< Previous10 Business Link www.blmforum.net COMMERCIAL PROPERTY Despite challenging economic conditions Leeds’ office market is flourishing, with the first half of 2023 seeing take-up total 400,000 sq ft in the city centre, as shown by Savills research. Illustrating success in the city, the figure beats the ten-year first half average by 40% and signals the third-best first half that Savills has on record for the market. Coming alongside rental growth, the resilience of Leeds’ office take-up is fuelling development. In light of this, Business Link reflects on noteworthy new lettings and office schemes. Following major deals earlier this year, such as Lloyds Banking Group snapping up almost 124,000 sq ft of space at 11 & 12 Wellington Place, further key lettings have been completed recently, including Barnett Waddingham, a professional services consultancy focussing on risk, pensions, investment and insurance, taking 14,000 sq ft of prime office space at developer MRP’s City Square House in Leeds on a 15-year lease. Announced last month (October), it marks one of the most significant pre-let office deals in the city over the past 12 months. Barnett Waddingham, who are relocating from within Leeds, are paying £37 per sq ft with a 10-year break on the 15-year lease. City Square House is a 140,000 sq ft speculative development and the only remaining undeveloped property fronting City Square. The workspace will comprise Grade A office accommodation over 12- storeys including low carbon credentials, terraces on the 4th, 5th and 6th levels and extensive cycling, electric vehicle and e-bike charging point facilities. Practical completion of the building, built by Design & Build contractors McAleer & Rushe, is scheduled for early next year. Barnett Waddingham will join global law firm DLA and Markel, an SME- focused expert in providing integrated insurance, tax and legal services, in the building, with these two companies having taken a combined total of 103,000 sq ft. Angus Monteith, development director at MRP, said: “We are delighted to welcome a company with such an excellent reputation as Barnett Waddingham to City Square House. This latest signing means the development is now 85% pre-let with a final 22,000 sq ft available. Securing a 15-year pre-let deal is a very significant and positive statement of intent in the long-term future prosperity of office space in Leeds and, indeed, in urban centres throughout the UK. As we near completion of construction in early 2024, we expect this strong demand for the best workspace will continue.” The transaction was brokered by the Leeds office of global property consultancy Knight Frank. Furthermore, October saw Carter Towler negotiate a 10 year lease deal on behalf of Reward Finance Group, facilitating the alternative finance provider’s move into larger offices at 12 King Street. Reward has taken 3,934 sq ft Outstanding offices As Leeds’ office market continues to thrive, myriad new deals and developments are underway. 12 Áwww.blmforum.net Business Link 11 COMMERCIAL PROPERTY CGI of City Square House 12 Business Link www.blmforum.net COMMERCIAL PROPERTY on the first floor of 12 King Street, which has been extensively refurbished over the past 18 months, with other new occupiers including Rothschild & Co and Endless. Tom Flannery, non-executive chairman of Reward Investments Ltd, said: “We are extremely pleased to have secured these great new offices, they are so much more than a traditional office space. The developers, Opus North and Fiera Real Estate UK, had a vision to create something very different in Leeds and they have certainly achieved it. They have delivered a transformational working environment that meets the needs of a modern business like ours. We have much more flexible work and collaboration spaces and more wellbeing and networking facilities for our employees and clients to enjoy.” Moreover, a global media company has strengthened its presence at 26 Whitehall Road in Leeds, taking 8,514 sq ft of office space on the first floor of the building, which is owned by Credit Suisse Asset Management. The business already occupies 30,000 sq ft on the second and third floors. The deal was brokered by Eamon Fox, partner and head of office agency at Knight Frank in Leeds. He said: “The media company’s expansion in this prestigious building underlines the fact 26 Whitehall Road is one of the finest office developments in the city. This deal comes hard on the heels of engineering and development consultancy Mott McDonald taking over 15,000 sq ft of office space at 26 Whitehall Road in one of the most significant office transactions of the year so far.” While deals are signed for offices, an undersupply of space is pushing a plethora of new developments to take flight. Joint venture partners Asset Capital and Prescient Capital recently gained planning permission to develop central Leeds Wellington Plaza to offer 77,000 sq ft of prime, best in class workspace. The partnership intends to fund and deliver the £50 million enhancement of the 1980s HQ building speculatively with a start on site by early 2024. Designed by DLA Architecture, the approved proposals will increase floor space availability from 21,000 sq ft to 77,000 sq ft with Grade A specification floorplates up to 10,000 sq ft. A total redesign of the façade is influenced by the local conservation area and ESG credential targets including BREEAM Outstanding, minimum NABERS 5 Star, Fitwell 3 Star and Wired Score Platinum Certification. The internal space is designed to support post-pandemic hybrid working with flexibility for occupiers’ fit out. Communal areas consist of a roof top terrace, sky lounge, and business lounge linked into reception for occupiers and their guests. Asset Capital CEO Daniel Newett said: “We have plans to not only bring the site in line with its neighbouring Grade A premises but surpass this with a specification that the city has not yet seen, redefining the term ‘super prime’. We