< PreviousEast Midlands Business Link www.eastmidlandsbusinesslink.co.uk20COMMERCIAL PROPERTYThe East Midlands’ commercial property market is going against the nationalnorm with robust demand from occupiers and businesses moving into highquality industrial space, but challenges remain. UncertaintyuninvitedUncertaintyuninvitedwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link 21COMMERCIAL PROPERTYBrexit – mention of the word alone is enough to sparkheated debate, and heap yet more confusion on allsides of the argument. Though the word, like somespectre haunting the economy, has set some regionalproperty markets into panic, the East Midlands isthriving. Indeed, reports indicate that the region is set toaccelerate throughout the second half of 2017. According to Nottingham’s NG Chartered Surveyors,take up over the last six months has been strong, withan equally robust demand from occupiers leading themarket upturn. Despite the fall in sterling in theaftermath of the election result, and the creeping panicthat statured almost all markets, our region isexperiencing a very different picture. Companies areputting themselves in position in anticipation of futuregrowth, sending clear signals to competitors anddetractors that the East Midlands means business.They’re accomplishing this by moving into high qualityspace, with major developments coming into fruitionand others in the development stage. To accompany the rising confidence levels, and thewillingness from businesses to invest in the region,22 ÁPhoto: Shutterstock / Jason Batterham East Midlands Business Link www.eastmidlandsbusinesslink.co.uk22COMMERCIAL PROPERTYspeciality development has returnedto the East Midlands. NG said thatMaplebeck Holdings – owner of theMoorgreen Industrial Estate inEastwood – has again ventured intothe speculative development market.Its new development – known as AshCourt – is the latest addition to anestate which now totals more than200,000 square foot. The firm, whichinvests as part of a regional privatepension fund, has redeveloped theoldest part of the estate to provide 11starter units totalling 11,375 squarefoot in individual sizes of 1,000, 1,250and 1,500 square foot.Yet there still remains the idea thatthe region is lacking in high qualityProposal submitted for 9-storey Derby studentaccommodation blockPlans have been submitted for a 9-storey block of student flats in Derby whichwill house 173 studio apartments.The scheme at 18 Agard Street in the city centre, is being proposed by GCLP – afirm which has ties with Nicholas Humphreys Estate Agents, with offices across theEast Midlands and which manages over 3,000 student properties in the EastMidlands alone.If the plans are approved, the vacant 2-storey light industrial building currently on the site will be demolished and the new scheme, in the FriarGate area of the city, developed.A design and access statement for the scheme reads: “The character and appearance of the Friar Gate Conservation Area will be preserved andenhanced by the replacement of a poor quality building with a well-designed building that responds to the emerging reinvention of Agard Streetfor the 21st Century.”The news comes just months after Godwin Developments bought an adjacent site in Derby’s University Quarter.Photo: Shutterstock / Pajor Pawel www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 23COMMERCIAL PROPERTYsupply across all size ranges, something NG is keen todispel. Indeed, the surveyors said it is driving the marketwith the entry of new development sites and big shedavailability. It added that, given its successes in theindustrial sector, it has been instructed on a high profile,high calibre warehouse until along the M1 corridor. According to NG, the only roadblock to yet morespeculative development is reluctance from occupiers tocommit to space in the pre-let market. Perhaps this is canbe explained as a lingering effect from the initial marketdownturn heralded by Brexit. Or it might be the uncertaintyhovering over the nation as negotiations continue. Oroccupiers could just be playing it safe to weather the yearsto come. There are still challenges to overcome, with a stockdeficit lingering in the office and industrial sectors.Although some new industrial builds are now starting toenter the market, it currently isn’t enough to keep up withdemand. For the latter half of the year, though, NG is predictingsmooth sailing for landlords. Rental growth across the highquality industrial sector is tipped to benefit from rentreviews and lease renewals. It said that by workingalongside landlords, the industrial sector can be drivenforward, with rental income growing as we enter a criticalperiod for the local and national economy. Continuing last year’s trend, 2017 is a year of change,where paradigms once assumed sacred have shifted andaltered. Despite ushering in initial uncertainty, this haslargely been to the benefit of our region’s commercialproperty market. The latter half of the