Following a round of decisions by the Department for Communities and Local Government (DCLG), Manchester is the only major city outside London to secure an exemption from the new office-to-residential rules.

In total, seventeen authorities have been granted full or partial exemptions to the new regulations. Eleven of these are in London, with the remaining exemptions granted to areas in Ashford, Stevenage, East Hampshire, Sevenoaks and the Vale of White Horse. DCLG is rumoured to have received almost 700 applications.

For Manchester, the exemption means that two areas of the city centre will be protected from developers converting office space into residential properties. These are the £800million NOMA development around One Angel Square and the business district from Spinningfields to Piccadilly.

Both sites are part of extensive regeneration plans; the council’s application centred on how relaxation of the rules could jeopardise these plans by undermining the council’s ability to build “clearly defined neighbourhoods, including those characterised by commercial uses.”

But while Manchester’s application succeeded, many others did not. Birmingham, Bristol, Brighton, Liverpool and Leeds were all among those whose requests for exemption were turned down.

According to commercial property consultancy Lambert Smith Hampton, Birmingham has the most office-to-resi conversion potential of all the major cities, with 7.4million sq ft of office space already identified as being “suitable for conversion” under
the new ruling.

In the south, Brighton and Hove City Council remain concerned about the impact the decision will have on the city’s future, with deputy leader Phélim Mac Cafferty saying; “These new rules will make it so much harder for us to build on our hard won reputation and attract more investment for the city as a whole.”

The fight is unlikely to end here; many councils are expected to challenge DCLG’s decisions. Speaking to bdonline.co.uk, Simon Ricketts, head of planning at SJ Berwin said; “I suspect authorities who haven’t had their request accepted will be asking to see the assessment and looking to see why they failed and others succeeded.”

The new rules will come into force on 30^th May this year.

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Housed in a former Victorian warehouse, the Southampton business centre has 15,000 sq. ft. of serviced office space across three floors. It retains some of its original features, while being adapted to provide a modern working environment. UBC plan to build on this further by expanding the business centre and undertaking extensive refurbishment throughout the reception and the ground floor offices.

UBC is currently going from strength to strength, with this new site the latest in a series of planned developments. In 2011 the company opened a state-of-the art business centre near Warrington, while last year saw them take over a former Regus Centre in Brentford.

They already operate thirteen business centres across the UK, providing more than 500 businesses with office space on an all-inclusive basis. When the Southampton business centre became available, it presented the ideal opportunity for UBC to expand its range of office space in the south of England.

Thanks to its diverse and thriving economy, the city is recognised as the commercial, cultural and retail capital of the south coast. In March this year, the City Council submitted its application to make Southampton the City of Culture in 2017. It’s an ideal time to set up a business centre in the city.

UBC’s serviced offices are designed specifically to appeal to SMEs, providing a plug and play, fully furnished office environment which can accommodate businesses of various sizes.

Most of all, their supportive, all-inclusive approach means that SMEs can stay competitive. As UBC’s MD Tom Mulvaney says; “a maturing economy and a fiercely competitive marketplace mean that businesses must be highly focussed on their core activity to survive. They cannot afford to be distracted by requirements that are best outsourced to specialists, such as managing and maintaining office space. It’s quite simple really, UBC helps customers to maximise their resources and focus on business development.”

The new Southampton site is expected to be fully refurbished by September. UBC are likely to announce further new business centres later this year.

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Work is to go ahead on one of the largest speculative office space developments outside London – continuing the dramatic transformation of the Salford Quays area in Manchester.

The next phase of development at MediaCity’s Soapworks is now set to go ahead, following the appointment of Galliford Try as contractors on the project. The London-based company have been awarded the £12.5m contract to build three new office blocks on the site, which will provide a further 210,000 sq. ft. of Grade A office space in Salford Quays.

This is the second phase in the transformation of the former Colgate Palmolive factory into contemporary office space. Billed as “an exciting, bold new address”, Soapworks is located on the boundary of MediaCity, where it meets Manchester city centre. The architects and developers behind the site anticipate that it will strengthen connections between the two sites, consolidating Manchester’s position as a serious alternative to the capital for major businesses.

