I’m a commercial developer AMA

[DeveloperAMA]

Mostly offices but varied in everything. You know those big greedy profit before anything types. I am being sarcastic but I am hoping I may change a few opinions…AMA

Do you find many people actually have an opinion?

It all sounds a bit bland but I hope you enjoy what you do.

Are you happy with your current insurance arrangements? Would you be interested in discussing options?

Is there any sign at all that architects are moving away from glass, concrete and other cheap building materials, or are we doomed forever more to ugly carbuncles that age like milk?

I really enjoy my job. It’s very well paid, I get to see the world and get to lead some really cool buildings.

a lot of people have an opinion. Especially as a woman representing investors. The public seem to hate that !

What a lot of people don’t realise is many of the buildings designs are led by councils via their urban designer and sustainability officers.

before a planning submission is made, at least with major planning applications, it has gone through 12-18 months of negotiation with the councils planning teams.

we end up with bland buildings because of policy - definitely not a choice ! Carbon footprint is also a huge factor. That’s why it’s always very uniform and uses the same materials.

the architects would have a much more beautiful approach if allowed !

So when people are throwing mud at the architect, it’s usually a very quiet urban designer sitting behind the scenes at the council !

Unless you can find a way to unlock timber structures. We are ok 🙃

So glad you took the question light hearted as intended! Thank you! Wish you all the success!

In that case, how do we change council policy (and why is it so dire in the first place?) Surely if a wealthy, private company is responsible for costs, then the council planning can be a little more flexible?

It varies from council to council. Some councils can be quite flexible, others do not advise but very strongly suggest !

polices will be central government interpreted. Some councils (mainly the big cities) are a bit more flexible.

the other thing to consider is how much money goes into complying with policy in other areas. (Sustainability/urban greening/public realm etc) a lot of people think developers make a huge amount of money but with the climate at the moment, development is actually quite risky for developers.

most planning applications that are approved never get built simply because it’s not affordable. They’ll either get sold or shelved or amended !

an application for a scheme can cost upwards £3m just to get to the committee. So design teams are going to play by the rules so they don’t get refused.

What have the long term impacts of the pandemic and lack of worldwide stability been for you, and do you see it improving given:

• fall in demand after Covid
• squeezed margins with rising interest rates and cost of materials
• lower yields with tenants wanting shorter lease terms and breaks
• changes to MEES and the costs involved in that

• fall in demand after Covid from what we have been seeing in the market, this is a bit of a myth. Life science has slowed down but that’s mainly due to funding in America. Office occupiers are sourcing quite big demands in limited supply at the moment
• squeezed margins with rising interest rates and cost of materials this is a huge issue for us and not so much that is recognised so thank you ! I think we’ve had a few problem projects where we’ve agreed the deal and the market has tanked but there are good opportunities out there, mainly because people aren’t building at the moment. So if there’s cash investment, they’re onto a winner because the supply is so low. Rents in the city of London are at a record high.
• lower yields with tenants wanting shorter lease terms and breaks not generally experiencing that in the markets I’m in but I know regions are finding it tough, apart from the super corridor and big cities like London, Birmingham, Manchester
• changes to MEES and the costs involved in that most assets that this applies to need a refurb anyway and it’s an opportunity to increase rent at the next review. A lot of owners were already getting to this before the postponement and usually fits in as a larger project anyway. But regional projects are finding this tough and mostly why the delay has happened I suspect

This is so depressing. Sorry OP!

Is it any easier in, say, Arab states or the USA?