Issuu

SurveyorS Journal v o lu m e 8 i S S u e 3 a u T u m n 2 0 1 8

alSo in ThiS iSSue Changing ConveyanCing looking aT limeriCk Building SuSTainaBiliTy

The fuTure of reTail

newS

ConTenTS

preSidenT’S meSSage

feaTure

ediTorial

inTerview The laST word

ConferenCe

n Editorial

n Business news

n Regulating rent

n The break-up

n Building sustainability

n Looking at Limerick

n Struggling to conveyance

n The future of retail

n Proptech in Paris

n Society news

n Surveyor profile

n The last word

Surveyor profile

Society of Chartered Surveyors Ireland, 38 Merrion Square, Dublin 2. Tel: Email: Web:

n President's message

01-644 5500 info@scsi.ie www.scsi.ie

Áine Myler, Director General

www.scsi.ie Views expressed by contributors or correspondents are not necessarily those of the Society of Chartered Surveyors Ireland or the publisher and neither the Society of Chartered Surveyors Ireland nor the publisher accept any responsibility for them.

EDITORIAL BOARD

PUBLISHERS

Tom Dunne Chairman DIT John Costello Costello Commercial Tom Cullen Think Media Brian Gilson Lisney Ann-Marie Hardiman Think Media Frank Harrington Smith Harrington Patrick King SCSI Paul Mooney Benchmark Property Paul O'Grady Think Media Rowena Quinn Hunters Andrew Ramsey McGovern Surveyors Sarah Sherlock Murphy Surveys Paddy Shine Dublin City Council Claire Solon Friends First John Vaudin WK Nowlan Real Estate Advisors

Published on behalf of the Society of Chartered Surveyors Ireland by Think Media Editorial:

Design:

Advertising:

Ann-Marie Hardiman Paul O’Grady Colm Quinn Tony Byrne Tom Cullen Niamh Short Paul O’Grady

LETTERS, COMMENTS AND ARTICLES WELCOME All submissions will be considered by the Editorial Board: editor@scsi.ie

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

Surveying CourSeS more popular IT’S ENCOuRAGING TO SEE THAT PROPERTy- AND CONSTRuCTION-RELATED COuRSES ARE BECOMING INCREASINGLy POPuLAR FOLLOWING THE RECENT ROuND OF CAO OFFERS.

here is no doubt that activity in the sector has increased, with regional Ireland showing signs of improvement. With this improvement in business sentiment and activity, other challenges can follow.

Longer hours at work and tighter deadlines often leave us feeling overwhelmed. However, downtime,

and exercise, are not only key to your mental health, they are also incredibly important for the health of any business or organisation. I hope all members had the opportunity to take time out over the summer to relax, spend time with family and friends, and to reflect and prepare for the year ahead.

Policy for positive change As we move closer to Budget day on October 9, we are increasingly conscious of our economy’s fragility to external shocks and therefore the SCSI is calling on the Government to take a measured approach to the estimated €800m of fiscal space available to Minister Donohoe. Our pre-Budget submission (see page 28) has called for the establishment of a ‘Construction Innovation Centre’ to drive down costs and help increase productivity. The volatility within the sector in recent years fails to support long-term investment and innovation, while the construction industry is hampered by low productivity. The SCSI Tender Price Index shows that prices will rise by c.7% this year, while the cost of delivering a standard three-bed semi-detached home in Dublin is approximately €330K and likely to increase. We need to see substantial increase in the funding of new social homes, while also promoting innovative design and greater density, with better use of existing land, infrastructure and transport in urban areas. It needs to happen fast.

Our organisation The SCSI offices are currently undergoing important renovation works, which will create some temporary disruption for our committees and working groups over the next few months. This will include service and IT improvements to ensure a comfortable, safe environment for staff and members. We will also be running several conferences in the coming months, including the Property and Facilities Management Conference, and our National Conference in November. We urge members to attend as many of these events as possible; they are an excellent way to fulfil your CPD requirements and stay ahead of the curve on exciting change in the industry. Apart from our continued presence in the media and online, the Society will reach a rural audience of up to 300,000 at the Ploughing Championships. This year we join forces with other leaders in property, land and construction such as the PSRA, Ordnance Survey Ireland, the Property Registration Authority, Valuation Office, IPAV, MII and MyHome.ie. Look out for us at the National Property and Land Information tent beside the Ploughing Championships HQ.

preSidenT’S meSSage Des O’Brien President

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

ACTIVITY INCREASING Sector is seeing signs of improvement.

new approaCheS

how green iS your CiTy?

THIS EDITION LOOKS AT NEW APPROACHES TO SELLING, TO CONVEyANCING, TO RETAIL, AND TO THE SURVEYORS JOURNAL ITSELF.

he influence of the new Editorial Board is much in evidence in this edition. A cross-sectional look at the state of the economy of Limerick is, we hope, the

first in a series examining the fortunes of larger towns and cities. Naturally,

we place emphasis on our sectors of interest – construction, land and property – but these are generally reliable indicators of economic health anyway. We have also taken a new,

pared-down approach to the presentation of both this article, and ‘The last word’. And speaking of ‘The last word’, Rowena Quinn of Hunters Estate Agents makes a series of logical points in putting the case for their new approach to the sales process. Rowena says that within six months, this new approach has already reduced the average time to sell a property by 70%. That becomes a very interesting argument in the light of the struggles with conveyancing outlined by several of our members, and a solicitor, in Colm Quinn’s article on pages 2223. That solicitor, John Hogan of Leman Solicitors, also states that he thinks that sale agreed status should be scrapped. Philip Guckian of Sherry FitzGerald suggests starting with new builds as a practical way to roll out a new system. Brian Duffy says that a building survey should be carried out once the decision to sell is made, while Sarah Sherlock makes a similar point in relation to maps – that sellers should be instructing land surveyors at the same time as the agent and the solicitor. We are grateful to the Director of the Residential Tenancies Board, Rosalind Carroll, for giving the time to talk to the Journal. The Board has an expanding brief and the rental sector has been under more scrutiny in recent years than ever before. She makes the point that while it is perceived as dysfunctional, in fact the Board has 340,000 tenancies registered and disputes referred to them were only in the 1-2% range last year. The proposed new sanctions regime, she argues, will suit both landlords and tenants. Marie Hunt writes in her article on the future of retail (pages 24-25) that retail spaces will have to become more about experiences and less about transactions. She says that as consumer shopping patterns continue to evolve, there will be changes in how retail property is designed, fitted out, leased and valued. We are most grateful to Marie and to all the contributors to the Surveyors Journal.

ediTorial Tom Dunne Editor

% of public green space (parks and gardens). From top right: Dublin, London, New york, Paris, Singapore, Sydney, Tokyo and Vancouver. Sources: www.worldcitiescultureforum.com; www.irishtimes.com

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

CeleBraTing 10 yearS in BuSineSS

GOING FROM STRENGTH TO STRENGTH Back row (from left): Ashley O’Toole; Michael Ferry; Hugh Holt; Claire Devlin; Dévon Swale; Paul Finlay; Maria Clara Cavalini; and, Patrick O’Donnell. Front row (from left): David Murray; Karl O’Donovan; Ken Mulligan; Alan Baldwin; Brenda young; and, Eamonn McMullan.