The complete Soapworks development will provide 400,000 sq. ft. of Grade A office space, with floor plates up to 46,000 sq. ft., and is specifically designed to provide flexible space for larger businesses.

The second phase of the site is by far the largest and follows on from the success of the first phase, which is fully pre-let. Vital Services Group agreed to let all five floors of office space in the Boilerhouse building, totalling 20,000 sq. ft. – space which was originally intended for use by a number of small enterprises.

MediaCity has already proved successful in attracting large media corporations. It is currently the home of the BBC and ITV, while its dedicated small business space at Media Village is also flourishing. It has been hailed as an example of how to build a successful regional business hub.

The signs for this new phase of the Soapworks are good. Manchester is a city on the up, MediaCity space is in demand, and the project is being funded by The Carlyle Group, which was also behind prominent city-based developments including Colmore Plaza in Birmingham, Tanfield in Edinburgh, and Three Piccadilly in Manchester.

Contractor Galliford Try is also thriving; the Soapworks is one of several projects, totalling £36m in value, which it has recently secured in the Manchester area.

Work is due to start on Soapworks phase two later this year.

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The staff at Haverhill Weekly News in Suffolk and Royston Weekly News in Hertfordshire will become remote workers, using mobile technology to keep in touch with colleagues and bosses. A new flexible working hub will replace the current offices and serve as a base where sales people can meet with clients in a more formal setting.

Local World, which owns both newspapers, has dubbed the new space a “drop-in zone”. Since acquiring Iliffe News & Media and Northcliffe Media late last year, they have been on a mission to reshape regional publishing, enabling it to compete in the modern, technology-driven media landscape.

There are many reasons why the switch to a flexible working hub could be a smart move, not least because it will encourage journalists and sales people to spend more time out on the road sourcing stories or meeting advertising clients face-to-face. Under the new working arrangements, Local World staff will spend less time with colleagues but more time with the people who are critical for achieving results.

More efficient working routines aren’t the only benefit for the two Local World titles. The new flexible working hubs will be in high traffic areas at the centre of the communities which they serve. As well as increasing visibility and awareness of the newspaper’s office among local people, it will also make it easier for them to drop in, whether they have information for a story or want to take out an advert.

The move is also likely to be part of a cost-saving effort, as printed newspapers continue to struggle to compete with online news sites. Without needing to provide a fixed desk for every single journalist and sales person, Local World can reduce the amount of office space needed by each newspaper, meaning a significant reduction in overheads.

Haverhill Weekly News and Royston Weekly News are just two of the titles owned by Local Media, which has a total of 107 regional print titles, plus 63 online news portals. If this new way of working proves successful, Local World could well roll it out across the rest of their portfolio.

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For several years, lack of Grade A office space has stifled development in Glasgow, making it difficult for larger companies to find suitable space in the city.

Now a flurry of office developments, including several speculative projects, is set to address the shortage. OfficeSpaceFinders takes a look at some of the developments aiming to change the landscape of Glasgow’s office market.

£60m Odeon Cinema Transformation

Last month, work began to demolish the old cinema structure on Renfield Street, clearing the way for a new £60m office development. The Art Deco façade of the original building is to remain in place and will form the front of the new ten-storey structure which will deliver 143,000 sq. ft. of Grade A office space.

Developers Mountgrange Real Estate Opportunity Fund (MoREOF) and Prupim acquired the site at the end of November 2012. It will be Glasgow Central Business District’s first significant Grade A office development in more than five years.

£24m Clyde Gateway Office Development

Vacant land on the banks of the Clyde in Dalmarnock is to be the site of 120,000 sq. ft. of Grade A office space. The Scottish government has provided £16m in funding to support the speculative development which it believes will act as a catalyst for further regeneration of the area.

The offices are part of the 20-year Clyde Gateway regeneration scheme which is the largest programme of its kind currently taking place in Scotland. In 2013 alone, it will see £250m of construction and development work take place in the area.

£80m HQ for Scottish Power

Construction on Scottish Power’s new headquarters is expected to start later this year. The £80m development will provide 220,000 sq. ft. of space to house the power giant’s 1,900 staff.

Speaking to the BBC, Ignacio Galan, chairman of Iberdrola and Scottish Power, said: “We have always stated that Glasgow would remain as the central location for our company in the UK and our new development reaffirms our commitment to the city.”