year is set tocontinue this time of change, with postponed decisionscoming into fruition and a number of looming lease eventsforcing occupies to consider their current position. Atpresent, there is a window of opportunity offered foroccupiers to choose from but, this is limited and will likelynot continue into 2018. Property is a marketripe for innovationsays JLLWith the recent news that WeWork is set to open its firstregional office in the UK and the unrelenting march of workspaceproviders in London, it is pertinent to note that change is comingto the workplace, as advancing technology and data driveninsights now fuel new ways of working.Both developers and their property will have to adapt as aworkplace designed on today’s needs and assumptions could beredundant in little more than a decade, according to JamesKeeton, Director in JLL’s Nottingham office.In the East Midlands, the shift in workspace trends is alreadytangible with office providers, occupiers and landlords alikelooking at how they can make their workspace more agile, flexibleand relevant to modern working practices and employeedemands.Keeton says: “Property is a market that is ripe for innovation.Technology can bring great opportunities to investors but can bea threat for our industry if ignored.“There is significant demand for flexible working space acrossthe East Midlands, with entrepreneurs and early stage businessesseeking non-traditional office buildings on increasingly flexibleterms. Leading businesses now focus in on digital strategy as abusiness development driver – so increasingly they are looking formore creative environments.”Future-proofing and the evolution of office space in Nottinghamis here: local developer Bildurn is set to deliver 50,000 sq ft ofoffice space via a bespoke development of 11 Station Street in thecity, as it targets the new wave of occupier.Striking in appearance, the building is being designed to deliverinteractive and creative spaces, flexibility in occupation and aproposed fit out that will entice occupiers and employees alike asa place to want to work. This all combined with unrivalledinfrastructure.In a world that is constantly evolving, being alert to change isvital.By 2030 it is expected around 30 percent of investmentportfolios will comprise flexible space as companies attempt toscale their portfolios in response to increasing numbers ofcontingent and autonomous workers, according to the latestresearch from JLL.Ben Kelly, Director in JLL’s Birmingham-based Capital Marketsteam, says: “Investors are already zeroing in on assets that have acompetitive technological and sustainable edge, including smartsystems and in built flexibility to accommodate futuretechnological enhancements.”Photo: Shutterstock / Kiev.Victor Q&ASally SwannJLT SpecialtyEast Midlands Business Link www.eastmidlandsbusinesslink.co.uk24Q&AFirst of all, can you tell us alittle bit about JLT Specialty?JLT stands for Jardine Lloyd Thompson.The JLT Group is one of the largestproviders of risk and insurance advice andservices worldwide. The UK Retail divisionis part of JLT Specialty Limited, and wework with large corporate organisationsadvising on risk and insurance. The UKRetail division has regional offices inManchester, Leeds, Nottingham,Birmingham – and further south in Londonand Reading. We also have a public sectorteam, a restructuring and recovery team,and a housing team.We are insurance and risk consultants,who take a holistic and long-termapproach to understanding the needs andrequirements of large corporatecustomers.What are the company’s keyareas of specialisation?JLT can offer risk advice on just aboutanything, but our greatest advantage isthe degree to which we specialise inparticular fields. Our Midlands offices havespecialists in engineering andmanufacturing, construction, food andagri, as well as mergers and acquisitions.Because we have such specialist teamswho understand the particular sector – theJLT are specialist risk and insurance consultants operating in 40territories across the globe, with over 10,000 employees. Thismonth, we had a chance to sit down and talk with Sally Swann,who founded the Nottingham Office in 2012, and was thenassigned as Head of Midlands in 2015.risks, the operations, the complexities andthe issues, we are therefore much betterplaced to offer expert, bespoke risk andinsurance solutions to businesses in thesesectors.How does JLT Specialtyhandle the risk and insuranceof a customer?Before we offer any advice, we like tounderstand the client business, how thecompany operates, its philosophy,objectives and basically “what makes ittick”. We can then assist with riskmanagement and insurance, fullyunderstanding and appreciating what thebusiness requires. We talk to various people within theorganisation engaged in Finance,Operations, Strategy, HR, Logistics etc. tomake sure we have a complete picture ofwhat a company’s risks are – andimportantly – how they flow throughoutthe organisation. It is only