The Building Consultancy is now 10 years in business and is

The Building Consultancy states that it prides itself on providing a high

continuing to expand. Michael Ferry has joined the company and

level of professional expertise with a strong emphasis on technical and

will take up a director position. He states: “I am incredibly excited to be

managerial skills. According to the company, its services cover the

part of the growing team, and I am looking forward with the

complete spectrum of project management and technical due diligence.

other directors on the board to driving the business forward, and

It states that it offers a one stop shop list of services, tailored for each

seeking opportunities for further expansion and market share, whilst

client’s specific requirements.

at the same time maintaining, developing and exceeding clients’

Since its foundation, The Building Consultancy states that it has built up

expectations”.

a strong position in the commercial property market, with a growing

The Building Consultancy states that it is also delighted to announce

team of 14 staff offering a full range of building surveying services right

the appointment of Paul Finlay and David Murray as associate directors,

through to design and project management. The company currently

recognising their substantial contribution to the business over the

employs seven Chartered Building Surveyors, which is one of the largest

past years. In addition to these appointments, surveyor Patrick

teams in the Dublin market.

O’Donnell and interior architects Maria Clara Cavalini and Dévon Swale

Commenting on the expansion, Managing Director Alan Baldwin

have joined the company.

said: “After 10 years in business I am pleased to say that The Building

The Building Consultancy was established in November 2007 as an

Consultancy is going from strength to strength. We are now one

independent building and project consultancy advising occupiers,

of the largest independent building consultancies in Ireland

funders, commercial property owners and other advisers.

delivering a director-led service focused on long-standing client

Directors Alan Baldwin, Hugh Holt, Ken Mulligan and Karl O’Donovan

relationships, who appreciate the proactive approach that we take in

have previously worked for some of Ireland’s largest property,

delivering our wide range of services. 2017 was a record year for the

architectural and surveying practices, and collectively have a wealth of

business and we are confident that 2018 will exceed that

experience across all building types and market sectors in Ireland

level of performance as the Irish business continues to grow and

and Europe.

expand”.

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

kra fiT-ouT for niSSan

FIT-OUT BY KRA The new Nissan Ireland corporate headquarters in Dublin.

KRA was engaged to provide design, costing, project management and contract administration services for the relocation of Nissan Ireland’s corporate headquarters to its new site at Park West Business Park, Dublin. KRA’s role included: redesigning internal office layouts to meet the client’s organisational requirements; designing new multi-user areas, including main reception, kitchen, canteen, bathroom and shower areas; replacement of existing lighting with new energy-efficient LED fittings; redesigning reception, and interior design of finishes throughout; managing the removal and disposal of the old air-conditioning system and replacement with a new highly efficient VRV system; managing new power and CAT 6 data distribution, alongside a new communications room build; and, surveying and advising on general repair and maintenance-related works. KRA also provided strategic advice in respect of dilapidations and other matters.

kSn appoinTmenTS

NEW DIRECTORS Back row (from left): Peter Reilly; Darren Flanagan; and, Sean Durcan. Front row (from left): Bosco Skelly; Niall Newman (MD); and, Paul Brain.

Due to continued success and expansion, the directors of KSN state that they are delighted to announce the appointment of five new directors to the board. The new directors are Peter Reilly (Regional), Darren Flanagan, Sean Durcan, Bosco Skelly and Paul Brain, all of whom have been with KSN for many years. KSN states that it is very excited about these new appointments, which the company believes will strengthen the current board of directors and support its continued growth and position in the industry. The company would like to congratulate the new directors on reaching this milestone, and thank them for their efforts and many years of service to date. KSN wishes them every success in the next stage of their careers with the company.

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

malColm holliS welComeS graduaTeS Independent commercial building consultancy firm Malcolm Hollis states

Kyle studied at ulster university and undertook his year-long placement

that it is pleased to welcome Aidan Brankin and Kyle Faloon to its Irish

at the Southern Health and Social Care Trust, Northern Ireland. He will

offices in Belfast and Dublin. Aidan and Kyle join the team as part of the

start at the company’s Dublin office on October 1.

firm’s graduate recruitment programme.

Adrian Poucher, Partner at Malcolm Hollis, remarked: “It is exciting and

Aidan studied at ulster university and, as part of his course, undertook a

rewarding to help graduates begin their careers in the property industry.

year-long placement in the building control department of Belfast City

Our successful graduate programme has been in place for nearly 20 years

Council. He joined Malcolm Hollis in its Belfast office on September 3.

and we pride ourselves on our ability to identify and develop young talent”.

SCoTT murphy appoinTS JaCk donaldSon Scott Murphy states that it is delighted to announce the appointment of

Jack will assist with servicing the current

a new building surveyor to supplement its existing team. Jack

workload/client

Donaldson, previously with a uK building surveying firm based in

contributing to the ongoing

Belfast, is a new addition to the team and brings the total number of

development and expansion

technical staff to nine.

of the practice.

base,

well

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

rogerSon reddan new offiCe launCh Rogerson Reddan & Associates is continuing its expansion with the opening of a new Kildare office at the Waterways complex, Sallins, to add to existing Dublin and Limerick offices. The Naas/Sallins area is attracting a significant level of investment, including M7 widening works, the Sallins bypass, and multiple new residential, retail, commercial and educational schemes. The increased level of construction activity in Naas and Sallins is no surprise; with the ever-increasing pressure on the Dublin market, many house hunters and large multinationals are looking outside Dublin. The Draft Kildare County Development Plan has earmarked Naas as an area of significant growth between now and 2023. The improvement to the rail links from Naas/Sallins directly into Dublin city centre and Grand Canal Dock has attracted many commuters to residential schemes in the area.

new look for gvadoB

NEW BRAND From left: Chris Boyle; Lynn Kelly; Fergal Burke; John Algar; Catherine Loughnane; and, Siobhan Murphy.

