SIOR has conducted a survey of its European membership to assess the outlook for the office and logistics markets. The survey considers supply, demand, and rental growth for prime space, as well as the opportunities and challenges highlighted by our respondents. Other themes include the impact of technology and respondents’ business focus for 2024.

We would like to thank Daniel Francis, Head of Research at our sponsor Carter Jonas, who led this report and the SIOR members across Europe who shared their valuable insights.

The Real Estate Data Foundation is a not-for-profit initiative bringing together the whole sector around the topic of data and to raise data ethics up the agenda and we are delighted that SIOR Europe is supporting this collaborative alliance. 

But what is ‘data ethics’, why should you care and what should you do about it?

What is data ethics?

Ethics is important in all corners of real estate, but as the volume of data that we collect and use grows, it is important to make sure that we apply ethical thinking to this. Having the technology to collect data and being allowed to under law is not enough – we need to consider whether we should be collecting and using the data. Ethics is all about asking ‘should we?’ If buildings of the future are about the user’s happiness, health or productivity we can collect huge amounts of data on all of this – but should we? Where does the risk outweigh the benefit?

Before COVID, the idea of having your temperature taken to assess your health to be allowed to enter a building seemed inconceivable, yet for a while it became the norm. At what point should we stop collecting and using this data? 

A more extreme example may be the decision about placing cameras inside buildings. This can allow all sorts of data to be collected and used to improve the experience for the resident, but there is a high risk that residents will resist it – and complain about it, as happened recently when  North Ayrshire Council  used Facial Recognition Technology in its school canteens. But what if the cameras are used to assist the elderly to continue living on their own by providing an automatic alert system for any falls or health problems? As long as data was suitably anonymised and secure and residents were fully aware of what was being collected and why, then this may feel like a more acceptable use case.

Whatever your views on the examples above, we can see that the ethical use of data is not black and white which is why the real estate sector needs to be on the front foot.

Why it matters

Data ethics in real estate matters for 3 reasons:

• Serving our building users – first and foremost, as a sector we need to serve the people and the organisations that use our buildings and spaces. How data is collected and used is rising up the agenda and it is important that as a sector we are on the front foot, rather than waiting for things to go wrong. Ethics are at the heart of professionals’ advice and this needs to extend to data.
• Reducing risk – by taking some simple steps to build data ethics into our thinking, we can head off many problems that we will face and reduce the impact when we do. Being open and transparent about what we are doing and why is both the right thing to do and avoids significant reputational and financial risks.
• Outside reputation – real estate does not always benefit from the best image and as we become ever more data driven, how we approach data is going to be key. A strong data ethics approach by the sector today will enhance our reputation or at least prevent further harm being done to it.

What to do about it

The ethical use of data is complex and subjective, but the good news is that it is easy to take significant steps towards making sure that you are using data in an ethical way. The RED Foundation has developed 6 data ethical principles that we ask both people and companies to sign up to. Sign up to these today and build them into any decisions you make relating to data and you are well on the road to addressing it.

For those who wish to take a step further, we have published a Data Ethics Playbook which builds on these principles and provides practical guidance on how to build data ethics into your thinking.

FOREWORD BY THE EUROPEAN CHAPTER PRESIDENT, ANDREW SMITH SIOR FRICS.

As COP27 has drawn to a close, SIOR Europe is keen to join the conversation about the focus that the summit brings on climate change impact to share commentary and advice from our members, all of whom support greater action in the race to net zero.

Our members have put climate change impact at the heart of their consultancy in response to the market and clients’ increasing ESG requirements and have embedded it into every stage of the property process.

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The SIOR Europe Diversity and Inclusion Committee held a webinar to mark International Women’s Day, which this year has the theme of ‘break the bias’. The inspirational discussion focused on championing women in real estate and finding positive ways to empower more women to join the industry and stay to build fulfilling careers.

Chaired by Andrea Carpenter, Director of Women Talk Real Estate, we welcomed an expert panel of women who shared their unique perspectives and experiences – Katie Whipp, head of Deepki, Sonja Beier, Counsel at DLA Piper, Nicola Mottershaw, Partner at Vail Williams, and Małgorzata Kalinowska – Klimek, VP Franchise Operation Poland & Eastern Europe at Accor.

The session kicked off with participants relaying what prompted them to enter the industry and find their own place within it. We heard how Nicola was encouraged to become a chartered surveyor by her father. She wanted variety, problem solving and transactional work, and occupier advisory ticked all the boxes. Małgorzata studied hospitality in Poland, being promoted over many years as she worked for numerous hotels. For Katie, it was not a conscious decision – her real estate journey stemmed from being open to opportunities she came across in London. Sonja, too, was not aware of the industry before her internship as a corporate lawyer, which led her to the real estate team.

They shared the changes they have seen for women in their part of the market. All agreed that there has been positive progress.

• Nicola noted that, from 100 people on her college course only ten were women, so the pool of women from that generation of trainees is small. However, this has changed dramatically since

• Katie, whose work in real estate encompasses ESG and technology, cited the stat that, out of 3m people employed in technology in the UK, only 26% are women – noting that the tech industry faces a similar challenge to improve gender diversity

• At the intersection of law and real estate in Germany, Sonja sees positive development in both industries, which were male dominated when she began. At law firms there is a 50/50 gender split when recruits first join, but this thins out as positions become more senior

• Małgorzata shared that the hospitality space is very diverse but agreed that, once you come to the highest level, there are fewer women. She mentioned some challenges women can face when it comes to promotion – they may be offered a bigger role in another city but this throws up difficulties in relocating children and families

• Real estate remains an unknown profession for many. The perception is that it falls into two basic categories – builder or estate agent – with little realisation that there is a tremendous variety of roles in between. If we do not address this issue through accessibility and knowledge sharing, the risks are manifold – the sector would lose resilience, be unable to adapt to the future, and fail to attract and retain talent

• There is wider recognition that women bring a huge amount of value. As the typical customer base becomes increasingly diverse, the industry must be equally diverse to meet changing requirements, innovate and create. It was mentioned that companies that are top for diversity are also proven to perform better financially

• The younger generation of women is seeking purpose and cares about the bigger issues – our panel thought that highlighting the built environment’s potential contribution to meeting global sustainability ambitions can help attract more women and engage young people in general

We then explored what is hindering more female participation and progress in real estate.

