landlords have been incredibly frugal (imagine that) or (more likely) fortunate vis-à-vis their offer of rent free incentives or other concessions to tenants from 2004 up to 2016? And can that fortunate state of affairs be largely explained by the historic dearth of supply of and wealth of demand for space conspiring to afford landlords the ability to dictate terms? Definitely!! This was especially acute during the years of increasing or max oil price but even in 2009 when the oil price fell from $145 to $45, deals were still being achieved at prime levels, albeit the softer more tenant friendly elements of the deal such as shorter lease lengths and the introduction of break options became more commonplace. The reality was that landlords traded these softer elements to maintain headline rents and reinforce capital or investment values. In addition, upward only rent reviews in long term leases helped create the impression there was little or no rent variance. So what prompted the downward movement in the net effective rents over the last 24 months? Simply it is the magnitude of the change in the market conditions in the energy sector which has created the material imbalance between supply and demand for property.
“CURIOUSLY, HISTORY SUGGESTS THE OFFICE SECTOR SEEMS TO BE MORE SENSITIVE TO CHANGE IN OIL PRICE THAN THE INDUSTRIAL SECTOR, THE VARIANCE BEING BETWEEN 185,000 SQ.FT OF TAKE UP IN 2016 AND 1.2M SQ.FT IN 2014.”
As Q2 2018 is upon us, which way will the rent and take up lines turn next? Will the much documented green shoots and cautious optimism encourage a full bloom? There is no doubt an oil price appearing to hold firm at or around $65 - $70 has led to increased levels of activity across both the office and industrial property sectors but with a harsh winter behind us is there now a seed bed from which growth may stem? Time will tell. So with one eye to a hopeful future, what price the barrel of oil in 2018? Well for the players and stakeholders in Aberdeen and North East Scotland’s property industry, a robust price for a barrel of “black gold” corresponds with increasing activity and a platform from which the market can “reasonably” prosper! By Jonathan Nesbitt & Graeme Watt firstname.lastname@example.org email@example.com
ISSUE 10 APRIL 2018
PLANNING AHEAD A building providing commercial business space has considerable capital invested in both the fabric and structure of the building, and the building services installed inside. In terms of the fabric, this involves all the structural and shell elements of the building together with any common areas that serve the internal space. Where a building is let under a full repairing and insuring lease the responsibility for maintaining the property rests with the tenant, but a multi-let property places this obligation on the Landlord. So to help the Landlord protect the capital invested in the property and to ensure that the building remains operational, a Property Manager will arrange for the Building Surveying team to undertake a Planned Preventative Maintenance survey on the common areas of the property. Such a survey involves identifying each individual element of the property and assigning a maintenance regime over a fixed period going forward, usually a cycle of 5 or 10 years. In addition to specifying works required, a budget cost will be assigned to each item of works meaning that the Property Manager can draw down on this information when setting annual service charge budgets. Elements of the fabric and structure are under constant degradation from the weather and limited by the inherent lifespan of the materials used. Whilst the structural elements need comparatively little on going maintenance, simple tasks like ensuring rainwater goods are kept free flowing and clear of obstructions or painting and treating external surfaces mean that the structure continues to function as designed and stops any potential deleterious ingress of rainwater which will impinge on the tenantâ€™s occupation of the demised space.
