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Going up? JB Leitch are specialist solicitors for property and asset managers with an unparalleled knowledge of leasehold law. We can provide advice on the rights and remedies when dealing with issues of fire safety, major works and appeals (particularly where matters attract a high degree of urgency).
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Issue sixty seven Move Commercial
Welcome to Move Commercial
A
s retailers continue to reveal financial difficulties and plans to scale back their physical presence, it’s a challenging time for the high street. Handmade cosmetics chain Lush showed a more optimistic side to the sector recently though as it launched its largest store in the world in Liverpool. In this issue Move Commercial speaks to Ellen Peters from the brand’s property team about the importance of bricks and mortar stores, how an innovative approach to creating personal experiences keeps shoppers coming back, and some positive signs for retail. We also find out how areas across the region are keeping up with high speed internet needs to ensure that the North West stays connected and achieves its
potential without suffering a digital divide. Plus Downing property manager John Clegg sheds light on the current state of Liverpool’s office market whilst reflecting on the firm’s contribution to the city’s workspace offering over the years. If that’s not enough there’s coverage from CBI director-general Carolyn Fairbairn’s Roscoe Lectures speech in the region, and we bring you the latest commercial property and business news from around the North West. Natasha Young, editor natasha@movepublishing.co.uk
News 07 MSB Solicitors nominated for five industry awards 08 Office yoga provider partners with regeneration firm 09 Liverpool law firm crowned employer of the year 10 Dominant Brexit is hiding commercial property issues, says agent
Features
Photo: iStock / alphaspirit
11 Key event MSB Solicitors’ week of support for Autism Awareness Week 12 Appointments Who’s moving where? 14 Interview Downing property manager John Clegg on Liverpool’s office market and the contribution the firm has made
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17 Key event New offices unveiled at revamped and rebranded Centric House 18 Next level experience Retailer Lush on investing in Liverpool and driving high street footfall with new in-store concepts
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23 Five tech must-haves MSB’s Darren Barwick on the gadgets and apps he can’t live without 24 Staying connected
Advertising Tel: 0151 709 3871 Editor Natasha Young. Tel: 0151 709 3871 Editorial Team Lawrence Saunders, Matthew Smith. Design Mark Iddon. Cover Image Courtesy of Lush.
Published by Move Publishing Ltd Directors David O’Brien, Kim O’Brien. Printed by Precision Colour Printers Ltd. Distribution Liaison Manager Barbara Troughton. Tel: 0151 733 5492 / Mobile: 077148 14662
High-speed internet and avoiding a digital divide in the North West 26 CBI director-general proposes reform of UK’s infrastructure and services Carolyn Fairbairn suggested alternatives to renationalisation during a Liverpool speech
Copyright Move Publishing Limited. All rights reserved. No part of this publication may be reproduced copied or transmitted in any form or by any means or stored in any information storage or retrieval system without the publishers written permission. Although every effort is made to ensure the accuracy and reliability of material published, Move Publishing can accept no responsibility for the veracity of the claims made by advertisers.
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ADVERTORIAL
Landlords need to prepare themselves quickly to respond to new legislation, MSB warns Residential and social landlords must prepare themselves now for changes to legislation around standards of living in rented properties, say Liverpool law firm MSB.
Under the Homes (Fitness for Habitation) Act 2018, landlords could find themselves being taken directly to court by tenants who believe their homes are unfit for human habitation. Up until now they had to go through their local authority. Experts at MSB say it should be taken as a prompt for landlords to take steps now to ensure their properties are up to scratch and are being proactive in resolving health and safety issues before they become contentious. The new Act inserts a new section 9A into Landlord and Tenancy Act 1985, which provides that there is a new implied tenancy term that a Landlord will ensure that a dwelling is: • Fit for human habitation at the time the tenancy/lease is granted. • That it will remain fit for human habitation during the term of the tenancy/lease. In essence, this means landlords must more quickly address issues such as damp and disrepair, or face the possibility of paying damages to their tenants. Social landlords, whether they’re housing associations or local authorities, will also need to take these changes into account. The Act came into force on March 20 and will apply to new tenancies (including any renewal of an existing fixed term tenancy) from that date. It will also apply to existing fixed term tenancies, which becomes periodic on or after that date. And it will apply to periodic tenants, including an organisation's social assured tenants, from March 2020. Last year, MSB acquired social housing specialist Knox Ellis and the experts in their team have received full training on the new legislation. They have, in turn, now started to deliver that training to clients as an added value service. Louise Murphy from MSB said: “Practically speaking, changes to the Act mean that landlords, both in the private rented sector and in the social housing sectors will have to start thinking differently on issues such as ventilation, condensation dampness and mould growth. All properties must now be fit for human habitation, which also means they need to be free from hazards under the housing health and safety rating system. “It is fair to assume that tenants are already being advised to use the new legislation to pursue claims for disrepair so it’s important you and your organisation is fully prepared and ready to respond to these quickly and effectively.”
Knox Ellis can provide legal advice and specialist training on the Homes (Fitness for Habitation) Act 2019. If you are interested or want to find out more about how this might affect you or your business, please email l.murphy@knoxellis.co.uk or call 0151 420 0718.
“It is fair to assume that tenants are already being advised to use the new legislation to pursue claims for disrepair so it’s important you and your organisation is fully prepared and ready to respond to these quickly and effectively.”
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Latest News
MSB nominated for five industry awards
Go Green says furniture can impact ‘every aspect’ of an office.
