Author: Caitlin Waghorn

Working in conjunction with Elliott Matthew Property Lawyers, we have outlined the new government changes regarding Landlords and Tenants and Planning Legislation.

New Government Changes to Landlords and Tenants

• The UK government has extended the Coronavirus Act measures to prevent struggling businesses from forfeiture from 30th September until 31st December 2020.
• This means that a landlord will not be able to forfeit (terminate) a tenant’s lease if they fail to pay their rent in the next 3 months (the next quarterly rent payment for many in England and Wales is due on September 29th). The press release can be found here.
• During this period, the government will prevent landlords using Commercial Rent Arrears Recovery (CRAR) unless they are owed 276 days of unpaid rent.
• The government has put before parliament regulations designed to extend the restrictions on statutory demands and winding up petitions being filed against companies. If approved, the restrictions on recovering debts using these insolvency regimes will also be extended to 31 December 2020.
• There is no restriction upon serving statutory demands or bankruptcy petitions upon sole traders or unincorporated partnerships.
• The government continues to encourage landlords and tenants to refer to the Code of Practice for the commercial property sector. It is non-binding, but the guidance is clear: both landlords and tenants should continue to work together to agree rent payment options if businesses are struggling, otherwise businesses that can pay their rent should do so.

Key Planning Changes

• A new Use Class E has been introduced and includes shops (formerly A1), financial and business services (A2), restaurants and cafes (A3), and business (B1).
• This means that land or buildings utilised for these uses no longer require planning permission for changes within this new Use Class.
• The planning changes also allow for landlords and developers to increase the height of existing buildings (by two floors) to build flats, and to demolish underused buildings which can be replaced by new blocks of flats, in both cases without the need to obtain planning permission.
• These measures are intended to offer landlords and tenants more flexibility with their use of property and allow them to adjust their business models.
• Careful legal drafting will be required so as not to significantly impact the ability of landlords to control the use of their buildings or tenants to be adversely affected by future rent reviews.

We wanted to give you an update on the Kinney Green team during the COVID-19 (Coronavirus) outbreak given the escalating situation globally.

We are closely monitoring the COVID-19 outbreak. We will keep you informed, as we respond to the latest developments.

Kinney Green is a resilient business and whilst we are taking appropriate precautions, following Government And Health Authority guidelines and continuing to be prudent in everything we do, we are here to assist our contacts and clients as the situation evolves.

We are operating a limited work force on-site in our offices, with many of our staff working remotely so that we can keep them and their families as safe as possible.

You can reach your regular Kinney Green contacts as normal as phone lines are being diverted to mobile phones for those working remotely.

Thank you for your cooperation and understanding in these challenging times.

On Thursday 6th February, Kinney Green hosted a quiz night in aid of The House of St Barnabas, to support their fantastic work they do providing schemes to allow homeless people to get back on their feet and into work.

It was a great success, with all tables being sold out and the final amount raised being £1,500!

The battle to win first place was hard fought by all the teams, but ‘It’s Not Fair-Brother’ (Farebrother) managed to take the top spot, taking home a case of wine and a very prestigious trophy. ‘Matthews and Up To No Good-Man’ (Matthews & Goodman) came in second place and third place was achieved by ‘The House Team’ (The House of St Barnabas).

The raffle and auction also were very successful, with Mike Breese (Cre8te Design) winning a signed 2019 World Cup England Rugby ball and Rohini Jain (House of St Barnabas) winning Camp Bestival tickets.

A huge thank you to everyone that attended for your generosity, passion for the questions (maybe a bit too much at times!) and enthusiasm that made our quiz night so special for Kinney Green and the House of St Barnabas.

Jacob Bearman and James Tattersall from our Property Management team attended the Clean City Awards at Mansion House, 7th February.

Kinney Green received a Gold Award with Special Commendation for our buildings at 5 Fleet Place and Monument Place.

The scheme rewards responsible waste management in the City of London. Kinney Green’s Management and on site teams are committed to finding new innovative ways to tackle the environmental issues associated with our built environment.

“Kinney Green Property Management has gone one better
in this year’s Clean City Award Scheme whilst retaining
one Gold Award and obtaining a Gold Award with Special
Commendations”.

