SURVEYORS JOURNAL V O LU M E 9 I S S U E 4 W I N T E R 2019
RETAIL REALITIES
ALSO IN THIS ISSUE INTERVIEW: BOBBY KERR SCSI NATIONAL CONFERENCE REGIONAL FOCUS: ENNIS
NEWS
CONTENTS
PRESIDENT’S MESSAGE
FEATURE
EDITORIAL
INTERVIEW THE LAST WORD
REPORT
4
n Editorial
5
n Business news
6
n Shake up and smell the coffee
12
n At your service
16
n Retail realities
18
n Raising the Banner
20
n Future work
22
n Managing the standard
24
n Building for better
26
n Society news
30
n Surveyor profile
33
n The last word
34
SURVEYOR PROFILE
Society of Chartered Surveyors Ireland, 38 Merrion Square, Dublin 2. Tel: Email: Web:
n President’s message
01-644 5500 info@scsi.ie www.scsi.ie
www.scsi.ie Views expressed by contributors or correspondents are not necessarily those of the Society of Chartered Surveyors Ireland or the publisher and neither the Society of Chartered Surveyors Ireland nor the publisher accept any responsibility for them.
EDITORIAL BOARD
PUBLISHERS
Tom Dunne Chairman John Costello Costello Commercial Tom Cullen Think Media Brian Gilson Lisney Ann-Marie Hardiman Think Media Frank Harrington Smith Harrington Patrick King SCSI Edward McAuley SCSI Paul Mooney Benchmark Property Paul O'Grady Think Media Rowena Quinn Hunters Andrew Ramsey Module Surveying and Design Ltd Sarah Sherlock Murphy Surveys Paddy Shine Dublin City Council Claire Solon Greystar Ireland John Vaudin Round Hill Capital
Published on behalf of the Society of Chartered Surveyors Ireland by Think Media
Editorial:
Design:
Advertising:
Ann-Marie Hardiman Paul O’Grady Colm Quinn Tony Byrne Tom Cullen Niamh Short Paul O’Grady
ETTERS, COMMENTS AND ARTICLES WELCOME All submissions will be considered by the Editorial Board: editor@scsi.ie
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
3
BUILDING THE FUTURE
W
IT HAS BEEN A BUSY AUTUMN FOR SOCIETY STAFF AND MEMBERS ALIKE.
ith conference and events season truly in full swing, I had the pleasure of meeting members at our September Property Seminar, and at our National Conference in November. Our Young Surveyors Annual Dinner was a huge success thanks to Catherine
Connolly, YSCSI Chair, and the wider Committee, as indeed was our PMFM Conference in Croke Park. Attendance and engagement at these events were exceptional this year, and I would like to thank everyone who attended and organised – I do hope you enjoyed yourselves. Last year, our National Conference focused on encouraging connectivity and joined-up thinking. This collaboration is the foundation we needed to progress to the next stage: Building for Better, the theme of our National Conference this year. Building a more sustainable future is a goal we must face with action and accountability. The Society needs to lead the way, and to empower members to connect with opportunities to learn and share ideas. Better buildings help to build better communities and, as we heard at the Conference, with our population expected to increase dramatically in the coming years – an additional one million by 2040 and a further million by 2050 – the need for urgent action is clear. That’s a 42% increase, but crucially, 75% of that growth is earmarked to take place outside Dublin. Over 360 attendees heard how we need to focus on balanced growth, design-led densified living, and to build at scale. The challenges are daunting, but they also provide opportunities for Irish society to build a sustainable future, a future in which surveyors will play a critical role.
New year, new start We have faced challenging times over the last quarter. The “two Bs” – Brexit and Budget 2020 – have dominated our conversations inside and outside of work. It is easy to feel fatigued and overwhelmed by these issues and the conversations surrounding them. Therefore, I encourage all our members to take a real break over Christmas to recover, rest and reflect on the year gone by. I hope that we can all return in 2020 re-energised, and ready to face these challenges with renewed vigour. On this note, we are incredibly excited to kick off the New Year with our new Chief Executive, Shirley Coulter. Shirley joins the Society from The Bar of Ireland (Law Library), where she was Director of Membership and Public Affairs. I know Shirley is looking forward to getting to know our members, and to working with the Board and SCSI staff to support and promote the highest professional standards, to ensure that the profession is strongly positioned to meet the challenges that lie ahead. We look forward to seeing you in 2020. POPULATION EXPLOSION
PRESIDENT’S MESSAGE Johanna Gill President
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SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
Ireland’s population is set to rise by two million people by 2050.
SAVING THE HIGH STREET
WATER WATER EVERYWHERE, BUT NOT A DROP TO DRINK
RETAIL AT BOTH MACRO AND MICRO LEVEL IS A FOCUS FOR THIS EDITION.
I
think readers of this issue of the Surveyors Journal will be particularly interested in the interview with Bobby Kerr. Well known for his engagement with high streets, and for his thought-provoking radio programmes covering
the issue where he talks to people at the coalface, Bobby makes some insightful points about what can and should be done. This chimes with the awareness of many
equivalent to:
practising surveyors across the whole of the island, and the recent work done by the SCSI on the topic. The decline of high streets is not confined to towns in rural areas, as is evident from Bobby’s observations about his home town of Dún Laoghaire and the potential of increasing residential conversion as a solution there. Bobby also says that the current rates model should be scrapped, and notes that the SCSI could use its expertise and influence to come up with a workable rates model. Certainly, putting this together with the dysfunctional Local Property Tax, and the need to properly resource local authorities, there is a need to reform the funding of city and county councils. Lest readers think it’s all over for retail, Neil Bannon’s article, which considers what’s happening in retail in Ireland, provides some informed insights. Neil notes the prevailing negativity associated with retail, which does seem pervasive. Drawing however on his own experience, Neil observes that whereas the demand for retail units in Ireland has dropped due to the current retail recession in the UK, there is an increasing presence from European retailers, a trend he says will be reinforced by Brexit. This is something positive and points to Ireland’s future, with an economy more closely integrated with the EU and less of an extension of a dominant nearest neighbour.
EDITORIAL Tom Dunne Editor
The recent boil water notices affecting parts of Dublin, Meath and Kildare have once again raised the issue of our water infrastructure. Source: www.thejournal.ie; www.citizensinformation.ie
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
5
MODULE WELCOMES NICKY MACKIN
NEW DEVELOPMENTS AT MYHOME.IE
MyHome.ie has announced a number of new features, implemented for both users and agents. The company states that it has recently posted record numbers of visitors, with an increased number of property searches and property alerts delivered. MyHome.ie relaunched its website during Surveying and design practice Module has announced the appointment of
the summer.
Nicky Mackin to its expanding team. Nicky will work alongside Director of
According to MyHome.ie, among the new features it offers are: bigger
Professional Services Andrew Ramsey. According to Module, Nicky is an
images; local insights, featuring market trends for an area; and, more
experienced surveyor with a solid background in technical due diligence,
information on properties and their surrounds, such as neighbourhood
dilapidation surveying and area measurement reports. Andrew
guides, schools, amenities and transport links.
comments: “I’m delighted to welcome Nicky to Module as we expand our
In late August, the company launched its weekly estate agent newsletter,
team and foothold in the market. It is great to have someone of Nicky’s
which it states is in a bid to keep people up to date and informed about all
calibre join us and assist in providing that extra service to our clients”.
that is happening not only on MyHome.ie, but in the wider property market. This coincided with a new marketing campaign. The site also launched its Property of the Day feature on the home page, new map search features and its Inside the Showhouse segment. According to the company, this coincided with an increase in leads, more agents advertising on the site, and the biggest engagement rates for any property platform on social media. MyHome.ie states that it has a range of offers on the way for agents before the end of the year and new plans on social media.
NEW HIRE AT SCOTT MURPHY Scott Murphy Chartered Building Surveyors has announced the appointment of Simon Ray as a senior Chartered Building Surveyor. Simon joins the practice following a twoyear stint in New Zealand, where he was employed as a Chartered Building Surveyor at Veron Building Consultants in Auckland. There, he was mainly engaged in defect diagnosis and contract administration on largescale domestic remedial projects, focusing on weathertightness and passive fire issues. Prior to that Simon was with international consultancy Colliers in their London office. Stephen Scott, Director of Scott Murphy said: “We are delighted to announce Simon’s arrival at the practice to supplement our existing team of building surveyors. Simon’s breadth of experience across a range of sectors and services will only enhance our ability to continue to provide a first-class service offering for our many clients”.
