Central London Office Market Report Q1 2020 1

Total Page:16

File Type:pdf, Size:1020Kb

Central London Office Market Report Q1 2020 1 Central London Office Market Report Q1 2020 1 Central London office market report Q1 2020 2 Central London Office Market Report Q1 2020 Central London Office Market Report Q1 2020 3 Issue to watch - COVID-19 pandemic The COVID-19 pandemic has created a material The UK economy has effectively been placed in suspended volume of speculative development currently underway. the GFC and reach over 9% by the end of 2021, supply will uncertainty in real estate market performance. animation until normality can resume, with the government At the start of the GFC in Q2 2008, there was 12.6 million sq ft need to increase from today’s level of 10.1 million sq ft to taking dramatic steps to ensure that businesses don’t go of speculative space under construction, compared to just over 21 million sq ft. Across Europe, there is considerable variation in the bankrupt, people don’t lose the ability to contribute to society 7.0 million sq ft today. extent of the human tragedy implications unfolding and and individuals don’t lose their livelihoods or their homes. How occupiers respond will depend upon the speed and its impact on economic activity, including the trajectory, Construction is one area where we are seeing short term shape of the recovery - whether we see a short bounce-back, Sentiment has plummeted in the wake of COVID-19, with the disruption, with many office developments and internal fit-out which is likely to see a quicker return to business as usual or duration and extent of these impacts on all real estate IHS Markit/CIPS UK Services PMI falling to just 34.5 in March, projects already incurring delays. Disruption to the supply a more prolonged economic downturn which is more likely sectors. With varying policy responses across the region which is the lowest level on record and was also the fastest chain and a decrease in available workforce will continue for to lead to job losses, with a consequential release of sublease and the mitigating implications differing by market and ever monthly fall (decreasing from 53.2 in February). the foreseeable future. In Central London, many construction space. Longer-term, COVID-19 will no doubt force many sector, it is too early for us to provide a quantitative This and other poor confidence measures have filtered firms are self-regulating and suspending some or all of their companies into considering how they occupy office space, and robust assessment of value impact on 31st March, through to economic forecasts, with the UK, in line with all schemes. While at this stage it is too early to say what impact with issues such as flexibility, densification and employee our survey date. global economies, expected to see a sharp fall in economic this will have on individual scheme completion dates, we health and well-being positioned front and centre of any activity during 2020. expect the pipeline to be pushed out by 1-3 months. Given the future real estate strategy. In this context, the JLL Q1 2020 real estate performance low vacancy rates, any delay to office completions will add to indices have been held at Q4 2019 values, except where How the office market responds remains to be seen and the pressure on supply, and support rents if the slowdown is There are many questions that we cannot definitively answer there has been sufficient evidence at sector and market will be influenced by the severity and length of any economic short-lived. yet and all will have significant real estate implications. level to make appropriate any reliable adjustments downturn. At this stage, we can look back to previous Human, economic and business impacts are inevitable, recessions to provide some guidance as to how markets In previous downturns, the volume of tenant-led supply but new measures, policies and procedures, and investing to figures. have behaved to try to put today’s market into context. being returned to the market had a material impact on in the right infrastructure, will help mitigate risk in the short vacancy rates and rental values. In 2008/9, the volume of and longer-term. We will talk to the evolution of the market throughout We know that in previous downturns, most notably the Q1 in our reporting and will be continually monitoring second-hand space doubled to 14.7 million sq ft in 18 months early 1990’s recession and the global financial crisis (GFC), resulting in a peak vacancy rate of 9.1%. But contrast 2008 We will continue to monitor the situation on the ground and market movements as the situation evolves to inform vacancy rates increased sharply due to a combination of with today, where corporates have a greater emphasis on will provide updates on new and emerging trends as this our ongoing view of pricing. We will be updating our slower leasing activity and high volumes of speculative utilisation and densification of space which has driven situation evolves. forecasts, albeit these will be directional at this time, development underway at the entry point. It is interesting efficiencies and resulted in limited excess space in portfolios. broadly reflecting any meaningful changes to the to note that the current Central