The CCAS award scheme strives to promote awareness of
responsible waste management with businesses located
within the City of London.
Here’s what our building manager’s have to say:

Jerry Paddon – Fleet Place
“We retained this award by continuing to manage our waste in
a professional manner with none of our waste going to land-fill.
2018 will be an exciting year as we extend our green credentials
by implementing, with one of our largest occupiers, food waste
and coffee ground waste collections. Through tenant liaison our
occupiers are switching to reusable cups for all staff, therefore
reducing waste further.”

Del Shadid – Monument Street
“We have engaged with our tenants by inviting our waste
management partners to attend meetings taking the initiative
of the CCAS by promoting the importance of recycling. This year
we will be undertaking an audit into food waste, and how we can
ensure it is disposed of sustainably.”

Alongside waste management, following the introduction of
MEES, we are also looking at alternative ways to make properties
more energy efficient and therefore reducing their carbon
footprint. We continue to liaise with our occupiers regarding
areas where energy consumption can be reduced.

For further information please contact
Stephen Griffiths
s.griffiths@kinneygreen.com

We are pleased to announce that on behalf of GOSH we have acquired
the long leasehold interest in 8-9 Long Yard, Bloomsbury, London WC1.
A New Nursery for Great Ormond Street Hospital
This self-contained building in a quiet cul-de-sac, off the historic and unusually
named, Lamb’s Conduit Street, provides approximately 6,000 sq ft over three floors.
Formerly a residential assessment and treatment centre, with an unusual Class
C2 planning use, the building is being completely refurbished by GOSH to provide
a nursery for the children of staff who work within the hospital, just two minutes’
walk away.
This new nursery is due to open, on time, in August this year, freeing up much
needed clinical space within the hospital’s property portfolio.
The addition of a nursery to the area fits in well with the largely independent
local businesses, providing everything from innovative food co-operatives,
luxury clothing shops, book shops, fabulous bars and restaurants.

For further information please contact
Neil Warwick BSc MRICS DDI 020 7643 1531
n.warwick@kinneygreen.com

2018. The Year of the Dog. Reportedly, the year
of luck, love, fortune and personality.

For many, 2018 has so far been a good year: The 2018
Winter Olympics in Pyeongchang, South Korea, has been
widely praised as one of the greatest Winter Olympics of our
generation. A little closer to home, The Duke and Duchess of
Cambridge have welcomed their third child, and we as a nation
have just witnessed the holy matrimony of Prince Harry and
Meghan Markle. Yes, the optimist in me is feeling really rather
positive about the Year of The Dog – luck, love, fortune and
personality truly is wherever we look.
Or is it?

2018 certainly has not been The Year of the Restaurant.
A mystery gastritis is plaguing the nation’s much loved
casual-dining chains; in recent months, causalities have
included Byron, Jamie’s Italian, Prezzo and Strada. CVA’s
have been sought, restructuring common, and closures rife.
Yet what are the factors responsible for the spectacular burst
of the casual-dining bubble? A perfect-storm of increasing
staff, food, rents and rates costs combined with a decrease
in disposable income and consumer confidence, arguably
due to Brexit, are in truth just the tip of the iceberg in this
titanic-sized-catastrophe in casual-dining.

The perfect storm has been brewing for years: The casual
dining industry boomed throughout the Noughties, and
growth intensified between 2010-2016. Restaurant chains
gorged themselves on cheap debt; chains such as Pizza
Express, Nando’s and Zizzi opening and operating 100’s of sites
undoubtedly stretched the waistline of the casual dining market.
And for a time, this was sustainable. However, the relatively
recent explosion of private equity within the restaurant sector,
responsible for the rapid growth of numerous chains including
Byron, Franco Manca, and Honest Burger has blown the
waistline off the market entirely. Consumers of today are faced
with more choice than ever before, yet are reportedly eating out
less. In summary: Greater Costs + More Competition + Fewer
Customers = a rotten recipe for the restaurant sector.

There is however a further, less spoken factor responsible for
the depletion of casual dining outlets on our high streets.
Darwin’s theory of natural selection. As consumers are faced with
a greater choice and less disposable income, restaurant chains
have to innovate, and provide offerings which competitors can’t.
Rotten, out of date concepts – much like their fresh fish produce
counterparts – will be thrown in the bin, and disappear from our
high streets for good.