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SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
CLAIRE SOLON APPOINTED MD AT GREYSTAR IRELAND Claire
Solon
was
recently
appointed Managing Director of Greystar Ireland, responsible for
private
rental
sector
(PRS) operations within the country. global housing,
Greystar leader offering
is in
the rental
expertise
in investment management, property
management,
and
development and construction worldwide. The company is actively seeking development and investment multi-family and student opportunities within the Irish market, with a main focus on Dublin. Prior to joining Greystar, Claire was Head of Property at Aviva, where she managed commercial funds of over â‚Ź600m, and was responsible for strategy formulation and implementation within the extensive property portfolio. Claire has held roles as Head of Estate Management for ESB, and Development Director in Bennetts. She is a past President of the SCSI.
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SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
A LOGICAL EXPANSION
REFURBISHMENT FOR MAZARS
Logical has announced the appointment of architect Marian Kelly and building surveyor Matthew Flood to its team. The company states that it has spent the past five years growing its contracting and fit-out division, and both Marian and Matthew will be instrumental in driving this growth in the months ahead. Managing Director Barry O’Halloran states: “It
The Building Consultancy has completed the refurbishment
was important to us as a small business to
of Mazars’ Irish headquarters.
have a big ambition, and one of those was
Mazars’ 35,000 sq ft Dublin office is located at Block 3, The
expanding our business from consulting to
Harcourt Centre, Dublin 2. The Building Consultancy states that MEETING CLIENT NEEDS Logical has recently appointed building surveyor Matthew Flood and architect Marian Kelly.
over seven phases, and within an eight-month period, it
were asked to manage not only their consulting requirements but also their
new cellular office spaces, meeting and conference rooms, and
contracting and fit-out needs”.
staff showers. Mazars Ireland is a professional services firm
Logical has also recently launched a fire safety business as a direct response to
specialising in audit and assurance, consultancy, corporate
customer needs. According to the company, this has proved to be a strong strategic
finance and tax. Based in Dublin, Galway and Limerick, Mazars
move as the business is already yielding significant results.
Ireland is part of an integrated partnership.
contracting. As real estate consultants, supporting our customers in all aspects of their business was critical, and increasingly we
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SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
completed the refurbishment works, including new mechanical and electrical installations, LED lighting, the construction of
SHAKE UP AND SMELL THE COFFEE DRAGONS’ DEN STAR AND FORMER CEO, CHAIRMAN AND CO-OWNER OF INSOMNIA BOBBY KERR IS PASSIONATE ABOUT IRELAND’S TOWNS AND WHAT CAN BE DONE TO REINVIGORATE THEM AND MAKE THEM VIBRANT PLACES AGAIN.
B
obby Kerr is an entrepreneur and broadcaster, who
Bobby is originally from Kilkenny, and his background got him interested in how
appeared on Dragons’ Den and hosts Down to Business on
Ireland’s small towns could be helped. He has also worked in commerce for most
Newstalk. Before he began life in the public eye and ear,
of his career and opened many shops all over the country. These circumstances
he was CEO, Chairman and Co-owner of the Insomnia coffee chain. He sold
mean that the decline in rural towns has affected him more than others: “I’m
his share of the business in 2018 to focus on other projects and says even
more interested because I’m saddened to see the demise. When you look at all
now, he never wakes up in the morning without something to do.
the boarded-up shops, you look at people moving to the cities, people moving out. You kind of wonder is this all just going to pass us by? Are we going to wake
A passion for towns
up someday and have no villages and wonder where it all went wrong?
Bobby shares a similar interest to the SCSI. He has a passion for the
“I would have grown up steeped in rural life. I would have seen small towns,
regeneration of Ireland’s small towns. The Society released a report last
small businesses particularly. My father was a businessman in the city of
year entitled ‘Rejuvenating Ireland’s Small Town Centres’. Bobby dedicates
Kilkenny and I would have had a great interest in the working commerce
one radio show in every five to this issue.
of a place like that”.
INTERVIEW Colm Quinn Journalist and Sub-editor, Think Media
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SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
His position as a respected broadcaster allows him to highlight the issue using a regular segment on his radio programme. He started it around eight years ago and it is called Your Town, Your Main Street, which involves him and his crew visiting a different town every five weeks: “We arrive into the town on the Friday. We bring a series of experts with us – town planners, retail experts, landscape gardeners – and they do a positive evaluation of the space and of the mix of retail, etc., and then we have an open broadcast on the Saturday morning, where all the traders come and all the business people and, indeed, people who aren’t in business. It’s not a business thing. We debate it and we talk about it and it has been immensely powerful. I know towns such as Ennis have been really grateful for us coming and almost being the glue that gets everybody spurred into action.
Life at sea
People really appreciate you coming. That’s what
Early in his career, Bobby worked for two years as a chef on
really surprises me, the actual value to the
oil rigs in the North Sea: “I worked there in the early eighties.
station for us physically going down is massive”.
The money was fantastic and we got paid in Sterling and lived in Dublin: two weeks on, two weeks off”.
Driven out of town
He worked across a range of oilfields: “I worked on the Beryl,
By opening shops in all corners of the country for
the Cormorant, and the Brent field. I was there for two years
years, he kept very connected to these issues: “I
and it was tough work but very well paid and it was the
also saw the damage that out-of-town shopping
school of life more so than anything else. Work hard, play
was doing to these main streets in our towns. It’s
hard. Two weeks of heaven, two weeks of hell. That was the
been happening for 20 years”.
cycle but it was good. I enjoyed it and the company I was with
Out-of-town shopping centres are just one of the
then transferred me to America, so I stayed with them
problems affecting Ireland’s towns, he says:
overall for nearly six years. It was great but I was out there
“Parking and restrictions is a second … I think
in 60ft waves and God knows what”.
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
13
you should forget about charging for parking. As
They’ve got a harbour development, which isn’t
a workable rates model. I think they’d be the
long as someone parks legally and doesn’t park
to everybody’s taste but at least it’s a
best placed and best qualified people to advise
there indefinitely, I think they should be allowed
development and it’s in proximity to the town.
and recommend on that”.
to park safely”.
You also have individual retailers, which aren’t
Bobby has spoken to the SCSI in the past and
If you are trying to get people to come into towns
chains, and the retail drag is short enough.
says: “I know lots of Chartered Surveyors and
to shop and use local businesses, he thinks it’s
If you look at my own town of Dún Laoghaire,
one of my nieces is studying it at the moment.
counterproductive to charge people. He gives his
the retail drag is one and a half kilometres.
I’ve a lot of friends in the business and people
local town of Dún Laoghaire as an example:
It should be a third of that. That’s all
I’ve worked with over the years, so I know lots of
“There’s seven parking wardens patrolling the
we need and then let people live in the other
people in it and I think it’s a great profession”.
streets waiting for someone to pull up and get
two-thirds. I saw something recently that
their messages or whatever it is they’re doing.
told me that if a shop has been lying idle
The long and winding career
That’s so counterproductive to promoting
for two years, you can acquire that shop
Bobby has had a long career in business and
retailing and business in a town”.
and convert it back into residential without
broadcasting, and a few accomplishments stand
It is important that towns and businesses are open
the need for planning permission. I think if
out for him: “I graduated in business and
to change and willing to deliver what people want:
that was to happen in Dún Laoghaire, it
catering in DIT, worked as a chef on the North
“You have to change according to the marketplace.
would solve two problems. It would bring
Sea oil rigs for two years, worked in Canada,
That’s one thing I learned a long time ago. If you’re
people back into the town centre, living there,
worked in America, came back and was the
in a small town in a shop waiting for someone else
and it would shorten the main street
managing director of Bewley’s when it had 50
considerably”.
shops. That was where I cut my teeth. I was 13
“
to sort out your problems, it ain’t going to happen”.
years there. I didn’t go out on my own until I was 38. I started with Perk, which became Insomnia
WHAT ABOUT RESTAURANTS? WHAT ABOUT BARS? WHAT ABOUT NIGHTLIFE? THAT’S ALL IMPORTANT IN THE OVERALL CHEMISTRY OF THE VIBRANCY OF A PLACE. I THINK TO LOOK AT IT AS A RETAIL-ONLY FOCUS IS A MISTAKE. IT NEEDS TO BE MUCH MORE THAN THAT.
and I’m very proud of the fact that I started with one shop and we ended up with 500 over a 20year period, which was a lot of work, a lot of twists and turns along the way but we got there in the end. I was very happy then to sell my part of the business to the existing management because I want to do a few new things. “I’m also very proud of my broadcasting career in Newstalk and Dragons’ Den, which I was on for four years. I did a maritime documentary called Along Home Shores, so I’ve done plenty of things.