when we fully understand therisk that we will then discuss how we canassist. We can work on the businessinsurance portfolio, conduct project workor risk management audits. We also lookat what measures can be undertaken toreduce or mitigate risk. We take a holisticpoint of view with regard to risk and thecosts of risk. For instance, instead oftaking out particular insurance policies, wewill consider and analyse with the clientalternative forms of risk transfer and self-insurance. We consider the only way tosuccessfully manage large and complexrisks is to have an in-depth understandingof what the risks are and how theyoperate, hence why we employ specialistsin each field.A number of East Midlandsbusinesses have recentlyannounced strategies to growthrough Mergers andAcquisitions (M&A). Whatadvice would you offer thesebusinesses? JLT Specialty has a team whichspecialises in Mergers and Acquisitions.Our advice would be to make sure all theimportant checks in relation to risk andinsurance have been completed. When acompany is looking to acquire another, afinancial and legal due diligence will beundertaken, but many people do notconsider insurance due diligence. This isimportant, because it will look at the risksof the company you are buying, and howit will fit in with your own. We investigatehistoric and existing claims against thecompany, to ensure the company beingbought is as you believe it to be, anddoesn’t come with any unfortunatesurprises.There are also insurance optionsavailable to protect both the buyer andseller in a merger or acquisition. We canadvise on these specialist covers.How has the onset of cyber-crime affected the insuranceand risk industry?Cyber is a very key risk at the moment,25Q&Aand it affects companies large and small.Recent attacks such as the one on theNHS have opened a lot of eyes inregards to Cyber Risk and Security. Hereat JLT Specialty, we work in partnershipwith cyber security companies andinsurance companies, to assist withCyber Risk. This allows us to take thesame approach as we do with our otherservices, and look at ways not only toinsure against cyber-crime, but toprotect a company against it in the firstplace.What many do not realise is that cyberinsurance and crime insurance aredifferent. Crime insurance is cover forfraud and monies stolen via hacking etc.Cyber insurance covers data and theprotection of data from loss or misuseor damage and the consequential lossestherefrom.How can JLT helpbusinesses protect theiremployees against overseasrisks?We have a Global Services Team notonly based in the London but also theMidlands. JLT Specialty also has officesin 40 other countries. We can thereforeassist with global programs working inpartnership with our offices in otherterritories. Whether a company needsadvice, is setting up a premisesoverseas, or is sending employeesabroad, we can provide advice andarrange global insurance programmesas requested. Overall, JLT’s aim is to work in closepartnership with all our clients, beingconsidered an integral part of their riskmanagement strategy. This way we fullyunderstand the risks and can ensure theright insurance protection is in place.www.eastmidlandsbusinesslink.co.uk East Midlands Business Link East Midlands Business Link www.eastmidlandsbusinesslink.co.uk26DRAGON BOAT RACESee the dragonboat spectacularat NottinghamRiverside FestivalThe 30 dragon boats, qualified helmsand all racing equipment are providedby race organisers, Gable Events, andeach crew is guaranteed a minimum ofthree races. Medals and trophies areawarded for the top three crews, topmixed crew and the ‘best dressed’crew (as fancy as possible!) and there’sa superb incentive to top thefundraising leader board as the crewraising the most money for Rainbowswill receive a special prize meal atForty-Four Bridgford. There will be a race every 10-15minutes between 10.30am and 5pmand plenty to entertain you bankside.Stretching a mile along the River Trent,you can enjoy live music across theMonument, Jazz and Folk stagesincluding performances by the best up-and-coming local artists and bands.The little ones will revel in the‘Children’s Zone’; Art and Crafts; Mini-Big-Top & Fun Fair; ‘RoamingDinosaurs’; Street Theatre and lotsmore besides. Plus don’t miss‘Paddleboard and Duck Races’, foodand drink stalls and the Saturday NightFireworks spectacular.The Dragon Boat Challenge takesplace at Victoria Embankment, NG22LW and visitors should followRiverside Festival AA signage forpublic parking. Parking is £6 per car,entry to the Festival is free. TheRiverside Festival is organised byNottingham City Council and mediapartners to the Dragon Boat Challengeare Notts TV and Business Link EastMidlands.Last year’s Dragon Boat Challengeraised a magnificent total of over£21,000 for Rainbows which providesvital help, care and support for childrenacross the East Midlands with terminaland life-limiting conditions. By takingpart and raising money for Rainbows,the teams will be helping families