Thankfully, for every stale concept, there is a fresh one – and this
has never been more apparent than in the London restaurant
market today. The Restaurant team at Kinney Green are retained
by swathes of A3, A4 and A5 occupiers, actively looking to
acquire further space in the coming months.

Kinney Green are also looking for and marketing multiple A1, A3
and A5 units but the crown jewel in our disposal list is perhaps
a stunning former banking hall located just three minutes away
from Bank, in the heart of the City of London, totaling c.8,600
sq ft of prime restaurant space.

Kinney Green advise on all aspects of retail and leisure property,
from rent reviews to lease renewals, acquisitions and disposals.

For further information please contact:

Neil Warwick DDI 020 7643 1531

Our West End Agency Partner looks back over
20 years from the opening of our West End office.

How time flies when you are having fun!

We opened our doors in January 1998 at 18 Hanover Street above
what was then a Lotus showroom and after 10 years moved to
Bruton Place where many a summer afternoon was spent discussing
market trends with colleagues and competitors alike outside the
infamous Guinea Grill. This was followed by a brief stint in North
Row until in June last year we moved to our current premises in
Park Street, W1.

Since I started at Kinney Green, 20 years ago, more than 70,000,000
sq ft of new office space has been created in London. To put that
into perspective, this is more or less equal to the entire office stock
of Singapore! Being a niche practice we have of course only dealt
with a tiny fraction of the stock but I would like to think our clients
appreciate the services we have provided throughout our time in
the West End.

There are numerous highlights during this time, including the £100
per sq ft barrier being achieved for the first time at 25 Hanover
Square in Mayfair in 2008, the commencement and now almost
completion of the long awaited Crossrail and the comprehensive
redevelopments of Paddington and King’s Cross, both of which
now stand as West End submarkets in their own right.

For the property market as a whole, the most significant changes
have been the widespread adoption of enhanced IT which has
become fundamental to the success of any business and the
growth in more recent years in the serviced office market which is
now recognised as a mainstream alternative to the conventional
leasing model.

In the economy more generally, landmark events include the birth
of Google in 1998, the introduction of the Euro in 1999 and the
Brexit vote in the UK in 2016.

There have been booms and busts, and lots of surprises – both
good and bad. The skyline has changed dramatically, with new
structures such as the Shard, the Gherkin and the London Eye,
now synonymous with London.

Rents and lease terms have changed dramatically. Shorter term
leases are now the norm and the previously de rigueur 25 year FRI
lease has all but been consigned to the grave, with flexibility being
the key driver for the majority of occupiers, hence the increase
in popularity of serviced offices which cater for this demand.

Connectivity is king and modern offices must cater to the ever
changing needs of their tenants more and more.
One thing that hasn’t changed is that London continues to be
one of the greatest international cities in the world and the Kinney
Green West End office is now firmly established alongside its elder
sibling in the City.

Here’s to the next 20 years although I somehow doubt I’ll still
be here!

For further information please contact Kevin 020 7495 1222 k.kemplen@kinneygreen.com

Kinney Green Industrial are delighted to confirm the completion on the sale and lease back of Essence House, Thorpe Industrial Estate, Egham, TW20 8RN – a total of 2 multi-let industrial units totalling c.20,000 sq.ft. on behalf of an international client.

Bearing in mind the current industrial market, demand was high, rent rises and diminishing supply (270 acres of industrial land lost per year to other uses). Despite our only approaching known parties, the property ultimately achieved a sale price of £3,805,000 – significantly above quoting. This reflects  a NIY of 5.7% after purchasers costs at 6.7% or capital value of £190 psf. Highlighting the current strength of the industrial market within the UK at present.

Kinney Green provide expert advice across all this sector. Should you require any commercial property advice in respect of acquisitions, disposals, rent reviews, lease renewals or business rates, please speak to either Neil Warwick for an informal, non-committal conversation about how we are able to assist.