London vacancy rate is similar For vacancy rates to follow the same trajectory recorded in underlying fundamentals. to the entry point of the GFC, but what is different is the Impact of previous economic downturns on Central London office market supply and demand Office markets: immediate impact arl 10 receion inancial crii referend CO1 35 30 ft 25 q s n o 20 Construction delays Stalled projects and i l l i reduced cap-ex M 15 10 5 0 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 2 1 0 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 8 8 8 8 8 8 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 New supply Second-hand supply peclatie deelopent Take-up Work-from-home initiatives Social distancing, expanded remote work and more sq ft per person 2020-2022 speculative development includes schemes under construction as at March 2020 and reduced by year of completion. *2020-2022 supply forecasts as at February 2020 and for indicative purposes only. 4 Central London Office Market Report Q1 2020 Central London Office Market Report Q1 2020 5 Central London overview Leasing activity slows Flex share of take-up Central London vacancy rates A number of significant transactions went under offer during the COVID-19 outbreak but these may take longer to sign, Across Central London there was just 1.7 million sq ft 9.0% of take-up in Q1, the slowest start to the year since 2011. or indeed may be withdrawn, though it remains to be seen 28% 29% 28% 3% 8.0% if there has been any material impact on pricing terms. Volumes were down 22% on the Q1 10-year average 7.0% (2.2 million sq ft) and were 25% below the same period in 6.0% Prime yields in the City moved in 25 basis points to 4.0% 2019. The downturn in leasing cannot be directly attributed 5.0% across all lot sizes in February prior to the COVID-19 crisis and to COVID-19, given that most of the quarter was functioning remained unchanged for the end of the quarter, while West End under normal circumstances. 4.0% Q2 2017 Q4 2017 Q3 2019 Q1 2020 yields were held at 3.5%. 3.0% Despite the West End, City and East London all seeing 2.0% Prime rents have been held stable for the quarter at £75.00 per quarter-on-quarter declines in leasing volumes, the City 1.0% sq ft for the City and £117.50 per sq ft for the West End. started the year some 23% ahead of Q1 2019. This was 0.0% primarily due to Linklaters pre-leasing 307,000 sq ft at 20 5-year quarterly average Ropemaker Street, EC2. As a result of this transaction and a 16% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Central London investment volumes few other pre-let deals, pre-leasing remained a key driver of activity, accounting for 27% of quarterly volumes. Overall vacancy New vacancy 5.0 90% On a more positive note, under offers rose by 30% 10ear aerae oerall 10ear aerae ne 4.5 80% quarter-on-quarter, to 3.2 million sq ft at the end of Q1. 4.0 70% Central London take-up activity Of this, just under 1.8 million sq ft was under offer on pre-let 3.5 stock. Active demand also remained high at 9.9 million sq ft, 60% 12.0 Pause in investment activity 3.0 n 50% of which over half is structural and driven by a lease event. o i 2.5 l Despite a strong start to the year, COVID-19 has disrupted the l i 40% Nevertheless, given the current unprecedented circumstances, b 10.0 2.0 investment market, with a number of sales stalling over the last £ 30% many of these under offer transactions may take longer to 1.5 ft few weeks.
Recommended publications
  • The Potential for Urban Logistics Hubs in Central London
    Final report December 2020 The Potential for Urban Logistics Hubs in Central London Steer has prepared this material for Cross River Partnership. This material may only be used within the context and scope for which Steer has prepared it and may not be relied upon in part or whole by any third party or be used for any other purpose. Any person choosing to use any part of this material without the express and written permission of Steer shall be deemed to confirm their agreement to indemnify Steer for all loss or damage resulting therefrom. Steer has prepared this material using professional practices and procedures using information available to it at the time and as such any new information could alter the validity of the results and conclusions made. The Potential for Urban Logistics Hubs in Central London Prepared by: Prepared for: Steer Cross River Partnership 28-32 Upper Ground Westminster City Hall London SE1 9PD 64 Victoria Street LondonSW1E 6QP +44 20 7910 5000 www.steergroup.com 23957801 Click here to enter text. Steer has prepared this material for Cross River Partnership. This material may only be used within the context and scope for which Steer has prepared it and may not be relied upon in part or whole by any third party or be used for any other purpose. Any person choosing to use any part of this material without the express and written permission of Steer shall be deemed to confirm their agreement to indemnify Steer for all loss or damage resulting therefrom. Steer has prepared this material using professional practices and procedures using information available to it at the time and as such any new information could alter the validity of the results and conclusions made.