are very much repurposing an existing building, in line with our commitment to reducing our carbon footprint, to provide an inspirational, collaborative, sustainable and futureproof working environment that is worthy of a leading European city for business.” At an earlier stage of development, Munroe K has lodged a planning The new 145,000 sq ft Station Plaza office development at White Rose Park www.blmforum.net Business Link 13 COMMERCIAL PROPERTY application for the new Station Plaza office scheme at White Rose Park, which aims to be the first BREEAM Outstanding and NABERS 5 Star out of town development in Leeds. Planning has been submitted to Leeds City Council for a 145,000 sq ft new build office development fronting the new White Rose Railway Station, which is scheduled to open in Spring 2024. The masterplan for Station Plaza incorporates three buildings, two totalling 100,000 sq ft over two wings and interconnected with a shared atrium and the third is a separate 45,000 sq ft building. The high specification Grade A office buildings will comprise under croft car parking and will be set within a heavily landscaped site. Alex Hailey, senior director, CBRE Office Agency in Leeds, said: “There is strong demand for office space at White Rose Park as evidenced in its near full occupation and the proposed additional 145,000 sq ft will fill a crucial void in the city’s development pipeline. With on site and neighbouring amenities to rival the city centre, the abundance of green space and outdoor facilities along with crucial services such as the creche, employers can provide an exceptional working environment for their staff. The new train station will be a strong driver for occupiers interested in the new space as will its strong sustainable credentials.” These deals and projects mark just a handful of those scattered across Leeds, with the city’s office market continuing to see success. 12 King Street 14 Business Link www.blmforum.net MANUFACTURING SPOTLIGHT I n the ever-evolving landscape of manufacturing, businesses face a formidable challenge: rising rates for requirements from logistics and energy to wages and higher tax bills. On top of adding to overall input prices, these costs, if not managed properly, can severely impact a company’s bottom line. The good news is that with some cleverly handled cost management strategies, manufacturers can navigate these hurdles and maintain profitability. In this article, we will explore a handful of effective methods for controlling and managing production costs, empowering manufacturing businesses to thrive amidst fluctuating charges just to get your goods out in the world. Efficient supply chain management is pivotal for cost control in manufacturing. Optimising raw material sourcing should be tackled first, to create a stable basis for reasonable production from the beginning. Securing the best rates from suppliers means taking assured steps to forge strategic partnerships with your most reliable sources. Trustworthy supply professionals will open the floor to negotiating contracts that ensure a steady supply at favourable rates, in return for your continued loyalty. With supply lines sorted, you can then begin to implement just-in-time inventory systems, reducing excess stock and storage costs. Streamlining logistics may require meticulous planning, but there are tools available to help you navigate— sometimes literally. With software for route optimisation and real-time tracking, it’s simpler to ensure timely deliveries while minimising transportation expenses. Predictive analytics can also enhance the visibility and control of items in storage, using data to forecast demand and restock as and when necessary, preventing overstocking or shortages. Embrace collaborative planning tools to facilitate open communication between suppliers, manufacturers, distributors, and all other trading partners, fostering strong relationships with logistics partners for flexibility and reliability. Implementing these measures not only ensures a lean, responsive supply chain, but also enhances customer satisfaction in keeping the goods they need available, and delivering them on time. From there on out, regularly reviewing and update strategies can keep you on top of market fluctuations, ensuring a supply chain that is both efficient and adaptable. Incorporating advanced technology and automation into manufacturing processes can be another means of revolutionising your overall efficiency and cost effectiveness. Automated machinery Smart strategies can help conquer rising costs and keep manufacturing businesses in the black. The more profitable path www.blmforum.net Business Link 15 MANUFACTURING SPOTLIGHT is expensive in the moment of buying, true enough, but it earns its investment back in accelerating production, trimming operational and labour costs and margins for error. You might begin by integrating an Enterprise Resource Planning (ERP) system to streamline operations. ERP software centralises data, offering real-time insights into inventory, production and finances, facilitating informed decision-making with the power of data to boost productivity and reduce cost in many areas. Internet of Things (IoT) devices can also be invaluable for smart manufacturing. IoT sensors monitor machinery performance, detect anomalies, and enable predictive maintenance, reducing downtime and repair costs. 