GVA Donal O Buachalla is updating its brand appearance to align with its uK and international partners, GVA and GVA Worldwide. GVA Donal O Buachalla states that it is one of Ireland’s leading independent firms of property advisers and Chartered Surveyors, providing expert advice to national and international clients on all aspects of their property needs, through its teams in Dublin and Belfast. The company states that since 1954 it has forged a reputation for excellence and the provision of first-class service and robust advice, backed by in-depth industry knowledge. According to the company, GVA is the leading commercial property adviser across the uK and the principal member of the GVA Worldwide international network of independently owned real estate companies. The company believes this partnership enables GVA Donal O Buachalla to deliver a unified range of services to its national and international clients. Since joining GVA Worldwide in 1997, GVA Donal O Buachalla has collaborated with its global partners to provide clients with property services throughout Ireland and around the world. GVA Donal O Buachalla believes that the new design presents a strong, contemporary image complementing the core principles of integrity, professionalism and enduring commitment to its clients.

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

regulaTing renT ROSALIND CARROLL, DIRECTOR OF THE RESIDENTIAL TENANCIES BOARD, SPOKE ABOuT THE RTB’S INCREASING RESPONSIBILITIES, AND HOW TO BuILD A FuNCTIONAL RENTAL SECTOR IN IRELAND.

he rental sector in Ireland has

Changes in the rental sector

termination are being referred to us because

always been the poor relation in

The RTB’s main functions are registering

people have nowhere else to go. Before, people

terms of housing. In a culture

landlords and tenancies, collecting data and

might not have queried the validity of the notice

where home ownership is prized

providing informed research and updates on

– although they’re absolutely entitled to do so

above all else, renting has traditionally been

the rental sector, offering a non courts-based

– they might have just moved on”.

seen as a temporary stopgap on the way to

dispute resolution service, and providing

She acknowledges that regulation in the sector

ownership, and this attitude is taking a long time

information and education to tenants and

can be difficult for both landlords and tenants

to change. Culture or not, however, the numbers

landlords on their rights and responsibilities.

to understand, and the RTB has taken a

speak for themselves and the Residential

The RTB’s overall remit will expand quite

number of steps to try to address this. Last

Tenancies Board (RTB) now lists almost

dramatically in the not too distant future (of

year, they launched a new website – the one

340,000 registered tenancies, with over 714,000

which more later), but for now dispute

stop shop – to try to make it easier to navigate

occupants and 174,000 landlords.

resolution remains one of its principal

the

Rosalind Carroll took over as Director of the RTB

functions, and is a fascinating prism through

campaigns have sought to inform the public of

in 2016 after a career spent in the housing sector

which to see the issues in the rental sector.

their rights and responsibilities, and of the

(see panel), and says the rental sector has to be

The most frequent disputes brought to the RTB

RTB’s role. A webchat facility is also available,

seen in the overall context of housing, where

relate to: rent arrears with overholding (where

and the organisation now also has a presence

supply issues remain a major challenge: “We are

the tenant has been served notice to leave over

on social media. In addition, Rosalind and her

starting to see signs of progress – a lot of

rent arrears but has not left the property);

colleagues monitor how they interact with

stock being bought or built and then

notices of termination (with queries coming

tenants and landlords who contact them

and

extensive

advertising

sold specifically for rental. That’s a

from both landlords and tenants); and, deposit

directly, to make the process as efficient and

really healthy sign, but restricted

retention. Says Rosalind: “Rent arrears are a

helpful as possible. She points out that these

supply is still very much the issue”.

problem for the landlord but it’s also a problem

efforts are making a difference in practice:

inTerview Ann-Marie Hardiman Managing Editor, Think Media

system,

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

[for tenants] with regard to affordability – more

“60% of notices of termination that

people are falling into trouble in the same way

came to us [in 2017] were valid,

it happens in the mortgage market, and it

whereas in the previous year

affects both parties dramatically. The limited

69% were invalid, so that shows

supply of properties means more notices of

that education is working”.

The RTB has also launched a voluntary landlord accreditation scheme, a course designed to equip landlords with everything they need to know, thus helping to prevent disputes and stop problems before they occur. It’s about professionalising a sector where 70% of landlords own only one property, and many find the regulatory regime complex and difficult: “We’re really looking forward to rolling it out to more landlords and are keen for people to sign up and to contact us if they’re interested. It’s classroom based initially but we plan to make it web based in future to expand access outside Dublin and to landlords with full-time jobs”.

New powers The rental sector has attracted unprecedented attention in recent times, as lack of supply, growing wages, and a buoyant economy drive rents up, and numbers of people experiencing homelessness

reach

new

heights.

The

perception is of an entirely dysfunctional sector, where people live in constant fear of rent increases and evictions. Rosalind tries to put this

There is clearly a need to address this and

average rent for somebody who’s already living

into perspective: “We have 340,000 tenancies

other

in a property. That’s a really important statistic

issues,

and

new

legislation

registered, and if we look at the disputes

significantly increase the RTB’s powers, both in

because most people in the sector – about

referred to us last year, they make up 1-2% of

terms of investigation and sanction, will

200,000 tenancies – are in existing tenancies.

the overall registered numbers of tenants”.

hopefully go a long way to achieve this.

In order to achieve overall transparency of the

She accepts, however, that they are probably not

Currently, the RTB’s remit only covers the

“

rental sector we need to know more about what’s happening within tenancies”.

The renTal SeCTor haS aTTraCTed unpreCedenTed aTTenTion in reCenT TimeS, aS laCk of Supply, growing wageS, and a BuoyanT eConomy drive renTS, and numBerS of people experienCing homeleSSneSS reaCh new heighTS.

Investigative powers will widen too: “At present the RTB does not have powers to investigate breaches of rights and responsibilities in the sector. However [under proposed changes to legislation] people will be able to come to us with information – anonymously if they wish. We will also have investigatory powers, so it’s not necessarily left to the most vulnerable to [come to us]”. The proposal to introduce a sanctions regime

seeing the full picture: “We have some

registration

anecdotal evidence that tenants are afraid

approximately two-thirds of tenancies at any

new

tenancies,

but

will see the RTB’s role evolve, becoming a more proactive

regulatory

body:

“It’s

about

to come to us. That doesn’t mean it’s

one time are ongoing rather than new,

proportionality. It’s a criminal offence not to

happening across the board – I absolutely

sometimes for long periods. The new

believe that the vast majority of landlords and

legislation proposes a move towards a system

landlords to help them comply but if they don’t

tenants have a good working relationship – but

of annual registration, which will allow it to

it goes straight to criminal conviction. We are

there are instances where the law is not

gather the data it needs on these ongoing

trying to move to having a civil stage in between

being followed, and people do not

tenancies: “Our Rent Index covers new rents,

– a sanctions regime that would allow us to give

know about or are too scared to

and is a reflection of the market at the moment,

them a caution and a warning for not

come to us”.

but it does not tell you anything about the

registering a tenancy and for illegal rent

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

Rosalind Carroll has worked in housing for 18 years and says that it’s very much a career of choice: “Housing is one of my passions”. She worked in Dublin City Council and in the Department of the Environment, Community and Local Government before moving to the Housing Agency, where she was Head of Regulation of Approved Housing Bodies before moving to the RTB. Outside of her busy schedule, she spends her free time catching up with friends and family, and returning play dates with her six-year old daughter.