    [Show full text]
  • Key Bus Routes in Central London
    Route 8 Route 9 Key bus routes in central London 24 88 390 43 to Stoke Newington Route 11 to Hampstead Heath to Parliament to to 73 Route 14 Hill Fields Archway Friern Camden Lock 38 Route 15 139 to Golders Green ZSL Market Barnet London Zoo Route 23 23 to Clapton Westbourne Park Abbey Road Camden York Way Caledonian Pond Route 24 ZSL Camden Town Agar Grove Lord’s Cricket London Road Road & Route 25 Ground Zoo Barnsbury Essex Road Route 38 Ladbroke Grove Lisson Grove Albany Street Sainsbury’s for ZSL London Zoo Islington Angel Route 43 Sherlock Mornington London Crescent Route 59 Holmes Regent’s Park Canal to Bow 8 Museum Museum 274 Route 73 Ladbroke Grove Madame Tussauds Route 74 King’s St. John Old Street Street Telecom Euston Cross Sadler’s Wells Route 88 205 Marylebone Tower Theatre Route 139 Charles Dickens Paddington Shoreditch Route 148 Great Warren Street St. Pancras Museum High Street 453 74 Baker Regent’s Portland and 59 International Barbican Route 159 Street Park Centre Liverpool St Street Euston Square (390 only) Route 188 Moorgate Appold Street Edgware Road 11 Route 205 Pollock’s 14 188 Theobald’s Toy Museum Russell Road Route 274 Square British Museum Route 390 Goodge Street of London Museum Liverpool St Route 453 Marble Lancaster Arch Bloomsbury Way Bank Notting Hill 25 Gate Gate Bond Oxford Holborn Chancery 25 to Ilford Queensway Tottenham 8 148 274 Street 159 Circus Court Road/ Lane Holborn St. 205 to Bow 73 Viaduct Paul’s to Shepherd’s Marble Cambridge Hyde Arch for City Bush/ Park Circus Thameslink White City Kensington Regent Street Aldgate (night Park Lane Eros journeys Gardens Covent Garden Market 15 only) Albert Shaftesbury to Blackwall Memorial Avenue Kingsway to Royal Tower Hammersmith Academy Nelson’s Leicester Cannon Hill 9 Royal Column Piccadilly Circus Square Street Monument 23 Albert Hall Knightsbridge London St.
    [Show full text]
  • Crystal Palace Road, East Dulwich SE22
    Crystal Palace Road, East Dulwich SE22 Internal Page 4 Pic Inset Set back behind a mature hedgerow, this wonderful home has a small parking space and plenty of accommodation for the family. A spacious hallway with ample storage and pretty tiled flooring leads to a front reception room with an original fireplace and Firstfantastic paragraph, ceiling height.editorial To style,the front short, is also considered a separate headline home benefitsoffice/study. of living A large here. double One receptionor two sentences sits at the that center convey of thewhat youhome would and sayboasts in person. bi-fold doors opening onto the pretty rear garden. The contemporary kitchen entertaining at the rear also Secondbenefits paragraph, from bi-folding additional doors detailsand plenty of note of natural about thelight. Both property.kitchen and Wording reception to add room value opens and upsupport to a lovely image Southeast selection. facing Tem volum is solor si aliquation rempore puditiunto qui utatis patio-ed area and lawned garden beyond, great for entertaining adit, animporepro experit et dolupta ssuntio mos apieturere ommostiin the summer! squiati busdaecus cus dolorporum volutem. The upper floors offer six versatile, bright and spacious Thirdbedrooms paragraph, including additional a lovely details principal of note bedroom about with the built-inproperty. Wording to add value and support image selection. Tem storage and a modern en suite with a roll-top bath. These floors volum is solor si aliquation rempore puditiunto qui utatis adit,also animporeprobenefit from two experit family et bath/showerdolupta ssuntio rooms mos and apieturere a children's ommostiplayroom. squiati busdaecus cus dolorporum volutem.
    [Show full text]
  • Business Services
    BUSINESS SERVICES Invest in Richmond upon Thames We’re London and more [email protected] 08456 122 660 www.richmond.gov.uk/invest Great Place To Do Business Richmond upon Thames is an excellent location for business, fi nancial and ICT services, offering a range of properties from managed workspace to larger offi ces in the main centres of Richmond, Twickenham and other district centres. Business services are spread throughout the borough with the main concentration in Richmond Town Centre and Teddington. However, there are also a high proportion of self employed businesses working from home. The borough provides a large number of small units – 95% of the 5,690 units employ 10 people or less. This makes Richmond upon Thames a great place to develop your business. There are 379,000 square metres of offi ce space available, largely in Richmond Town Centre, Twickenham and the Hamptons. Rental ranges are between £10 and £34 per square feet, per annum. Notable offi ce and business centres are available at multiple sites in Richmond, Twickenham and Mortlake. There are also a large number of key industrial and business parks in the borough. For new small businesses, there is also a good range of serviced offi ces available including Regus in Richmond and MWB in Richmond and Twickenham. The borough is extremely well connected for both tourists and business visitors. There is excellent access to central London and the main motorway network connects Richmond upon Thames to the rest of the UK as well as to Heathrow airport. In addition, there are a number of thriving business networks which support the sectors locally, including the Richmond Chamber of Commerce and thebestofrichmond.