Blue Planet Two. A BBC documentary that has gripped the nation. Sinking into your sofa on an autumnal Sunday night was the best way to momentarily forget about the approaching Monday Blues. The show is presented and narrated by Sir David Attenborough, a true national treasure, and its music composed by Hans Zimmer, what more could you want. The nature documentary series has synced artistically skilled cinematography to an intrinsically produced score, for not only educational purposes but promoting awareness of sustainability.

So why am I jabbering on about Blue Planet Two, a documentary series. Well, the facts clearly state that the Built Environment contributes 22% of UK carbon emissions, which is an astonishingly sobering statistic. So, what is the Built Environment doing in an attempt to reduce this figure?

Let’s just say a lot more could be done.

It is clear however that for the time being legislation is the key driver of sustainability. The latest being the governments introduction to Minimum Energy Efficiency Standards also known as MEES, which in classic government style, is accompanied with a guidance document that is rife with ambiguity, and undoubtedly result in a plethora of case law to come.

It’s introduction attempts to increase buildings energy efficiency, focusing on those buildings rated F or G, who are the major culprits of high carbon emissions. It is has also acted as a scaremongering tactic to those properties with a rating of D and E due to increasing technology and means of assessing that has fishtailed to stricter regulating.

Hopefully(!), landlords and tenants are now aware of the imminent enforcement (1^st April 2018), that will apply to all non-domestic properties that are seeking to undertake a letting or lease renewal. The aim of the game being that all properties that have an EPC rating of an E or higher will pass with flying colours, green to yellow to be precise. However those that fall into the F or G category are not so lucky. Now there are numerous ways that a building can be exempt from this, all you need to do is find out how, and then register it on the ‘Exemption Register’, simple.

Despite the headache that it will likely cause to landlords and tenants, it is a certainly a step in the right direction. It is our generation that needs to pave the way in respect of sustainability in the Built Environment and it is legislation such as MEES that is leading the way.

If you would like further advice about what to do if your property is sub-standard please do get in contact with Stephen Griffiths

I heard something truly horrific the other day, utterly horrendous in fact: the number of London pubs fell by a quarter between 2001 and 2016. Yes, in just 15 short years, the number of pubs in the capital decreased from 4,835 to 3,615 – a decline of 1,220 at a rate of 81 per year.

The factors responsible for this sombre statistic are well documented. Two parts increasing rents combined with a shot of soaring business rates, mixed with a dash of rising wages and garnished with a smoking ban leads to a curiously sobering reality: widespread pub closures throughout our streets.

In truth, the above factors are only partly responsible for the public house plague sweeping the nation – I can confirm that there are further demons at work…

Diversify or die

In the last 12 months alone, the Kinney Green Leisure team has had a truly unique plethora of weird and wonderful requirements pass over our desks. From laser tag to bridge bars, the 21st century social scene is evolving. Gone are the days of pub entertainment being a jukey and a pack of porkies, no, the discerning 21st century Londoner simply demands more.

Testament to this is the success of bars with an apparent focus; Flight Club and Bounce are perfect examples of this, where both darts and ping pong respectively take centre stage amongst an evenings festivities.

Social spaces such as the Pop Brixton’s or Boxpark’s of the world have created a new offering altogether. Not quite restaurant, not quite bar and certainly not club, this fourthspace has proven hugely popular for both retailers and punters alike. Pop Brixton, built on disused land in the heart of Brixton has provided a platform for budding chefs, bearded brewers and eccentric mixologists to hone their trade and peddle their wares to the dauntingly competitive market of central London. Success stories are plentiful; my favourite perhaps are the purveyors of Anglo-Indian delights, Kricket – a disruptive restaurant with humble beginnings in a poky Brixton stall to a critically acclaimed Soho stalwart enjoying a permanent queue outside its Denman Street doors.

The opportunity for creativity in the way we use and rebrand space is something I really love about our industry, and this creativity is never more apparent than in retail property. I for one cannot wait to peruse the coming offerings of the UK’s largest foodhall – a 36,000 sq.ft, 25 restaurant, 4 bar delight which is set to open in the now defunct BHS Oxford Street in the coming months, the brainchild of Simon Anderson of Pitt Cue Co. fame.

I digress. Let me go back to where I started.

