I arrived at the conference centre on the Monday morning, still slightly sleepy, adjusting to San Diego time but looking forward to a session that promised to ‘sharpen my competitive edge through innovation’! The following hour and a half, could only be described as somewhere in between a late night jazz gig and a motivational lecture!

Kao started his session by likening ‘innovation’ to jazz and extended this metaphor by proceeding to amaze us with his skills on the grand piano throughout the lecture. Known as the ‘Innovation Sherpa’ he taught us that the key to fostering an innovative environment, lay in the five D’s;

• Defining Innovation
• Disruptive Innovation
• Doing it
• Dissemination
• Digital

The most poignant takeaway from his session for me was this; “ The world is becoming a jazz club, little companies can be as good at innovation as the giants, size no longer matters”. This really resonated with me as here at Legacy Portfolio, despite being a tight knit organisation, we strive hard to be pioneering in all that we do.

Panel Debate: 2020 Foresight, Visionaries foresee the future of CRE

The talk show style panel debate kick-started the second day of CoreNet San Diego with Mark Gorman, MCR Capstone Facilitator leading the panel of expert global practitioners (Sarah Abrams: Iron Mountain, Sanjiv Awasthi: Cigna, Tony Shou Fat Wong: Cisco Systems, Inc and Pay Wu: Deloitte Services) in exploring the question: “What will CRE look like in 2020 or will it even exist?”

It is up to us to make sure that CRE stays relevant in years to come

Sarah Abrams, Iron Mountain

The answer: CRE as we know it will not exist in 2020. If we continue to think of CRE in it’s traditional function then it seems it will not be around for long, however that is not to say that CRE won’t exist in some sort of evolved function. By acknowledging the fact that, whether we like it or not, people are now working in all sorts of places, CRE can partner with HR and IT teams to provide innovative solutions to new ways of working. In the words of the panellist Sarah Abrams “It is up to us to make sure that CRE stays relevant in years to come”.

Kevin Carroll: Reimagening Recess, Play for Performance

Kevin Carroll the “Poster Child of Neoteny”, ended the conference with a bang ensuring we hung off his every word! Carroll’s message was simple; “Play is important!”.  Organisations need to embrace the spirit of play and creativity to maximise their human potential and enable more meaningful business and personal growth.

Carroll inspired the audience with his life stories highlighting his success in the face of real adversity. Abandoned by his mother at the age of 6, he told of how he has gone on to promote his message around the world including addressing dignitaries from 31 nations at the United Nations about the importance of play in their developing countries.

My favourite takeaway? …”Always remember your ‘haters’ are just your ‘confused admirers’!”

Were you at the CoreNet Summit!? If so, let me know what you thought in the comments box below! If you missed CoreNet San Diego or any of the sessions you can watch them here.

So what does the New Normal look like?

The Finance Sector 

One of the key features of the new normal is that fresh graduates are no longer as keen to work in the finance sector as they were before. Notwithstanding the fact that there are far less jobs in finance, there are also a number of other factors that have contributed to this.

The finance sector has received huge amount of bad publicity over the last couple of years clearly putting young people off starting a career in finance. A recent example of this was seen in Greg Smith’s open letter outlining why he had decided to resign from Goldman Sachs after almost 12 years at the firm. He writes, “…I can honestly say that the environment now is as toxic and destructive as I have ever seen it… I could no longer look students in the eye and tell them what a great place this was to work.”.

I can honestly say that the environment now is as toxic and destructive as I have ever seen it… I could no longer look students in the eye and tell them what a great place this was to work.

Greg Smith, Ex-Goldman Sachs

Technology and Media

It also seems that financial services are no longer the largest consumers of office space with technology and media companies far out doing them in occupying space. According to a recent article in Reuters, Facebook now leases 80,000 sq. ft. near Grand Central, New York and has the option to lease up to 150,000 sq. ft. at 335 Madison Avenue, a building once known as Bank of America Plaza. When Facebook moved there, Twitter took Facebook’s former location across the street. In line with this, Technology and Media firms also seem to be the companies that graduates are now competing for with Google and Facebook being ranked as some of the most sort-after companies to work for.

