Understanding Green Building Economics 27th September 2017 - Tech CitiesAndrew D Thompson FRICS, Director, Savills Building & Project Consultancy

Todays Topics

• Tech Cities and the Savills Flat White Index

• Wellness

SAVILLS Building & Project Consultancy

Andrew D Thompson MSc CEnv FRICS

The evolution of cities

Industry and raw materials Ports and physical infrastructure Financial centres Human capital

Human capital wants city

Source: YouGov, Savills, BCO

0%

10%

20%

30%

40%

50%

60%

70%

A town/city centre A suburban location A business park A rural location

% o

f re

sp

ondents

25-34 35-44 45-54 55+

From Silicon Valley to San Francisco

Savills Tech Cities

22 Global Tech Cities

Established tech sectors, top of lists for expanding tech cos

Important and growing start up scenes

Vibrant and attractive cities in their own right

-

New York

Austin

San Francisco

Dublin

London

Berlin

Stockholm

Tel Aviv

Mumbai

Singapore

Hong Kong

SeoulSeattle

Toronto

SantiagoBuenos Aires Cape Town

Melbourne

Bangalore

Tokyo

Amsterdam

Copenhagen

Boston

Tech Cities 2016/17

Tech Cities Index components

Business

environment

+ +

Tech

Environment

City Buzz &

Wellness

Talent Pool Property Costs

+ +

Investment

Size of business sector

Ease of starting a business

R&D / innovation

Physical linkages

Cost of doing business

(regulations, taxes, pay)

Size / value of tech sector

Tech infrastructure

Tech engagement

City wellness

City buzz

Cost of living

Higher education

Immigration and

talent attractiveness

City youthfulness

Cost of renting

commercial property for a

‘scale up’ and established

tech company

Cost of renting residential

property for employees

Overall rankings

Source: Savills World Research0 20 40 60 80

Austin

San Francisco

New York

London

Amsterdam

Toronto

Copenhagen

Boston

Berlin

Singapore

Stockholm

Dublin

Seattle

Melbourne

Tel Aviv

Seoul

Hong Kong

Tokyo

Santiago

Bengaluru

Buenos Aires

Cape Town

Index score

Business Environment Tech Environment

City Buzz and Wellness Talent Pool

Real Estate Costs

Sub rankings

Source: Savills World Research

Talent PoolCity Buzz &

Wellness

Property Costs

Business

environment

Tech

Environment

Savills Flat White Index

City Buzz and Wellness

Source: Savills World Research

- 1.0 2.0 3.0 4.0 5.0 6.0 7.0

Berlin

London

Tokyo

Amsterdam

Toronto

Austin

New York

Melbourne

Singapore

Dublin

Copenhagen

San Francisco

Cape Town

Buenos Aires

Stockholm

Seattle

Santiago

Boston

Seoul

Tel Aviv

Bengaluru

Hong Kong

City Buzz Wellness Cost of Living

Property costs

Source: Savills World Research

0 2 4 6 8 10

Buenos Aires

Santiago

Cape Town

Berlin

Bengaluru

Seoul

Stockholm

Copenhagen

Dublin

Melbourne

Toronto

Amsterdam

Seattle

Austin

Tel Aviv

Boston

Singapore

San Francisco

London

New York

Hong Kong

Tokyo

Index score

Cheaper

More

expensive

Bureaucracy: number of days to start a business

Hong Kong 2

Toronto 2

Singapore 3

Copenhagen 3

Melbourne 3

Seoul 4

Amsterdam 4

London 5

San Francisco 6

Austin 6

New York 6

Dublin 6

Santiago 6

Boston 6

Seattle 6

Stockholm 7

Tokyo 10

Berlin 11

Tel Aviv 13

Buenos Aires 25

Bengaluru 29

Cape Town 46

Source: IMD

Startups per 1,000 people

-

5

10

15

20

25

30

Sta

rtups

per

1,0

00 p

eople

Source: Angel.co, Savills World Research

Savills Tech Cities

www.savills.com/tech-cities

WellnessAndrew D Thompson MSc CEnv FRICS

While wellness has, in some quarters, become the property industry buzzword for 2017, this is one of the most visible

examples we have seen in practice and it certainly won’t be the last. Developers

are increasingly including these innovative features at design stage,

creating the first wave of ‘well buildings’ across the country.

When the White Collar Factory in Old Street, London, opened its doors earlier this month, it wasn’t so much the office space that drew attention as the 150-metre running track that sits atop the 16-storey building.

Built-in wellness is becoming a fact of life

http://www.propertyweek.com/opinion/built-in-wellness-is-becoming-a-

fact-of-life/5092547.article

While it may be a cliché to say employees are a company’s biggest asset, countless productivity studies

prove that employees’ work efficiency is directly linked to their happiness and the

traditional warehouses of old, with minimal natural light and stark amenity, are not necessarily conducive to this.

This is why forward-thinking landlords and logistics developers are now interacting with bodies such as the International WELL Building Institute, which looks to “advance buildings that help people work, live, perform and feel their best”.

In Savills and the British Council for Offices’ most recent What Workers Want survey, 31% of staff said that their workplace had a negative impact on their physical health and 28% said the same of the impact on their mental health.

http://www.propertyweek.com/opinion/built-in-wellness-is-becoming-a-

fact-of-life/5092547.article

Acknowledgements

Tech Cities is the research of Paul Tostevin of Savills World Research

“Built-in wellness is becoming a fact of life” is the Property Week article of Simon Collett, Head of

Division, Building & Project Consultancy, Savills (UK) Limited published on 22nd September 2017.

This presentation fully acknowledges the authorship of my two collegues

Thank you

© Savills 2016