Liz Peace, CEO British Property Foundation The developer's Perspective

1. The developer’s
perspective
An overview from the
British Property Federation
Liz Peace, Chief Executive
Active Design Symposium
Design Council CABE
25 October 2012

2. What is Commercial Property?
> A major part of the UK economy
> Provides a platform for virtually all of the country’s major
industries
> Plays a crucial role by providing places in which people can
work, shop and enjoy leisure activities
> Larger than the banking, leisure, communications and
transport sectors
> A significant investment asset for the pensions industry,
contributing to the financing of our retirement
Source: PIA 2012 Property Data Report
Active Design Symposium – Design Council CABE BPF - The voice of property

3. Commercial Property
- how big is it?
Core commercial
property (£617bn)
Other commercial property
(£100bn)
Other non-domestic
buildings (£103bn)
Residential (£4,224bn)
Source: PIA 2012 Property Data Report
Active Design Symposium – Design Council CABE BPF - The voice of property

4. Component parts of Commercial
Property Private rented
sector 2.6% in
2011
Other - when statistics first
commercial - recorded
Factories –
£100bn
£69bn
Retail - £227bn
Warehousing -
£97bn
Offices - £224bn
Source: PIA 2012 Property Data Report
Active Design Symposium – Design Council CABE BPF - The voice of property

5. Who owns this Commercial
Property?
Invested Commercial Property
Type of owner £bn
UK Institutional (insurance 78
£351bn companies, pension funds)
£103bn
Collective investment 61
schemes
Overseas investors 76
UK REITs/listed property Cos 48
UK unlisted property Cos 29
Traditional estates /Charities 13
£365bn Private investors 17
Other 42
TOTAL £365bn
Source: PIA 2012 Property Data Report
Active Design Symposium – Design Council CABE BPF - The voice of property

6. The owners
> Private companies
> Public companies
> Institutions
> Private equity
> Banks
> Public sector
Active Design Symposium – Design Council CABE BPF - The voice of property

7. Commercial Property –
connecting with the economy
Savers/ Investors/ Construction
Investors Bank Industry
Capital
(Debt/Equity) Sell to Investor
Owner/Developer Another Co Savers/
Pension Fund Investors
Insurance Co
Rent Let to
Occupier
Industrial, Retail, Office, Leisure
Multiplier effect
Community
Active Design Symposium – Design Council CABE BPF - The voice of property

8. Better quality property makes a
better business
> Higher rents
> Shorter voids
> Satisfied occupiers
> More lease renewals
> Better local Government /
community relations
Active Design Symposium – Design Council CABE BPF - The voice of property

9. But ...
> Falling values
> Falling rent levels
> Higher planning / development
costs
> s. 106
> CIL
> Flaky occupier demand
> Regional disparities
Active Design Symposium – Design Council CABE BPF - The voice of property

10. How to get property folk to
focus on quality, design, public
health!
> Legislation > Fiscal incentives
> Governance > Planning rewards
> Fiscal penalties > Public sector exemplars
Active Design Symposium – Design Council CABE BPF - The voice of property