But be careful…

While these organisations may seem new and exciting, at the forefront of technology and creativity there is a warning to heed for those flocking to their doors. Scepticism has been expressed regarding the long-term viability of some of these companies due to the way in which many of them don’t actually create any profits. A prime example is that of Instagram, an Internet start-up in San Francisco, with minimal revenue, no profits and about a dozen employees yet despite this Facebook has already offered to buy it for a billion dollars. Some have argued that these companies are risky and could see a similar fate of those in the earlier dot.com bust.

The new normal is clearly different and there is no doubt that the business landscape has changed fundamentally however it does seem the new normal will be no less rich in opportunities and possibilities for those who are smart and prepared!

 A diverse panel moderated by Giles Barrie, Editor in Chief at Property Week, shared their insights and views on the regeneration of Stratford and what can be expected from the site once the Olympics are over.

Panelists included Matt Black of CBRE, Stephen Johns of Cushman and Wakefield, Peter Hugh of Westfield and Clive Dutton of Newham Council.

What were the key messages?

Connectivity – Stratford is now probably the most well connected area in the country, despite the perception that it is ‘far out’.

• Over 200 trains come in and out of Stratford station per hour.
• More infrastructure is planned in order to better connect the North East and South East.
• The area has one of the highest speed broadband networks in the World!

Occupier Appeal – Why would Occupiers choose this site?

• ‘Day One’ environment; Stratford provides more than shiny new office space, it is attracting arts and culture, education institutions and more.

Long-term investment - Public and private sector money is being spent to ensure the developments made have a long lifespan.

• Three higher educational institutions are building new campuses, including University College London.
• The Legacy regeneration program has a 20 year expiration date, so plenty of time for continual improvements for long-term gains!

 Looking after the local community – Newham Council promises to ‘give back’ to East Enders for putting up with the disruptions they have incurred, and to ensure positive development.

• The Borough Council will provide funding for 601 local ‘Olympics’ parties.
• 8,000-10,000 new jobs have been created by the regeneration, a large percentage of which has been aimed at locals.
• New investors/ developers are vetted by the Council for their proposals on the number of jobs they will be creating, their ‘meanwhile’ projects, and provision for supporting Stratford locals.

What is the CoreNet UK Young Leaders Group?

This is a photo of me with Ian Smith, CoreNet UK’s President; I’m trying to persuade him to Tweet!

I am fortunate enough to be part of the newly formed CoreNet UK Young Leader’s committee, dedicated to the educational and networking needs of young real estate professionals. We will be hosting a variety of events from breakfast forums to mentoring sessions.  To stay in touch, follow us on Twitter or join our LinkedIn group.

…If you think we’ve missed a trick or have an app you’d like to us to know about please share it with us in the comments box below!

1. Property Week App (Free)

This app brings the latest Property Week news, opinion and content from Property Week magazine straight to your smart phone or iPad. You can access videos, news interviews, industry vacancies and photos from industry events. A great app for getting up to speed on the early morning train journey before work each day!

2. Penultimate (£0.69)

Penultimate is an app that allows you to scribble down your notes using a stylus or finger to write or draw. Once you have jotted down your thoughts you can send if off in an email as a PDF document. With the options of various ink colour and thickness and a choice of graph, lined or plain paper, this app works well for Property Professionals on the road, needing to get their ideas down quickly.

3. Dropbox (Free)

An essential here at the Legacy London office, Dropbox lets you take all your photos, documents and videos anywhere you go. Once you save a file to your Dropbox, it will be automatically saved to all your computers, smart phone and iPad and even the Dropbox website. You can create shared folders so that one person can ‘drop’ a file in the shared Dropbox and another person can access it remotely from their own device. We love it, because we can ‘drop’ lengthy bid documents to share with our colleagues in the New York office that would usually be too large to send as an attachment in an email.