Furniture provider expands services with ‘huge project’ A Liverpool-based office furniture supplier has launched a new rental service aimed at start-ups and fast growing businesses. Go Green Office Furniture has expanded its services to offer short and long-term lease agreements on a range of stock workplace items. Described by the Aintree-headquartered firm as a “huge project”, the service aims to benefit small businesses which often lack the liquidity for a major investment early on. Go Green also suggests that the introduction of quality furniture can lead to improved morale as well as increased employee efficiency and productivity. A spokesperson for the firm tells Move Commercial: “The many advantages of renting office furniture reside in the vital impact furniture can play on every aspect of your office space. “Whether you're just starting up or rapidly growing, the flexibility of renting can free up your cash flow and simultaneously allow you to create an impressive contemporary office design on a budget. “Office furniture is often the biggest initial investment in your business. It plays a key role in your image branding and the way your work culture is formulated."
MSB Solicitors has been nominated in five categories at the upcoming Liverpool Law Society 2019 Legal Awards. The firm, which has offices in Liverpool city centre, Allerton and Wavertree, is up for the ‘Employment Law Award’, ‘Criminal Law Award’, ‘Property Law Award’ and the ‘Medium Law Firm Award’. Social housing practice Knox Ellis, which became part of MSB when it was acquired by the firm last year, takes the fifth nomination in the Niche Law Firm Award category. Winners will be revealed when the prestigious honours are handed out at the Rum Warehouse on Liverpool’s Stanley Dock on 17 May.
Emma Carey, managing partner at MSB, says: “We are always proud to be shortlisted for awards but to be nominated in the Liverpool Law Society 2019 Legal Awards is particularly special as it is a recognition from our peers in the Liverpool legal community of the work we are doing. “The process of entering the awards itself has huge value for our team. They provide us with a great incentive to excel and entering awards creates a process that encourages collaboration and self-analysis of the work that we do. “It is a valuable tool for consolidating milestones and achievements and to be shortlisted is brilliant for morale.”
Emma Carey, managing partner at MSB Solicitors.
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News Latest Office yoga provider partners with regeneration firm Yoga and pilates provider YinYan has partnered with Urban Splash to offer a series of classes at the firm’s Liverpool office schemes. The beginner-friendly sessions at the Ropewalks district’s Vanilla Factory and Tea Factory buildings will promote wellbeing and health within the workspaces. Taking place at lunchtime to boost productivity and energy levels, the classes are available to everyone working in the buildings, with a free initial class and follow-up sessions subsidised by Urban Splash. Robin Ellis, who founded YinYan, says: "We love working with landlords like Urban Splash who understand that a building full of happy tenants depends on people thriving and loving where they work. “Things like yoga and meditation are no longer the preserve of hippies. Normal people and businesses know the benefits are real and want a piece of it, but people can't find the time and tenants don't have space for our classes. “This is the opportunity for landlords and we help them get maximum benefit with minimum hassle." YinYan specialises in helping landlords put vacant spaces to good use until long-term tenants are found.
Classes are being held at Urban Splash sites
The terrace will feature landscaped gardens
Luxor Group plans St Helens’ first rooftop terrace in latest scheme Current St Helens investment “will change the landscape of the local economy for the better” according to a developer regenerating the area. Paul Nicholson says interest in the commercial units within schemes by his firm Luxor Group is already showing there is “confidence” in the town amongst entrepreneurs. Luxor Group has recently submitted plans for St Helens’ first rooftop terrace, which will top the proposed mixed-use Nicholson Plaza and Nicholson Place development in the town centre. The latest application seeks planning permission for the 11,500 sq ft outdoor space, featuring landscaped gardens, as well as a range of one and two-bedroom apartments to be delivered across two phases. New commercial units on the ground floor and basement levels of the building, formerly known as Barrow House, have already been fully let by MD Productions, The Dean Champagne Bar and Restaurant and Laguna Tanning.
Phase A of the development, to be known as Nicholson Plaza, is due to be completed by summer 2019 and Phase B – the Nicholson Place section – is earmarked for completion during early 2020. Nicholson, CEO of Luxor Group which is also behind the adjacent Nicholson House development, says: “St Helens Council has been supportive with all of our developments so far and we hope with its backing, we can deliver the schemes on time. There is a variety of investment coming into St Helens which is giving it a great buzz and will change the landscape of the local economy for the better. “We have already secured tenants for all of the commercial units at this mixed-use scheme, which shows there is confidence in the town centre for fellow entrepreneurs to invest. We are determined for St Helens’ high street to flourish and providing some much needed footfall in the town centre can only be a positive step.”
Councillor highlights importance of educating youngsters on future careers Halton councillor Eddie Jones was among dignitaries to highlight the importance of skills during a recent event in the borough. The executive board member for economic development at Halton Council helped launch the Halton Skills Show 2019, which brought together students and residents with local employers, colleges, universities and apprenticeship providers. He discussed youth, future careers and the importance of developing skills at the exhibition, which was the final in a series of 8
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four to take place across the Liverpool City Region. Hundreds of attendees gathered at The Heath, Business & Technical Park in Runcorn as exhibitors showcased opportunities, and also offered the chance to try hands-on activities and learn by experience about new careers. Meanwhile apprentices were on hand to share their experiences of the career path with attendees. Hosted by the Liverpool City Region Apprenticeship Hub, Halton Skills Show was organised by AllAbout STEM.
Cllr Eddie Jones (second from left) at the Liverpool City Region Apprenticeship Hub stand.
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Latest News Jackie Hardy (Damar) with JB Leitch’s learning and development officer John Kelly and HR manager Penny Simister.