He also believes that the towns that have a
The SCSI’s role
But I want to do lots more. I want to do a bit more
vision and collective thinking around the assets
The level of rates is an issue that Bobby
travelling, I want to do a few more bits, not all
that they have, and have some sort of plan for
believes is in need of an overhaul: “The current
business related. That’s the plan”.
their town “are streets ahead of the ones that
model should be scrapped. I think rates should
haven’t. I’ve seen towns where traders on one
be paid on the basis of a turnover-based
A bit about Bobby
street don’t talk to traders on another street
payment. They should only be paid on
Although not officially retired yet, Bobby plans to
and wonder why then they’re going backwards”.
businesses that have turnover … there could be
keep working while spending a bit more of his
With a lot of shopping now being delivered to
different bands of percentages agreed for
time on leisure: “I’m actively involved now in the
our doorsteps, town centres need to offer more
different types of shops, such as a convenience
Cliffs of Moher. It’s Ireland’s second busiest
options than retail: “What about restaurants?
store versus a furniture shop, whereby the
tourist attraction. It’s a UNESCO World Heritage
What about bars? What about nightlife? That’s
average
into
site. We’ve big plans for that, to make it even
all important in the overall chemistry of the
consideration. It seems to me to be crazy that
bigger and better than it is, and I’m going to be
vibrancy of a place. I think to look at it as a
it’s a better use for the property owner to leave
very involved in that. I’m excited about that”.
retail-only focus is a mistake. It needs to be
the upper floors of his building empty, so he
Bobby lives in Dún Laoghaire with his wife Mary
much more than that”.
doesn’t have to pay rates, than let somebody
and their four daughters and enjoys the
Bobby gives some examples of towns that
into them. Crazy stuff”.
pleasures life by the sea brings, being a keen
are doing well in the country such as Clonakilty,
This is an area where he believes the SCSI
sailor. He also owns a house near Key West in
Kinsale, Malahide, Westport and Greystones:
could use its expertise and influence: “I think
Florida and says he is going to spend more time
“If you look at somewhere like Greystones.
maybe they could help around coming up with
there and travelling around the United States.
14
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
spend
could
be
taken
AT YOUR SERVICE NEW REGULATIONS WILL SET HIGH PROFESSIONAL STANDARDS FOR THE MANAGEMENT OF SERVICE CHARGES.
T
he new Professional Statement for
Mandatory requirements
Service Charges in Commercial
1. All expenditure that the owner and manager seek to recover must be in accordance with the
Property, which will come into
effect on April 1, 2020, will be a major step forward in commercial property management and will, for the first time, set out mandatory requirements for SCSI/RICS professionals. It will
terms of the lease. 2. Owners and managers must seek to recover no more than 100% of the proper and actual costs of the provision or supply of services. 3. Owners and managers must ensure that service charge budgets, including appropriate explanatory commentary, are issued annually to all tenants.
reinforce the need for professionals involved in
4. Owners and managers must ensure that an approved set of service charge accounts, showing
managing these charges to perform their roles
a true and accurate record of the actual expenditure constituting the service charge, is provided
with professional scrupulousness, diligence, integrity and impartiality. Introducing
the
Professional
annually to all tenants. 5. Owners and managers must ensure that a service charge apportionment matrix is provided
Statement
with mandatory requirements underlines the SCSI/RICS’ intention to set the highest
annually to all tenants. 6. Service charge monies (including reserve and sinking funds) must be held in one or more discrete (or virtual) bank accounts.
level of professional standards, and recognises
7. For interest earned on service charge accounts, or where separate accounts per property
the demand in the market for such standards
are not operated, a proper and reasonable amount of interest calculated on normal
in the management and administration of
commercial rates must be credited to the service charge account after appropriate deductions
service charges.
have been made.
The service charge code, as it stands, is
8. Where acting on behalf of a tenant, practitioners must advise their clients that if a dispute
consistently one of the most downloaded
exists any service charge payment withheld by the tenant should reflect only the actual sums
documents from the SCSI website. Reference to
in dispute.
code-compliant clauses in leases is becoming
9. When acting on behalf of a landlord, practitioners must advise their clients that following
increasingly common and more acceptable to
resolution of a dispute, any service charge that has been raised incorrectly should be adjusted
landlords. Indeed, many landlords now require
to reflect the error without undue delay.
their managing agents to comply with the code. Following the introduction of the fourth edition,
Core principles
it is expected that the level of compliance across
In addition to the mandatory requirements, which represent the minimum acceptable standards
the industry will increase dramatically.
of performance, practitioners must also have regard to the best practice principles.
FEATURE Jerome O’Connor Specialist Service Charge Consultant, Mansard Property Consultants
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SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
1. Service costs n All costs should be transparent. Management fees
n The industry standard cost classifications should be used in reporting budget and actual expenditure.
should be on a fixed-price basis with no hidden mark-ups.
6. Occupier responsibilities
n Best practice recommends that services are procured
n Occupiers should ensure prompt payment of all
on an appropriate value-for-money basis, and that
legitimate service charge on-account and balancing
competitive quotations are obtained or the costs benchmarked. n Owners should not profit from the provision or supply of services.
charges. n Occupiers should recognise that the service charge provision of any lease has legal effect, and should ensure
that
any
representatives
involved
in
discussions, meetings, etc., have an appropriate level
2. Allocation and apportionments n Costs should be allocated to the relevant expenditure category.
of responsibility and authority to make decisions concerning service charge matters. n In recognition that value for money and maintenance
n The basis and method of apportionment should be
of quality standards will be enhanced through
demonstrably fair and reasonable to ensure that
partnership, occupiers should be proactive in assisting
individual occupiers bear an appropriate proportion of
owners in the operation and utilisation of services and
the total service charge expenditure that clearly
service systems – for example, by separating waste,
reflects the availability, benefit and use of services.
adopting energy-saving measures, etc.
3. Communication and consultation
7. Right to challenge/alternative dispute resolution
n While the owner has the right to set the standards by
n All new leases (including renewals) should make
which the investment will be managed, managers
provision for either party to require the resolution of
should consult with occupiers with regard to the
disagreements through the use of alternative dispute
standard and quality of service charge provision required. n Managers should communicate with occupiers to ensure that services are delivered effectively for the
resolution (ADR). n If the parties cannot agree a mediator or independent expert to determine the dispute, the President of the SCSI will, on request, nominate a suitable person.
benefit of all, and to ensure that occupiers understand what they can expect to receive and how much they
8. Timeliness
are required to pay.
n Communication and consultation between managers
n Managers claiming compliance with the principles of
and occupiers should be timely and regular to
this Professional Statement should be transparent in
encourage and promote good working relationships
demonstrating how they comply with it.
and understanding with regard to the provision, relevance, cost and quality of services.
4. Duty of care
n Managers should issue budgets to occupiers,
n Those certifying service charge accounts should
including an explanatory commentary, at least one
recognise that they have a duty of care to both owners
month prior to the start of the service charge year.
and occupiers to act with professional care, diligence,
Detailed statements of actual expenditure, together
integrity and objectivity.
with accounting policies and explanatory text, should
n The manager has a duty to manage the property, as well as a duty of care to both the occupiers and the owner.
be issued within four months of the service charge year end.
n There should be clear policies as to how the service charge will be managed.
9. Transparency n Transparency is essential to achieving good
5. Financial competence
communication.
n When issuing statements of accounts and/or certifying expenditure, managers should do so in a non-partisan
10. Value for money
spirit, acting as experts.
n Service quality should be appropriate to the location,
n The annual statement of service charge expenditure
use and character of the property. The aim is to
should be supported by an independent accountant’s
achieve effective, value-for-money service rather than
review.
merely the lowest price.
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
17
RETAIL REALITIES CONSUMER DEMAND IN IRELAND IS UP, BUT NEW RETAIL OUTLETS ARE FEW AND FAR BETWEEN, AND RENTAL GROWTH IS MODEST.