“

The renT index haS alSo Been hugely imporTanT in TermS of Being aBle To puT ouT auThoriTaTive, offiCial daTa on renT levelS ThaT’S roBuST, and Can Be relied upon.

increases. Where there’s no engagement, or [a

it’s a big undertaking, and unlikely to happen

“We need to think about the fact that some

landlord has] knowingly committed that

any time soon. The priority has to be the current

tenants will stay short term, some will be

contravention on a large scale, we can then

crisis.

pursue these landlords with fines of up to

longer term. We will need more not-for-profit

landlords offering more affordable rental

€20,000”.

Getting the data

accommodation that isn’t social housing. That

She acknowledges that these are potentially big

The RTB has an important role in the collection

changes, but thinks they’re needed: “I think it

of data on the sector, and has already

absolutely need more institutional investment,

will benefit both landlords and tenants. Many

contributed significantly: “Before the RTB we

more professional landlords. I would also like

to see some of our smaller landlords grow”.

will have a stabilising effect. I think we

landlords are frustrated with their negative

didn’t even know how many tenancies there

media profile and we’ll be able to go after the

were. The Rent Index has also been hugely

In order to be delivered, such a vision would

small number of bad landlords and show the

important in terms of being able to put out

need to be complemented by significant policy

good as well”.

authoritative, official data on rent levels that’s

changes: “As we increase security of tenure we

Legislation is currently going through the

robust, and can be relied upon. We want the

also have to increase security of income for

Oireachtas, and at time of writing it has not

RTB to be the official source, because it is

landlords. We need to think about what

been finalised, but Rosalind hopes it will be in

directly feeding into policy”.

structures will incentivise the types of

place by the end of this year, followed by an

Annual registration will enable them to add

landlords that we want and that are going to

implementation phase that would see the new

considerably to this store of information, and

lead to a stable, sustainable sector”.

RTB powers up and running during 2019.

there are other projects in the pipeline too,

Rosalind is optimistic about the future, if we can

Of course, another way to solve these problems

including annual surveys of all stakeholders,

change attitudes, and provide the regulatory

is to make the regulatory system a little less

and a project to analyse the impact of Rent

structure to back it up: “We can make renting

complicated, and that’s something Rosalind

Pressure Zones on the sector.

good for landlords and tenants. But I also think culturally we need to think about renters

and her colleagues are very conscious of. In fact the RTB’s Strategic Plan 2018-2022 gives

The future of renting in Ireland

differently. When we think about

as an aim: “Continue to advocate for a

The current issues are, obviously, very

communities, do we think about

simplified

significant, but Rosalind and her colleagues

the

Tenancies Act”. Rosalind acknowledges that

also have to think in terms of what the sector

communities? It’s not

what’s probably needed is a new Act, but while

could be, and work towards that. Diversity is

just about landlords, it’s

the Minister has given a commitment to reform,

key, both in terms of landlord and tenant type:

about us as a society”.

and

streamlined

Residential

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

renters

those

The Break-up IF A PARTy WANTS TO ExERCISE A BREAK CLAuSE IN A COMMERCIAL LEASE, IT IS IMPORTANT THAT THEy uNDERSTAND AND FuLFIL ALL THE CONDITIONS INVOLVED.*

t is not unusual for fixed-term commercial leases to contain a break clause, which entitles one party to bring the lease to an

end prematurely. A break clause offers a

significant benefit to a tenant to surrender a lease

prior to the end of its term, with or without penalty. Break clauses are always construed very strictly, and if the break clause is subject to the fulfilment of certain conditions, the courts will usually demand that those conditions be strictly complied with. As a matter of contract, a court cannot rewrite the terms of a negotiated lease and it is therefore crucial that consideration is given to possible future outcomes when drafting a lease.

feaTure

Grainne Loughnane Associate, McDowell Purcell

Thomas O'Malley Partner, McDowell Purcell

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

Common mistakes in exercising break clauses include: n missing the deadline for service of a break clause;

n failure to comply with the notice provision of the lease in relation to

Typical break clause conditions include:

n service of written notice by a given date, often up to six to nine months before the break date;

the service of the break option notice;

n payment of a break premium or break penalty;

is served on the wrong landlord;

n compliance with the covenants of the lease both at the time that the

n the entity exercising the break clause is not the tenant or the notice n failure to pay the full rent due to the end of the quarter;

n vacant possession;

notice was given and the time when the property is vacated;

n failure to pay all sums due;

n return of original lease documentation to the landlord;

n relying on non-binding/without prejudice discussions relating to

n payment of fees, stamp duty and/or VAT that arise out of the transfer,

n failure to provide vacant possession; and,

conditions precedent to the exercise of the break clause.

and,

surrender or termination of the lease.

To ensure that the exercise of a break option is effective, it is imperative that the conditions are correctly exercised to minimise the risk of a challenge by a landlord.

Application of break conditions

The break notice was challenged and one of the

When the payment was made, the tenant

To understand the application of break conditions,

arguments put forward by the landlord was in

requested that the landlord’s agent “confirm this

it is best to consider this in light of court

relation to how payments had been made. Some

is the correct basis for calculating the liability for

decisions. In one uK case, Avocet Industrial

payments had been made by cheque and

the short period”. The landlord did not respond. In

Estates Limited v Merol Limited (2011 EWHC 3422),

electronic transfer, although there was a

a subsequent letter, the landlord’s solicitors wrote

a ten-year lease of a factory contained elaborate

reference to standing orders in the lease. The

to the tenant demanding payment of the balance

break provisions, with a general stipulation that

landlord made a claim that because payments

of the rent and contended that the break clause

the tenant had to have fully complied with their

were not made by standing order, a payment by

had not been validly exercised.

obligations under the lease. A term of the lease

cheque would defeat the break notice. This ground

The court held that on a straightforward construction of the lease all obligations continued

provided that: “If any annual rent or any other

of challenge failed.

money payable under this lease has not been paid

The tenant had also put forward a proposition

until its actual termination. That extended to

by the date it is due, whether it has been formally

known as estoppel, i.e., if you don’t demand

future rent. Therefore, there was a strict

demanded or not, the tenant shall pay the

something then you are precluded from seeking

construction of the obligation to pay the rent of

landlord interest at the default interest rate (both

it in the future. This argument failed. The judge

Stg£190,000 “by equal quarterly payments in

before and after any judgment) on that amount

held that the facts of the case included:

advance on the usual quarter day”.

for the period from the due date to and including

n in the course of dealings between the parties,

the date of payment”. The break provisions were

the landlord had agreed to accept cheques in

very specific and the time for service of notice was

payment of sums due under the lease;

After paying a full quarter’s rent, the tenant should then have sought a refund (if entitled).

short at three months. To terminate the lease on

n there was no positive statement on the part of

the break date there were very detailed provisions

the landlord which would give rise to estoppel;

When negotiating leases, some things should be

and particular requirements as to the validity of a

and,

considered:

break notice and to the service of such a notice. One of the provisions was:

n the landlord’s failure to tell the tenant that default interest was due and owing did not raise estoppel by acquiescence.