Downing welcomes two new tenants at No.1 Old Hall Street Developer and landlord Downing has welcomed two new tenants to its No.1 Old Hall Street office scheme in Liverpool. Peak Accountancy Training and recruitment firm Intern Europe Ltd have both agreed to take Flexi-Office suites at the commercial district address. Peak Accountancy, which also operates in Chester and offers courses in accountancy and bookkeeping, will occupy 650 sq ft. Meanwhile existing tenant Britannia Movers has recently expanded into a larger suite to support its continued growth. Elsewhere in the building, work on a new 5,100 sq ft Grade A office suite is said to be nearing completion. John Clegg, head of property
management at Downing, says: “No.1 Old Hall Street is one of the most desirable addresses in Liverpool’s commercial district and we’re very pleased to have welcomed new tenants to our Flexi-Office suites here. “We’re looking forward to helping Peak Accountancy, Intern Europe and Britannia Movers settle into their new office space and supporting their long-term aspirations for growth in the city. “Alongside this, our phased refurbishment project is progressing well at No.1 Old Hall Street and we’ll soon be opening our brand new entrance and reception facility, plus a unique opportunity for Grade A office space in the heart of Liverpool’s business district.” A refurbishment project has been underway at No.1 Old Hall Street
Liverpool law firm crowned employer of the year A Liverpool law firm is celebrating after being named ‘Employer of the Year’ at Damar Training’s 2019 Apprenticeship Awards. JB Leitch Solicitors was honoured at the awards which celebrate the achievements of apprentices, their employers and line managers. A record number of entries were received from across more than 500 employers and 2,000 apprentices that Stockport-based Damar has worked with over the past year. Commenting on JB Leitch’s win, Andy Hull, the firm’s operations director, says: “We’re delighted to be named 'Employer of the Year' in this year’s awards. “Our apprenticeship journey with Damar began in 2014 and has been a true success story both for us as a business and for our apprentices in developing their careers in all areas of the firm. "We will continue to build upon this success and look forward to a long partnership with Damar Training.”
DEADLINE LOOMS FOR THIS YEAR’S NWPAs ENTRIES Property firms have just weeks to enter 2019’s NWPAs to be in with a chance of winning a prestigious regional award. The deadline is approaching for this year’s 13 free-to-enter categories, which will celebrate the North West’s top developments and industry stars. Accolades include the ‘Community Award’, ‘Best Commercial Let’ and ‘Regeneration Award’ to name a few, as well as the inaugural ‘Best Property and Construction Accountancy Business’ title. Entries close on 26 April, and winners will be announced during a glamourous black-tie evening of entertainment and awards presentations. Backed by headline sponsor Stewart Milne Homes, the ceremony will take place on 10 October at Lutyens Crypyt in Liverpool Metropolitan Cathedral. Kim O’Brien, director of Move Publishing which organises the NWPAs, says: “Preparations for another spectacular NWPAs celebration are in full swing and we’ve already received a brilliant response to this year’s diverse range of categories. “It’s free and easy to enter the NWPAs, which will recognise the fantastic work that’s taking place across the region’s property sectors, so don’t miss your chance to be a part of the celebrations.” This year’s associate sponsors include Redwing Living, Redrow Homes and X-Press Legal Services. For more information on how to enter and opportunities at this year’s NWPAs, visit www.nwpas.com.
13 awards can be entered for free MOVE COMMERCIAL
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News Latest DOMINANT BREXIT IS HIDING COMMERCIAL PROPERTY ISSUES, SAYS AGENT Continuing Brexit uncertainty is affecting commercial property decision making and hiding pressing industry issues according to a Liverpool agent. John Barker, partner at Hitchcock Wright & Partners, suggests business rates, taxation, rising pension costs, local authority funding and infrastructure works are all being overshadowed by Britain’s departure from the European Union (EU). He claims that whilst business rates are not the sole challenge for retailers they’re “undoubtedly impacting on high street activity,” adding: “The system is long overdue for overhaul and perhaps a fairer approach may be a local sales tax/turnover. “Regular re-valuation does help but phase reductions takes too long to work through.” The commercial property expert also explains that “with greater emphasis placed on the tax
payer, there are increases in costs through greater administration” when it comes to taxation and making tax digital. In addition, Barker believes restricted local authority funding, especially in planning departments, is “reducing their effectiveness and slowing the development process whether it be through change of use, regeneration or new build”. Meanwhile required infrastructure works which “appear to take an inordinate length of time” impact on the “economic activity of those affected and general delays in transport”. Barker tells Move Commercial: “Property investment and transaction activity continues but there’s hesitation in some quarters as uncertainty over Brexit may be affecting the market. “By all accounts there’s a weight of capital waiting in the wings for an opportune moment to invest, with some parties seeing Brexit
John Barker, partner at Hitchcock Wright & Partners
uncertainty as an opportunity as there may be less competition in the market with others waiting because they don’t know what the pricing is going to be post-Brexit. “There’s a view that any reductions in price now or post-Brexit will only be short lived due to the weight of capital available for investment. That said, those who spot the best buying opportunities or have the skill or luck to spot the highs and lows of the market will succeed. Sellers may also hesitate of disposing for the same reasons and therefore the market begins to slow down.”
Construction start date for Knowsley’s Shakespeare North Playhouse
Shakespeare North Playhouse works are underway.
Construction has begun on Prescot’s highly anticipated multi-million pound Shakespeare North Playhouse. It’s hoped the theatre and education centre, which will celebrate Knowsley’s links with Elizabethan drama and William Shakespeare himself, can attract hundreds of thousands of new visitors to the borough every year. The initial work, which started on 8 April, will require the closure of Mill Street for around five weeks to allow for the diversion of the existing drainage in and around the site and the installation of new drainage. Once this is complete the current hoardings will be moved to reduce the width of Mill Street, which will still allow pedestrian access to Mill Street but limited traffic access. Following this, concrete piles forming the structure of the playhouse will be installed and then the site will be excavated in preparation for the main phase of construction work. 10
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A series of key dates has been confirmed as the project takes shape: • From 8 April part of the Mill Street car park will be closed to the public as it will be used for the site compound. Access to the remainder of the car park will still be possible via Leyland Street. • From 15 April, Mill Street will be temporarily closed for around five weeks. After this it will be open for pedestrian access but restricted traffic access. • During April part of the bus station on Prospero Place will be closed to pedestrians, with a temporary bus stop located close to Church Street and temporary pedestrian access will be made available to access Eccleston Street. Initial enabling work will last approximately 18 weeks and will be followed by the main phase of construction work for the playhouse which is expected to open in spring 2021.