    [Show full text]
  • Irina Porter, Uncovering Kilburn's History: Part 7
    Uncovering Kilburn’s History – Part 7 Thank you for joining me again for the final part of this Kilburn local history series. 1. New flats in Cambridge Road, opposite Granville Road Baths, c.1970. (Brent Archives online image 10127) In Part 6 we saw the major rebuilding that took place, particularly in South Kilburn, between the late 1940s and the 1970s. Many of the workers on the building sites were Irish. The new wave of Irish immigration to Northwest London, which reached its peak in the 1950s, was quickly transforming the area. As well as abundant work, Kilburn offered plenty of cheap accommodation, and a bustling High Road with cultural and eating establishments, many of them catering for the Irish population, who soon represented a majority in the area. ‘County Kilburn’ was dubbed Ireland’s 33rd county. 2. Kilburn's Irish culture – an Irish Festival poster and Kilburn Gaels hurling team. (From the internet) The Irish community, close-knit and mutually supportive, hit the headlines in the negative way in the 1970s, when Kilburn became a focal point for “the Troubles” in London. On 8 June 1974, an estimated 3,000 came out onto the streets of Kilburn for the funeral procession of Provisional IRA member Michael Gaughan. An Irishman, who had lived in Kilburn, Gaughan was imprisoned for an armed bank robbery in 1971 and in 1974 died as the result a hunger strike. Gaughan’s coffin, accompanied by an IRA guard of honour, was taken from the Crown at Cricklewood through Kilburn to the Catholic Church of the Sacred Heart in Quex Road, before being flown to Dublin for another ceremony and funeral.
    [Show full text]
  • Central London Bus and Walking Map Key Bus Routes in Central London
    General A3 Leaflet v2 23/07/2015 10:49 Page 1 Transport for London Central London bus and walking map Key bus routes in central London Stoke West 139 24 C2 390 43 Hampstead to Hampstead Heath to Parliament to Archway to Newington Ways to pay 23 Hill Fields Friern 73 Westbourne Barnet Newington Kentish Green Dalston Clapton Park Abbey Road Camden Lock Pond Market Town York Way Junction The Zoo Agar Grove Caledonian Buses do not accept cash. Please use Road Mildmay Hackney 38 Camden Park Central your contactless debit or credit card Ladbroke Grove ZSL Camden Town Road SainsburyÕs LordÕs Cricket London Ground Zoo Essex Road or Oyster. Contactless is the same fare Lisson Grove Albany Street for The Zoo Mornington 274 Islington Angel as Oyster. Ladbroke Grove Sherlock London Holmes RegentÕs Park Crescent Canal Museum Museum You can top up your Oyster pay as Westbourne Grove Madame St John KingÕs TussaudÕs Street Bethnal 8 to Bow you go credit or buy Travelcards and Euston Cross SadlerÕs Wells Old Street Church 205 Telecom Theatre Green bus & tram passes at around 4,000 Marylebone Tower 14 Charles Dickens Old Ford Paddington Museum shops across London. For the locations Great Warren Street 10 Barbican Shoreditch 453 74 Baker Street and and Euston Square St Pancras Portland International 59 Centre High Street of these, please visit Gloucester Place Street Edgware Road Moorgate 11 PollockÕs 188 TheobaldÕs 23 tfl.gov.uk/ticketstopfinder Toy Museum 159 Russell Road Marble Museum Goodge Street Square For live travel updates, follow us on Arch British
    [Show full text]
  • St John's Wood
    St John’s Wood Area Guide St John’s Wood lies within the City of Westminster in the North West London. Once part of the Great Middlesex Forest, the area was one of the first London suburbs to be developed from the early 19th century onwards, mainly with low density “villa” type housing. St. John’s Wood was once part of the Great Forest of Middlesex, its name derived from its mediaeval owners, the Knights of the Order of St John of Jerusalem. After the Reformation and the Dissolution of monastic orders, St John’s Wood became Crown land, and Henry VIII established Royal Hunting Grounds in what became known as Marylebone Park, to the north of which lay St John’s Wood. The area remained in agricultural use until the end of the eighteenth century, when plans for residential development first appeared. Building began in 1809 in Alpha Road, on the southern boundary of St John’s Wood. One of the first London suburbs to be developed, it was a unique pattern of development and mainly planned with a large amount of low density, semi-detached villas, abandoning the familiar terraced house. Although many of the original houses and gardens disappeared during the twentieth century, through bomb damage and the building of new roads, railways and schools, much of the original character of the area remains. In the 1960s, most of St John’s Wood was designated a Conservation Area and its houses listed by English Heritage. It remains a highly desirable residential location, and one of the most expensive areas of London.