• Panellists agreed that a series of issues is responsible, one of which is imposter syndrome, afflicting women who are not supported enough in an institutionally male culture. There was consensus that real estate should feel like a natural habitat for women rather than something to ‘break into’. For new generations entering the workplace, gender balance is standard

• On the back of the pandemic, more women are either stepping back in their careers or looking to leave the workforce completely due to the stress associated with managing domestic and work life. Katie referenced the UN, which warns that this could set us back in terms of gender progress by 25 years. Małgorzata also saw many talented female experts leave the hospitality industry. Nicola added that, while the pandemic ushered in more flexible working it also showed that, if there is domestic pressure too, women are the ones more likely to take a career break

• We heard at length about the crucial importance of role models and mentoring in creating more robust support structures to help women thrive. Our panellists shared stories of how they benefited hugely from mentorship in their careers, and their current efforts to mentor others

• We spoke about pressing issues such as maternity leave. Sonja noted that, in Germany, she is glad to see parental leave becoming more common, with men also starting to take leave

• While we aim to attract more talented women, it is important not to push the bias the other way as many men work in the industry too – we should strive for diversity in its fullest sense

Looking ahead – the panel agreed that we must act to encourage more women into the industry. When asked what advice they would give their former selves and other women, responses ranged from remembering to celebrate achievements, to finding what you are most passionate about and not doubting yourself because it is not a traditionally female-dominated area. Recognise that you have a voice that matters, talk to people and seek the necessary support along the way.

Renata Osiecka, Managing Partner at AXI Immo Group, concluded the session by highlighting that, while it is uplifting to see more women in business and leadership positions, there is still room for improvement in encouraging young women to join the sector. We must lead by example and show that diversity is an asset that adds value to companies, the industry and society.

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To view the webinar online, visit our YouTube Channel here.

FOREWORD BY THE EUROPEAN CHAPTER PRESIDENT

As the second week of COP26 comes to a close and with a day dedicated to the built environment, we publish the second part of SIOR Europe’s Members’ and Industry Insights, this time focusing on the experiences of our members across the UK & Europe.

Our report provides insight into how different countries are responding, shares solutions that can be applied elsewhere and demonstrates how climate change is increasingly integrated into the transactional process as a means to add value.

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FOREWORD BY THE EUROPEAN CHAPTER PRESIDENT

As COP26 gets underway, SIOR Europe is keen to join the conversation about the focus that the summit brings on
climate change impact to share commentary and advice from our members, all of whom support greater action in
the race to net zero.

Our members have put climate change impact at the heart of their consultancy in response to the market and clients’
increasing ESG requirements and have embedded it into every stage of the property process.

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On 5 October 2021, Built Environment Networking brought together the great and the good in the logistics sector to consider how the industry is changing and how best to respond. With a focus on the positive, SIOR Europe was delighted to be a sponsor and support a discussion around the many solutions and opportunities emerging.

The virtual conference covered topics from freeports to climate change and congestion to technology, with speakers from companies ranging from Aberdeen Standard Investments and Europa Capital, to Prologis, St Modwin and Hermes, as well as SIOR’s industry partner TSL, a leader in turnkey capital projects.

It also looked at current and future developments, to the value of circa £6 billion, including those breaking new ground in achieving net zero carbon and those that will provide integrated, strategically located hubs across the UK, driving economic growth.

Key trends emerged:

• There is a significant increase in the acquisition of land without planning, with developers taking advantage of planning uplift to gain greater returns. This means debt financers in the UK now need to have more understanding of planning policy frameworks, factoring this into projections

• Occupiers continue to drive the market, in design, construction and sustainability, so landlords and developers are becoming more and more attentive. While sustainability has gone far beyond embedded carbon to whole life cycle performance considerations, it is still hampered by tight margins and viability issues. There needs to be confidence to invest ethically and a clear link to value and other benefits, beyond the obvious social duty. There’s a call for government incentives and bold decisions to come out of COP26 – watch this space.

• Planners too are having a significant influence, insisting that occupiers demonstrate how they will be net zero carbon in development as well as in operation. While there is a need in the planning system for a greater understanding of logistics operations and how they work in practice, there is great potential for a highly sustainable, robust logistics sector to support our economy. This will combine carbon emission reduction, renewable energy, embracing electric, using technology, embedding biodiversity net gain and off-setting where needed

• As with any evolving industry, there are some areas requiring attention. Infrastructure needs to support sustainability ambitions for emission-free delivery fleets and multi-modal opportunities, particularly around rail and port connections – access to both will come at a premium. We’ve all reads about the shortage of lorry drivers, which pervades the news in the UK, and is also affecting Europe. In construction, there are also challenges around availability of labour

Our key take out from the conference was a real commitment to driving improvement and best practice on every level. At SIOR Europe, we welcome this with open arms. It is why we exist.

Representing the top advisors in our industry, our members are dealing with multi-million pound/euro deals every day, many in the logistics sector. They have developed solutions to many of the challenges we heard about at the conference, and bring insight from across the UK, Europe and beyond. You can find out more about them and how they can help you here.

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