16 Á © stock.adobe.com/Katynn16 Business Link www.blmforum.net MANUFACTURING SPOTLIGHT There’s plenty of room for scaling up or down with automation, from adopting AI for predictive analysis and demand forecasts, to 3D printing for rapid prototyping and customised manufacturing. The possibilities don’t end there, as robotics can complete repetitive tasks with guaranteed precision and speed, while collaborative robots (or ‘cobots’) create a working balance alongside humans, enhancing productivity and safety. Machine learning algorithms can even enhance predictive maintenance, identifying potential issues before they cause breakdowns. The only caveat is that investment in employee training will be needed to ensure staff can operate and maintain advanced technologies effectively. Embracing these advancements not only improves efficiency, but also positions the business as a leader in innovation, ensuring long- term competitiveness and profitability. Whether or not you employ robotics or machine intelligence to tighten up production, implementing energy efficiency initiatives is pivotal for manufacturing sustainability and cost control. Start by conducting a comprehensive energy audit to identify areas of improvement. Upgrade to energy-efficient machinery and lighting systems to reduce consumption, and make use of smart building management systems that optimise heating, cooling, and lighting based on occupancy, reducing unnecessary usage. Renewable energy sources like solar panels and wind turbines are worthwhile investments too, allowing your business to harness clean power, minimise reliance on traditional power grids and save on bills in the process. Easily overlooked details can make a huge difference to how resourcefully a production line runs. Regular equipment maintenance schedules are a routine consideration, but a must to ensure machines operate at peak efficiency. Use motion sensors and timers to control lighting and machinery operation, reducing energy wastage during idle periods. Insulate buildings effectively to preserve heat in winters and cool air in summers, reducing the load on HVAC systems. By embracing these initiatives, manufacturing businesses not only lower operational costs but also contribute significantly to environmental conservation, enhancing their brand reputation and ensuring a sustainable future. Sustainability, for both business models and the environment, is another area where employee training programs come in handy. They can create awareness © stock.adobe.com/ART STOCK CREATIVEwww.blmforum.net Business Link 17 MANUFACTURING SPOTLIGHT about energy conservation practices, encouraging a culture of responsibility. But across the workforce, and in areas accountable for production costs, a skilled and motivated team is vital to managing costs effectively. Proper training programs enhance employee skills, speed and confidence, minimising material wastage and rework costs. Moreover, implementing performance- based incentives fosters a culture of continuous improvement, driving productivity. Cross-training employees ensures flexibility in operations, enabling the business to adapt swiftly to changing demands without incurring additional labour costs. Regular feedback mechanisms and open communication channels boost morale, reducing turnover rates and associated recruitment and training expenses. Investing in the workforce not only enhances operational efficiency but also fosters a positive work environment, resulting in long-term cost savings. Mastering cost management isn’t just a business strategy, it’s the cornerstone of sustainable success in manufacturing. By efficiently managing the supply chain, embracing technology, optimising energy usage, and nurturing a skilled workforce, businesses can navigate the challenges posed by the rising costs of a financial landscape in flux. These proactive measures not only ensure financial stability but also pave the way for innovation and growth. Manufacturers that put in the attention and canny investments needed to control costs position themselves to flourish in the face of challenges. But beyond that, they drive their businesses towards becoming industry leaders, ready to meet future opportunities with confidence and resilience. © stock.adobe.com/Quality Stock Arts North Lincs Engineering Ltd We specialise in the Supply, Installation and Reconditioning of Industrial and Marine Diesel Engines and Generating Sets. Our team of Service Engineers can Repair, Maintain or Commission Land based or Marine Installations Worldwide. Tel: 01507 328787 • Email: mark@northlincseng.co.uk • Website: www.northlincseng.co.uk 18 Business Link www.blmforum.net MATERIALS HANDLING handling issue The © stock.adobe.com/nordrodenwww.blmforum.net Business Link 19 MATERIALS HANDLING The concept of materials handling is traditionally about safety but has expanded to efficiency with the advent of technology that has further increased how much any one human can move at a given time. Forklifts, pallet trucks and fully automated conveyor systems have removed the human element, and the human limit, and continue to be attractive in a post- lockdown economy. Automated materials handling systems allow for flexibility within the supply chain, as when a new product is introduced, it is merely a case of recalibrating machinery. If flexible walls were installed in conveyor belts, this would allow for easy manoeuvrability around the warehouse if operations were to be moved, scaled up or scaled down, without significantly increasing downtime. Given the exponential demand for consumer goods direct to our supermarkets, or even our doors, this has necessitated efficiency within materials handling, as the long-lasting nature of some of these products means that businesses can expand their operations. With increased operations, increases the need for accuracy, safety, and cost-saving process. The most obvious benefit of a materials handling system is it eliminates the damage and loss caused by human error. Yet, beyond this, a truly well managed system can increase efficiency, reduces handling costs, and facilitates stock management and process flow. Understanding how to increase efficiency with materials handling is useful to know, even if you intend to use a third-party warehousing partner, so as to make an informed investment. Key efficiency indicators include time sensitivity, storage temperature, © stock.adobe.com/Pixel_B All goods need to be handled but all employees need to be paid. Minimising handling wherever possible frees up staff and expenses. 20 ÁNext >