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Internally, a planned maintenance regime ensures that common areas are subject to cyclical redecoration ensuring that these parts of the building remain a professional business-like environment and most importantly remain safe and free from any safety hazards. This assists with letting any vacant space within a multi-let property as these areas remain attractive and presentable to potential tenants. In addition to the structural elements, even the most straightforward building will have a range of mechanical and electrical systems installed that serve basic building functions. These would include a fire alarm, heating and water boiler, and door entry system but more complex buildings would have security systems; lifts; escalators; life-critical services; air-conditioning and ventilation systems; and sanitary services. All of these individual systems represent a considerable capital element in the overall building and their correct function is crucial to the safe and efficient use of the business space. Whilst basic systems like alarms and door entry systems are quite straightforward, modern heating and ventilation systems can involve complex items of plant and machinery such as chillers, fan coil units, boilers, pumps and pressure systems. For such items an independent mechanical services engineer would be brought in to compile an asset register, undertake a condition survey, and from this draft a planned maintenance regime that forms part of the contract for the maintenance contractor. The implementation of such a regime means that the Property Manager is assured these complex items of plant are receiving the correct level of maintenance and servicing so reducing downtime and hopefully avoiding potentially expensive repairs. In addition, the Property Manager can utilise the planned maintenance regime compiled for the buildingâ€™s services to assist with budgeting and anticipating costs. The services engineer may for example advise that a major item of plant will have to be replaced
in a given number of years which will mean that a sinking fund is started (subject to the leases allowing) to accrue towards replacement of that item of plant, allowing the cost to be spread over a number of years rather than in a single hit on the service charge. Ultimately, even though the unforeseen can still happen such as a systems breakdown or a building element failing, the application of a Planned Preventative Maintenance regime for both building fabric and building services means that these events can be avoided. This results in longer periods between services downtime and safeguards the fabric of the building itself, ensuring that the property asset overall is protected over the long term. If you would like to know more about implementation of a planned maintenance regime then please contact any of the Property Management team: Christopher Yannaghas on 01224 597510, Holly Wyatt on 01224 597513, or Freya Eardley on 01224 597508. By Christopher Yannaghas firstname.lastname@example.org
SPOTLIGHT: BUILDING CONSULTANCY DEPARTMENT For this edition of Property Matters, we sat down with Director and Head of Building Consultancy, Jim Johnstone to get an insight to the company’s Building Consultancy Department. Q > WHAT’S THE STRUCTURE OF THE BUILDING CONSULTANCY DEPARTMENT AT FG BURNETT?
with the client, a need for input from the Building Consultancy Department often being identified.
A > The department comprises several Chartered Building Surveyors, including two Elmhurst Accredited Commercial Energy Assessors, and a Graduate Building Surveyor.
We also work extremely closely with our Property Management Department implementing cyclical planned refurbishment /redecoration (previously prepared by the department) which fall outwith routine repairs.
I have been Head of the department since 2010 when we were a team of 2, this has grown over the years and we are now 5 strong. Q > WHAT’S THE TYPICAL WORK CARRIED OUT? A > The department undertakes the ‘traditional work’ of a Building Surveyor i.e. Building Surveys, Schedules of Condition and Schedules of Dilapidation. In addition to this we also carry out Project Monitoring on new builds e.g. PrimeFour at Kingswells and office fit-outs e.g. the recent work for Chrysaor at The Capitol in Aberdeen. We are increasingly appointed as Project Manager on refurbishment projects. The work is cross sector and ranges from a mix of industrial, office and retail premises. Within the remit, there is capability inhouse to carry out space planning and prepare construction drawings as well as lodging an application for a Building Warrant or Planning with the local authority. Recently we have been undertaking more feasibility study work – predominantly for landlords who are looking at the potential for redevelopment opportunities. Q > HOW DOES BUILDING CONSULTANCY TIE IN WITH THE OTHER SERVICES PROVIDED BY FG BURNETT? A > The skills of the Building Surveyors complement the other departments within the company. Our Agency Department can be the primary contact
Q > WHO DO YOU TYPICALLY LIAISE WITH IN A CLIENT’S ORGANISATION? A > Contracts are wide ranging but typically principals, fund managers, facilities and office managers, private investors and national investment managers. Introductions often come via third parties such as law firms and accountancy firms acting for clients who have a particular need for our services.
“THERE DOES SEEM TO BE MORE POSITIVE SENTIMENT IN AND AROUND ABERDEEN AS OF LATE SO GROWTH IS SOMETHING THAT WE ARE LOOKING AT AGAIN, IT’S AN EXCITING TIME!” JIM JOHNSTONE
hasn’t necessarily hampered me I think I was just lucky). Q > WHERE DO YOU SEE AREAS FOR GROWTH FOR THE DEPARTMENT? A > There does seem to be more positive sentiment in and around Aberdeen as of late so growth is something that we are looking at again, it’s an exciting time!
