Property Focus: The Interview – John Ogden, CBRE

John Ogden is managing director of CB Richard Ellis in Leeds.
 
What are your views of the current state of the property market?
 
Things are beginning to look slightly better, property values continue to rise and IPD shows that commercial property values in the UK saw a first quarter increase of approximately 3.9%. This increase has come on the back of positive rental and yield movements, which is certainly encouraging news. 

Certainly the City of London investment market and, indeed, the regional investment market have improved dramatically in the first quarter of 2010 and there is improving sentiment in the property market. I think there are certain vendors who would like to capitalise now should the feared double dip recession hit us following the election so we are seeing more activity in capital markets – a big improvement on 2009.
 
Although the capital markets picture is more favourable than last year there is still concern over the leasing market as occupiers renegotiate terms with their existing landlords and many, I suspect, are waiting to see what the outcome of the forthcoming election is before making occupational decisions particularly in our region where lettings remain slow across both the industrial and office sectors.
 
What key challenges and pieces of legislation do you think will most affect your sector over the coming months?
 
This is a difficult question to answer particularly bearing in mind potential changes in Government, however, I would suggest that one of the main challenges to the property sector over the coming months is all the political parties proposals to cut spending in the public sector. 

It looks like regional development agencies would be dramatically reformed under both the Liberal Democrats and the Tories and it also appears that Labour will axe ‘unneeded’ quangos. It is also likely that the Government will procure less work from consultants in a bid to cut costs over the next 12 months.
 
Empty rates still remains an issue but this has been well documented in recent months. Another fear is cutting costs in planning departments where, as my colleague and head of planning at CB Richard Ellis succinctly puts it, “Councils will have to do more with less”.
 
Why do you think Yorkshire is a good place to do business?
 
There are a myriad of reasons why Yorkshire is a good place to do business as it has great communication links, a diverse economy from manufacturing to financial and business services and it also, particularly around the Leeds area, has built a reputation as a great place for shared service centre operations and similar due to a large labour pool with diverse skills and excellent value for money accommodation. 

A testament to this is the fact that the financial and business services sector employs over 122,000 in Leeds and approximately 272,000 in the wider Leeds city region alone. 

Connectivity and communications are excellent with London being only two hours by train and the area is a cost effective location with salary costs being competitive in relation to other major UK cities and certainly cheaper than those of London, Edinburgh and, indeed, the UK average.  

For me, however, Yorkshire is a great place to do business because it is a vibrant and diverse county which can offer an exceptional quality of life to those working and living in it.
 
What is your favourite building / development in Yorkshire and why?
 
There are numerous and mentioning one would be a little unfair, however, I think the vision for Holbeck Urban village and the continuing drive to improve that area of Leeds is fantastic. 

Clarence Dock is another great example of a mixed use waterfront location and the fact that Yorkshire Water has chosen it to house more than 500 of its employees is testament to that. 

Going back to Holbeck Village, however, I look forward to seeing Tower Works in its finished form as the first phase will also create public space and hopefully enhance links between Holbeck Urban Village and Leeds city centre, which will only strengthen the growing business and residential community in this part of the city.
 
I also like the idea that Leeds will soon have its own arena as it will boost the regional economy and, I believe, it is expected to create over 500 jobs which is great.
 
If you could improve anything in the region what would it be?
 
I would like to see a strong inward development agency with a clear organisational structure and remit who can work with both the public and private sector and, in fact, bring the two together in order to go after corporate business and sell the region to them.
 
What was your first job and how did you enter your current line of work?
 
First job was at DeHavillands Chartered Surveyors in Manchester. Before joining CB Richard Ellis in Leeds I worked with the Manchester team for three years.
 
What do you most enjoy about your job?
 
The fact that every day is different and working with the fantastic CB Richard Ellis team in the Leeds office.