B
efore writing a piece on the retail market, I
The danger of comparison
Searching for common statistics in such
should address the elephant in the room:
Now that we have outed the evil internet,
widely different markets is dangerous.
retail has become a dirty word in the property
let’s consider what’s happening in
In a recent representation to a European
market. Investors are happy to buy private rental sector
Ireland’s
how
institutional investor, we were quoted
(PRS), sheds, hotels and offices without recourse to supply-
this compares to other markets in
vacancy rates that they had been
demand dynamics or potential technological disruption, but
Europe. Except that’s quite difficult.
sent indicating that Ireland suffered
they are spooked by retail. The impact of technology on
Retail is local and consequently direct
from similar vacancy rates to the
remote working is ignored in the office market, but the ability
line
different
UK. As Bannon is instructed on about
to buy from home has become the obsession of the
approaches across Europe and can be
25% of Ireland’s stock of shopping
investment community. Like many issues in the world today
very misleading. For example, in Ireland
centres and retail parks, we were able
the narrative has drowned out the reality. Retail real estate,
we have retail parks – collections of
to advise that our composite vacancy
like all other markets, is driven by the dynamics of supply and
large sheds beside big car parks where
rate was only 7%, significantly lower
demand. What has spooked the market is the arrival of a new
in most cases you can only sell bulky
than they had been advised, meaning
element of supply it doesn’t understand – the internet.
goods due to strict planning restrictions.
that either the stats they had been given
Online shopping is just another form of supply into the
In France they have a lot of retail
were incorrect or the rest of the Irish
market, another conduit through which consumers can
warehouses but they can sell anything
market is having a torrid time and the
purchase products and services. It has a different impact on
from shoes to deckchairs, and in most
owners of these assets should appoint
different products and services because some, such as
cases they are stand-alone boxes.
Bannon quickly to sort out their vacancy
music, are easily supplied online, whereas others like getting
In the UK, shopping parks with the same
issues. The same problems arise with
your hair cut or buying a cup of coffee are clearly not. Most
form of development but with much
respect to rates per square metre,
things we buy fall somewhere in between and can be acquired
greater open use are more common.
growth in rents and yields. Euro-wide
through multiple channels, and it is in this non-binary world
In Germany, the supermarket business
stats should be taken as a broad
that retailers are targeting consumers. A simple way to think
is dominated by discounters who in large
guideline only. We look beyond the
of the impact of online is as additional supply into the market
part rent their stores, whereas in Ireland
statistical morass to what makes retail
because, as with all markets, the supply-demand dynamic
around 90% of the supermarkets are
really tick, which brings us back to the
will ultimately determine value.
owner occupied.
supply-demand dynamic.
FEATURE Neil Bannon Chairman and Head of Consultancy, Bannon Property Consultants
18
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
retail
comparisons
market
expose
and
Stagnant supply Supply in the Irish retail market has been stagnant for over a decade. Other than a couple of stragglers that were committed to construction when the lights came on in the casino in 2008, nothing has opened and nothing new has been started. This makes physical supply very easy to measure. During the recession Bannon databased the entire market, and keeping it up to date to accommodate new supply has been depressingly easy. There have been some stand-alone supermarkets but the pace of new development here has also been light and mainly focused on openings by the discounters Lidl and Aldi. The mainstream supermarket players are currently opening stores at the rate of one every five years. Goodbody Stockbrokers measured the supply in the Irish market per capita in 2017, which showed us to be mid table in Europe, and 20% less than the UK. Strikingly, the US, where all the scary mood music is
“
STRIKINGLY, THE US, WHERE ALL THE SCARY MOOD MUSIC IS COMING FROM THAT THE INTERNET IS GOING TO KILL SHOPS, HAS SIX TIMES THE SUPPLY OF THE IRISH MARKET.
coming from that the internet is going to kill shops, has six times the
The current retail recession in the UK means that this demand has
supply of the Irish market. Think of the five biggest shopping centres
dropped dramatically. We lease a retail portfolio for Oaktree and Sigma
near you and then imagine there’s five more of each of them within easy
Retail Partners, and recent analysis of their portfolio shows that only 18%
reach and you get a sense of the oversupply in that market. Since the
of leasing has originated from the UK, with increasing presence from
Goodbody report the supply ratio has further improved as the population
European retailers. This trend is likely to be reinforced by Brexit.
continues to grow, whereas new retail supply is minimal. There are now
So, in summary, the Irish retail market is in good shape, largely full and
500,000 more people in Ireland since we last built a new shopping centre
supported by an excellent demand-supply dynamic in terms of consumer
and the pipeline for new retail centres is limited to the Special
demand and muted development. However, rental growth is modest as we
Development Zones (SDZs) where retail is required to match the large
wean ourselves off an over-reliance on the UK-based retailers. When
increase in housing supply.
investors will get over their irrational fear of the sector is anyone’s guess.
UK woes Since the low point of the recession in 2012, retail sales have grown by 34%, household disposable income has grown by 7%, and consumer savings are now at an all-time high, as is household net worth. Supply is stagnant but consumer demand has grown strongly, so rents should be charging ahead. But growth has been modest. The reason has been the poor demand for space from UK retailers. Traditionally, UK retailers dominated demand for Irish shops, in many cases squeezing out domestic players. By way of example, 11 shopping centres opened in Ireland in 2007 (Bannon let seven of them). They all opened fully let and UK retailers dominated, especially in the fashion space. In Athlone Towncentre over 70% of the space was occupied by UK-based retailers.
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
19
RAISING THE BANNER ENNIS IS THE COUNTY TOWN OF CLARE AND A €1.6M PROJECT IS ABOUT TO GET UNDERWAY TO REGENERATE ITS MEDIEVAL CORE.
E
nnis residential surveyor Tomás
There is not much industry in Ennis but its location makes it ideal for those who work in Ireland’s
Lees’ view is that the property
western cities but prefer living in a smaller urban area. Limerick and Galway are within easy drive
market is performing well in the
and the industry around Shannon and Shannon Airport is even closer.
town. However, he says that it was stronger last
Tomás says that the rental market in Ennis is starved for supply: “It’s so difficult for anyone on the
year: “There are seven or eight residential
ground down here. I had an open viewing of a two-bedroom apartment last Friday. The rent on it was
schemes ranging in density from 10 or 12
€850 and I think we had something like 13 or 14 people turn up. It’s really difficult, and it’s hard to see
houses to 50 houses. They’re selling but not at
how they’re going to tackle that because a lot of the landlords we have would have one or two units.
a great pace. I think that’s mirrored in a lot of
They’re accidental landlords more than anything and they’re selling up and moving out of things”.
satellite towns like we are”.
At the time of writing, an internet search on Daft.ie showed just 16 properties for rent in Ennis, while
A major transformation of the picturesque
there were 202 for sale.
medieval streets of Ennis town centre is due to get underway in early 2020. The Ennis
Issues in Ennis
Town Centre Public Realm Regeneration
While the proximity to Limerick and Galway offers job opportunities, those cities also offer shopping,
Project will see €1.6m invested in two projects.
which can take away from the retail in Ennis. But Tomás says there are steps that could be taken
One will regenerate one of the main shopping
that could kick-start retail: “I find rates a particular barrier for anyone to come in and set up or take
streets, Parnell Street, and its lanes and
a chance on anything. They’re excessive. To give people a chance to get going, I think if there was
bow-ways, and another will cover Barrack
some rebate or something done on that, it might entice people to come in and have a go”.
Square, Old Barrack Street, O’Connell Street
Tomás was asked where he would like to see Ennis in five years’ time: “The ideal scenario for our
and High Street.
own industry would be to have a functioning, level property market, where everyone gets a fair crack
Tomás says: “That’s starting in January or
at things. There’s talk again of wheels in motion for a data centre where Clare County Council has
February next year. That’ll really help that part
rezoned land outside of the town here for a proposed €400m data centre, in light of the Athenry one
of town. It’s a long time coming but it’s en route
that didn’t happen. Something like that would certainly be very welcome if we got someone in to
now. That’ll help rejuvenate it certainly”.
take that up … it would give the area a massive boost”.
FEATURE Colm Quinn Journalist and Sub-editor, Think Media
20
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
Rental and house prices Average three-bed semi asking price in
Parnell St redevelopment
Planning permission has
Co. Clare: €200,000; 11.7% increase on
€1.6m has been allocated to
been sought to build 68 units at
last year; third largest rise in the country
Clare County Council for the Ennis
Roslevan, off Tulla Road. Datcha
after Donegal and Westmeath. MyHome.ie Q3 2019 Property Report
Town Centre Public Realm
Construction wants to build one
Regeneration Project to rejuvenate
detached, 18 semi-detached and 41
Parnell St, Barrack Square, Old Average rent in Co. Clare: €858 (quarter-on-quarter
Tulla Road
Barrack St, O’Connell St and High St.
terraced houses, along with an apartment block of eight units.
change 3.1%/yearly change 11.2%). Daft.ie Irish Rental Report Q2 2019
Ennis Trad Fest Each November, the town holds the Ennis Trad Fest, which brings trad musicians from all over Ireland to different venues around the town and draws tourists for a celebration of Irish music.