fromNottinghamshire and across the regionto make the most of the time they haveleft together and create memories theycan treasure forever.This year’s NottinghamRiverside Dragon BoatChallenge has sold out witha waiting list and you canwatch the 44 teams battlingit out in spectacular fourboat races on the RiverTrent on Sunday 6thAugust, cheered on bythousands of spectators.The teams representbusinesses and groupsfrom across the EastMidlands, all are seeking toraise vital funds forChallenge charity,Rainbows Hospice forChildren and Young Peopleand the racing is one of thehighlights of the annualRiverside Festival.www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 27DRAGON BOAT RACETom Stanyard, CorporatePartnership Fundraiser atRainbows, says: “With 44teams competing for anumber of prizes the dayhas a great atmosphere.More amazing than theevent however is whatRainbows are able to dowith the fundraising supportwe receive from the crewstaking part. The hospiceonly receives a smallamount of guaranteedfunding, so support atevents like this make itpossible for us to continueto provide our vital care forthose families who need itthe most.”PHOTOS : VANESSA BARTON PHOTOGRAPHYFor further information please visit www.dragonboatfestivals.co.uk/nottingham or callGable Events on 01780 470718. For information about the services of Rainbows Hospicefor Children and Young People call Tom Stanyard on 01509 283919 or visitwww.rainbows.co.uk East Midlands Business Link www.eastmidlandsbusinesslink.co.uk28PRINTING & PACKAGINGA recently held event in Nottingham laidbare the overarching concerns from thepackaging sector. The ‘Pack to the Future’event invited discussion on the rise andcommercial applications of 3D printing, thechallenges from Brexit and the latest industrytrends. Behind all of these developments wasthe rise of online spending, which has broughtwith it masses of added packaging to thesupply chain. Despite having an obviousaesthetic appeal, products rely on packagingfor protection, information and, of course,transport. The ease and accessibility of homebroadband and mobile data has given rise tothe smart, savvy consumer. Brands andbusinesses have had to adjust and evolve theirrelationship with their buyers. With socialmedia, consumers can now report, in real time,exactly what they think about a product – andthis includes negative experiences. Forexample, if a consumer buys a food productthat is infested with insects or other foreignmaterials, a post on Twitter, Instagram orFacebook can go viral in a matter of hours(minutes, in some cases). It’s impossible to tellwhat will spark with other users, and this canspell significant reputational damage to abrand. The customer isn’t just always right,now they hold a significantly larger portion ofthe power than ever before. This same swell of smarter, more informedcustomers have also been chastising thewasteful nature of packaged goods broughtonline. Amazon has taken the lion’s share ofthe criticism, given its prevalence, but a greatmany businesses are doing the same. Goodsbought online, complete in their ownpackages, are being encased in protectivepackaging for transport. The argument,however, is that this secondary packaging isoften far larger than it needs to be, meaning ittakes more space to transport, so less can beloaded, and more materials are needed.Multiply this by thousands and the extent ofthe issue becomes apparent. Of course, this is all part of a wider debateabout sustainability in the supply chain.Packaging doesn’t have to be wasteful; in factit’s a perfect vehicle to recycle wasteproducts. Nowhere is this more pervasivethan the food and beverage industry, whichhas seen its fair share of controversiesinvolving wasteful packages. Every productbought – online or otherwise – comes with itsown carbon footprint. Diminishing thatfootprint is in everyone’s best interest,particular with a rising global population andfinite natural resources. Companies areturning to recycled – or easier to recycle –materials to create a new generation ofsustainable packages. Some start-ups areeven exploring unlikely sources for packages,such as mushrooms, tomato stems andcoffee grounds. Packaging has the dual purpose of acting asa company’s marketing. A product is anambassador of its brand, will carry itsgraphics and corporate culture. So for acompany that purports to be sustainable, eco-friendly and so forth, their branding will drawReturnsenderE-commerce has led to an upsurge in packaging waste, but theindustry is responding with more sustainable alternatives thatsave on space and transport costs, but remain big on impact. 30 Átowww.eastmidlandsbusinesslink.co.uk East Midlands Business Link 29PRINTING & PACKAGING© Shutterstock / William Potter Brands and businesses have hadto adjust and evolve theirrelationship with their buyers.With social media, consumerscan now report, in real time,exactly what they think about aproduct – and this includesnegative experiences.Next >