The case for property & structural change

Vanessa HalePartner, Research

May 2016

Mega Trends

Source: Trend Watching, SocalityBarbie

Flexible/serviced retail on the rise

Source: Appear Here, We Are Popup

0

500

1000

1500

2000

2013 2014 2015

Appear Here Bookings

Market-esque retail can deliver resultsZone A rents and Google searches

Source: PMA, Google Trends

0

10

20

30

40

50

60

70

80

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Index o

f avg.

weekly

searc

hes,

w/c

03/0

8/2

014 =

100

£itza

Brixton

Clapham Junction

Google search term 'Brixton Market'

Amazon taking over the world…

Source: Profitero, 2,780 available Amazon Pantry UK products; Average price from 22 Nov – 7 Dec 2015

16%

19%

20%

24%

24%

29%

0% 5% 10% 15% 20% 25% 30%

Asda

Sainsburys

Morrisons

Ocado

Tesco

Waitrose

Amazon Pantry pricing vs. UK supermarkets with online presence

A structural shift

Skills shortage

Big data (r)evolution

Automation

Growing

demand

Optimised

location

Skills for modern logistics

Source: Ocado / Ocado Technology

Senior Front

End Developer

Senior

Android

Developer Infrastructure

Developer

Cloud Services

Team Leader

Security Analyst

Principal

Data

Scientist

Network Systems

Developer

Organisational

Catalyst / Agile CoachBusiness Intelligence &

Visualisation Team

LeaderAutomation

Product

Manager

Digital

Marketing

Manager

Residential trends…

Source: Strutt & Parker Housing Futures

75%

15%

45%

51% 39%

Source: Strutt & Parker Housing Futures

GloMads

Tumble-

weeders

Future Housing Tribes & Housing Solutions

MEcos

Platinum

Places

HEAL

House

Micro

MansionsPRS

Source: Strutt & Parker Housing Futures

Modern Village

Conclusion

• Increased long term pressure on land

• Work styles will demand a new approach to the office

• The way we live is fundamentally shifting