Office development drives the market as QS firms get in position

The commercial property sector is picking up and QS and PM firms such as Franklin + Andrews are gearing up to take advantage of the emerging opportunities.

Private sector activity increased in both October and September, according to a survey of the UK market by property agent Savills.

Within the sector private office projects are growing the most, while retail and leisure development is weakening. Mat Oakley, head of commercial research at Savills, said: “We expect further growth in the private office sector as our conversations with developers indicate a strong desire to capitalise on the perception that the office markets, particularly in London and the South East, are on the verge of a substantial recovery.”

F+A has revealed plans to build up business in the commercial sector and particularly in hotels. Andrew Williams, managing director of F+A, said he had charged Mike Travers, recently appointed head of commercial property, with extending pockets of commercial expertise within the group geographically as far as possible. He aims to recruit people with commercial cost management skills, while also training internal staff in the commercial market.

The project management and QS arm of PRP Architects has also hatched a plan to move into the commercial sector. Head of PRP Project Services Philip Murphy told QS News he planned to expand the firm’s traditional focus on affordable housing into mixed use developments.

Both Murphy and Williams said they saw the private sector as a key growth area.

Savills’ Total Commercial Activity Index showed a robust increase in development activity, posting 57.1 for October. September’s performance was even stronger, with a five-month high of 58.3. Private sector activity has now been improving for 29 consecutive months, said Savills.

The survey found London was continuing to underperform the rest of the country in growth terms. Activity is rising at the strongest pace in the rest of UK, where 35% of firms surveyed reported improvement.

Activity on public sector projects was also found to be increasing but at a less marked rate than in the private sector. However, public sector growth in October was the strongest it has been since February.