    [Show full text]
  • Bermondsey Central SE1 Is Your Gateway to the Dynamic, Vivid Colours of London
    live life iN COlOUR As one of London’s most vibrant areas, Bermondsey is awash with life and colour. Just minutes from the River Thames, Bermondsey Central SE1 is at the heart of this exciting area. Whether it’s the blue of the river, the richness of the nearby cultural spaces, the bright array of local life – or the sophisticated shades of your apartment. Why live life in monochrome? Wave goodbye to grey days… Bermondsey Central SE1 is your gateway to the dynamic, vivid colours of London. Feature wall at the Design Museum, Shad Thames Crop Guide for Tip in pages sunset red 1 4 With the river on your doorstep, you can take an evening stroll along the Thames or visit the historic Tower Bridge. London’s Southbank, the cultural heart of the city offers year round entertainment. Alternatively, you can explore one of many free events such as film screenings and plays at More London, or delve into the delights of the picturesque Shad Thames. discover the restaurants and stores of Butler’s Wharf – or simply sit back and absorb the riverside views. The choice is entirely yours. 3 2 Love Life, Love London “Lifeonthewaterfront isgreat–abuzzing atmosphere,andaLways pLentygoingon. iwouLdn’tchangeLiving hereforanything.” david nichol Solicitor The bustling promenade of the South Bank Crop Guide for Tip in pages RiveR life Life by the riverside brings with it all the benefits you’d expect – and some you might not. Welcome to a lively, friendly community by the banks of the Thames, with sights and sounds aplenty: Butler’s Wharf once an historic storage complex, completed in 1873, Butler’s Wharf is now home to high-end apartments, restaurants, cafés, bars and shopping facilities.
    [Show full text]
  • Central London Tourist
    A 30 D 31.168 U ROAD 153 141 A A MIDDLETON PRIMROSE HILL 43 E 243 31 B Essex Road 279 E J D 236 A B C D E R F G H K L M N C O 4 A Y C M R A UE E Camden A N C L L OND AVEN 19 D G Cecil Sharpe E RICHM A 10 E A E Y 91 L D Town O House B M 30 N C E W PRIMROSE HILL A R T A A CAMDEN TOWN D P Until February 1998 ’ S D L O S ALBERT Y C A 274 M ISLINGTON 38 E A 274 E I TERR. P RK T F 274 Y H O N 242 VER R R service 242 will RO N O T AD A D L CR R I E A O 1 E B 1 V C2 L E 73 run as 22 N W E Business N O M E 13 A K E A M R V N T E G 274 P NO T R S Design C G PRI Jewish S X ENU N I C I R E D OAD E P R A A T COPENHAGEN S O E A Re POWNALL H L T. A H O C g 82 A Centre T B P Museum E W O C e S R E R S R O S K nt’s ’ T H P O . E S I W C A D 274 E N a L n N R T T S L N R BARING STREET a D IGH N R S l L 24 O S G Q 113 E N E Y H R D A E R T S E E A T O A D A D L E T T U A Y .