M18
Ennis – a good base Ennis lies 20 minutes from Shannon, 30 minutes from Limerick and an hour from Galway. These are three main centres of industry in the west and many people living in Ennis work in one of these places.
Ballymacaula View
Ashline social housing
Sycamore Drive
€7.8m has been allocated for the
47 A-rated houses, with air
42 family homes are now
building of 40 social houses on this
pumps for heating. Phase 1, of
available here. There are
site under the Rebuilding Ireland
semi-detached houses, was completed in summer 2019. Phase
two-, three- and four-bed
scheme. Clare County Council
semi-detached and detached
recently won a court case against
houses available.
people opposed to the development.
2 is two terraces. The final phase will feature detached fourand five-bedroom houses.
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
21
FUTURE WORK
T
BUSINESSES AND PROPERTY PROFESSIONALS NEED TO WORK TOGETHER TO CREATE SUSTAINABLE WORKING ENVIRONMENTS THAT ATTRACT TALENT AND REDUCE CARBON FOOTPRINT.
his is a unique period in the history of the workforce.
Businesses recognise that they must adjust
Today’s workplaces employ as many as four different
their workplace landscape so that they
generations under one roof (Gen Z, Millennials, Gen X, and
competitively position themselves to retain and
Baby Boomers), all with distinctly different experiences and expectations
attract new talent by creating a workplace where
of what their ideal workplace should consist of. In addition, as
people want to work.
globalisation continues, the wage gap between the rich and poor nations
Businesses who engage in sustainable practices
is narrowing, and the cost and availability of qualified employees is
not only achieve happier employees, which leads
increasing while, simultaneously, competition for the most qualified
to increased productivity, but can also achieve
employees is also increasing. As a result of this, businesses are rapidly
greater profits as a result of operational
evolving their workplaces to embrace the diversification of the workforce
efficiencies. For example:
and win the war for talent. By 2025, Millennials (those born between 1981 and 1996) will comprise 75% of the total global workforce. Studies indicate that Millennials are looking for a workplace that not only offers prospects and great leadership, but also promotes workplace ergonomics and staff well-being, encourages collaboration and engagement, provides access to experiences, and champions environmental best practices. Studies have found that Millennials and Centennials are environmentally conscientious and have a strong desire to engage in best practice. According to a 2015 survey by the Society for Human Resource Management (SHRM), 51% of businesses that engage in environmental and sustainable practices attract top talent, and employees are more likely to stay longer with a company because of the organisation’s sustainability programme.
FEATURE Tara Giles Director, Aramark Property
22
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
n controlling air flow by monitoring the carbon dioxide level in the air will considerably reduce plant running hours and create a more welcoming environment; n providing shower facilities encourages active commuting and exercise; n providing breakout and relaxation areas and providing
healthier
food
in
the
office
restaurant/canteen can translate to increased energy levels and encourages staff wellbeing; and, n properly managing waste segregation and switching to LED lighting reduces carbon footprint and costs. In addition, sensors can provide insight into workplace practices in real time. The sensor data, when analytically compiled, can aid operational decisions and workplace efficiencies.
“
ORGANISATIONS HAVE TO SHIFT THEIR MENTALITY FROM CREATING A PLACE WHERE THEY ASSUME PEOPLE NEED TO WORK, TO CREATING AN ENVIRONMENT WHERE PEOPLE WANT TO WORK.
JACOB MORGAN, FOUNDER OF THE FUTURE OF WORK COMMUNITY.
Workplace sensors Occupancy monitoring
document, drafted by the managing agents, is a
Motion sensors under desks and in meeting
supporting occupiers on their sustainability journey.
rooms measure real-time occupancy. This data
This guidance document, which should form part of
can be used to determine what meeting rooms are
the tenant handbook, is intended to provide the
available and how many desks are unoccupied
occupier with realistic measures that will make a
within a particulate date period. This information
difference to the environment, as well as delivering
can be particularly valuable to businesses that are
cost efficiencies within their business. The inclusion
approaching a break option or lease expiry date,
of this guidance document in the tenant handbook
and are reviewing their business requirements in
demonstrates a landlord’s shared commitment to
terms of quantum of floor space. For example,
delivering sustainability best practice.
good reference document for steering and
does a business need the volume of floor space currently being occupied? Is there a reduction in
Landlords’ sustainability plan
desk occupancy due to increased remote working?
Developing a strategic sustainability plan forms a
Can a business reduce floor space or the number
framework for setting clear, specific and
of desks, and introduce a bank of hot desks?
measurable targets for the property, which will ultimately contribute to the occupier’s sustainable
Predictive cleaning
working environment, for example:
Motion sensors in bathrooms, meeting rooms and
n reducing energy consumption;
food service areas collect information about usage.
n reducing water consumption;
This can provide a more holistic approach to
n reducing waste going to landfill;
cleaning by allowing a facilities manager to deploy
n improving biodiversity;
a more cost-effective cleaning regime, which will
n improving occupier ambience; and,
ultimately improve productivity, and reduce costs
n improving on-site services.
and the unnecessary use of cleaning detergents. The sustainability plan must take account of
Environment monitoring
all stakeholder goals and commitments, i.e.,
Sensors located in various parts of a workplace or
environmental, social and corporate governance
building can measure humidity, CO2 and light to
(ESG)
ensure
for
accreditations, and this can only be realised and
employees. Temperature sensors can also add
achieved through continual engagement between the
value by monitoring the performance of the
landlord and tenant. An example of such
heating and cooling systems with a view to
engagement is a tenant travel survey, which might
controlling temperature at the desired set point.
identify the demand for common area bicycle storage
comfortable
working
spaces
commitments
and
sustainability
and shower facilities/drying room, and the need for It is important to note that the creation of a
improved onsite services such as bicycle repairs.
sustainable workplace does not rest exclusively
All stakeholders must engage and work together
with the occupier. Landlords also have a role to
to offer the highest-quality environment. This is
play and therefore it is essential that sustainability
critical to long-term stakeholder partnerships,
is integral to how property assets are managed.
which will lead to enhanced asset value for
A sustainability guidance
property investors.
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
23
MANAGING THE STANDARD A NEW INTERNATIONAL STANDARD WILL HELP FACILITIES MANAGEMENT PROFESSIONALS TO IMPROVE SERVICES AND BETTER SUPPORT THEIR CLIENTS.
I
am often asked: what is facility management (FM)? Most people don’t realise that
Management systems can be deployed for
if they are working in an office, visiting a hospital or going to any large building,
a variety of reasons, such as quality,
they are interfacing with many of the services, such as cleaning, security and
environment, health and safety, or work
building maintenance, that fall under the discipline of FM.
environment. These are not systems that
FM has grown over the last 30 years from being a back of house function that was often managed
should operate in isolation from each
across multiple departments to a strategically important function within an organisation.
other, but should be part of an integrated
According to Forbes magazine, the global outsourced FM market will be US$1 trillion by 2025.
business system. In many organisations, these
FM is a discipline that needs to balance the rapidly changing needs and demands of the various
systems are ‘controlled’ independently of each
stakeholders that it serves with effective, safe and sustainable business needs. It affects the
other, which leads to fragmentation and
health and well-being of all those who come in contact with an organisation, and covers a wide
inefficiency.
range of areas including occupancy costs (the second highest overhead in almost every organisation), health and safety, use of space, maintenance, security, cleanliness, environmental
How will ISO 41001 improve FM outcomes?
performance, and more.
This standard provides a framework for
FM delivers workplace solutions that assist organisations to attract and retain highly skilled
integrating the various disciplines and services
employees, and is an essential aspect of organisational success, which is why, in 2018, ISO
within FM. The PDCA method is used as a
41001:2018 was published. This management systems standard, with guidance, provides a
structure to ensure that policies and measures
framework to help the FM organisation continuously improve services, providing organisations
are optimised so that FM can support the
with a structure for FM that can be certified to international best practice.
objectives of the client (“demand organisation” in the use of ISO41001).
Why is a management system important for FM?
An important principle of this standard is that
Management systems are those activities that are used to anticipate, avoid or solve known
there is regular co-ordination between the
problems. As such, an FM management system is nothing more or less than a series of
senior management (leadership team) of the
agreements for policies and measures that form the basis for continuous improvement and
demand organisation and that of the FM
adaptation to the rapidly changing market. It is therefore not a static document but a systematic
organisation.
approach. The ‘Plan-Do-Check-Act’ or PDCA cycle is an important tool in this regard (Figure 1).
dialogue”, the objectives of the demand
Through
this
“strategic
organisation become clear and it becomes
FEATURE
possible for FM to align its strategy and policy
David O’Brien Managing Director and Co-Founder of Acacia Facilities Management
Figure 2 is taken directly from the standard. It
closely with those of its client(s). indicates the interrelationship between the demand organisation and the FM organisation.