4. SoftSign –  (Free) * Chairman’s Favourite!

SoftSign gives you the ability to sign legal documents, contracts and forms on your smart phone and iPad. You can open PDF documents direct from Mail, Evernote or Dropbox, then simply tap the attached file and select ‘SoftSign’ from the pop-up menu. A personal favourite of Legacy Portfolio Chairman, Alexander Anton, it means that when he is visiting the New York office, business at the London office need not grind to a halt for lack of a signature.

5. Jones Lang LaSalle App (Free)

With this App you can access Jones Lang LaSalle’s real estate research, latest company news and people from your smart phone. A must for the up-to-date property professional, you can also follow JLL’s twitter and blog.

6. Property Tool Kit (Free)

The Property Tool Kit app speeds up the process of inspecting properties and recording inventories by automating the production of inspection reports and maintenance requests, saving time and money and allowing Property Managers to provide a better service. This app is a favourite for many of the staff at our property management partners.

7. WordPress App (Free)

WordPress for iOS allows you to easily manage your WordPress blog or site from your iOS device by enabling you to moderate comments, create or edit posts and pages, and add images or videos with ease.  Any self respecting Property Blogger should download this now!

8. Google Maps (Free)

Now this may seem like an obvious one but it really is the app we use the most. In the words of Google with this app you ‘Hold the world in the palm of your hand”. What is more, the “Street View” function that shows a recent photo of your searched address, is perfect for visiting properties you have never been to before.

9. SpringPad (Free)

SpringPad enables you to quickly and easily save the ideas and information you want to remember, on the web, smart phone or iPad. SpringPad then automatically organises the information you save with useful additions such as directions, price comparisons and links. Perfect for when you are juggling a number of different projects.

10. HootSuite (Free)

The HootSuite app is an indispensable tool for the Social Media Managers among us. It allows you to manage multiple social networks including Twitter, Facebook (Profiles and Pages), LinkedIn, WordPress.com, Foursquare, Myspace and Ping.fm, all from one convenient organised dashboard. The added business benefits of using HootSuite include the ability to produce break down analytics reports of your key audiences, topics and trends in your organisation’s social media activity.

The property portfolio comprises of 28 office buildings spread across the UK, with a total floor area of 530,000 square feet. The transaction incorporates the transfer of risks and obligations of the surplus properties to Legacy.

Paul Harris, Executive Director of Property at Virgin Media, said;

“We are pleased to have transferred the management obligations of our surplus properties to Legacy Portfolio. This now enables the team to focus on adding value to our operational estate of over 650 properties rather than spending resources and time managing a diverse non core-portfolio.” Read more.

Thanks to our partners

Helen Casey, Director of Legacy Portfolio, said;

“We would like to thank our partner firms which enabled us to achieve this great success: Jones Lang LaSalle, Slaughter and May, Brown Rudnick, Smith and Williamson, Brook Street des Roches, and FraserCRE, who have been hired to execute the workout of the portfolio”.

Quotes from our partners

Tim Lowe, Operations Director of FraserCRE, commented:

“FraserCRE looks forward to the challenge of working out this diverse portfolio. Most properties are vacant, and our objective is to surrender leases wherever possible. We are expecting to use the same strategies and knowledge that we applied in successfully working out the Wolseley UK portfolio last year”.

Mike Evans, Director in Jones Lang LaSalle’s Corporate Capital Markets team, said;

“We are very pleased to have worked in partnership with Legacy Portfolio on the pricing, commercial and financial structuring of the portfolio resulting in a compelling and successful bid to Virgin Media. The successful completion of this transaction serves to underscore the growing trend of Corporates to focus on alternative and original means in disposing of their onerous leasehold liabilities. We expect the recent growth that we have seen in this exciting market to continue during the year.” Read more

Martin Courtney, Corporate Tax director at Smith & Williamson, said:

“We are delighted to have acted as tax advisers to Legacy Portfolio on another successful transaction. Their product is innovative helping corporates to limit the burden and risk of surplus liabilities on their property portfolios.”