Attitudes, fashions and demands are undoubtedly changing: joe public now wants an artisan Gloucester Old Spot Pork Pie with his small batch gin and tonic, a minimalist progressive bass line with his Caipirinha or a game of Buckaroo with his Guinness.

All of these things are wonderful, yet they do undoubtedly pose a threat to the good old fashioned local. Whatever your tipple, spare a thought for where it all began – pay a visit to your Rose & Crown, pop in to your Lamb & Flag and support your Red Lion, for the Boxpark’s of the world must coexist with the humble wood panelled locals.

Kinney Green Chartered Surveyors and Property Consultants are experts within the Central London Retail markets. Should you need any property advice, from business rates to lease renewals, please do contact Neil Warwick for professional advice.

Transport for London (TfL) has admitted this week that the cost of buying the land needed for the Crossrail 2 project is likely to escalate due to the lack of safeguarding. It has emerged from various media outlets this week that the current planned route is at risk because the safeguarding measures do not cover all sections.

Safeguarding is a formal process, undertaken by the Department for Transport (DfT), to protect land required for major new infrastructure projects from future development. Unless land is safeguarded, land required for Crossrail 2 can be built on by developers, potentially making it more expensive for TfL to compulsory purchase the land at a later date.

TfL want to update the safeguarding measures, following a further round of public consultation on the project which was due in early 2018, however it is now understood that this is now delayed and is not expected until the first quarter of 2019 which will delay the Hybrid Bill submission from May 2020 to the “early 2020s”.

Kinney Green are keeping up to date with all the latest Crossrail 2 developments and are updating land owners and businesses which are likely to be effected by the project in the future. Please contact Chris Jakes if you require further information

I joined the Kinney Green City midtown office agency team as a Graduate Surveyor in September 2017 working under Neil Warwick and have been fully immersed in the bustling world of London and the office market ever since!

One of the biggest things I have noticed in that short time has been the impact of BREXIT (you cannot write this word without using block capitals!)  and the word  ‘uncertainty’  (italics for greater uncertainty!) which I have found has come all before any possible discussion on the market and its trends. It appears the ever-present “B-word”  and ‘uncertainty’ walk hand in hand and this I believe has glossed over what was in the end a fairly successful 2017 for the London property market.

Keeping up to date with the market is obviously part of my day job and is also vital for my APC training and from what I can tell there seems plenty to be optimistic about! So here’s the couple of sentences I have plucked from various reports – the following two lines must be read without pause…….. “City office market take-up in 2017 exceeded that of 2016 by 26% which highlights the gradual increase of confidence throughout the market since BREXIT, such confidence has been further illustrated by the influx of foreign investors, particularly from Asia who wish to spend big in the City as London continues to be seen as a safe haven for their investments”…..and breath!!!

Keeping up with market movement is vital but so is of course networking which is key to the industry and I am developing my skills and building professional relationships all the time. Thursday evenings at The Loop in the West End have started to burn  a hole in my pocket, but as a Reading alumni rendez-vous point, it’s been a great way of maintaining my relationship as a Graduate Surveyor and University friends alike – I have especially enjoyed  finding out the latest gossip at the various property firms!

Christmas parties didn’t go amiss in December with the ever eventful Kinney Green Christmas Party at The Wilmington Arms in Farrington ending in strong solo recitals at the Piano Works later in the evening!

As we move in to 2018……I am looking forward to the coming year as I train towards completing my APC and becoming a qualified Chartered Surveyor.

Author Becky Huckstep (Graduate Surveyor)

Christmas is my favourite time of the year; a time for indulgence – mulled wine, pigs in blankets, cosy pubs with open fires and most importantly time spent with both friends and family. Christmas does however bring with it an annual chore; amongst all the hangover inducing joy and festive cheer, an unavoidable task awaits us all: the toxic scrooge that is Christmas shopping.

I am terrible at Christmas shopping – cataclysmically awful in fact. Prior to moving to London, my go to cheat was popping to the local Tesco on Christmas Eve and buying everyone in my close family a litre of gin. If my parents were extra lucky that year, they may even have got a bottle of wine plucked from their own wine rack, gift wrapped and handed to them lovingly by yours truly.