24
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
“
BY IMPLEMENTING ISO 41001, THE FM ORGANISATION WILL BE STRATEGICALLY ALIGNED WITH THE DEMAND ORGANISATION AND THEREFORE WILL PROVIDE A PROACTIVE SERVICE RATHER THAN A REACTIVE SERVICE.
PROCESS LEVEL
It’s important to point out that for an in-house FM department, the demand organisation is the organisation that employs the FM team. By
implementing
ISO
41001,
the
FM
OPERATIONAL LEVEL
FIGURE 1: The Plan-Do-CheckAct or PDCA cycle is an important tool in FM.
organisation will be strategically aligned with the demand organisation and therefore will provide a proactive service rather than a reactive service. For example, through ISO
CORE BUSINESS STRATEGY SUPPORTED BY FM
41001, the FM organisation would have aligned
DEMAND ORGANISATION
its strategy to the business needs of the demand organisation, which could include
FM STRATEGY
(FM)ORGANISATION
expansion or contraction of the property
FM POLICY
10. IMPROVEMENT
portfolio. All too often the FM organisation is not aware of changes in the demand
IMPROVE
organisation’s requirements that will have a
ACT
material impact on the service the FM
9. PERFORMANCE MEASURE CHECK EVALUATION
department provides, which results in a reactive response that is inefficient and costly.
DO FIGURE 2: The interrelationship between the demand organisation and the FM organisation.
So who is behind developing ISO 41001? Technical Committee TC267 develops the ISO 41000 suite of standards. The Committee is
4. CONTEXT 5. LEADERSHIP PLAN FM PLANS 6. PLANNING 7.SUPPORT
IMPLEMENT 8. OPERATION
chaired by Stanley Mitchell who, when questioned about the standard, said: “Every company, big or small, has some element of
Why not get involved?
experts for the industry they work in. Without
facility management. It is a complex discipline
In June this year Ireland hosted the Technical
industry experts becoming involved in the
that directly affects everyone, as it is all about
Committee in the headquarters of the National
development of standards there wouldn’t be
the spaces that we occupy and how those
Standards Authority of Ireland (NSAI) in Santry.
any standards for us to use as international
spaces meet the needs of the people who use
Technical Committee meetings are held twice a
best practice guides for the development of
them on a daily basis. ISO 41001 is the first
year in different participating countries across
industry-specific management systems.
standard of its kind for facility management
the globe and this year was Ireland’s turn.
Becoming involved in standards development
and has the potential to make a real difference
Many people think of standards being
is a great way to network with experts from
to organisations by improving workforce health
developed and written by technocrats who are
across the globe, to understand the common
and safety, reducing their impact on the
supported by bureaucrats, which couldn’t be
issues that we have within our industry, and
environment, and making considerable cost
further from the truth in my experience.
to collaborate to develop internationally
savings and efficiencies”.
Standards are written by industry practitioners/
accepted solutions.
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
25
BUILDING FOR BETTER THE SCSI’S NATIONAL CONFERENCE TOOK PLACE IN A CROWDED MANSION HOUSE IN DUBLIN ON NOVEMBER 6.
O
Better rental Iain Murray of LIV Consult spoke on build-to-rent. Ireland stands to benefit from coming relatively late to this market, learning from ver 300 delegates from all branches of the profession
experiences in other countries. Diversity is key to build-to-rent – the
heard from an impressive array of speakers on the
market must supply every tenancy type from five-star to affordable
conference theme of ‘Building for Better: Better
rental, and every stage of life, from student accommodation to
Buildings, Better Communities’.
retirement housing, with appropriate services for each customer type.
Conference MC Valerie O’Keefe introduced SCSI President Johanna Gill,
Iain discussed the long-term nature of the investment in build-to-rent,
who gave a warm welcome to those present, saying she hoped they would
another game changer in an industry where the investment often ends
find the conference “enjoyable, beneficial and a bit inspirational”. Johanna
when a property is finished and sold. He said that getting from A to Z on
spoke about the changes Ireland has seen in the last 20 years, and what
a build-to-rent project is complex, but praised An Bord Pleanála’s
the next 20 might bring. One of the biggest challenges is sustainability,
Strategic Housing Developments (SHDs) as having been helpful for
which is no longer about lifestyle/personal choice, but affects every
the sector.
section of society. She said that better buildings are better for all stakeholders, as well as the environment, and surveyors are well placed
Better data for operation
to be part of the necessary change: “We need to think big, be ambitious,
Enda McGuane of Winters Property Management was up next to talk
start doing, make a difference”.
about managing building facilities through technology. He spoke about
She asked delegates to consider getting involved in the SCSI, even in a
building information modelling (BIM), and the level of planning needed
small way, saying that while it can be challenging, it is also very rewarding.
from the very beginning of a project in order to use BIM to its full
She thanked the event’s sponsors and exhibitors, in particular main
potential. He pointed out that in the traditional build-to-sell model,
sponsors Cushman & Wakefield and The Irish Times.
property and facilities management professionals typically come into the process at the end, and by then much valuable data has been lost.
CONFERENCE REPORT
Every professional group of the SCSI has a role to play in making sure
Ann-Marie Hardiman Managing Editor, Think Media
should be looking at buildings not just as physical assets, but as data
26
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
that the right data feeds into the right environment. He said that we assets, and recommended that the SCSI develop a business case for clients on the benefits of BIM.
Building better communities Oonagh McCutcheon of IE Domain Registry explained how rural communities are fighting back against the challenges of depopulation. She said that Irish businesses need to see online as an opportunity, not a threat. The Digital Town 2019 project was set up to harness the potential of online by collaborating with citizens, businesses and local councils. Oonagh gave examples from Gorey and Sligo; in ‘Silicon Sligo’, local tech companies, instead of competing for staff, formed the Tech North West tech cluster to market the region as a place with great employment and work-life balance. The Digital Town project will expand next year, and Oonagh asked delegates to speak to her if they wished to be involved.
BUILDING FOR BETTER From left: Dara Deering, CEO, Home Building Finance Ireland; SCSI President Johanna Gill; and, Marian Finnegan, Sherry FitzGerald.
SETTING TARGETS FOR DIVERSITY Anne-Marie Taylor, Programme Director of Balance for Better Business.
Building a better profession Gerry O’Sullivan of Mulcahy McDonagh and Partners, and Sarah Sherlock of Murphy Surveys, presented on the new international measurement standards. A number of groups have come together to develop the International Construction Measurement Standard (ICMS), the International Land Measurement Standard (ILMS) and the International Property Measurement Standard (IPMS). Practitioners will be mandated to use these standards in future, so it’s extremely important that they familiarise themselves with them. Gerry and Sarah summarised the main points of each standard, and said that the SCSI will provide training when the new documents are launched next year.
NETWORKING Over 300 members attended this year’s SCSI National Conference in the Mansion House.
Balance and diversity Anne-Marie Taylor, Programme Director of Balance for Better Business, talked about narrowing the gender divide at senior levels in Irish companies. The business case for gender diversity is well proven, including better financial returns, access to a larger pool of talent, and diversity of thinking. According to Balance for Better Business research, among Irish listed companies, only 16.4% of directors are female, 8.8% of executive directors, and 19.3% of nonexecutive directors. In the real estate and construction sector, only 19% of board members are female, and this shrinks to 5% of executive directors. Balance for Better Business asks companies to set action plans to achieve targets, and to broaden their search for board members.
BETTER IRELAND SCSI President Johanna Gill chaired a panel discussion, which featured (from left): Brian Moran, Hines; Iain Murray, LIV Consult; Marian Finnegan, Sherry FitzGerald; and, John Moran, Interim Chair, Land Development Agency.
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
27
“
THERE IS HUGE CHANGE COMING TO IRELAND, AND A GRADUAL RESPONSE WILL NOT BE ADEQUATE. THE POPULATION IS PROJECTED TO INCREASE BY 1M PEOPLE BY 2040.
their value, and compare very favourably to other housing in their respective areas, with strong residential development values (RDVs). Rachel Kenny, Director of Planning at An Bord Pleanála, spoke about what makes good planning. She emphasised the importance of mixed-use planning, saying that people follow jobs, so An Bord Pleanála needs to get jobs into a location, and balance housing and jobs with quality of life and the character of an area. She said that all aspects of planning – local, regional, national – need to work together, and that they currently don’t (although the appointment earlier this year of a Planning Regulator will help with this). An Bord Pleanála’s role is to make robust decisions leading to good development.
