The Business Centre Association is launching an urgent campaign against the unfair Empty Property Rates (EPR) tax which is inhibiting economic growth and putting jobs at risk.

BCA members serve more than 40,000 start ups and SMEs in the UK, nurturing entrepreneurs and organisations that are the lifeblood of the British economy.

Flexible space operators have been put under considerable financial pressure since April 2011, when the Government dramatically lowered the Empty Property Rates threshold from £18,000 to £2,600.

Having fast access to flexible space is essential for the survival of start-ups and SMEs, but the current EPR tax is stifling innovation and causing the sector to stagnate.

If this situation continues there will be no additional supply of flexible workspace at a time when it is most needed to aid the UK’s fragile economic recovery.

The BCA successfully persuaded Government to raise the threshold for empty property rates to £18,000 in 2010.

We must act fast if we are to achieve changes before the next Budget. We need at least 100,000 signatures to ensure that a debate can be tabled in the House of Commons.

Please sign this petition by clicking on this link: http://epetitions.direct.gov.uk/petitions/318

Forward it to your colleagues, flexible space providers, clients, suppliers, small businesses and anyone who cares about the vitality of the British economy.

At the 2011 BCA Conference that was held in London on the 16th & 17th of May; Jerry Schurder, Head of Rating at Gerald Eve discussed this topic in greater detail.  The video highlights of this are a fantastic summary of the current situation.  You can view this here:

Your support is vital and greatly appreciated.
Jennifer Brooke – BCA Executive Director

To get the very best out of the event, here are a few pointers to help you and your business get the most out of your day. The BCA event for 2012 is a sell out and packed full of great speakers through the one day event, with plenty of opportunities for networking, sharing ideas and opinion.

1. Get there early
Remember the Registration and breakfast for the event is between 07.15 and 08.45 and hosted by Basepoint. The BCA Conference 2012 will start at 08.50 with opening remarks by the Rt Hon. Lord Young of Graffham, adviser to the Prime Minister on enterprise.

Originally a solicitor, he has extensive experience across both the business world and within the political sphere and not to be missed!

2. Network with a plan
It’s important that you are prepared on the day to meet and find the types of connections, whether suppliers or potential customers that you want to work with. If you’re particularly shy at networking, then don’t be.

All of the delegates at the event are approachable, friendly and knowledgeable. You’ll find a mix of people from board level through to just starting out in the industry that are all looking to learn, share their experiences and discuss the future of the industry.

3.  Visit the Exhibition Zone
The exhibitors this year are fantastic, be sure to speak with the trade suppliers to the Serviced Office and Workspace industry. These conversations often lead to helping people enhance their businesses, discover new technologies and importantly create profitable relationships.

4. Prepare your learning objectives
Write down five things that you would like to take away from the BCA Annual Conference and Exhibition Showcase 2012. Why is it you’re attending? What do you hope to learn at the event? Who do you require to be introduced too? How can you use your experience to help others? And what trends and business tips do you want to know more about?

5. Use Social Media
The BCA will be sharing the day through its extensive range of social networks channels including Twitter, Facebook and LinkedIn. If you tweet about the event, be sure to add this hashtag #bcaconf2012. It enables everybody to pick them up in one place, following the event and creating a great story of the day. Follow and join the networks today to ensure you don’t miss out the thoughts of the delegates on the day. Join the debate!

If you have any questions on the day, you’ll find a number of BCA organisers happy to help you and make any introductions you need. We look forward to seeing you there and have fun!

The conference this year taking place on May 17th promoted as ‘One day to change your business’. And in times of austerity we are delighted with the support to help make this event one that would share key issues and great ideas for the serviced office, workspace and mail forwarding sectors.

The BCA Conference for 2012 has a great venue, impressive line-up of speakers and add to that a range of structured networking sessions for operators and suppliers and its clear why it’s a sell out.

We look forward to seeing you there!

Keeping out of London during the summer is creating a push for organisations to try flexible working practices more widely. For example, the Government is talking about a permanent change in how they work.

Many people will work at home – but many will be unable to stay productive working from home for two weeks.

People with children at home during the holidays, without a productive place to work at home or who simply can’t be productive at home for any length of time.

This is expected to increase demand for co-working  and temporary flexible space.

BCA members are ideally placed and should benefit from this permanent increase in demand after the games – but are unlikely to be able to service the spike in demand.