Times have changed. No longer do I have the vail of youth and poverty on my side to use as an excuse, for I am now an employed adult living in the big city.  Recycled bottles of wine and 40% spirits no longer cut the mustard – expectations are simply higher.  Steadfast in my refusal to even entertain the idea of a visit to Oxford or Regent St. at any point during December – and with Westfield an absolute no go – it was time to get creative.

And then, a Christmas miracle – my learned colleague, a loyal comrade in the fight against Christmas Shopping turned to me whilst I was in the pits of my utter despair with two, magical words – “Amazon Prime.” Silence. Two further, even more magical words came out of his mouth – “Free trial.” I was sold.

In the following weeks since the Amazon revelation, gifts of Gold (Pandora bracelet), Frankincense (J’Adore Dior perfume) and Myrrh (slippers for Nan…) were hand delivered to my desk just 24 hours after ordering – the game has changed! The annual Christmas shop is no longer a chore, but a breeze! Rejoice!

Attitudes to retail are undoubtedly changing; recent figures show that retailers with good online shopping operations are performing admirably. High street stalwart, NEXT, saw a 13.6% rise in online sales in the 8 weeks leading up to 24^th December 2017. Better still, online fashion retailer BooHoo doubled its revenues to £228m in the four months to the end of December 2018.

So, what does this mean for property? The rise in online retail undoubtedly puts pressure on the high street. Many retailers are closing shops in an effort to centralise their respective portfolios – the most obvious being M&S which recently announced the closure of several stores. Times are arguably harder in the A3 restaurant sector – the level of choice on offer to consumers is bringing further causalities to the high street – Byron Burger the latest to fall with the imminent closure of c.20 sites and the suggestion of a CVA agreement on those which remain in order to stay afloat.

However, whilst the retail sector may appear to be suffering, the industrial sector is positively booming with prime rents soaring, yields sharpening and capital values reaching new heights. Well located, good spec warehouse space is the lifeblood of online retail, so much so that in 2016, Amazon was responsible for 25% of all industrial lettings within the UK. ‘Super-Sheds’ of up to 1m sq.ft are in high demand throughout the country, to the extent that pre-lets on prime industrial space is now more common than not.

Kinney Green are chartered surveyors and property consultants specialising within the central London office and retail sectors, as well as Industrial within the South East. Should you require any commercial property advice please do contact one of our professionals – contact details for our surveyors can be found in the ‘About Us’ tab above.

A new Electronic Communications Code has come into effect for telecommunications apparatus on land and buildings. The new code grants telecommunication network operators the right to take property owners to Court if they refuse to permit the installation of telecommunications apparatus such as mobile phone masts on their property and it also imposes restrictions on the ability of owners to secure the removal of telecommunications apparatus from their property at lease expiry.

Any landlords with apparatus on their property should be properly advised in respect of the potential effects of the legislation and in particular, the impact it may have on the value of their property assets.

In Summary:

• Rents: The government is seeking to bring rents in line with those paid by utilities companies and providers of other essential services with the introduction of a rent valuation system known as the “no scheme” valuation. The value of the land will be assessed on the basis of its value to the landowner, rather than the operator. This is likely to reduce the rents paid and compensation awarded for the loss of land. In addition, it is envisaged that costs will escalate for landlords due to disputes that may arise in determining the rate of compensation for the use of a particular piece of land.
• Site sharing, additional apparatus and assign ability: In the same vein, in order to facilitate the rapidly evolving nature of digital technology and to encourage the growth of the network, operators will no longer have to seek consent to upgrade or share their apparatus. This will bring an end to the landlord’s ability to earn extra income from each additional piece of apparatus or site sharing arrangement. Similarly, in the event an operator assigns its rights in the equipment and lease, there will no longer be the opportunity for landlords to negotiate new terms.
• Contracting out of the Code: To the extent that contracting out of the old Code was ever a viable option, it is now explicitly not possible with the result that landlords will not have the ability to negotiate terms which are more favourable than those set down by the Code.
• Dispute resolution: In the event that landowners refuse consent to the installation of equipment on their land, the new Code will provide for a more efficient dispute resolution procedure.
• Security of Tenure: Operators will not be able to rely on Landlord and Tenant 1954 Act security of tenure provisions under the new Code. This removes one layer of protection from the operator. Landlords however will still be bound by the termination procedures in the code. Under the current code, the onus is on the landlord to start proceedings to have apparatus removed. However, there is little clarity as to in what circumstances the code rights will be brought to an end and apparatus removed. It is thought that the new code will seek to increase clarity by reducing the number of disputes and their associated costs and that in the event that the operator does not issue a counter-notice on the landlord requiring the apparatus to stay, then the landlord can remove the equipment when code rights expire.
• Retrospectively: The new Code will only apply after the law comes into effect and will not apply retrospectively to existing contracts.