Better Ireland
John Moran, Interim Chair of the Land Development Agency (LDA), gave a
Better investment
wide-ranging address on how Ireland urgently needs to plan strategically to
The next segment looked at better investment, beginning with Dara Deering,
meet the challenges coming our way in the coming decades. John asked the
recently appointed CEO of Home Building Finance Ireland (HBFI). Dara
question: where do we want Ireland to be in 2040? He demonstrated different
said that HBFI has initial funding of €750m, which could potentially fund
options for how we could plan to develop infrastructure in different parts of
up to 7,500 homes over the next five years. Since its establishment in January
the country to address the over-concentration of jobs and people on the east
2019, HBFI has had 145 expressions of interest, which have led to 48
coast. He said that we need to work together to create new centres of activity,
full applications (90% of which are outside Dublin). A total of €102m in
but we need to decide where these will be because the LDA needs to know
funding has been approved for 513 homes across 15 schemes. Construction
where it should be buying land/building houses.
has begun on four of these and the first homes will be on the market
There is huge change coming to Ireland, and a gradual response will not be
before Christmas.
adequate. The population is projected to increase by 1m people by 2040. This
Ross Keeling of HSBC spoke on the evolution of sustainable financing. Green
means that we need to look again at density in our towns and cities in order to
loans must meet four criteria: they must be used for a green project (this can
create communities where people can live, work and play. He said that Ireland
be quite broad); they must have a defined process for project evaluation and
has acres of space in our cities, and much of the infrastructure is already there,
selection; there must be strict management of proceeds to avoid ‘green
but developing it and leveraging these resources, even if done efficiently, will
washing’; and, there must be reporting of the environmental benefits. Ross
be very expensive. Outside investment and borrowing will be essential, and in
said that it is easy to incorporate green products into existing financing, but
order to get that investment, we need a clear message on strategy.
recommended the use of external expertise. He said that HSBC has made a
This session ended with a panel discussion chaired by Johanna Gill, which
significant commitment to green loans, as have other financial institutions.
included John Moran, as well as Marian Finnegan of Sherry FitzGerald, Iain Murray of LIV Consult, and Brian Moran of Hines.
Better organisations For the final session of the conference, Dr Jack Golden talked about
Better legacy – better succession
leadership and talent management in organisations. Jack said that
After a well-earned coffee break, delegates returned to hear Derry Gray of
developing leadership talent requires robust recruitment practices, to find
BDO Ireland speak on succession planning in owner-managed and family
personnel who can adapt to how the business will change in future.
businesses. Derry shared the fascinating statistic that only 30% of family
He outlined an extensive process undergone by CRH to assess organisational
businesses survive to the second generation, and only 10% to the third.
capability. He said that both individual participants and the organisation
He strongly recommended seeking outside expertise to assist with the
benefitted from the process. It showed that the organisation had many
transfer, stressing the need to be mindful of family hierarchy. He talked about
strengths, and highlighted the areas where work was needed to build
the need to bear in mind that owners/founders often feel defined by the
resilience for the future. He concluded by pointing out that the rapid pace of
business, and may find it difficult to step back (although he said that female
change in the world today, with urbanisation, and demographic and social
founders seem to be less affected by this). He advised that there may be
change, has huge implications for businesses and their leaders, and
significant tax implications to business transfer that need to be addressed.
wondered what the implications of this would be for Ireland. Jack also chaired the final panel discussion, which included Lorraine
Better environment
McNerney of Ordnance Survey Ireland, Derry Gray of BDO, Dara Deering of
Tim Bennett of the University College of Estate Management (UCEM)
HBFI, and Aidan Gavin of sponsors Cushman & Wakefield. There was a lively
outlined research into two housing developments in the UK: Fairford
discussion on leadership and management, and the need to balance issues
Leys in Buckinghamshire and Poundbury in Dorset. The aim of the
such as confidentiality with the need to be as open as possible with
research was to see if housing developments that are built to a
employees about developments in the business, particularly in hard times.
high specification, and aim to produce sustainable communities, retain their value over time, and how and why this might be the case.
Read a more detailed account of the Conference at
What the research found was that these two developments have retained
www.scsi.ie/building_for_better.
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SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
MINISTER ATTENDS SCSI SEMINAR
CONSTRUCTION COMPETENCE WITH CIRI
The inaugural SCSI/AIB Construction & Property Insight 2019 Seminar took place on November 8 at the Maryborough Hotel in Cork. The Seminar featured a programme of speakers detailing strategic planning and Government policies for the delivery of residential homes in Cork. Pictured at the Seminar were (foreground): Emer Cassidy, Mortgage Manager, AIB;
BUILDING CONSTRUCTION STANDARDS At the CIRI stand at CIF Digicon at Croke Park were (from left): Antoinette Fay, CIF; Paula Thornton, CPAS; Patrick O’Donovan TD, Minister of State, Department of Finance and Department of Public Expenditure and Reform; Lorraine Hosty, CIF; and, Sean Downey, CIF.
and, Eoghan Murphy TD, Minister for Housing, Planning and Local Government. Background (from left): Harry Walsh, HW Planning; Derek
In 2014, the Construction Industry Register Ireland (CIRI) was established
O’Shea, Head of Development Finance, AIB; and, Tony Wallace, Chair, SCSI
as an online register of competent builders, contractors, specialist
Southern Region. (Picture: Michael O’Sullivan/OSM PHOTO.)
subcontractors and tradespersons to carry out construction work. Its objective is to be recognised as the primary resource used by consumers and industry professionals in public and private procurement of construction services. Today, the Irish construction industry still seeks a comprehensive solution to the challenge of identifying competence. That answer still lies in the CIRI being brought onto a statutory footing. The draft bill for the CIRI, which was published in 2017, defines competence as the submission of evidence/related works undertaken/relevant education qualifications that apply to categories for which registration is sought, or the employment of construction professionals with relevant experience/ qualifications applicable to the category for which registration is sought. Registered architect and elected Fellow of the Royal Institute of the Architects of Ireland (RIAI), Aidan O’Connor, has been appointed as Chairman of the CIRI Admissions and Registration Board by the Department of Housing, Planning and Local Government. Aidan stated: “CIRI has been a very positive initiative for the construction sector, and the Government, in recognising the role the CIRI is playing in improving standards, has committed to supporting its wider adoption throughout the industry. The CIRI has an extensive system of checking contractors to make sure that locals are hiring a reputable worker that they can trust”. As it stands, the CIRI is a positive initiative for the construction sector and consumers alike. Bringing the scheme onto a statutory footing would provide a comprehensive source for consumers and professional bodies to identify competent members who have demonstrated standards of quality, have the relevant educational training, and proven experience in any given sector of the industry. The CIRI gaining statutory recognition is key for industry and further promotes an enhanced regulatory environment with high standards being maintained.
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SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
NEW CEO FOR SOCIETY Shirley Coulter has been appointed as the new Chief Executive of the SCSI, taking over from Ă ine Myler, who left the position earlier this year. Shirley was formerly Director of Membership and Public Affairs with The Bar of Ireland, and has worked with both the Irish Medical Organisation and the Irish Dental Association. She will commence in her new role in January 2020.
MANAGING PMFM FOR BETTER The SCSI Property and Facility Management Conference was held at Croke Park in October and attracted
a
delegates.
large Speakers
turnout
of
addressed
issues of general interest in the plenary sessions and there were breakout sessions for commercial, residential and facility management specialists. Among
the
many
thought-
provoking presentations was one from Alan Fogarty of the UK
DOING WELL Alan Fogarty of Cundall spoke at the recent SCSI PMFM Conference.
company Cundall. Alan is a Chartered Building Services Engineer who led the implementation of the WELL Building Standard for Cundall’s London office fit-out, which was the first certified WELL project in Europe. To illustrate his point about the relevance of WELL Building Standards, he stated out that if 90% of your working life is spent in an office, the facility manager will have more influence on your health than your GP. David Browne of RKD and President of the RIAI made the point that the CSO is predicting an increase of two million in the population of Ireland by 2050. That means we need 35,000-40,000 new dwellings a year and currently we are building 21,000 a year. He argued that Ireland has to move from low-density urban housing to compact, dense and sustainable urban development. His conclusion was a simple one: bigger apartments would make apartment living more attractive. Hannah Dwyer of JLL Ireland outlined the figures underpinning the boom in office space in Dublin in recent years. In 2015, she said, there was one 15,000 sq. ft deal, while in 2018 there were eight deals of that size or greater. She also noted that the vacancy rate in office space in Dublin 2 is now estimated to be an almost unheard of 2%, which also explains why 5.4 million sq ft of office space is under construction in Dublin at the moment.