Most members are already running at a very high occupancy – with existing occasional users likely to increase their usage and fill up the spare capacity.

BCA members, NearDesk have set-up an additional 20,000 desks across the South-East to capitalise on this spike in demand.

Opportunities for BCA members: (BCA membership will be verified)

• Meeting the needs of your contacts by selling capacity. You’ll earn high commission on the desks they rent across the South-East but more importantly, retain those client relationship for after the games.
• If you think you will have spare capacity (10 desks+) over the Olympics, let them know as they may be able to sell it

Next steps:

Speak to NearDesk on +44(0)20 7060 7069, email team@neardesk.com or meet NearDesk in person next week at the BCA Conference Thursday May 17th.

Being ‘powered by essensys’ is key to Nexus’ offer as an innovative business hub and means that tenants will have access to a leading technology provision and dedicated ICT support.

Maria Basson, Director of Nexus, commented: “Nexus is delighted to have chosen essensys as our IT and telecommunications provider. We have invested heavily and are fully committed to ensuring all our clients have access to the very latest high-speed internet provision, state of the art telephony and full help desk support, right round the clock.

“As an innovative business centre,we are excited to be the only operator in Wiltshire to have IT and telecoms provided by essensys. Our tenants and their businesses will benefit from the wide range of additional services we can offer and they can be confident that we at Nexus can adapt quickly to meet all their daily requirements, now and in the future.

“The concept of Nexus is to provide everything that the client and their colleagues and visitors could need in the space of a working day and beyond. As well as offering keenly priced offices to meet all the client needs, Nexus Business Centre will also have a café with professional catering, a business hub offering hot desking, a dry-cleaning collection service, a shop with a news stand, private meeting rooms and, eventually, a day nursery and a gym.”

Opening in May 2012, Nexus is located on the Cheney Manor Estate, within easy reach of both the M4 and Swindon town centre.

Event speakers were David Honeybill from Pluss, a Social Enterprise that supports people with disabilites and disadavantage in employment. David highlighted how Pluss wants to include those furthest from the labour market and how the enterprsie offers specialist employment programmes to a variety of organisations.

David was followed by Ann Holman from Thinklab, who discussed ‘Social Networking – The
Myths and Its Future’, which provided insightful knowledge into the science behind social
networking and the real added value it can bring to businessnes.

So far, approximately 150 local businesses have attended Basepoint Exeter’s quarterly
Networking Hub since July 2011, and benefited from networking, meeting new people, and
generating new business – all for free.

Darren Rogers, Basepoint Exeter’s centre manager, said: “We were thrilled to see such a good turn out for our event. At the Networking Hub we aim to emphasise the importance of networking in order to promote growth and development of SMEs, and also provide fresh speakers to inspire and advise on business matters.”

The next event is scheduled for Thursday 19th July at 11am – 1pm. Attendees will also be
provided with lunch and refreshments. To book a place, please email exeter@basepoint.co.uk or call 0800 197 2994.

Based on the Marsh Barton Trading Estate, Basepoint Exeter provides high quality managed office space in friendly, purpose-built premises and on flexible terms. The centre provides a wide range of affordable small business units from 1-2 people up to an open plan 7,000 sq ft office. Facilities include meeting rooms, on-site catering, 24hour CCTV, site management, parking and a business support service. For further information please contact the centre or visit: www.basepoint.co.uk.

The Chartered Institute of Marketing launches latest update on marketing and the law

The Chartered Institute of Marketing (CIM) this week launched the latest in its series of papers on marketing and the law, updating the guidance on regulation affecting marketers. The paper, ‘I’m not a lawyer, but…’ draws attention to the harmonisation of consumer law across the EU, along with other recent regulatory changes, and the Institute is urging marketers to ensure that their legal knowledge is sufficiently comprehensive and up to date.

With 87 per cent of marketers saying that they have poor or non-existent knowledge of the CAP and BCAP Codes*, the paper argues that the marketing profession leaves itself open to challenge and legal redress if and when mistakes are made.

The paper highlights how the letter of the law can be open to interpretation in different ways. Rather than asking the extent to which the law is applied, it’s far more effective to base marketing practices on ethical, responsible foundations – and ask objectively, ‘how would this look?’ This helps with brand building, avoids potential contention in litigious cases and leads to a relationship between company and customer based on trust, rather than wariness or uncertainty.