Important matters

n attempt to agree unconditional break clauses in return for break payments;

n ensure that a refund provision is included in the break option in relation to advanced payments

“At the break date any payment under this lease due to have been paid on or before that date has

Overpay and then seek a refund

not been paid; or

In the case of PCE Investors Limited v Cancer

n avoid agreeing compliance with all tenants’

At the break date there is subsisting material

Research UK, the lease provided for an annual rent

covenants under the lease as a condition

breach of any of the tenant covenants of this lease

of Stg£190,000 payable in equal quarterly

precedent to the exercise of the break clause;

for periods after the break date;

and,

in relation to the state of repair and condition of

payments. When the tenant served the break

the property; or

notice, instead of paying a full quarter’s rent, they

n if the landlord will not agree to remove certain

At the break date the tenant has not paid to the

paid rent on a daily basis for the remaining period

break conditions, make sure that compliance is

landlord a sum equal to six months annual rent”.

of their tenancy, which was less than a full quarter.

both possible and measurable.

*This is an edited version of an article that is available at: www.mcdowellpurcell.ie/break-clauses-in-commercial-leases/.

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

Building SuSTainaBiliTy SuSTAINABILITy IS VITAL, AND A NEW SCSI WORKING GROuP IS HELPING THE SOCIETy TO PLAy ITS PART IN THIS NATIONAL CHALLENGE.

ustainable development is often described as: “The ability to provide for our needs, without compromising future generations’ ability to provide for their needs” (Brundtland Report, 1987). When economic efficiency, environmental factors and

social equity are working in balance with each other, proper sustainability is achieved. None of us can have missed the striking combination of hurricane, snow and drought we experienced this year. Coincidence? Many don’t believe so. The evidence for rapid climate change is compelling.

Why do surveyors need to know about this? Legislation and policy are changing fast, and I predict that they will change even faster in light of the Eu fines coming our way from 2020. Sustainability impacts every part of the property industry. Improving the energy efficiency of buildings will generate other economic, social and environmental benefits. Better performing buildings provide higher levels of comfort and well-being for their occupants, and improve health by reducing illnesses caused by a poor indoor climate. As a valuation surveyor, I welcome the statement in the RICS Red Book that: “Valuers should be aware of sustainability features and the implications these could have on property values in the short, medium and long term”. understanding sustainability is now mandatory to Level 1 in many Assessment of Professional Competence (APC) pathways. Not only are ‘green’ buildings often worth more and future proofed, their older counterparts are naturally suffering a ‘brown’ discount, and falling values. Green buildings can command higher rents and prices, attract tenants more quickly, reduce tenant turnover, and cost less to operate and maintain. Our clients’ need and demand to consider sustainability should be foremost in our minds. Our biggest challenge (and opportunity) is retrofitting the older stock, particularly residential. Hopefully, useful financial incentives will be forthcoming from the Government soon.

feaTure Eloise Heron Valuation Surveyor and Chair of the new SCSI Working Group

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

ACHIEVING SUSTAINABILITY 10 Molesworth St (IPuT) is just one LEED Platinumcertified building in Ireland.

What are some of the key sustainability terms? NZEB Nearly zero-energy buildings (NZEBs) have very high energy performance. The low amount of energy that these buildings require comes mostly from renewable sources. The Energy Performance of Buildings Directive requires all new residential and commercial buildings to be NZEB by the end of 2020. All new public buildings must be NZEB by 2018.

BREEAM/LEED These are optional, but now very well-established and expected,

assessment

methods

property’s

sustainability performance. IPuT, Hibernia Reit and Green Reit have all achieved LEED Platinum (the highest rating possible) in some of the their properties.

GRESB Launched in 2009, the Global Real Estate Sustainability Benchmark (GRESB) focuses on researching and assessing how real estate investment firms are incorporating environmental, social and governance factors.

WELL

Why is sustainability important to Ireland?

This is focused exclusively on human health and wellness, and

Buildings are responsible for 40% of energy consumption and 26% of

is more concerned with the inside of the property and how it’s

CO2 emissions in the Eu. Ireland is playing catch-up on our climate

run. The WELL Building Standard (WELL) combines best

change obligations, and is facing massive Eu fines (estimated at up to

practice in design and construction with evidence-based medical

€600m per annum from 2020) for failing to meet our current

and scientific research – encouraging the built environment as

commitments.

a vehicle to support human health and well-being.

Nine years ago, Ireland was given a target to reduce emissions of greenhouse gases to 20% below what they were in 2005 by 2020. Ireland

HPI

has consistently lagged behind in reaching this goal and is on target to

The Home Performance Index (HPI) is a standard that considers

have reduced its emissions by less than 1% by 2020 (Climate Change

the quality of Irish residential development under three main

Advisory Council).

categories: cost (of living in your home, including energy, water

Project Ireland 2040 includes a climate action fund of over €500m, and

and transport); well-being (impact of the building on your well-

outlines energy efficiency upgrades for 45,000 homes annually from

being); and, our planet (the impact your home has on your

2021, and energy upgrades to BER level B in a minimum of one-third of

carbon footprint). It is run by the Irish Green Building Council.

Ireland’s commercial buildings.

Green leases

€35bn to retrofit one million homes to 2050 carbon standards (€35,000 per

The Sustainable Energy Authority of Ireland (SEAI) estimates that it could cost This concept aligns the financial and energy incentives of

home). Despite being a large challenge, this presents amazing job

building owners and tenants so they can work together to save

opportunities across the property sector. At present, with the current payback

money, conserve resources, and ensure the efficient operation

for deep residential retrofits being in some cases over 10 years, the need for

of buildings. The research and published papers on the

serious Government intervention in the form of proper grants is required.

rationale behind green leasing, or building performance leasing as it is also called, has been ongoing for over a decade

What is the new working group about and what are its goals?

and the case is well made. This is relevant to all surveyors and

The SCSI has a brand new cross-sectoral Working Group on

legal practitioners, who are the lease drafters. Collaboration

Sustainability in the Built Environment, and its purpose is to:

between landlord and tenant is a key part of making sustainability work, and often property owners who engage in and encourage dialogue on these matters will experience the greatest success in greening their portfolio.

n keep abreast of sustainability issues, especially mandatory issues;

n work together to help educate our fellow Chartered Surveyors on sustainability issues through appropriate mediums; and,

n help to form policy in the SCSI, and further afield.