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MSB raises funds and awareness Key event Staff wrapped up warm for the lunchtime walk.
MSB team backs World Autism Awareness Week Staff at Liverpool-based law firm MSB Solicitors helped raise funds and show support throughout World Autism Awareness Week with a range of activities. Team members wrapped up warm and braved wet weather for a lunchtime sponsored walk to boost donations for the charity Autism Together, which provides services and support to people with autism and their families. At other points during the week, MSB employees dressed in blue during Autism Awareness Day and rounded off their efforts with some sweet treats as a cake sale took place, collecting further cash for the Wirral-based cause. Meanwhile the firm, which united employees from all three of its offices in Liverpool city centre, Allerton and Wavertree to show support, also provided autism refresher training for members of staff. Emma Palmer, a partner in MSB’s family department and the disabilities champion within the firm’s equalities committee, says: “We have a lot of people within MSB as well as clients and contacts who are affected by autism so it’s something that means a lot to us. “The reaction we’ve had to our [World Autism Awareness Week campaign] both within MSB and externally has been greater than we could have imagined.”
Delicious cakes were sold to raise funds.
Team members wore blue on Autism Awareness Day.
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Appointments
Hamid leads new Brexit Council
Darren Barwick and Emma Carey
Raft of promotions at MSB
Associate solicitor Darren Barwick has become a partner at growing Liverpool law firm MSB Solicitors, bringing the total to 15. The property law specialist, with expertise in secured lending as well as commercial property, previously worked at MSB from 2010-14 and rejoined the firm last year. His partnership is one of several promotions at the firm. Commercial team solicitors Philip Coburn and Chris Hayes, who joined to bolster MSB’s services for SMEs, have stepped up to senior associate positions alongside Wendy Eves from the family department. Meanwhile property solicitors Laura Harrild and Esme Poulter progress to associate solicitor titles. Managing partner Emma Carey says: “I’m committed to developing in new and niche areas of the law, and the combined experience and expertise of the individuals here will be key to us doing that.”
JB Leitch appoints associate Property law firm JB Leitch has welcomed a new Richard Moose associate to its technical and complex department. Richard Moose joins from Abensons and brings a wealth of commercial litigation experience with a strong property bias. Moose spent his early career in construction before qualifying as a barrister, and has also worked at Lees Lloyd Whitley and Storrar Cowdry before spending several years as an independent legal consultant advising the insurance industry on high value commercial applications. His advocacy skills and previous exposure to the insurance industry are expected to “add solidity” to JB Leitch’s commercial property caseload. Business owner and principal solicitor Jonathan Leitch says: “Richard joining us is a real boon to JB Leitch and I’m confident he’ll make a significant contribution to our continued success.” 12
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Asif Hamid MBE is chair of a new Liverpool City Asif Hamid Region (LCR) Brexit Council, aiming to safeguard the region’s business interest as the UK leaves the EU. The LCR’s Local Enterprise Partnership, of which Hamid is also chair, is the driving force behind the council. The group, made up of numerous public and private sector leaders including St Helens Chamber chief executive Kath Boullen, will support businesses and offer co-ordinated responses to local and national government on the area’s progress and challenges. Hamid says: “The Brexit Council has been a massively positive step by the business community in Liverpool. “There’s a real need for us to work together to consider the opportunities as well as any risks that leaving the EU will present.”
Ask adds to team
Ask Real Estate Limited has appointed Sarah Woodmaney, Jamie Hill and Sarah Harry Rodick Woodmansey as a development executive to work on its current portfolio and pipeline schemes. Having joined the firm from Kier Group, she’ll support the delivery of developments including Manchester’s Viadux. Harry Rodick has also joined the team on a graduate placement having completed his final year studies at the University of Sheffield, and core Ask team member Jamie Hills has been promoted to development director. Managing director John Hughes says: “Sarah joins us at a very exciting time for the company as we continue to explore opportunities in cities across the North as well as driving forward with the delivery of our current live projects. “We’re also really pleased to announce Jamie’s promotion to development director. Jamie is a valued and well respected member of the team and has been instrumental in enabling us to deliver some of the city’s landmark commercial developments over recent years.”
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Natasha Young natasha@movepublishing.co.uk
As Downing continues to refresh another prominent Liverpool city centre office building, property manager John Clegg reflects on the contribution the firm has made to workspace in the city and looks at what lies ahead.
