60 property
Will business parks age at the same rate as our aging population?
Vail Williams is sponsoring the Business Park of the Year award in our Thames Valley Property Awards. Here, David Thomas, partner, Vail Williams looks back over the growth of business parks and ahead to future trends
More than 10 million people in the UK are aged over 65 and this is estimated to nearly double by 2050. It is anticipated this will cause issues for employers in the UK as despite a growing global population, competition between employers will intensify trying to recruit from an aging population.
Leading futurologists suggest a ‘demographic divide’ will arise between countries with younger skilled workers and those that face an aging shrinking workforce. Putting this in context, one third of India’s population is under the age of 15 yet in Europe in 2010 more workers retired than entered the workforce.
By 2020 there will be five generations in the workforce from baby boomers to millennials/Generation Y – all of whom have very different outlooks on and experience in the way they live, work and interact.
All very well you say but what has this got to do with business parks? The first UK business parks are approaching their 30th birthdays – we haven’t worked out in detail the equivalent in ‘dog years’ but would estimate they are probably in their mid 40s; their inhabitants quite comfortable with their commute to work – always driving so plenty of car parking; traditional environments; used to lack of amenities as everyone brings their own sandwiches; close to motorway junctions to provide fast access home to suburbia and their 2.4 children.
Recruitment and development of new key talent is the key driver with terms emerging as ‘employer of choice’, ‘best workplaces’, ‘best company to work for’ as accolades and prizes that are fiercely fought for in the war for talent. Business parks are therefore going to have to change and adapt to ensure they remain competitive as currently there is an overwhelming trend towards urbanisation by major companies to ensure they are in prime position to recruit new talent.
Many major companies based in the Thames Valley and home counties which would have traditionally been viewed as suburban stalwarts have over the past few years slowly and surely been sliding teams and offices to London in their search for skills. Why should this happen? Access to
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So is it time to start a collection for a gold-plated carriage clock for UK business parks? Not necessarily – depending on their ability to engage, adapt and serve all five generations. Property experts at Vail Williams have looked at the major south east business parks, conducting a health check to determine how fit they are to accept the forthcoming challenge of increased generational load.
Five key areas have emerged from this analysis that can be broadly categorised with five honest men: who else is located there? (co-location of brands); what is on site? (amenities on site including gyms, crèches, hotels, shops, cafes); where is it? (access to motorway network and public transport); when is it available? (availability of flexible product); and how much? (the price differential).
Those parks that offer the most comprehensive answers to the above questions are those which boast the lowest vacancy rates, the most cohesive brand identity and consequently the best opportunity for staff retention and satisfaction for the occupier, as well as rental growth for the landlords.
In the context of the above, no business park will ever compete with the pull of a major
THE BUSINESS MAGAZINE – THAMES VALLEY – SEPTEMBER 2013
Details: David Thomas 0118-9097404
dthomas@vailwilliams.com
maximum possible labour pool; the ‘Google effect’ – co-location with like-minded companies; excellent transport links to bring in this wider labour pool; amenities on the doorstep allowing choice of food, gyms, banks, and the perennial search for fresh ground coffee or speciality teas.
city. However they will compete between themselves and to this end, as with the baby boomer racing toward retirement, their key to survival will be the ability to adapt to the new working environment, embrace change and learn to work with and appeal to the widest possible demographic.
Thomas specialises in advising occupiers on the acquisition; relocation strategy; workplace utilisation; transaction management and disposal of real estate across the UK; and advises landlords on key disposal campaigns within the Thames Valley. He is relationship manager for a number of key Vail Williams clients.
Vail Williams has been advising occupiers on business parks across the UK and landlords on business parks across the south east for 25 years. Significant instructions among others over that time have included IQ Winnersh, Southampton Science Park, Lakeside Portsmouth, and Reading International Business Park
www.vailwilliams.com
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