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

looking aT limeriCk IRELAND’S THIRD LARGEST CITy HAS HAD ITS SHARE OF BAD TIMES, BuT THINGS ARE DEFINITELy ON THE uP.

ith an international airport and port, three higher education institutions, a young, educated population, and affordable

Living in Limerick

accommodation, Limerick is ripe for recovery after a long period

Average rent: €884 per month

in the doldrums, and ‘Limerick 2030: An Economic and Spatial Plan’, has set the template for the

(Residential Tenancies Board Rent Index, Q1 2018)

city’s revitalisation.

Key to its success is the development of world-class facilities and infrastructure for the city and county,

Residential property Limerick

and that’s where the Limerick 2030 Strategic Development DAC (Designated Activity Company) comes

City: €189,416

in. Chief Executive David Conway explains: “Limerick 2030 DAC is a special purpose vehicle company,

(daft.ie House Price Report,

established to implement the development of the key strategic sites/services in the Limerick 2030

Q2, 2018)

Strategic Plan. We have the commercial focus to deliver these pieces of infrastructure, to create economic and anchor development in the region”.

Office rents per sq m.

An independent board made up of county councillors, directors of the City and County Council, and other

Prime city rents, Q2 2018: €325

individuals with specific skillsets in property and construction, is led by Chairman Denis Brosnan. David

Prime suburban rents, Q2 2018:

emphasises that this is a planned, integrated approach that owes its origins to the merger of Limerick

€237 (Cushman & Wakefield, Limerick

City and County Councils in 2014. Currently focusing on five key projects (see map), it involves a rigorous

Office Market Q2 2018 report)

pre-planning process, and finance from both the European Investment Bank and the Council of Europe Development Bank, among others. It’s an exciting and optimistic time, and David has great ambitions for where he would like to see the city in five years’ time: “As a place that people would seriously consider coming to work and live,

Mungret Park

and FDI companies doing their business out of Limerick. We’re giving an opportunity of choice. We’ve

Masterplanning has begun on

got a great lifestyle, we’re a lot cheaper to buy a house, and work–life balance is quite good, so I think we’re a very attractive alternative outside Dublin to create a major economic hub and a place for people to live”.

Limerick 2030’s only purely residential site, and phase one of 200 houses will be delivered by 2021, but the site has the potential for four times that amount of homes. David Conway

feaTure

David Conway CEO, Limerick 2030 DAC

John Buckley Director, Limerick Cushman & Wakefield

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

praises the Council’s work here in providing schools and recreational facilities.

Thomond Park

King John’s Castle

University of Limerick

Home of Munster Rugby, one of the

Located on King’s Island in the

Located on the banks of the

most successful and best supported

heart of medieval Limerick, King

Shannon, uL is home to almost 12,000

rugby clubs in the world. Extensive

John’s Castle was built in the early 13th

students. Known as ‘Ireland’s Sporting

renovation saw it reopen in 2008 with a

century for the then ‘Lord of Ireland’.

Campus’, it boasts Ireland’s first altitude

25,600 capacity, and the ground also

These days, it’s a fantastic interactive

training centre, an Olympic-sized

offers extensive conference and

tourist attraction for all the family.

swimming pool, and the National

banqueting facilities.

Strength and Conditioning Centre.

Riverfest Limerick becomes a mecca for families, foodies and fun runners each May Bank Holiday for the city’s premier summer festival, Riverfest. Highlights include Riverfest on the Shannon, the Riverfestival village in Arthur’s Quay Park, the Bon Secours Great Limerick Run and a spectacular fireworks display.

Troy Studios The closure of the Dell plant in 2009 was a devastating blow to Limerick, but the 340,000 square foot site is now home to Ireland’s newest film studios. Troy Studios leases the premises from the Limerick 2030 DAC, and will shortly complete is first major production, a spin-off from the hugely successful Game of Thrones.

Cleeves Riverside Campus

Gardens International

Opera site

Due for completion and

With almost four acres of space,

This 10 acre site, which is at pre-

occupancy by Christmas 2018, this

this mixed-use development will be a

planning stage, has enormous

LEED Gold certified office development

new home for the Revenue

potential for residential, commercial and

will be the first Limerick 2030 project to

Commissioners and a new city library, as

community use. Says David Conway:

be completed. With over 100,000 square

well as office space, and has the potential to

“We want to make sure to give this site

feet of high-spec facilities, it will

create up to 3,000 jobs. A draft scheme

back to Limerick. It’s going to be an

create up to 800 jobs on the iconic

has been approved, and it’s hoped that

iconic waterfront

former site of the famous

the full planning application will

development”.

‘Hanging Gardens’.

be submitted by year end.

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

STruggling To ConveyanCe THE CONVEyANCING PROCESS IS ONE WHICH SEEMS TO FRuSTRATE EVERyONE INVOLVED IN IT. WE SPOKE TO THE DIFFERENT PROFESSIONS INVOLVED TO SEE WHAT THE PROBLEMS ARE AND HOW THINGS COuLD BE IMPROVED.

omething needs to change with

conveyancing.

The

main thing that emerged in

the Surveyors Journal’s conversations with the professionals involved is that it takes too long to sell a property in Ireland. Most recommended that as much of the conveyancing process that can be done before a property goes on the market should be done then. This would save time and reduce the number of sales falling

through during the process. Some believe we should go further and do away with sale agreed status altogether.

feaTure Colm Quinn Journalist and Sub-editor, Think Media

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

The solicitor – John Hogan, Leman Solicitors John says no property should be brought to the

The building surveyor – Brian Duffy, McGovern Surveyors

market without a contract of sale being ready,

With pressure to get a survey done in a few days,

and that sale agreed status should be scrapped:

timing is the major problem for building

“It’s causing much too much confusion and a lack

surveyors: “By the time you do the survey, get it

of predictability about transactions. There should

typed up, proofread it and get it back to the client,

be a statutory timeframe which states that if

a turnaround time of a couple of days isn’t going

people have an offer accepted, they will have a

to happen”.

contract within seven days and that they will sign that contract within

Often during a survey, issues will arise, such as the discovery of structural

a further seven days”.

alterations to the house or extensions that are not within planning

In Scotland, there is no sale agreed status: “An offer is a binding offer

exemption limits. Brian believes all this should be revealed as soon as the

when it’s made. If you do not complete, you’re open to being sued. I

vendor decides to sell the property: “There’s no point in letting it go the

think that’s a really good idea”.

whole way to the survey and waiting for your survey report to come back

He says that solicitors can be resistant to change: “But change has to

and there’s a number of queries that can draw the whole process out”.

sometimes be forced on a profession and I think that if surveyors will

Another thing to consider is whether the boundaries are correct: “If

force solicitors into certain behaviours, that’s what will happen”.

not, you might need to get a deed of rectification”.