Always developing A desire to keep busy and make progress is somewhat of a driving force behind property firm Downing’s business decisions. The Liverpool headquartered firm has sold a number of the city’s prominent commercial buildings in recent years, but not before investing the time and money to transform them into the viable workspaces they’ve become. Even the architectural gem that is the Port of Liverpool Building – one of the waterfront’s much-loved ‘Three Graces’ – couldn’t tempt the company to keep it within its portfolio once the mission to breathe new life into the landmark was accomplished. Following works to bring the prominent asset up to Grade A equivalent standard, it was acquired by an international investor for in excess of £27 million in 2015. “Dry investments are not something [founder] George Downing is interested in,” explains John Clegg, head of property management at the company. “We hold [properties] if we need to but we’d rather be doing something.” In terms of the Port of Liverpool Building’s overhaul, doing something meant “absolutely everything,” recalls Clegg, pointing out that Downing’s ambitious multi-million pound scheme dealt with reviving the Grade II-listed property’s striking dome right down to 14
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the lining of its basements. “We’d just bought that building when I joined the company and it was in a shocking state of repair – there was water pouring everywhere, everything you could think of, and nothing worked,” says Clegg, who became part of the Downing team in 2005 as it expanded with an in-house property management function. “When we finally sold the Port of Liverpool Building it was with great reluctance because it had an emotional attachment for us and broke our hearts really, but it was the right thing to do,” he adds. “And when we did sell it, with all the occupants like Rathbones which is a major tenant there and had expanded a few times, it was around 96% let. “I don’t think that would have happened without us – it was just sitting there, doing nothing and tenants were leaving, and I think without someone like Downing it wouldn’t have had its fortunes turned around.” Clegg suggests Downing’s multi-faceted operations as a developer, construction company and property manager have helped it take on such projects and enhance numerous buildings’ contributions to the Liverpool office market. “We can do things quicker and more lightly on our feet, and we have every discipline you need under one roof,” he
explains. “That’s got to help.” Other Downing commercial success stories in the city, all of which are initially said to have “required a lot of work”, include Hope Street’s mixed-use Federation House, which was similarly transformed on a smaller scale before being fully let and then sold to the Robert Smith Group for £2.25m. Derby Square’s Graeme House office building was also snapped up by M7 Real Estate for £8.07m having been upgraded and overhauled to include workspaces including the firm’s Flexi-Office suites. “Graeme House is one which we sold last year, and that was more than 90% let again and we just couldn’t do any more with it,” says Clegg, who previously spent more than 15 years working within Liverpool City Council’s estates department with roles ranging from estate management to regeneration. Whilst the offloading of such sites has seen Downing increasingly shift its focus to the student accommodation sector it has always had a hand in, current involvement in the office market appears less widespread but no less vital to Liverpool. A continuing project to bring No.1 Old Hall Street right up to date for business occupants and make it “live up to its address” has already attracted a Pret A Manger coffee shop to the site,
“
Dry investments are not something George Downing is interested in.
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and a refreshed reception area with access to a new Grade A-style 5,100 sq ft office is on the way. The office, opposite Moorfields station in the heart of Liverpool’s commercial district, is heading to the market as a lack of workspaces fitting the highest specification continues to be a challenge for the city. “It will make a difference,” says Clegg. “It’s only one building at the end of the day, but because of where it is I think it carries quite a lot of importance.” Liverpool’s 2018 Office Market Review, released earlier this year, reported the highest office take-up in the city’s commercial district since records began, with an extra 583,084 sq ft of occupied space in the hub around Old Hall Street. The research, in turn, highlighted the lack of vacant Grade A space now available in the central area, with concerns also being raised over the “limitations” the existing stock has to fill the void through refurbishments. Clegg is a little more optimistic about the current state of Liverpool’s offering though. “I think you have to be careful with the numbers,” he says. “For example [the Liverpool Office Market Review] says the supply is down to just over 700,000 sq ft and that’s halved in three years and only half of that is ready to occupy.
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John Clegg, property manager, Downing Interview
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No.1 Old Hall Street is only one building at the end of the day, but because of where it is I think it carries quite a lot of importance.
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“That’s true, there’s nothing wrong with that, it’s just that a lot of the stock we used to have in the city was not fit for purpose so to me it’s not a great loss and it has left us with a better tone of space. “Again, we have no Grade A space but some of that is down to definition as anything after five years is no longer considered Grade A space, but to my mind there still is Grade A space with the likes of St Paul’s Square and No.1 Old Hall Street. “What we don’t have is a big chunk of Grade A so whilst we can provide 5,000-10,000 sq ft lettings, and I think there were three over 20,000 sq ft last year, we can’t provide 100,000 sq ft or a bigger stream of investment enquiry or a consolidation exercise like HMRC has done in the past. “We can’t do that readily now so it’s right to point out that we do need more Grade A, but there is some.” According to Clegg, it’ll take time for Liverpool to find a solution which can meet 100,000-150,000 sq ft Grade A demands. “The only one really on the table in the commercial district is Pall Mall and it looks like that will happen but it won’t happen immediately. “Then if anyone else wants to dip their toe in the water, whilst rents are growing and rent-free periods are coming down it’s not really the rents you need to make it work, so we’re still some way short on our headline rents on what we need.” Downing, which now has a predominantly student accommodation focused “very strong pipeline” of schemes spanning from London all the way up to Edinburgh, is not ruling out further ventures into office and commercial schemes in the future. “I think we’ll always look at anything but things changed in Liverpool with the residential conversions, where office stock that wasn’t picked up which we might have looked at suddenly became more valuable and had more bidders on it,” says Clegg. “By then we’d already started to shift our focus back to students, just because of the way the market was and the opportunities that were there, so right now that’s where our pipeline is and that’s what we’re doing but everything changes.
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Centric House unveiled Key event
The new-look commercial district building
New offices unveiled at revamped Centric House CERT Property has unveiled new office space in Liverpool’s commercial district during a recent breakfast launch event. Liverpool City Council officials and office agents from around the city were among those who attended Centric House, following an extensive rebrand and refurbishment of the building. The 27,000 sq ft site, which has brought workspace to the lettings market, has already attracted recruitment firm Proactive Personnel to occupy space on the ground floor. Meanwhile flexible office provider Citibase has taken more than 80% of level two in the building. Designer NoChintz was appointed to help overhaul the former Barclays bank office on Moorfields, which is also said to be attracting interest from other potential tenants including larger and smaller businesses since works
were completed. Howard Lord, managing director of CERT Property, says: “We are very pleased with the new identity we have given Centric House, previously a hugely neglected building. “Liverpool is a vibrant city that has huge potential and a supply shortage of quality office space. “This is about to change as we launch four floors of adaptable and serviced office accommodation in the heart of the city. “We are in final talks with other prospective tenants and will be able to announce further deals soon.” Centric House is the latest project for CERT Property, which is continuing to expand its portfolio across the region and now owns office and residential spaces across Liverpool and Manchester as well as Nottingham. Citibase, Colliers International and B1 Real Estate are marketing the property.