    [Show full text]
  • The Crystal Palace
    The Crystal Palace The Crystal Palace was a cast-iron and plate-glass structure originally The Crystal Palace built in Hyde Park, London, to house the Great Exhibition of 1851. More than 14,000 exhibitors from around the world gathered in its 990,000-square-foot (92,000 m2) exhibition space to display examples of technology developed in the Industrial Revolution. Designed by Joseph Paxton, the Great Exhibition building was 1,851 feet (564 m) long, with an interior height of 128 feet (39 m).[1] The invention of the cast plate glass method in 1848 made possible the production of large sheets of cheap but strong glass, and its use in the Crystal Palace created a structure with the greatest area of glass ever seen in a building and astonished visitors with its clear walls and ceilings that did not require interior lights. It has been suggested that the name of the building resulted from a The Crystal Palace at Sydenham (1854) piece penned by the playwright Douglas Jerrold, who in July 1850 General information wrote in the satirical magazine Punch about the forthcoming Great Status Destroyed Exhibition, referring to a "palace of very crystal".[2] Type Exhibition palace After the exhibition, it was decided to relocate the Palace to an area of Architectural style Victorian South London known as Penge Common. It was rebuilt at the top of Town or city London Penge Peak next to Sydenham Hill, an affluent suburb of large villas. It stood there from 1854 until its destruction by fire in 1936. The nearby Country United Kingdom residential area was renamed Crystal Palace after the famous landmark Coordinates 51.4226°N 0.0756°W including the park that surrounds the site, home of the Crystal Palace Destroyed 30 November 1936 National Sports Centre, which had previously been a football stadium Cost £2 million that hosted the FA Cup Final between 1895 and 1914.
    [Show full text]
  • Bellblue Portfolio
    Bellblue Portfolio A portfolio of mainly income-producing HMOs, and mixed-use retail & residential buildings all situated within affluent North & North West London suburbs including Kensal Rise, Kilburn, Willesden, Stroud Green and Camden. Available as a portfolio or individually. Opportunities to increase the rental income and add value by way of letting of the current vacant units, refurbishment & modernisation, implementing existing planning consents & obtaining new planning consents (STP). Portfolio Schedule Property Description Income PA ERV Guide Price Gross Yield 26 Chamberlayne Retail & 7 studio £91,296 £116,000 £1,450,000 6.30% Road, Kensal Rise, flats above (Reversionary NW10 3JD Yield 8.0%) 76 Chamberlayne Retail with 3 £73,224 £80,000 £1,275,000 5.74% Road, Kensal Rise, studio & 1 x2-bed (Reversionary NW10 3JJ flats above Yield 6.27%) 88 Chamberlayne HMO – 8 studio Vacant £123,000 £1,525,000 *subject to Road, Kensal Rise, flats with PP to refurb/build NW10 3JL extend costs 112 Chamberlayne Retail with 4 £112,360 £136,000 £1,825,000 6.16% Road, Kensal Rise, studio & 4 1-bed (Reversionary NW10 3JP flats above Yield 7.45%) 7 Clifford Gardens, HMO – 5 studio & £72,936 £107,000 £1,500,000 4.86% Kensal Rise, NW10 2 1-bed flats above (1 unit vacant) (Reversionary 5JE Yield 7.13%) 17 St Pauls Avenue, HMO – 6 studio & £96,180 £123,000 £1,550,000 6.21% Willesden, NW2 5SS 2 1-bed flats above (Reversionary Yield 7.94%) 3 Callcott Road, HMO – 8 studio £95,868 £123,000 £1,595,000 6.01% Kilburn, NW6 7EB flats above (Reversionary Yield 7.71%)
    [Show full text]
  • Central London Office Market Update Q1 2018
    CENTRAL LONDON OFFICE MARKET UPDATE Q1 2018 RESEARCH Real Estate for a changing world CENTRAL LONDON OFFICE MARKET UPDATE CONTACTS Brexit & the economy (which acquired record levels of Investment With further clarity emerging on a Central London office space in 2017) Q1 2018 Central London investment Daniel Bayley Head of City Agency Brexit transition deal, agreement on got off to a muted start with just volumes reached £2.35bn, down on daniel.bayley@realestate. citizens rights and the UK’s financial 150,000 sq ft of take-up recorded in the long term average quarterly figure bnpparibas STATS AT A GLANCE settlement, the result has been a Q1 2018. of £2.95bn. However, we do estimate a +44 (0)20 7338 4444 boost to business confidence. The pick-up in activity in Q2 with £4.30bn latest Deloitte CFO Survey reported Despite high levels of development currently under offer. SImon Knights an increase in optimism and positive completions both last year and this Head of West End Agency simon.knights@realestate. sentiment about the long-term effects year, large volumes of pre-letting A lack of large trophy asset sales, bnpparibas £2.35BN £4.30BN of Brexit. This has translated into an activity has kept the vacancy rate which bolstered 2017 volumes, can +44 (0)20 7318 5041 increase in demand for Central London below the long term average at 5.60%, be attributed to lower levels seen Q1 2018 office investment Currently under offer in volumes Central London offices. Indeed, levels are nearly 50% down from 6.15% in Q4 2017.
    [Show full text]