He referenced the recent measures taken by Hunters Estate Agents,

The only thing that should be left when a surveyor goes to do a survey is

where the firm will no longer accept a property to put on the market

to look for any structural issues, the condition of the property, etc:

unless the solicitor has the contracts prepared.

“Purchasers and solicitors are relying on us to give them all the correct

He believes the move towards digital is relentless and mentioned

information. They’re relying on our experience and our expertise to ensure

systems like Bidx1 and Allsop, where titles and contracts are uploaded

that everything is pointed out to them so they can have everything in place”.

and available for everyone to view and says that should happen in all

Brian has a couple of key points:

house sales: “All documentation should be available online when the house is put on the market so that solicitors can review and get engaged in the process much earlier than they do at the moment”.

The estate agent – Philip Guckian, Sherry Fitzgerald

n give a realistic timeframe for getting the survey done; and,

n make sure your paperwork is in order before you put a property on the market.

The land surveyor – Sarah Sherlock, Murphy Surveys

When first selling a property, people tend to

One of the most frustrating things for land

only contact their estate agent but Philip says:

surveyors is that they aren’t typically engaged until

“We’d always suggest that vendors contact their

there is a problem or time is very tight. Often,

solicitors the second they are thinking of going to

everyone is waiting for the map to close the deal,

the market”.

but Sarah says: “Land surveying takes time and is

There is a lot of work involved for solicitors and it’s

not a desktop exercise. A ground truth survey is very

easier for everyone if they are instructed as early as possible. The property

specific insofar as you actually have to survey the land and that takes time”.

could take a month to bring to the market but things could be done during

It is not always as easy to deliver what the client expects, and especially

that time: “Contracts could start being prepared and brought to a point

so at the last minute. It is not as simple as looking at a map: “Not every

where they are ready to go out the minute it goes sale agreed”.

map is suitable for every purpose. unless you know who prepared the

One area where issues can arise is in land sales, particularly in the sale of

map, when it was prepared, for what purpose it was prepared and if any

large amounts of land: “Getting all the maps and making sure all the lands

changes have occurred in the interim, you really shouldn’t be using that

are registered; there’s a lot of stuff to prepare for the contract stage”.

map. you should be going out and doing a new survey”.

To improve things, Philip thinks we should start with new builds. If you got

Sellers should be instructing the land surveyor at the same time as the

that right, he says, that would be a good starting point. He believes that the

agent and solicitor. All three can then work together to confirm that what

registration of land could be faster. He thinks that the estate agent’s role is

the agent believes they’re selling is what the solicitor sees on the title, and

a little bit misunderstood by others. Agents are the link with everybody

that what the land surveyor has captured on the ground is what appears on

involved in the sale, he says: “It’s [important to] update them on everything

the contract map. Murphy Surveys is trying to increase efficiency by asking

in the process – communicating with the vendor, the purchaser, the

clients for a summary from their lawyer confirming the full extent of what

purchaser’s solicitor and the vendor’s solicitor”.

they wish to convey, complete with certified copies of the relevant deed[s],

He thinks that everybody would love it if there was a way to speed

and with maps appended. This approach seems to remove unnecessary

up the process but that it will take a lot of discussion with those involved.

confusion from the outset as to what exactly is intended and required.

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

The fuTure of reTail WITH ONLINE SHOPPING SET TO TAKE OVER EVEN MORE FROM TRADITIONAL SHOPS IN THE COMING yEARS, RETAIL SPACES WILL HAVE TO BECOME MORE ABOuT ExPERIENCES AND LESS ABOuT TRANSACTIONS.

he future of retail is a topic that has been exercising minds over recent years, not least in the

property world. The direction the market takes will have significant implications for a whole myriad of affected parties, including architects, developers, landlords, surveyors, solicitors and agents alike. unlike the uK retail sector, which has been

clouded by negativity for much of the last 12 months, Ireland’s has been performing solidly with strong footfall, consumer sentiment and

Below are some of the changes that we are likely to see:

retail sales activity recorded on the back of supportive

economic

favourable

demographics.

fundamentals However,

and

A new sense of place

many

Although e-commerce will continue to evolve,

locations (both high street and shopping centres)

the

physical stores will also remain important, not

will incorporate a greater proportion

growth of e-commerce and technological

least as an outlet for consumers to interact with

of leisure, food, beverage and cultural spaces to

advancements such as 3D printing will ultimately

the brand’s omnichannel offer. The physical

create experiences to attract footfall and enhance

sound a death knell for retail as we know it, which

store will remain complementary to a brand’s

dwell times, with a view to ultimately boosting

in turn is causing some investors to reconsider

online offer. Even brands that sell exclusively

trading volumes, both in store and online.

investing in this sector.

online will increasingly look at opening flagship

There will be increased focus on placemaking

While the number of physical stores might

stores in certain high-profile locations to

when designing new retail schemes or upgrading

decrease, this doesn’t mean people will shop

showcase their brand.

existing facilities. We are likely to see more high

commentators

strongly

believe

that

less, simply that they will change their shopping

The purpose of the traditional store will

streets and retail hubs becoming pedestrianised

behaviours. I firmly believe that there will

increasingly move from transactional to focus

as a result.

continue to be a place for traditional retail, but

more on service and experience. Retailers need to

A greater mix of uses within retail locations is also

we must acknowledge that change is on the

incorporate experiences that make consumers

likely. Indeed, this was a central theme of the

horizon and, in this new paradigm, the retail

want to return to their store. In reaction to

recent Grimsey Review in the uK, which produced

sector will have to adapt or die.

changing consumer behaviour, traditional retail

25 recommendations for reviving uK high streets.

feaTure Marie Hunt Executive Director and Head of Research, CBRE Ireland

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

This could result in libraries and public spaces,

order and the goods are then delivered to you.

understanding the profile of consumers in your

housing, healthcare and entertainment uses

No more carrying shopping bags around town.

target catchment will become increasingly important in determining store location, and the

being located alongside traditional retail offerings.

An increasing number of retail stores will facilitate

In this new era, store performance will no longer

trying on clothes virtually, with technologies that

size and design of facility required. Retailers that

be measured in terms of sales per sq. ft but more

enable you to virtually try on different colours,

embrace innovation, including new data sources

on footfall volumes, online conversion rates and

sizes and styles evolving all the time. These

and analytics, will not only survive but thrive in this

dwell time.

technologies will reduce the need for reverse

new environment.