Recent changes to laws governing advertising online draw attention to the importance of both an up-to-date knowledge of regulation and a transparent, moral approach to marketing through digital channels. With the CAP code now extended to cover online as well as offline activity, the report suggests that marketers need to be especially careful to ensure their activities are legal and ethical. The recent addition to the Privacy and Electronic Communications Regulations mean that it’s now illegal for websites to store without explicit permission cookies that are not ‘essential’ to the site’s operation. Many companies are not yet compliant with this law – and they only have until May 2012 to ensure that they bring their sites up to standard.

Mark Blayney Stuart, head of research at the Institute, said:

It’s concerning that so few marketers have a clear understanding of the regulatory environment in which they practice. An up-to-date knowledge of the law and how it applies to you is essential for professional marketers – and it can also bring significant personal career benefits. With so many recent changes to consumer and marketing laws, it’s never been more important for marketers to familiarise themselves with their legal environment.

The bottom line for marketers must always be the question of whether the practice in question would harm, or be likely to harm, the economic interests of the average consumer. If marketers act ethically and transparently with the customer always in mind, as well as within the letter of the law, they have nothing to fear. Learning more about the legal environment is a vital first step towards this.

For more information, and to download a copy of the paper, ‘I’m not a lawyer but… What’s new in marketing law’, visit www.cim.co.uk/resources/marketinglaw

Take up in the M25 region since January 2011 has focused almost entirely on Grade A new stock and this has encouraged speculative development. Nine schemes delivering 740,000 sq ft of new office space are underway – 400,000 sq ft of it completing this year. Knight Frank predicts that there will be a hiatus in new starts with further development not being delivered until 2014.

High headline rents have returned to pre-2009 levels in several key markets. Headline rental growth will now spread in tightly supplied, buoyant markets in the Thames Valley and West London, such as Maidenhead, Uxbridge and Staines.

Emma Goodford, head of South East offices, commented: “Good buildings in good locations are letting. It isn’t rocket science – companies with strong balance sheets can afford to pay the best rents for the best quality space. Churn by occupiers wanting to upgrade their space will drive the market and we predict this will account for more than 80% take-up.”

“Key markets in the Thames Valley are attracting the most attention from developers. However, developers may also consider those towns with a combination of high lease events at Grade B buildings which have low Grade A supply. Based on these criteria, Richmond, Croydon, Woking, St Albans, Crawley and Gatwick arguably offer the best development prospects.”

INVESTMENT
Despite the impact of the Eurozone crisis and a degree of investor caution over the economy, the South East office investment market has been buoyant in terms of activity. Indeed, in the last 12 months, the South East market saw its two biggest ever deals, with the sales of Green Park, Reading and Chiswick Park for £408m and £480m respectively.

By turnover, overseas investors were the most active buyers over the last 12 months, accounting for circa 55% of turnover, with North American and Malaysian investors among the biggest spenders and Middle Eastern investors becoming increasingly prominent. Indeed, the South East is becoming an increasingly international market, with investors seeking large lot sizes (£30m+) and attractive yields. Secondary and tertiary stock holds limited interest, except for a small number of cash rich entrepreneurial funds, local property companies and private individuals seeking very keenly priced opportunities.

UK funds continue to be the biggest sellers in the market, largely resulting from portfolio churn as a number of mandates have recently changed hands. An increase in distressed assets coming to the market has also been noted, with banks taking a more robust stance with borrowers, which has generated more receivership sales. However, banks continue to prefer to work with borrowers on a consensual basis where possible.

Prime 15-year-income yields in the South East hardened to 6.0% during 2011, which is broadly in line with the long term average and suggestive of fair value. Prime yields remain at a notable discount to Central London, with City yields at 5.25% and West End yields at 4.00%, but the gap has now closed on the key regional cities, reflecting investors’ renewed confidence in the South East.

Tim Smither, head of South East investment, commented: “The South East is increasingly attractive to investors from around the world, seeking to buy at a discount to London, but they require large lot-sizes and a compelling story to generate sufficient returns. There also remains significant wealth from the Middle East, looking to take advantage of a weak Pound and a stable political climate.

“Banks will continue to play an increasing role in the South East office market as they continue to work through their loan books. For investors considering the disposal of poorer quality stock, our message is to sell now as pricing is unlikely to recover for some time. However, vendors need to be realistic on pricing.”

