Satisfying stakeholders in an ever changing business environment - PowerPoint PPT Presentation

Satisfying stakeholders in an ever changing business environment Prepared by The Property Directors Forum

Agenda – Thursday 3 December, 2015 9.30 ‐ Registration, Networking & Coffee 10.00 ‐ Welcome & Introduction to the Property Directors Forum – Nick Cook 10.10 ‐ Presentation by Simon Carter , Head of Corporate Property at National Grid “Delight stakeholders, reduce carbon and save cash – how to get it all?” 10.40 ‐ Presentation by Angus McIntosh , Economic & Property consultant and Visiting Professor at Oxford Brookes University – “ Property, Economy and Technology ‐ how it may impact on logistics occupiers.” 11.10 Presentation by Nick Cook, Managing Director Avison Young – “Industrial & Logistics Market Review” 11.30 ‐ Brief for the Round Table Debates – Crispin Manners 11.35 ‐ Round Table Debates – “Satisfying stakeholders in an ever changing business environment” 12.10 ‐ 12.50 ‐ Round Table Presentations 12.50 Summary – Nick Cook & Crispin Manners 13.00 Networking & Lunch

Aims & Objectives The Property Directors’ Forum is an exciting initiative expressly for the benefit of Property Directors of business occupiers with premises in the UK and Europe. The Forum’s goals are to: ‐  Allow you and your peers to network without sales people or suppliers present.  Provide Property Directors of occupier businesses with more of a VOICE in the market. The RICS, CoreNet et al are great but the Forum is exclusive to you and your interests.  Provide an environment where Property Directors or Directors in charge of property can swap ideas, how to tips, learn inside tricks and generally be exposed to the latest thinking.  Expose Directors to good speakers, but not at a sales level. More aspirational and strategic.  Help Directors communicate better with their boards and to have property more properly recognised as a contributor .  Allow Directors to be informed about new legislation and risks that could affect their portfolios.  Provide a degree of charity and reciprocity.

Introduction by Nick Cook ■ Welcome to new members ■ Update on our sponsor

Avison Young Overview June 2015 Partnership. Performance.

Avison Young A different kind of commercial real estate service business

Background Facts • The fastest growing real estate services business in the world • Avison Young’s roots are in Canada (No.3) and the 7 th most recognised real estate brand in USA • 73 offices and over 2100 staff • Its business has grown 12 fold in the last 7 years • Now open in 5 countries – Canada, USA, Mexico, UK, Germany with further expansion planned • Operating and advising clients in 30 countries worldwide • Organic growth has contributed to around 30% of revenues • Industry names join every week

Why is it Different and So What? • The firm’s equity is in the hands of a broad base of Principals - AY can play the long game & not be transaction led • Ownership structure creates the incentive for collaboration - can align solutions with client objectives • Avison Young is Principal led and client centric – clients come first • Intelligent solutions that deliver a better client experience and better results – experienced people view client problems in the round • Avison Young University has been created to invest in all our people. Not just the young! – the quality of staff is an asset for our clients • Avison Young is passionate about its culture and social responsibilities – old values are back!

Canada’s Best Managed Companies Award

Presentation by Simon Carter, Head of Corporate Property, National Grid

“Delight stakeholders, reduce carbon and save cash – how to get it all?”

Introduction

Who we are

What we are out to achieve • Fit for purpose • Benchmarked • Safe, reliable, sustainable and productive • Asset management plan (10 years) and business case driven • Under-utilised buildings • RIIO • Old world workspace

The starting point!

The physical product Smart WorkSpace All employees sharing space at 75-80% • Real flexibility From 11-12sqm to 7-8sqm pp. 27% incl. in capacity . • Reduced cost 16% reduction in energy usage • Reduced energy and carbon usage 12% to 42% of footprint support spaces • Improved workplace effectiveness 8% increase in performance • Increased productivity 8% increase in satisfaction in the workplace • Delighted staff increased visibility of brand story throughout • Brand visibility

The art of engagement Test to destruction! Live pilot with 250 staff

Why it works • Tested to destruction – the pilot was not just a marketing suite • Real investment in change management – not just a handful of workshops but really walking the halls • All stakeholders involved – not just down to a handful of change agents • An effective balance between a standard layout/components and unique elements • Design really used as a change tool – the space plan became the platform for change discussions