As millennials and generation Z (who have grown

logistics, as well as reducing the amount of

My personal favourite is that mundane purchases

up shopping online) get older, their spending

inventory needed in each store, which in turn has

will increasingly be automated as the divide

power will increase in tandem, which will provide

implications for the store design in the future.

between retail and leisure becomes increasingly

a significant boost to the evolution of e-commerce.

We will see industrial 3D printers being

blurred. As household appliances such as

A larger proportion of the floorspace within

incorporated into high streets and retail locations

dishwashers and washing machines evolve, they

existing retail stores will therefore be dedicated to

as the technology improves and an increasing

will automatically predict household usage

online fulfilment.

number of goods are tailor made and personalised.

patterns, and when supplies of dishwasher tablets

Store windows are likely to vary depending on who

or washing powder are running low, will order

is standing in front of them, with displays

what is required.

Many stores will introduce robots to help

changing to reflect the individual shopper’s

In summary, it is clear to see that the retail sector

shoppers navigate the store and find particular

preferences or the time of day. Storefronts will

is going to experience significant disruption over

goods. This technology is already being used

become virtual stores after hours as technology

the next decade. As consumer shopping patterns

successfully in the uS, with ‘friendly’ robots that

evolves.

Embrace the tech

mimic human speech patterns serving customers

continue to change and omnichannel retailing evolves, this will result in significant changes to

in several stores. In home improvement chain

Data mining

Lowe’s, robots not only help shoppers to find

The most successful retailers in the future will be

and valued. The property sector will simply have

goods, but also provide DIy advice.

those that analyse consumer data better.

no choice but to embrace these changes.

how retail property is designed, fitted out, leased

We will continue to see seamless integration of physical and digital retailing, with an increasing number of stores acting as showrooms facilitating online purchases in store and rewarding customers for opting to purchase online. Several shoe stores in the uS and uK now act solely as showrooms. you can view and try on every colour and brand of shoe in store but can’t buy anything. The store processes your online

Several Shoe SToreS in The uS and uk now aCT Solely aS ShowroomS. The STore proCeSSeS your online order and The goodS are Then delivered To you.

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

propTeCh in pariS THE INAuGuRAL MIPIM PROPTECH EuROPE CONFERENCE WAS HELD IN PARIS FROM JuNE 20-21, WHERE THE WORLD’S LEADING PROPTECH INNOVATORS GATHERED TO SHARE THEIR INSIGHTS.

roptech is a term that hopefully is

property and construction professionals, along

becoming

with innovators and entrepreneurs who see the

and

familiar to Chartered Surveyors

industry as an untapped cash cow. This is how

and the wider industry. This topic is likely to

Dan Hughes, former RICS Director for PropTech,

become increasingly popular as demand

describes the challenge: “The property market

intensifies for technology to be used as a tool and

often comes down to local knowledge and so

business solution in addressing inefficiencies

whilst many companies are international and

and product improvements.

work in multiple countries, much of the activity

At the inaugural MIPIM PropTech Europe

still happens on a very local basis. Technology is

conference in Paris, attendees clearly believed

different. One simple solution can be scaled

that proptech has transformative potential. The

globally very easily and quickly. This means that

1,500 attendees from 47 countries came from

there is a much bigger focus on solving market

varying backgrounds and different levels of

problems rather than local issues”.

understanding of what proptech actually means

Tanguy Quero, EMEA Digital Director for JLL,

for them. The speakers demonstrated how

made it clear that you can’t just outsource this

technology continues to be highly disruptive and

problem, and even if you partner with a company,

a challenge for us all to get to grips with.

you will need to understand how it will work for your business.

Proptech innovators

The answer according to Pieter Roozenboom of

Who is best placed to realise the potential of

CBRE is: “Tech startups seem like they will

proptech? This is a highly relevant question, as

provide revolutionary change, but when you drill

the conference itself was largely split into

down to practicalities, property firms and professionals are still better positioned to adopt

feaTure

and adapt to technology”.

Patrick King Director of Strategy, Policy and Corporate Affairs, SCSI

implement proptech solutions that complement

In this context, how can you as a professional and enhance your organisation’s work?

SuRVEyORS JOuRNAL Volume 8, Issue 3, Autumn 2018

VR AND KEYNOTE Top: Aaron Renn delivers the keynote address ‘The urban State of Mind’. Below: Quartus shows off its virtual reality technology.

Built environment innovation But is it worth your time to consider innovation in the built environment? Compared to other industries, the built environment is perceived as being slow to progress. Norman Meyer of Drees & Sommer SE put it this way: “The German term for real estate is immobielien, which takes its root from the word immobile – kind of summing up the industry and how things move”. But sometimes the industry is just waiting for something to change. Apartment builders during the Roman Empire could have built to a height of 10 stories, but had to use stairs because elevators at the time risked falling when the hoisting cables lifting them broke, resulting in heights being limited to four storeys. It was not until Elisha Otis invented the safety locking mechanism in 1853, which prevented elevators falling after hoisting cable failure, that greater building heights could be achieved. New materials, such as graphene, might be the catalyst to a wave of change today said Roma Agrawal, structural engineer of the Shard in London.

Data dangers and the GDPR revolution Cybercriminals are stealing data and ethical hacker Jamie Woodruff said: “Data is far more valuable than currency. These guys will steal

PURSUING INNOVATION Above and right: Jeremy Guillaume of Snapkin talks BIM. Left: 1,500 attendees from 47 countries attended the conference.

Brave new workplace ecosystem

spoke of his company, Price Hubble’s, journey

data and sell it back to its owners”.

Property and facilities management is at the

in this regard, as it has integrated data to inform

Woodruff then proceeded to ‘live hack’ a

forefront of the challenge of data privacy and

client decision making. Its approach uses big

nuclear power plant and obtain hordes of

data empowerment. In a session on building

data

amass

large

volumes

personal data. However, most interesting was

management efficiency, Matthias Sicard of

multidimensional data, which includes non-

the technique he uses when hired to test a

Disruptive Technologies highlighted the benefit

property data, delivery order, demographic

company’s data security. He targets staff who

to facility managers of tracking movement in

changes, etc. The company then applies

refer to their company as “them” instead of

buildings

“we”. Staff that feel a part of the company are

temperature, and how the building is used. He

understanding

more diligent with security and harder to hack.

said this allows his company to save 20-40% on

neighbourhoods in which built assets are

With cybercrime rising, the General Data

its energy bills. This gain is built on the back of

located. Based on these findings, it is able to

Protection Regulation (GDPR) is placing more

residents’ data being collected.

give clients more resilient long-term valuations,

of Snips, said that rather than focusing on

Conclusion – adding value

future prices, not vice versa.

protecting the data you collect, you might be

“The more you automate things, the more you

understand

movement,

responsibility on companies. Rand Hindi, CEO

machine learning methods to create a deep about

locations

and

as the data it started with is the baseline for