Property management specialist Paul Shakeshaft and global head of sales Hugh Davies (both CERT Property) with Colliers International’s director of development, Andy Delaney.
Andrew Owen, owner and director of Worthington Owen, with B1 Real Estate partner Jonathan Baucher and Citi Property director James McNeil. MOVE COMMERCIAL
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Natasha Young natasha@movepublishing.co.uk
In these challenging times for high street retailers, stepping up the in-store experience is considered key to the success of a bricks and mortar presence. Beauty brand Lush has long understood the importance of captivating customers in its physical shops and, following the launch of its world’s biggest store in Liverpool, tells Move Commercial how it keeps giving shoppers a reason to walk through its doors.
Next Level Experience The full-sized Hair Lab
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So many people are investing outside of London into their estates and it’s such a great thing to do.
A hub of fragrances and perfumery books 18
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Experiental retail Focus
Spread across three floors, the sprawling 1,380 sq m Lush Liverpool shop and spa is not only a symbol of the brand’s commitment to the city but a platform for its creativity. “The aim is to provide the next level of service, the next level of innovation and the next level of development of Lush for our customers,” Ellen Peters, Lush’s UK and Ireland property manager, tells Move Commercial. More than a point to purchase the retailer’s famous bath bombs and other handmade cosmetics, the new Church Street store has brought to fruition a range of concepts that are said to have been ideas within the company for years. A permanent florist greets shoppers, who can also receive hair treatments and cutting services in the destination store’s ‘Hair Lab’, or find exclusive fragrances and perfumery books in the ‘Perfume Library’. “The flower concept has been one of Mark’s [Constantine, co-founder] goals since he first set up Lush because it’s always about the freshness and local
sourcing,” explains Peters. “We’ve always used fresh ingredients in our products so it’s just about expanding that concept. “Mark’s history is in haircare and tri colouring, and this is also our first store with a full-sized ‘Hair Lab’ in it. “Just like with Lush Spa, which first opened 10 years ago, it uses the products from the store and adds the experience of doing it with the customer there and then. “We’ve had a Hair Lab experimentally in Poole [where Lush was founded] for a long time to develop the concept to a stage where it could go into a store.” Five times bigger than Liverpool’s previous Lush shop and spa branch on Whitechapel, the retailer’s third incarnation in the city has also made way for a party area, a tea/coffee kiosk and a record shop for visitors to explore. The unit, which was left vacant by Arcadia Group fashion chains Dorothy Perkins and Burton, is said to have provided the right place at the right time for the brand to progress its growth and innovation plans.
“It’s such a beautiful building and a key location on Church Street, surrounded by some really great innovative retailers in Liverpool,” says Peters. “So many people are investing outside of London into their estates and it’s such a great thing to do. “The size came at a time when we thought ‘we need to be reaching to that next level – we’ve got the reputation now, we’ve got the ability to take on a unit that’s so large, we have the concepts ready to fill it, we have the amount of products needed, we have the innovation that’s needed for it, we have the best designers to possibly fit it out and we have the best construction teams’.” Peters believes what has been achieved at the new Lush Liverpool will “help innovation as a whole” for the brand, however it will by no means set the mould for every large-scale Lush branch moving forward. Whilst the retailer aims for product and service consistency throughout its shops, which in the UK range from just
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The Hair Lab uses the products from the store and adds the experience of doing it with the customer there and then.
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Natasha Young natasha@movepublishing.co.uk
The make-up section
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The high street is so important to our business and you can’t shrink your way to success.
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20 sq m to the mammoth size of the latest opening, stores are tailored to work for their locations. “We’ve got a large store opening in Japan and a large store planned for Munich, not necessarily on the same scale and they’ll be fitted out differently to Liverpool – we’ll try new things in them,” adds Peters. “It’s just about not resting on your laurels and saying ‘the customer’s always been happy with this’. Just because they’re happy doesn’t mean they don’t deserve something more.” Whilst Liverpool is, according to Peters, regarded as a city which has shown “so much passion for Lush as a brand” over the years, it is also valued by the chain for its credentials as a magnet for visitors. “For us as a brand Liverpool is such a key location for tourism, especially with it being such a cultural capital with so many people who are tourists every single year and know about Liverpool’s reputation for shopping,” adds Peters. “Hopefully this [new store] enhances our global presence; [tourists] get to come and see something new and then go back to their local stores and engage with us there as well or engage online. “I can’t see it doing anything but amazing things for the brand.” Amid ongoing reports of big high street names falling into administration
Lush has been looking to introduce a florist for some time
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Experiential retail Focus
The record shop at Lush Liverpool
A spa is based on the third floor
or taking measures to scale back on their costly physical presence, the large-scale expansion of Lush in Liverpool shows a somewhat different, more successful side to the current retail sector. “The high street is so important to our business and you can’t shrink your way to success,” says Peters. “As much as there is some fear around the economy in general at the moment in retail, I don’t think it’s a bad time to be investing in your brand. “If anything, it’s more important than ever to show customers right now why they should visit the high street and I think if every single retailer on the high street did that then we would be much stronger for it.” Peters suggests a current rise in online retailers developing a physical presence does bring optimism for the sector, whether they’re trying small or large concepts, pop-ups or more permanent new stores. “There are other people on the high street who are innovating or giving customers what they want,” she adds. “It’s a shame to see retailers aren’t performing as well as they were historically but it’s also great to see that loads of the retailers with an online presence are choosing now as the time to enter into bricks and mortar estates, and that new entrance into the high street is really important.”