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
31
MEET THE TEAM IN MERRION SQUARE Kieran Garry
readers’ queries. Kieran says: “We’re always on the lookout for contributors
Kieran is the SCSI’s new Head of Communications, and as such is
so if you feel this is something you’d like to do, please do contact us”.
responsible for managing the Society’s external and internal
As well as advising the Society on strategic communications, Kieran’s
communications brief.
day-to-day work is devoted to availing of all opportunities
Having worked in journalism and public relations for more than 25
to promote the profession across all media
years, Kieran is one of the country’s most experienced PR professionals.
platforms. He is very much looking forward to
During his time in journalism he held senior roles at the country’s three
meeting members and hearing their ideas and
main national radio stations: RTÉ Radio One; Today FM; and, Newstalk.
stories:
He went on to join a leading PR company in 2008 as a senior consultant
“We want members to be fully informed on all the
and had responsibility for providing strategic advice and PR support to a range
topical issues of the day, while at the same time
of clients, including Topaz/Circle K, MyHome.ie, the Irish Dental Association,
ensuring that the Society is at the heart of public
and the SCSI. During that time, he helped to establish the very popular Property
debate on all the key issues pertaining to
Clinic column in The Irish Times, which has gone from strength to strength
property, construction and land”.
thanks to the commitment of SCSI members who give their time to deal with
Kieran’s email is kieran@scsi.ie.
WESTERN SHOOTING STARS
YOUNG SURVEYORS BALL
TOP STUDENT Amandy Jap received her graduate award at the SCSI’s National Conference in the Mansion House in Dublin. Pictured are (from left): James Lonergan, SCSI Director of Education & Membership; Western Region Chair Enda McGuane; SCSI President Johanna Gill; and, Amandy Jap.
The Western Region Committee sponsors three top graduate awards for students on accredited programmes across the region. This year’s award winners were: Karl Seville, BSc(Hons) Construction and Quantity Surveying, who received the award at Galway-Mayo Institute of Technology; Noel O’Murchú, BSc(Hons) Quantity Surveying, who
The Young Surveyors Group of the Society of Chartered Surveyors
received the award at the Institute of Technology Sligo; and, Amandy
Ireland (YSCSI) held its annual ball at the Mansion House in Dublin
Jap, BSC(Hons) Quantity Surveying, who was awarded the top graduate
recently. The Chair of YSCSI, Catherine Connolly (centre), is pictured
award at Letterkenny Institute of Technology. Heartiest congratulations
with incoming chair Bernie Morrissey and last year’s chair Ciaran
to all three – and indeed to all recent graduates – and the very best of
Gorham. Catherine, who is from Jonesboro, Co. Armagh, works with
luck in your careers.
Cushman & Wakefield in Dublin.
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SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
RENT PRESSURE MARY MCGARRY-MURPHY IS A DIRECTOR WITH WYSE, WHERE EVERY ASPECT OF LETTING RESIDENTIAL PROPERTY IS MANAGED ON BEHALF OF BOTH INDIVIDUAL AND CORPORATE CLIENTS.
W
yse has a large portfolio
that all property professionals working in this
of residential units for let
discipline stay fully informed and attend relevant
and offers both a let-only
CPD. You have to be up to speed with the changes,
service, and a complete letting and management
and you also have to educate clients and tenants”.
service.
of
Like many others in the sector, Mary has noticed
responsibilities, from securing suitable tenants to
an increase in individual landlords leaving the
completing all regulatory paperwork: “We like to
market: “The RPZ has had a huge effect on the
take the headache out of things for the client. We
market and this together with property taxes and
are involved with rent collection, tenant screening,
other expenses means that there is little incentive
lease, and legal obligations. We carry out periodic
for a private residential landlord”.
inspections to make sure the property is being
Mary feels this is not good for the market as
properly
This
encompasses
maintained,
we
a
deal
myriad
any
a whole: “The private landlord has an important
Originally from Sligo, Mary graduated with a
maintenance or refurbishment issues, and offer
with
role to play in the housing market and the
BSc from NUIG before moving to Dublin, where
a full checkout service at the end of the tenancy.
market needs a percentage of private landlords,
she completed the IAVI qualifications. She
Whether it’s one property or 100, the client gets
as well as the corporates providing purpose-built
joined Wyse in 1999 as Business Development
the same comprehensive service from us”.
accommodation”.
Manager, and was elected to the Board of Directors in 2001. She is a professional
Regulation and legislation
Crisis
member of the SCSI and RICS, and sits on the
In an effort to respond to the current housing
The current situation creates particular issues for
SCSI’s Professional Agency Committee. Mary
crisis, the Government has made significant
residential letting agents as they are faced with
lives in Greystones with her husband Kevin
changes to legislation and regulation in the
dozens or even hundreds of potential tenants for
Murphy. An active member of her local tennis
private residential letting market. Mary says that
each property. Mary says that while the decision
club, she has just completed a year as
the advent of Rent Pressure Zones (RPZs) in
ultimately rests with the landlord, as agents they
membership secretary. She is also a very
particular has changed the landscape, from
do all they can to assist in the process: “We will
enthusiastic hillwalker, and loves the beautiful
restricting rent increases to placing onerous
give all prospective tenants an application form.
coastal walk from Greystones to Bray.
conditions on landlords who are renovating
They send us copies of their work reference,
properties: “Rental law has changed so much and
previous landlord’s reference, and evidence that
quickly as you might have in other years. You
there’s a lot of responsibility now. It is important
they can meet the rental commitment. You look at
might expect that you’re going to get a percentage
the overall picture and screen the suitable
of your managed portfolio back every year to let
SURVEYOR PROFILE
applications before presenting them to your
again – and to get your fees in. We in Wyse are
client, who makes the final tenant selection”.
lucky – we’re managing properties and getting
Ann-Marie Hardiman Managing Editor, Think Media
On the flip side of this is the fact that for agents,
monthly commissions, but if tenants are staying
there’s a much slower turnover of properties:
on, then properties are obviously not coming back
“You’re not getting your vacant stock back as
on the market as frequently”.
SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
33
WORKING ON THE CHAIN GANG
T
BCAR CERTIFICATION IS NECESSARY, BUT IS THE CURRENT SYSTEM FIT FOR PURPOSE?
he Building Control (Amendment) Regulations (BCAR) have created greater awareness of compliance. They require mandatory appointment of competent persons, mandatory inspection
of works, and mandatory certification of works – each part of the building supply chain takes responsibility for its own work. All of these checks come together in the final assigned certifier and contractor sign-off: the Certificate of Compliance on Completion (CCC)
Food for thought A key element of certification is referencing, and this is worth thinking about. For example, prior to commencing works, a commencement notice/seven-day notice is submitted referencing the planning permission, and the fire and disability access certificates (as applicable), generating the Commencement Notice Number (CNN). This CNN is carried forward for the
remainder
of
the
BCAR
process, with no further reference to the planning permission, or the fire and disability access certificates. When work is complete, the CCC is issued, The CCC does not make reference to the original statutory
stating that: “The building or
approvals. Furthermore, it doesn’t reference the building address
works is in compliance…”.
– only the CNN. Where permission is granted subject to conditions, there is no confirmation of compliance. This
As part of a property transaction, certificates need to stand up to legal scrutiny. Certificates
ultimately raises concerns around what is actually certified,
with no reference to granted statutory approvals raise questions, which cause delays in
where a number of certificates relate to particular elements of
closing and requests for self-certification to reference approvals.
works, each valid in their own respect, but the overall building
The system must strive to create prima facie trust across all elements for the
may need to assimilate a number of certificates to cover all areas.
property market. It needs to be efficient, transparent and remove ambiguity. BCAR/Building Control Management System (BCMS) is a closed system – full details are open only to the parties involved in the original building or
THE LAST WORD
works. Yes, certification is provided; yes, there is a public register, but
Andrew Ramsey Professional Services Director, Module Surveying and Design Ltd
will always be an element of certificate examination. It’s not a perfect
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SURVEYORS JOURNAL Volume 9, Issue 4, Winter 2019
without a referencing chain that is visible to all within one certificate, there system; is it good enough?