Measuring the impact

Phase 1 results 2011 ‐ 2013

Embedding measurement

Phase 2 – connecting to business performance

The challenge set by National Grid

Our approach

The study at a glance

And the cognitive tests told us something else …

Summary

Strategies we’re deploying to drive sustainable change

What’s next: Our latest example …

Thank you

QUESTIONS

Economic Policy: Real Estate Forecasting Limited

Greece today: fiscal conservatism in action Real Estate Forecasting Limited

Ultra ‐ Low long term bond interest rates Impact of QE funding – April 2013 and 2015 () Real Estate Forecasting Limited

Central Bank Economics: Monetary Policy re ‐ heated Janet Yellen, Mari Draghi, Mark Carney & Haruhiko Kuroda Real Estate Forecasting Limited

Interest rates started falling 8 years ago Real Estate Forecasting Limited

Inflation, Deflation and Interest Rates: how does Monetary Policy cope with each? Real Estate Forecasting Limited

World Oil Prices 1994 to 2015 Oil Price 120 100 80 60 Oil Price 40 20 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q4 2015 Real Estate Forecasting Limited

Q E Favours Real Estate £ loans outstanding Real Estate £135 Billion Manufacturing £22 Billion Real Estate Forecasting Limited

The Economics of QE Real Estate Forecasting Limited

Gross Public Debts Still Rising (% of GDP) Maastricht target = 60% Paying off debt? Real Estate Forecasting Limited

Debt – the elephant in the room that the world can’t deal with Total Net Debt % GDP (Private AND Public) USA 800% France 500% UK 1,000% Italy 250% Spain 1,100% Ireland 1,400% Greece 1,600% Real Estate Forecasting Limited

‐ the tiger economies with too much sovereign wealth. Funds ($bn) end 2014 Real Estate Forecasting Limited

Budget Deficit Continues: % GDP 2012 & 2015 Real Estate Forecasting Limited

Investment? Real Estate Forecasting Limited

Employment & Self Employment Real Estate Forecasting Limited

QE = greater inequality Real Estate Forecasting Limited

The Wealth Gap – UK but also globally Since 2005 ‐ Poorest 20% now have 57% less financial wealth, richest have 64% more The age wealth gap: older get richer ‐ younger have to rent 2003 2013 Own 65+ 65% 75% 25 ‐ 34 60% 40% Real Estate Forecasting Limited

Fewer first time buyers + more older affluent = store closures Real Estate Forecasting Limited

Winners Real Estate Forecasting Limited

Real Estate Forecasting Limited

Real Estate Forecasting Limited

Relocation Analysis: the THREE challenges Real Estate Forecasting Limited

London Tech City – (Silicon Roundabout & Tech cluster) Real Estate Forecasting Limited

The Property Boom Creates large net tax surplus, extra 100,000 pa, increasing congestion Heron Tower Shard Tower 42 “Nat.West Tower” Walkie “scorchie” Talkie Gerkin Swiss RE Cheese Grater Canary Wharf Real Estate Forecasting Limited

Real Estate Forecasting Limited

Jaguar – Range Rover Evoque – owned by TATA of India manufactured Halewood, Liverpool Real Estate Forecasting Limited

Liverpool2: greater trading efficiencies – parts of the new Merseyside SUPERPORT Real Estate Forecasting Limited

‘Biggest Ship ever on Thames’ docks at London Gateway port Real Estate Forecasting Limited

European logistics fruit bowl – Amsterdam, Frankfurt, Paris, Milton Keynes & Northampton Real Estate Forecasting Limited

Next & Argos 1985 in ‐ town & 2015 out ‐ of ‐ town Real Estate Forecasting Limited

British Retail Consortium Real Estate Forecasting Limited

The Aldi & Lidl Revolution – Lidl named Grocer of the Year for the first time – Guildford & Sheffield Real Estate Forecasting Limited

Economic Growth 2011 ‐ 2016 UK growth has been accelerating Real Estate Forecasting Limited