British Land announces today that Debenhams plc (“Debenhams”) has agreed to pre-let a further 29,500 sq ft of office space at 10 Brock Street, Regent’s Place, NW1. As a result, Debenhams has now agreed to pre-let 174,500 sq ft of office space, for a 25 year term without breaks, which is over half of the total space being developed at 10 Brock Street.

In September 2011, it was announced that Debenhams had decided to relocate its headquarters to 10 Brock Street, consolidating their existing offices in London into a single modern site. 10 Brock Street forms part of a 500,000 sq ft office, residential and retail development at the North East Quadrant (NEQ) of our Regent’s Place estate in London’s West End. The development which was started in 2010 is well underway and due to complete on schedule in 12 months’ time.

Debenhams is the latest in a diverse range of major occupiers to select Regent’s Place for their main UK headquarters following recent lettings to Aegis Group, Gazprom, Lend Lease, Ricoh, and Dimensional Fund Advisors. The development of 10 Brock Street will complete our Regent’s Place estate, which has been transformed over the last five years through major redevelopment and upgrades to the public spaces and retail offerings. On completion this development will have added 1 million sq ft of high quality space, including 760,000 sq ft of office space and 240,000 sq ft of residential units.

Tim Roberts, Head of Offices at British Land said, “It is hugely pleasing to be letting this additional space to Debenhams, in what is the largest pre-let in the West End for over six years. The confidence of major corporates such as Debenhams to select Regent’s Place as the location for their headquarters is further evidence of the strength of the estate’s appeal, services and amenities and of the increasing demand from occupiers for high quality office space.”

Michael Sharp, Chief Executive of Debenhams plc said, “We are delighted to be taking more space at Regent’s Place for our new headquarters. The estate’s attributes are clear to see, being well positioned and featuring fantastic amenities, and we continue to work with British Land ahead of moving into the new offices in 2013.”

The UK ranks as the top European country in which to locate data centres, according to a new study released today by global consultancies Cushman & Wakefield and hurleypalmerflatt. The Data Centre Risk Index 2012 report evaluates risks to global data centre facilities.

Data centres house business-critical information technology systems. Any downtime has the potential to cost millions in lost revenue and threaten the viability of an organisation. The report helps companies make informed investment decisions about where to locate their data centres, to increase their efficiency and lower costs, and to develop strategies to mitigate anticipated risk.

The index ranks countries according to the risks likely to affect the successful operation of a data centre, risk factors such as energy costs, connectivity, and the likelihood of natural disasters or political instability. Building on the inaugural report last year and reflecting the ever-changing technological and political landscape, ten new countries and two risk categories – energy security and education – have been included.

The risk factors are individually weighted to reflect the different risk levels and are arranged under a three tiered system, tier 1 being the most important and comprising risk factors – energy costs, international internet bandwidth capacity and ease of doing business.

The UK has moved up from fifth ranking in 2011 to second position this year. Its high international internet bandwidth capacity and ease of doing business put it above all other European locations surveyed. Germany is the second most popular location in Europe in which to locate a data centre followed by new emerging markets the Nordics – Iceland (fourth position), Sweden (eighth) and Norway (twelfth).

The U.S. retains its first place ranking and is considered the lowest risk location for building and operating a data centre in the world. It holds top position for international bandwidth and performs well in the other tier 1 risk categories as well as having the highest percentage of its population completing tertiary education. Canada remains in the top five low risk locations. Hong Kong has maintained its position as the location with the least risk in Asia for setting up data centres, and ranks seventh.

Keith Inglis, partner in the EMEA Data Centre Advisory Group at Cushman & Wakefield, said: “The UK, closely followed by Germany, is the safest location in EMEA. However, what we are seeing, certainly in the data storage market, is the rise of the Nordics, which may in the future dilute the market share from the traditional centres in Europe. Google has built a facility in Hamina, Finland and Facebook is constructing a substantial new data centre in Lulea, Sweden. The cool climate is ideal for free cooling technologies and the abundance of renewable power and water make this region an increasingly attractive option. Iceland, ranked fourth is a new entrant to our Index and the highest ranked of the Nordic counties.”

Stephen Whatling, Global Service Director at hurleypalmerflatt, said: “Indonesia, India and Brazil are all considered growth markets, but with barriers to entry, regulated markets and high energy costs they do score poorly relative to the more established economic markets. Connectivity is also a problem but as these markets continue to be invested in and the infrastructure becomes more developed we would expect them to rise up the rankings.”