Overlooking the M8 motorway and Kingston Bridge, the site was previously occupied by Strathclyde Regional Council.  The new building is expected to be completed in 2015.

£70m Development at 110 Queen Street

Work began in January this year to transform the 1960s former Bank of Scotland building at 110 Queen Street into a contemporary landmark.

Developers BAM Properties have invested £70m into the site, which will provide 143,000 sq. ft. of office space at the heart of the city centre. Like many of the other office developments taking place in Glasgow, they are aiming to secure BREEAM Excellent rating for the building.

Completion is expected in early 2014.

£60m at Ultra-Modern Vincent Plaza

Work is due to begin this summer on the £60m Vincent Plaza development at 303 St Vincent Street. The striking, glass-fronted building has been designed by Glasgow-based architects Keppie Design and will include 170,000 sq ft of Grade A office space over twelve floors. It will also feature a rooftop terrace.

The site’s developers describe the ambitious speculative scheme as “exemplary space built to Central London standards at extremely achievable and competitive rents.”

Its position adjacent to the Hilton Hotel is likely to make it a popular choice for companies with national and international clients. Completion is expected at the end of 2014.

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The regeneration of the Reading station area has been given a boost this week, with the news that building work on two symmetrical 200,000 sq. ft. office blocks is to begin later this year. Known as Forbury Place, the £50m office development will occupy a prime site next to Reading’s train station which is currently undergoing extensive redevelopment.

Now that planning permission for Forbury Place has been secured, work can now go ahead to demolish the vacant Energis House which is currently on the site. Construction of the new buildings is expected to begin in the autumn.

The two buildings will be identical in design, with double-height reception areas and views over Abbey Gardens and Caversham Lakes. Both will offer BREEAM Excellent rated space.

The architects behind the design are Aukett Fitzroy Robinson, an award-winning London-based practice who also designed the GE Research Centre in Munich, the Napp building on Cambridge Science Park and Wells & More in London’s W1.

Aaron Pope, asset manager at Prupim who are behind the development, says: “Forbury Place will offer companies brand new office space in the heart of Reading with excellent transport links. Reading is home to many global brands so premium office space is always in demand.”

Prupim’s development will take advantage of the £895m which has been invested to improve Reading Station and the flow of rail traffic. According to Network Rail, Reading is one of the busiest parts of the country’s rail network.

Due to its close proximity to London, it is already a popular location with big businesses looking to locate near the capital. Global businesses based there include Microsoft, Hewlett Packard, Oracle, Yell and Cisco Systems. PwC, Ernst & Young, Gillette, and BBC Monitoring also have offices in the area.

Prupim hope that the Forbury Place development will provide the right environment to attract more high profile businesses to the area.

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Leeds city centre’s first new office building for five years is to be a state-of-the-art facility designed to attract blue chip companies to the city.

After appointing Shepherd Construction earlier this week, developers MECP announced that work will begin on 10 Wellington Place next month and should be completed by May 2014. It will provide 35,000 sq. ft. of office space across five storeys.

The new building represents a small but important step in the development of Wellington Place, which already has planning permission for a further 300,000 sq. ft. of office space across three buildings at 3-5 Wellington Place.

Moreover, it is also an important step for Leeds, which in recent years has seen a trend for redeveloping existing buildings rather than construction. Developers have focused on updating old office buildings, like the refurbishment of the 1960s offices at 2 Bond Court, and on transforming industrial property into office space, like the recent development at development at Holbeck Urban Village.

The major new-build development on Leeds’s calendar for some time has been the £378 million Trinity Leeds shopping centre, which officially opened on 21st March this year. It is part of ambitious plans to help the city live up to its Knightsbridge of the North reputation, which include £6 billion investment in major developments.

However, while the city has seen a flurry of office market activity in the build-up to the Leeds Trinity Launch, much of this has been from small businesses rather than the large corporations which the city’s redevelopment plans are intended to attract.

A large part of the problem is a lack of Grade A office space, which is why developers are turning to new-build sites to deliver the large, high-end offices needed to attract blue chip companies.

MECP are hoping that 10 Wellington Place will attract high profile businesses to join those already occupying 2 Wellington Place which is home to Sky, RSM Tenon, Regus and Towers Watson.