John Voyez, VAT Director at Smith & Williamson, said:

“This is the second occasion where we have assisted Legacy Portfolio in advising on the VAT structure for these projects working closely with them to overcome complex VAT issues.” Read more

The portfolio comprises of 28 office buildings spread across the UK, with a total floor area of 530,000 square feet.

The transaction incorporates the transfer of risks and obligations of the surplus properties to Legacy Portfolio.  The company has previously acquired surplus portfolios from Wolseley and EMAP and successfully progressed both of these transactions.

Paul Harris, Executive Director of Property at Virgin Media, said;

“We are pleased to have transferred the management obligations of our surplus properties to Legacy Portfolio. This now enables the team  to focus on adding value to our operational estate of over 650 properties rather than spending resources and time managing a diverse non core-portfolio.”

Alexander Anton, Chairman of Legacy Portfolio, said;

“Legacy is delighted to have acquired the Virgin Media portfolio, securing its reputation as the leading player in the growing market for acquiring surplus lease liabilities.  Having successfully de-risked Wolseley UK from its surplus portfolio within twelve months, we are looking forward to working with Virgin Media to achieve the same result.  This transaction endorses the success of the Legacy model for corporates both in the UK and USA.”

Paul Fry, Partner of Cushman & Wakefield’s EMEA Corporate Finance team commented “This transaction is the fourth major leasehold liability transfer in the past 18 months and demonstrates how the market is continuing to mature.   We are now seeing unprecedented levels of activity and expect further portfolios from both public and private sector occupiers to come to the market during the course of this year.”

Cushman & Wakefield, Ashurst and HBJ Gateley acted for Virgin Media. FraserCRE, Jones Lang LaSalle, Slaughter and May, Smith & Williamson and BrookStreet des Roches acted for Legacy Portfolio.

Further media coverage can be found at:

Property Week: Virgin Media Offloads Lease Liabilities to Legacy Portfolio

CoStar: Virgin and Morrisons dispose of Surplus Lease Liabilities

Bloomberg: Virgin Media, Morrisons hire lease breakers to cut bill

Business Week: Virgin Media, Morrisons hire lease breakers to cut bill

Estates Gazette: Legacy to manage Virgin Portfolio

Snap Session on Social Media

Social Media has become a burning interest of the property industry. The number of attendees at my session validated this, as well as the great response I have since received from CoreNet members, concerning how Social Media can be intergraded into their businesses.

Over the course of the event, 15% of attendees demonstrated their engagement of both Social Media and the event on Twitter. 150 tweets were posted between members, discussing ideas and building networks. Join future conversations with your fellow CoreNet members on Twitter here.

In my presentation I argued that Social Media could be used as a diverse business tool; it can bolster relationships that might otherwise be difficult to maintain and provide infinite collaboration opportunities. If you would like to read my presentation, please download it here, or Tweet me with your questions @legacyportfolio. If you would like to receive Social Media hints and tips in the future please email me, hc@legacyportfolio.co.uk.

What were the key takeaways of the event?

• When it comes to estates rationalisation, remember: be creative, think big, consult, prioritise and don’t be shy!
• Lease Accounting Changes (LAC): a complicated matter; to keep up with the latest information and to have your specific queries answered, visit Jones Lang LaSalle’s LAC website.
• What can be done to reverse entrenched behaviors? Make a cultural shift; changing people’s behaviors is the key to success. Ensure buy in from high level executives in order to direct change and engagement.
• Want to be more productive? Follow Antony Slumbers lead and use ‘Apps’. Those highly recommended for property professionals are: CoStar, PropertyWeek, Metropolis, Savills. For more information download Anthony’s full review here.