We are also retained on several panels including those of banks and institutional funds. The amount of public sector work we In terms of Building Surveyors in Scotland, undertake throughout Scotland is steadily we have so many strings to our bow rising given their increasing reliance on that it is often difficult to really target a external consultants. particular income stream and focus on Q > WHAT ADVICE WOULD YOU GIVE it. This is, of course, to our credit but also TO GRADUATES WHO ARE ABOUT TO detriment as we can be viewed as a “Jack ENTER THE PROFESSION? of all Trades”. A > With regard to Building Surveying, Building Surveyors are starting to be if someone is truly interested in the viewed differently. Our counterparts built environment and how things are in England (where the role is much constructed then I think it’s a great more established) have been handling profession and no two days are ever the large Project Management instructions same. In the years ahead there will be more and leading design teams for several technological advances in terms of BIM, decades but it is only more recently data collection and reporting methods. that I see Building Surveyors in Scotland I also see advances in pre-constructed truly stepping up and offering a more modular elements allowing faster on site complete service to their clients. construction. In short I am saying “who needs to Anyone entering the profession does employ anyone other than a good need to get out into the market place and Building Surveyor…” network as early as possible to discover what opportunities there are (it’s advice Jim Johnstone I didn’t take as a youngster and whilst it email@example.com FGBUR NETT.CO.UK
ISSUE 10 APRIL 2018
RETAIL PROPERTY FOCUS
SUPERB DRIVE THRU, RETAIL AND LEISURE OPPORTUNITY
For further details please contact Richard Noble or David Henderson.
CASTLE FINE ART COMES TO 100 QUEEN STREET, GLASGOW
Occupying a trophy site on the corner of Hareness Road and Wellington Road (part of the A956 trunk road) 2 miles south of Aberdeen City Centre, this opportunity will provide approximately 20,000 sq.ft of space together with 110 customer car parking spaces. KFC and a further Drive Thru operator are in legals.
NORTH EAST SCOTLAND COLLEGE
(SUBJECT TO PLANNING)
NORTH EAST SCOTLAND COLLEGE
ABERDEEN – HARENESS ROAD SUPERB DRIVE THRU, RETAIL AND LEISURE OPPORTUNITIES
“MORE RETAIL DEALS WILL BE ANNOUNCED SHORTLY WITHIN THE AWARD WINNING 100 QUEEN STREET OFFICE AND RETAIL DEVELOPMENT.” RICHARD NOBLE
FG Burnett were delighted to act on behalf of Esson Properties in the recent letting of Unit 3, 100 Queen Street, Glasgow. Halcyon Fine Art Group trading as Castle Fine Art have secured over 4,000 sq.ft of prime space for their flagship Glasgow Gallery. The prominent corner site is directly opposite the Gallery of Modern Art, adjacent to Royal Exchange Square, Buchanan Street and George Square. Richard Noble commented – “Castle Fine Art have chosen this highly prominent corner site in the heart of
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Glasgow for their Scottish flagship gallery and that is testament to the quality of the location. More retail deals will be announced shortly within the award winning 100 Queen Street office and retail development. The Grade A offices are fully let including the global HQ of Edrington PLC, solicitors Lindsays and accountancy firm Mazars. We are very pleased to be involved in such a prestigious scheme.”
RETAIL PROPERTY FOCUS Exciting Inverurie Town Centre Opportunity FG Burnett is delighted to market TO LET 16-20 Market Place, Inverurie. This substantial and highly prominent retail unit would be suitable for a number of uses, subject to planning.
Letting in Aberdeen’s West End Acting for local investors Garioch Development Company, FG Burnett provided advice on the letting of 36A Thistle Street to wool and textile specialists, A Yarn Tale for an initial period of 5 years.
“THE WEST END IS STILL SEEN AS A ‘GO TO’ SHOPPING DESTINATION IN ABERDEEN FOR QUALITY SPECIALIST RETAILERS.”
Located in the heart of Inverurie town centre, the property comprises over 5,200 sq.ft of Ground Floor space with a further 1,100 sq.ft on the First Floor.
For further information contact Richard Noble or David Henderson.
Last Unit Available at Balnagask Retail Park, Wellington Road, Aberdeen Following recent lettings to Greggs and Domino’s, the last remaining unit is available providing circa 2,200 sq.ft of accommodation. For further information contact David Henderson.
David Henderson who acted for the Landlord said, “to see more retail activity in the popular Chapel Street, Rose Street and Thistle Street area, is a sign that the West End is still seen as a ‘go to’ shopping destination in Aberdeen for quality specialist retailers.” This letting is on the back of other recent West End lettings where FG Burnett acted for the Landlords to Tiger Lily and Stellar both located on Chapel Street. David added “with the Grade A office developments at The Silver Fin and The Capitol, the West End of the City Centre will see an increased footfall which will encourage retailers and service providers to want to locate in this area.”
The unit is available as a whole or can be sub-divided.