It is likely to signal the start of a new wave of office construction projects in Leeds.

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As the popularity of its products continues to surge, LEGO is taking on 80,000 sq. ft. of office space as part of expansion plans for its US operation.

The global toy manufacturer reported a 15% increase in revenue worldwide in 2012, and expects robust growth to continue throughout 2013. Its share of the US toy market has quadrupled over the last five years.

The additional office space at Enfield Business Park in Connecticut will accommodate a new team of employees focusing on the US market. Initially, LEGO plans to recruit 65 staff across the sales, marketing and finance departments, but this could increase to as many as 250 staff over the next few years, as the company continues its rapid expansion.

The company already occupies 400,000 sq. ft. of space on Enfield Business Park, including its US head office, known as Compass House. The building was transformed from industrial space into 100,000 sq. ft. of Grade A offices in 2011. In typical LEGO style, it features an indoor garden, a series of LEGO sculptures including a 15-foot sabre-toothed tiger, and an indoor gallery.

In fact, LEGO have become famous worldwide for their seriously cool offices, developing a reputation for being at the cutting-edge of office space design based on their sites in Denmark, Russia and the US. As a result, many will be looking forward to the unveiling of their new offices – not least their new employees.

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Planning approval for the site near Haymarket station was granted back in 2011 and it already has a number of big-name companies signed up to take space. Now that Interserve and Tiger Developments have formed a partnership, work can begin on the first phase of construction.

Once completed, the mixed use site will incorporate offices, retail and a hotel. It is also expected to provide 3,500 new jobs in the city.

The Haymarket announcement came on the same day as Deloitte’s Key Cities Report, which revealed that Edinburgh’s commercial property market could outperform the UK as a whole in 2013. The city is predicting a 7% increase in rental prices for the year as a whole, as compared to the 3% predicted for Manchester and 5% for Glasgow.

This increase is largely down to high demand coupled with a shortage of Grade A office space, a trend which characterised the city’s office space market throughout 2012. This followed on from increased demand for offices throughout 2011.

Statistics from serviced office specialist officebroker.com also revealed an increased demand for office space in Edinburgh, with uptake for serviced offices in 2012 up 64% on the previous year.

However, Officebroker’s data also showed that both rental prices and average business size had decreased compared with figures for 2011. In fact, the average price per workstation in 2012 was £243, a 23% decrease on the £315 average in 2011.

In part, this may be attributed to a number of larger businesses which were unable to find suitable Grade A office space because of restricted choice. In order to see the 7% increase it is predicting for 2013, Edinburgh will need to provide accommodation for these businesses – and that will mean increasing the supply of high-grade office space in the next twelve months.

New developments will go some way towards addressing the shortage of Grade A office space, however projects such as the Haymarket site and the £300m Caltongate Complex are unlikely to be completed this year.

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The organisation, which specialises in providing business support and advice, acquired the site in Enfield from the London Borough of Enfield. Formerly known as The Business Innovation Centre, the building has a total floor area of almost 40,000 sq. ft., including office space.

Wenta now plan to transform it into a modern business centre, including office space, workshop areas and meeting rooms, as well as virtual offices and call answering for businesses located off-site. As part of these improvements, the business centre will also be refurbished throughout. It has already been renamed as The Wenta Business Centre – Enfield.

Wenta already own and manage four business centres, all in Hertfordshire, which provide much of the funding necessary to allow them to carry out their educational work. The organisation works with everyone from small businesses, to school students, university graduates, to the unemployed, providing business advice, training and development opportunities. A key part of their work is running events in schools designed to inspire the next generation of entrepreneurs.

Spencer Tagg, Property Services Director for Wenta, said: “We are very excited about the acquisition of our 5th centre. Wenta already provide an environment for over 350 businesses based within our centres and we’re looking forward to bringing our business centre management and expertise to Enfield.  Over the coming months and years we’ll be developing the facility to attract more small businesses to the centre.”

The Enfield business centre is Wenta’s largest project in over 20 years; it was made possible due to the strong track records of their other business centres in Stevenage, Watford and Potters Bar. The organisation is now the largest enterprise agency in Hertfordshire and Bedfordshire.

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