Under the current regime, rents have been favourable making provision of land for telecommunications equipment an attractive option for landowners. However, the new “no scheme” valuation system is likely to bring an end to relatively healthy rent levels once enjoyed by landowners agreeing to host equipment on their land. This, twinned with the inability to contract out of the Code will arguably put landlords in a weaker position than under the old code given their inability to negotiate more favourable terms than the code will allow.

Should you have telecommunication apparatus on your land or buildings and require valuation advice then please contact Chris Jakes.

Proposals to expand Heathrow Airport have been revealed in more detail with major changes outlined for the A4, M25, terminal buildings, as well as the development of the third runway itself.

The proposals are part of a new 10-week public consultation, as Heathrow seeks the views of residents to the expansion of the airport. As part of the consultation, the public’s views are also being sought on the rules that could apply when Heathrow redesigns the airspace as part of the development.

No flight paths have yet been drawn up and Heathrow will submit a planning application after further consultation on the detailed proposals. Heathrow hopes to begin construction in early 2021, with the runway completed by the end of 2025.

In order to realise these plans Heathrow Airport will need to acquire land, businesses and residential property using Compulsory Purchase Powers. Further information of Kinney Green’s Compulsory Purchase services is available – https://www.kinneygreen.com/professional/compulsory-purchase/

Information on Heathrow’s consultation can be found at www.heathrowconsultation.com.

It is the topic of conversation amongst most of the West End
and City office agents, but are they embracing change?

It cannot be denied that the sector has expanded rapidly over
recent years. The market has matured substantially from its origins
where the only occupiers tended to be start-ups that couldn’t
afford a ‘proper’ office and needed not much more than a postal
address. The UK is now the leading global serviced office sector
accounting for 36% of worldwide serviced office footprint and a
growth rate of 31% since 2008. As might be expected, London is
leading the way accounting for 34% of the UK market since 2008*.
For the first half of 2017, the sector accounted for 9% of take up
in the City and 8% in the West End, which is in part due to the fact
that tenants are increasingly prepared to pay the ‘premium’ rents
associated with serviced offices in return for greater flexibility and
the advantages of fixed costs without the potential risks associated
with a conventional lease.

Clearly, flexibility and minimal start-up costs are key factors,
especially for the smaller occupiers, but these are not the only
reasons for growth in the sector. Larger occupiers are also attracted
to co-working and serviced offices where they see the opportunity
to collaborate with the new and creative companies that dominate
these centres and the access it gives them to a growing talent pool.
We don’t view the sector as a threat; on the contrary, we see the
fluidity and flexibility as a complement to the more traditional
leasing model giving our tenant clients greater choice. To that
end, we have enthusiastically embraced the sector and are actively
assisting a number of the major operators with their ambitious
growth plans.

Recently, we advised Prospect Business Centres on their acquisition
of approximately 17,000 sq ft at 20 Midtown on Proctor Street, WC1.
Prospect informed us that Midtown was an area of interest and
having identified 20 Midtown as an ideal building we negotiated
terms on their behalf and as a result they will shortly be opening
their first Midtown centre.

Some landlords express concern over covenant strength with the
majority of operators taking leases in an SPV with additional surety,
usually in the form of a limited parent company guarantee. But long
gone are the days of Ouvagh Highfield and Southern Cross and there
have been few operator failures in recent years.
Also, and of increasing importance in these uncertain times, they are
more than happy to sign up on long term leases, in fact, this is their
preference with a minimum term of ten years required in most cases.
So the message is whether acting for landlords or tenants, we have to
“Larger firms and corporates view these adapt to and adopt to the ever-changing occupational office market