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It’s more important than ever to show customers right now why they should visit the high street.
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Technology
Darren Barwick, partner at MSB Solicitors, tells us about the gadgets and apps he can’t live without.
Five tech must-haves LinkedIn
iPhone
It’s amazing to think LinkedIn has been around for more than 15 years. I’ve been on it a while, but there was a period when people seemed to question what the point of it was. That’s changed now and it’s unusual for someone from the business or professional world not to be on it. It’s a fantastic resource for making and maintaining professional contacts, it offers great articles in my professional field and the option of joining groups most relevant to my work. Contacting someone for the first time through Facebook might feel a bit inappropriate, but on LinkedIn it’s perfectly acceptable.
Fitbit I’m a keen runner and have always been into fitness generally, and at MSB there’s a strong ethos around health and wellbeing. We’re all encouraged to take the best care of ourselves and when you’re busy and under pressure of work it’s easy to neglect that. Fitbit is such a simple device, allowing you to track your physical activity, diet and sleep patterns. Getting that little buzz from the device when you hit your goal for the day can give you a real lift and sense of achievement. Of course it doesn’t do the exercise for you that’s still down to you!
We pretty much all have smartphones now and it’s easy to take for granted just how integral they’ve become to both our professional and personal lives. I like how Apple makes it easy to hold contacts and other content across multiple devices via the cloud. Losing my phone wouldn’t be the disaster it once might have been. All the content can be immediately accessed on my iPad or MacBook. I just wish the battery lasted a bit longer.
Evernote (app)
It’s become something of a ‘Wild West’ social media platform and, as a professional, Twitter is a place you step into these days with a degree of caution. However, it still offers huge value for sharing a positive message about your business. The team at MSB is super active on Twitter and we’re really good at ‘liking’ and ‘sharing’ our posts and that makes a real difference. I also love the immediacy of Twitter. If you carefully choose the right accounts to follow you can stay up to date with what is happening in the world, and in your locality.
Technology has transformed the business world but sometimes it feels like we have too much information at our fingertips. I’ve been looking at what apps are out there to help store and save content for future reference. I came across ‘Evernote’ which allows you to clip pieces of information from the web and tag them for easy searching. You can then add to or import pictures, tables, audio and video. You can use it to make notes, journals and even store tweets and emails you want to keep. It’s like having an electronic notebook that allows you to find things instantly. MOVE COMMERCIAL
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Lawrence Saunders lawrence@movepublishing.co.uk
As a Confederation of British Industry (CBI) report warns of a “growing digital divide” in the UK and George Osborne labels digital connectivity as “crucial” to the Northern Powerhouse, Move Commercial examines the North West’s high-speed credentials.
Staying Connected At the back end of 2018 the CBI published its recommendations for the government to improve the rollout of current and future digital connectivity across the UK. 'Ready, Set, Connect' expressed fears that without the right spending, the UK risks “further embedding a digital divide between regions, and rural and urban locations”. Fast-forward to February 2019 and digital infrastructure was once again on the agenda as George Osborne unveiled 10 recommendations for the Northern Powerhouse in his role as chair of the Northern Powerhouse Partnership (NPP). Number seven on the NPP’s ‘Next Steps for the Northern Powerhouse’ called for full-fibre broadband to be brought to every home and business in
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the North’s top 30 towns and cities by 2025. Whilst the ‘top 30’ locations are not mentioned, and the roll-out timeframe appears more than a tad fanciful, the NPP’s report does nonetheless highlight a genuine need for an increased full-fibre or Fibre to the Premises (FTTP) network in the region. Unlike the more commonplace Fibre to the Cabinet (FTTC) method, FTTP is a 100% pure fibre connection and links homes and businesses directly to telephone exchanges without utilising the existing copper cabling. Eliminating the ancient cable from the network means FTTP can support speeds of up to 1,000 megabits per second (one gigabit per second), combined with near limitless
bandwidth and reliability. According to the latest data from independent broadband site thinkbroadband, just 4.23% of residential and commercial premises in the North West are currently served by full-fibre. This compares to 9.68% in London and 11.22% in Yorkshire & Humber. Study the figures further and two North West boroughs are found languishing in the bottom 20 for FTTP coverage. A minute 0.2% of properties in Sefton and St Helens currently have access to the gold standard web connection. Our two metro mayors have talked big on high speed digital connectivity Andy Burnham vowed to turn Greater Manchester into a top five ‘European Digital City Region’ whilst Steve Rotherham pledged the Liverpool City Region will become the UK’s “digital gateway for the fourth industrial revolution”. “Our ambition is to move from a current [FFTP] coverage of 2/3%, to 25% within three years,” says John Steward, digital infrastructure lead at the Greater Manchester Combined Authority (GMCA).
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Infrastructure, including digital infrastructure, is key to ensuring that we can be competitive not just nationally but internationally.
