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estate agency by f y f e m c d a d e 1 Charlotte Road Shoreditch London EC2A 3DH t 020 7613 4044 f 020 7613 4923 e [email protected] www.fyfemcdade.com 6TH December 2018 Marketing Update Report Building to the rear of 25 - 27 Corsica Street London N5 1JT PLEASE NOTE: This report is intended as a guide to marketing and should not be used for formal valuation purposes. Shoreditch Office Bloomsbury Office Islington Office Waterloo Office 1 Charlotte Road 56 Marchmont Street 293 Upper Street 29 Lower Marsh London EC2A 3DH London WC1N 1AB London N1 2TU London SE1 7RG t 020 7613 4044 t 020 7837 2022 t 020 7354 4044 t 020 7401 8088 Registered in England Reg No. 631 34921 Address: Charlotte Road, London, EC2A 3DH Description Property: Building to the rear of 25 - 27 Corsica Street, N5 1JT Location: In a pocket of land to the rear of 25 – 27 Corsica Street, predominantly surrounded by residential properties and a neighbouring warehouse property in commercial use. North of Highbury Corner, between Canonbury and Holloway Description: The property comprises a single storey detached building, brick and timber construction, mainly single glazed. Interior partitions. No parking. Floor Area: GIA 72 sqm (775 sqft) Condition: Poor condition, dilapidated externally and internally, requires extensive renovation. Planning: B1 (office) Tenure: Freehold Tenancy: Owner occupied – Available To Let with Vacant Possession Current passing Rent: £0 Market Rent: TBC. Location 1 | P a g e The subject property is located within the London Borough of Islington, which is situated within Greater London, approximately 3 miles north of the City of London and bordered by Camden to the West and Hackney to the East. The nearest London Underground station is within a few hundred metres and 6 minutes walk at Highbury and Islington (Victoria Line, Overground, Great Northern) with a 10 minutes journey time to Kings Cross Station, 14 minutes to Moorgate, Heathrow (17 miles west) is 80 minutes. Road communications are relatively good with fast access to the A1 and A10, the M1 is approximately 8 miles to the north west, the M25 approximately 11 miles north. The immediate neighbourhood is predominantly residential and benefits from close proximity to amenity space of Highbury Fields park. The nearest high street is Holloway Road with an eclectic mix of retailers, seeing signs of gentrification in recent years, more notably the popular retail destination of Upper Street, at the heart of Islington, is 15 minutes walk to the south with numerous boutique shops, bars and some acclaimed restaurants. Local Rental Market And Tenant Demand Whilst the subject property benefits from proximity to good transport links to and from Central London and access to a broad range of local amenities it would be considered a secondary location choice to the majority of typical prospective office tenants who are responsible for driving current demand. Typically these are SMEs in the creative media and I.T. industries, marketing and content production, architecture, fashion and product design. These companies favour an association with the more fashionable neighbourhoods of Old Street, Shoreditch, Clerkenwell and the regenerated Kings Cross. With reference to the examples below and the attached Lease Comps Report – office lettings within 0.75 miles completed over the last 24 months (Appendix I) the majority of nearby lettings have been achieving average effective rents in the region of £34 - £40 per sqft based on net internal areas. 2 | P a g e Marketing Methods Fyfe McDade have been marketing the property to let in its current vacant state for a period of 8 months from 26.03.2018 as confirmed in the activity report from Zoopla (Appendix II) The property is widely marketed, being listed on our company website which is linked to the public portals Rightmove, Zoopla, On The Market. The property is also listed on dedicated commercial agency portals CoStar and Estate Agents Clearing House targeting commercial property agents representing their clients in the search and acquisition of property. Our marketing details are made available to all applicants. The property was originally listed at £30,000 per annum but reduced to £27,000 per annum after a period of 3 months, reflecting a guide price of approximately £35 per sqft