Wellgate Shopping Centre Welcomes Xercise4Less FG Burnett acting for Orchard Street Investment Management on behalf of St. James’s Place UK plc, owners of Dundee’s Wellgate Shopping Centre, are delighted to announce the letting to gym operator Xercise4Less. The national operator has taken a 12 year lease for 30,000 sq. ft of space on level 3 of Wellgate Shopping Centre. Richard Noble commented “Xercise4Less, who operate 52 gyms in the UK, are a new entrant to Dundee and will drive footfall into the Centre and will attract a different customer, including students, arriving at the gym from early morning until late evening.”
Richard Noble firstname.lastname@example.org 01224 597528 David Henderson email@example.com 01224 597538
GET IN TOUCH We hope you enjoyed the latest edition of Property Matters and would love to hear your thoughts or suggestions for future articles. At FG Burnett we are passionate about sharing our knowledge and are always keen to learn more, so if you would be interested in joining our business to business knowledge sharing CPD programme then please contact Karen Ross - firstname.lastname@example.org
ISSUE 10 APRIL 2018
NEW CHAIRMAN FOR THE ABERDEEN BRANCH OF WOODEN SPOON SCOTLAND
granted to projects since inception and importantly, funds raised by regional branches is spent in that region.
“IT IS A TREMENDOUS CHARITY AND IT IS GREAT TO SEE THE BENEFIT THAT OUR FUNDING HAS ON THE LIVES OF THOSE KIDS WHO NEED IT MOST.”
The Aberdeen branch has been involved in various local projects such as:• Creation of a Sensory Room for Befriend a Child.
• Refurbishment of the reception at the Family Support unit at Aberdeen Children’s hospital. • Gilcomston, quiet play zone for children with additional support needs.
Wooden Spoon, the Children’s Charity of Rugby, is dedicated to providing support for mentally, physically and socially disadvantaged children and young people. The Charity was established in 1983, after Ireland had resigned England to the wooden spoon in the 5 Nations after a 25 – 15 victory in Dublin. A group of, no doubt gloating, Irish supporters, provided their English counterparts with a large wooden spoon, draped in an Irish flag on a silver platter, which was accepted with great grace. Back in England, a charity golf day with the wooden spoon as the prize was held in Farnham in Surrey. The £8,500 raised was used to buy a mini-bus for a local special needs school. Wooden Spoon was born. Wooden Spoon is a national charity covering UK and Ireland with over 40 regional branches. £24m has been
33 Albyn Place Aberdeen AB10 1YL
• Creation of changing area for physically disabled children at Camphill Swimming pool. • Seaton Timber Kind Nursery extension. • Our Kids Too play equipment in Duthie Park for children with Special needs.
The local Region has money to spend on projects. We do not buy mini buses, but invest in physical projects, sensory rooms, disabled play equipment, facilities to assist disabled kids to have a better experience in their activities. Applications for funding should be sent to me in the first instance. To conclude, FG Burnett has chosen Wooden Spoon as their charity of the year for 2018 and I would beseech you to also consider this hugely worthwhile charity to be included on your Charities list. Further information can be obtained on www.woodenspoon.org.uk
After having served as Chairman of the Aberdeen Branch for 20 years, Howard Roper has handed the baton over to yours truly. I have large boots to fill. We have a dedicated committee who are working hard to make our 21st anniversary fundraising dinner on the 24th May at the Marcliffe a huge success. It is a tremendous charity and it is great to see the benefit that our funding has on the lives of those kids who need it most. In a city which has witnessed huge affluence since the discovery of the black gold, you do not have to scratch too far under the surface to realise that there is significant deprivation, and kids whose lives have been considerably disadvantaged by illness, whether mental or physical.
By Jonathan Nesbitt jonathan.nesbitt @fgburnett.co.uk
FG Burnett selected Marie Curie as their nominated charity for 2017 and organised a series of fundraising events throughout the year. The company was delighted to present Carolyn Snedden, Fundraising Manager – North Scotland with a cheque for £4,500, which will be used to support Marie Curie’s vital services in Aberdeen City and Shire.
emotional support to family members at an incredibly difficult time. In addition to in-home care, Marie Curie also provide specialist round-the-clock care via their hospice network.
Marie Curie nurses provide day and night in-home care and support for people living with terminal illness and provide
Cheque presentation photo (left to right): Karen Ross, Carolyn Snedden and Iona Foubister
T. +44 (0) 1224 572661 E. email@example.com
Property Matters Issue 10 - April 2018