“ The body is utilising full fibre funding from local authorities, matched by cash from the Local Full Fibre Networks (LFFN) Challenge Fund, to connect public sector buildings and assets. Once a network of around 450km is established, GMCA’s hope is that private investment will step in to extend it further to homes and businesses. “It’s up to the market to build off that but we know from other cities that this has happened,” explains Steward. “What we’re trying to do is create the conditions for the private sector to invest - using public sector procurement as an anchor to allow that to happen.” Meanwhile in the Liverpool City Region, plans to deliver a £23 million, 284km ‘full-fibre network superspine’ which will connect its six boroughs are said to be moving quickly with spades expected in the ground by the end of the year. A key objective of the Liverpool City Region Combined Authority's Digital Infrastructure Action Plan, the superspine will interlink several strategic regional assets including the GTT transatlantic internet fibre optic cable landing at Southport, the Hartree
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North West’s high-speed connectivity Focus
Photo: iStock / alphaspirit
Centre at Sci-Tech Daresbury and Knowledge Quarter Liverpool. “Infrastructure, including digital infrastructure, is key to ensuring that we can be competitive not just nationally but internationally,” says Liverpool City Region Metro Mayor Steve Rotheram. “That is why we are not sitting around waiting for central government to act but have taken matters into our own hands.” Another Liverpool-based body which has been proactive when it comes to digital connectivity is the Baltic Creative CIC. Established in 2009, the company bought and refurbished 18 warehouses in the then semi-derelict Baltic Triangle. Baltic Creative now owns more than 100,000 sq ft of commercial space in a district which has become known across the country and beyond as a place for tech, gaming and software businesses. Digital House on Norfolk Street is the CIC’s latest development – a refurbished 19th Century Victorian warehouse designed specifically with digital tech tenants in mind. A tech-focused space like Digital
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We’ve waited too long for improved connectivity via the normal internet service providers (ISP).
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House simply wouldn't have been viable at the beginning of the Baltic’s renaissance. “We've waited too long for improved connectivity via the normal internet service providers (ISP),” explains Mark Lawler, managing director at Baltic Creative CIC. “They didn't respond to business needs and as such Baltic Broadband now provides improved broadband connectivity not just in the Baltic but across the city centre. “The Baltic Triangle via Baltic Broadband has its own ISP and internet exchange. “I guess it's what Baltic does best innovate and provide solutions to problems where they exist.” In rural Cheshire, another part of the North West long bereft of superfast internet, broadband provider Tatton Tech - part of East Cheshire’s largest private landowner, the Tatton Group specialises in supplying full-fibre to some of the region’s most difficult to reach areas. Originally headquartered in Knutsford town centre, Tatton Group owner Henry Brooks wanted to move operations back onto the family’s
several thousand-acre estate. However, the property's notoriously poor digital connectivity initially presented a major stumbling block. “That’s when the idea came about of installing a fixed wireless wide-area network across the estate,” explains Janet Nuzum, chief operating officer of Tatton Tech. “We put a fibre link into a location which gets beamed across the estate via a network of rebroadcast stations. That's what started the whole thing off. “A solution was found and it was decided to replicate the system across other rural areas which struggle.” Nuzum, who describes dependable internet as a “human need”, says there are plenty of pockets across Cheshire which still suffer from slow speeds and believes enviable digital connectivity is crucial to retaining skilled workers. “We want a more even playing field,” she adds. “We want to keep this net of employees within the Cheshire region and stop people going out to Manchester or Liverpool. “Having that digital infrastructure adds to the quality of life and the local economy as well.” MOVE COMMERCIAL
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Natasha Young natasha@movepublishing.co.uk
Renationalisation Focus
Carolyn Fairbairn suggested alternatives to renationalisation during her Roscoe Lectures speech in Liverpool.
CBI director-general proposes reform of UK’s infrastructure and services The Confederation of British Industry’s (CBI) director-general has suggested ways to get UK infrastructure, utilities and public services back on track. Carolyn Fairbarn proposed “concrete proposals for reform” during a recent visit to the North West, as she delivered the second of Liverpool John Moores University’s 2019 Roscoe Lectures series. Addressing audience members during the event at the city’s Royal Court Theatre, Fairbarn suggested that whilst it is right to question the current running of the likes of the rail network and water companies, renationalisation isn’t the way forward. “During last year’s crisis on the railways, Northern Rail was forced to cut 170 trains services a day,” said the leader of the influential business organisation. “Energy bills are likely to increase, despite the government’s price cap. And though water companies have cut leaks by a third since privatisation, we still lose three billion litres a day. Water ultimately paid for by us, through our bills. “So, we agree. These industries are not always working as they could and should.” According to Fairbairn though, renationalisation would harm “anyone who pays into a pension, donates to one of our big charities or participates in an employee ownership scheme” as those are often the investors behind such companies as opposed to “unaccountable fat cats of fiction”. “Take the water company that supplies Liverpool,” said Fairbairn, who took the CBI position in 2015. “It’s 70% owned by pension funds, charities and employees.”
CBI director-general Carolyn Fairbairn with Mark Power, interim vice-chancellor and chief executive of LJMU. 26
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In her address, Fairbairn went on to say that whilst the privatised system “doesn’t get it all right,” doing away with competition all together “would be like throwing out the baby and keeping the dirty bath water”. “First, an idea to make things work better for consumers,” explained the director-general, putting forward the CBI’s proposals for reform. “What if, instead of letting customers pay more than they need to, they were automatically moved to the deal likely to be best value for them at the end of their contract, based on how they’ve used the service in the past? Many would benefit, and it would be a powerful tool for driving efficiency. “Rail companies pay automatic compensation - a full or partial refund for a journey that went wrong. Perhaps our utilities sector can pay automatic compensation for power cuts or water shortages? It would help put things right. But it would also provide another incentive not to let things go wrong in the first place. “Second, it isn’t right when shareholders are paid at
the expense of investment that would benefit consumers. Dividends to shareholders should be stopped when a company fails to meet its commitments to customers or anyone else, and the cash should instead be diverted to address the areas where customers are being let down, until things improve. “Third, I always believe that the best business decisions are local decisions. Where a company is providing a service in a region, town or city it should also draw upon the talents of that town or city. “Perhaps a train company bidding for a franchise should have to demonstrate how they will work with small businesses in the places the line serves; contribute to the local environment; and provide apprenticeships and other opportunities for local people. “It would be the precise opposite of the centralised, nationalised model in which the big decisions are taken not in the area where they have their effect but in a distant arm of the state in Whitehall.”
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