per annum. At the time of marketing consideration was given to the location, overall size, condition and quality of space on space on offer. Results and Feedback From Applicants The online listings and website have yielded very few enquiries specifically for this property, there have been no email enquiries and only one telephone enquiry regarding the property. The property is discussed with applicants who contact us with general enquiries and with property requirements of a similar size and budget, who may initially be looking in a different location. The property is also included in availability lists of potentially suitable properties and mailed to new enquiries and periodically to existing applicants on our database. For the majority of applicants the location of the property is considered unsuitable as the neighbourhood is primarily residential, despite relatively good proximity to transport links and amenities. For all applicants who have considered the property it is the extent of necessary works and the capital investment required to renovate the property that is proving prohibitive, despite being offered rent free incentives. The majority of applicants for units this size are also reluctant to commit to lease terms longer than 2-3 years meaning it is unlikely they will recoup their investment in the demise. Conclusion Given that we have been marketing the property for a considerable time without generating enquiries and despite offering rent free incentives to other applicants, the consensus feedback confirms our original assertion that, in its current dilapidated state, the property does not represent a viable proposal. Lowering the asking price further would mean that a longer rent free incentive would need to be offered to contribute sufficiently towards the costs of renovation. Prospective tenants for this size of office do not generally have the budget for refurbishment or require sufficiently long leases that they might recoup their investment. Considering all these factors I do not realistically expect to be able to find a suitable tenant for this property in the near future. Ralph Hall Manager Commercial Property f y f e m c d a d e 020 7613 4044 w w w . f y f e m c d a d e . c o m 1. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Fyfe McDade have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Fyfe McDade Limited, their clients and joint agents (where applicable) give notice that: 2. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 3 | P a g e Lease Comps Summary Lease Comps Report Deals Asking Rent Per SF Achieved Rent Per SF Avg. Months On Market 14 £44.42 £42.38 4 LEASE COMPARABLES SUMMARY STATISTICS Rent Deals Low Average Median High Asking Rent Per SF 13 £33.33 £44.42 £43.90 £53.84 Achieved Rent Per SF 8 £33.33 £42.38 £38.00 £51.86 Net Effective Rent Per SF 6 £33.33 £39.43 £37.58 £51.00 Asking Rent Discount 7 -2.7% 3.4% 0.0% 14.6% TI Allowance - - - - - Rent Free Months 1 2 2 2 2 Lease Attributes Deals Low Average Median High Months on Market 12 1 4 3 7 Deal Size 14 390 1,477 1,167 3,892 Lease Deal in Years 7 24.0 56.6 60.0 120.0 Floor Number 13 BSMT GRND 1 3 06/12/2018 Copyrighted report licensed to Fyfe Mcdade Ltd - 622079. Page 1 Lease Comps Summary Lease Comps Report Lease Rents Property Name - Address Rating SF Leased Floor Sign Date Type Rent Rent Type 16A Crane Grove 1 - 650 1st 08/08/2018 New £53.84 Asking The Studios Islington 2 - 1,472 GRND 18/07/2018 New £39.50/fri Asking 6 Hornsey St 63 Halliford St 3 - 1,174 BSMT,G… 25/05/2018 New £34.07 Asking 271 Upper St 4 - 390 1st 24/01/2018 New £33.33/fri Effective 16A Crane Grove 1 - 1,591 2nd 18/11/2017 New £34.57/fri Effective 7-9 Melody Ln 5 - 1,870 2nd 14/10/2017 New £35.24 Achieved 16A Crane Grove 1 - 950 1st 01/06/2017 New £44.21/iri Effective The Studios Islington 6 - 925 GRND 15/05/2017 New £50.00 Asking 8 Hornsey St 131-132 Upper St 7 - 3,250 1-2 11/05/2017 New £37.50/iri Effective 131-132 Upper St 7 - 1,315 3rd 17/04/2017 New £40.00 Asking The Studios Islington 6 - 1,159 GRND 01/04/2017 New £51.00 Effective 8 Hornsey St The Studios Islington 6 - 1,160 GRND 03/01/2017 New £50.00/fri Asking 8 Hornsey St Screenworks 8 - 3,892 Unkwn 01/11/2016 New £51.86 Achieved Highbury Grv 36a Clare Ln 3 - 880 GRND 18/08/2016 New £37.66/fri Effective 06/12/2018 Copyrighted report licensed to Fyfe Mcdade Ltd - 622079.