The search for space

Good news! Just in time for spring, it appears that the doldrums of the commercial office sector may be over. According to the RICS, rents levelled in February, ending the long descent that began in 2002. DTI research confirms the trend as well, finding that construction orders in the sector are rising.

This will come as a relief to an industry beginning to wonder just how long the gravy train of schools and hospitals can go on.

Given that more work might be coming from this long-dormant sector, we thought it would be a good idea to get to know it again, so I pitched up at a conference in London to hear what three of the sector’s heavy-weights, BP, Citigroup and Reuters, were saying about their requirements and what they wanted from the industry.

So what did we learn? The good news is that developers are developing and some of the UK’s major companies are always on the lookout for good premises.

In terms of design, all have different needs, but the kind of building that ticks all the boxes is both flexible and environmentally friendly. It needs to be close to good airport or motorway links, light and airy and located close to partners or clients.

Big companies demand a lot from consultants and contractors, and the rewards are huge. However, those who fail to produce what they promise or have a poor health and safety record can expect to be blacklisted.

With that in mind, what can you do to catch the attention of large companies such as BP, Citigroup and Reuters?

Well, the first thing that hits you is that you are really dealing with the big boys. All the talk is about millions in turnover and jobs that take them to Nigeria, Asia and Azerbaijan. Get used to it: many of these companies have international offices and want you to be able to travel overseas.

It’s a bit like children’s playground chatter on a grander stage; a little “my toy’s bigger than your toy”. But with these guys, swap the word “toy” for the word “company”.

First up was probably the biggest player of them all - the smartly dressed and cuddly looking RIchard Paver, vice-president of Global Property Services for BP International.

Plans for this year already include leasing five floors of an office in Canada Square, its own development at Sunbury Business Park and a number of overseas projects.

Would-be partners must deliver projects safely. “Our number one priority is safety. It is not acceptable to us to hurt anyone in the delivery of a project,” he says.

Paver maintains he has often heard key players remark that accidents are part-and-parcel of the industry, but warns that this type of attitude will win you no favours. “If you operate that way, you will not be working with BP.”

Straight-talking Chris Strong, vice-president Real Estate, Citigroup, says that he expects consultants and contractors to work on a performance-based contract. Innovation and value are two key words that should be ringing in the ears for those wanting to work with Citigroup, says Strong. “It’s a big thing – consultants and contractors should be asking ‘how can we add value to this?’” he adds. They will also have to be patient, as approval for decisions by the company may be slow.

Citigroup would expect to form strong, lasting relationships, and will favour consultants that are able to offer services in Europe, Middle East and African Markets.

Next to take the stage was Peter Copley, Group Property Director, Reuters. And he was as sharp and direct as one of Reuters’ own journalists. This softly spoken man - although you get the feeling you wouldn’t want to mess with him - confirms that Reuters’ offices are concentrated in the main financial districts. It has also acquired offices in Canary Wharf, where it will relocate later this year. And Copley expects those he works with to demonstrate an understanding of the company’s needs and values as well as having a global network.

Copley adds that it will also be important to recommend others when your skills are not enough. And you will have to be able to offer advice without invitation. For example, he would not want to hear a comment along the lines of “you never asked me that”. Anyone who displays the qualities needed should expect repeat business, he says.