Despite Winston Churchill’s wise words, “I always avoid prophesying beforehand because it is a much better policy to prophesy after the event has already taken place.” we are spurred on by the recent discovery of John Elfreth Watkins’ spookily accurate predictions made 100 years ago and our own ‘on the mark’ 2011 predictions, and so we thought we’d give it another go!

Leaving out the obvious ‘end of the world’ and other such cataclysmic events, we have come up with our top 12 predictions for the UK and US for 2012.

UK

1. The 2012 Olympics are going to have a greater impact on the property market than previously thought. The infrastructure that comes with the Olympics will boost the property market and lead to increased demand for commercial and residential properties to buy and rent

2. Social Business becomes normal business. In the same way we no longer call it “e-business”, it seems that doing business through social networking sites will become the norm in 2012.

3. Big changes in the retail property market. More people buying online and according to Jones Lang LaSalle 25% of all retail leases are due to expire by 2013 and 50% by 2015. We are sure to witness a transformation in the retail property market.

4. Prospects for the UK economy are looking slightly better although this will depend on whether we are able to contain the impact of the Eurozone crisis.

5. Initiatives such as the ‘New Homes Bonus’ from the UK government, will encourage new developments in the property sector in an effort to kick-start the economy.

6. On the flip side, the government’s Localism Act, which comes into force April 2012, could make planning for new developments difficult and result in an increase in refurbishment projects.

USA

7. The US corporate real estate market is set to recover slowly after four plus years of stagnant or negative growth.

8. The market will not return to where it was in 2006/2007 and businesses that have succeeded in surviving to this point, will now start to plan on how to grow their business going forward, acknowledging the ‘New Norm’. The ‘New Norm” will ensure that cost management and the efficient management of the corporate’s real estate overheads will be paramount as sales increases in most of corporate America will remain sluggish.

9. With the US presidential election this year, the race for the White House will intensify and most certainly hinge on issues of the economy. Watch out for Dodd-Frank legislation and new industry regulations that could have an impact on the commercial real estate industry.

10. Pop-up stores will no longer be just a fad and instead will be seen as a way for some retailers to meet seasonal demand, without the expense of committing to a lease and full store fit out.

11. The management of companies’ real estate will gain increasing importance because many organisations find themselves with significant surpluses. As real estate is frequently the second or third largest cost after employees and technology, they will be paying attention as to how the real estate costs can be driven down as quickly as possible in order to maintain or improve investor and shareholder value.

12. December 2012 will see a massive sun flare, a reversal of the earth’s magnetic poles, a collision with a black hole and a collision with the Planet ‘Nibiru’, all at once, spelling the end of the world (sorry I just couldn’t resist!)

• 1. iPad
• 2. Set of Architecture Card Dividers
• 3. “Trust Me, I’m an Estate Agent” Cufflinks
• 4. Waterproof iPad Cover
• 5. Subscription to Property Week Magazine
• 6. Surveyor iPhone4 Slider Case
• 7. Sat Nav
• 8. Surveyor’s Thermos Flask
• 9. Novelty Tape Measure
• 10.  Digital Camera

Wishing you all a very Merry Christmas from the Legacy Team!

Have you got a property gift idea that you think should make our top ten? Then let us know in the comments section below…

Here at Legacy we love social media! It provides countless opportunities for brand marketing, relationship building, information sourcing and business development. Whether you use it personally, for your business or a networking group, the scope is vast.

Since winning the CoreNet prize for ‘Young Person’s Essay of the Year’, on the topic of social media, Helen Casey, Director at Legacy Portfolio has been inundated with requests from people needing advice on employing social media for their business. In answer to these cries, Helen has consolidated her basic ideas and tips in a short paper that we hope you will find useful and applicable.

All you need to do to download your free copy of Helen’s paper,  ‘Why Use Social Media?’ is click on the link below and register your details.

Please do not hesitate to get in contact with us if you have any comments or questions, by leaving a comment below. Alternatively you can email Helen directly on hc@legacyportfolio.co.uk.