costar agency awards 2014uk.costar.co.uk/investment/pdfs/full_awards_brochure...2 savills 37,544 3...

1

CoStarAgency Awards

2014

3

CoStar Group is pleased to announce the winners of the 2014 Agency Awards!

It would seem that 2014 will be remembered as the year when commercial property finally emerged from the gloom of the downturn. Across the board activity is up and we are pleased to celebrate the well-deserved successes of the agents’ community in this book.

In the last 12 months, we have recorded 52,274 deals, an increase of 14% on the previous year. This year we have routinely updated deal and listing information with nearly 4,000 UK firms.

I would like to take the opportunity to thank all of you who share your data with the community through working with our research teams and our platforms. I am convinced that market transparency enhances liquidity and that the example of the Birmingham Office Market Forum (see pages 10-11) shows how their open approach has attracted significant inward investment.

As the speed of transactions is set to accelerate, we will continue to support the industry with the best data, analytics and news solutions. Our aim is to help drive market efficiency and streamline our clients’ workflows, saving you precious time and allowing you to provide ever better service to your clients.

Finally, I would like to congratulate this year’s winners and wish everyone a prosperous end to this eventful year.

Yours Sincerely,Giles NewmanManaging DirectorCoStar Europe

Welcome to the 2014 CoStar Agency Awards

4

The power of Data, Analyticsand News,combined

120researchers

1,476Phone calls made every day

8,401 agents in

3,972 �rms across the UK

2,748,708Changes made to our databasein the past 12 months

940,000+Digital images taken(and counting)

50%

We speak to:

207Deals added every dayVolume of transactions recorded in 2014 vs 2013

a 14%increase

2013: 45,7272014: 52,274

Data Analytics News

80 Submarket Reports areupdated in CoStar Suiteevery quarter

Q1 Q2Q3 Q4

Investment Bulletinsent quarterly and yearly to

5,000 users

12,000news articles are available in Suite

28,000UK professionals receiveour news every day

20+ newsstories a day

That’s over

100 a week

One new clientsigns up to Costar Suiteevery single day

of our UK client basehave migrated to

CoStar Suite

CoStar Suite650 UK �rms

are now using

Access a unique combination of Data, Analytics and News, o�ering the mostcomprehensive macro to micro explanation of the UK commercial property market.

CoStar’s proprietary data, which underpins this book, is sourced directly from thousandsof property agents, owners and other involved parties to accurately re�ect the

transactional market in real time.

5

The power of Data, Analyticsand News,combined

120researchers

1,476Phone calls made every day

8,401 agents in

3,972 �rms across the UK

2,748,708Changes made to our databasein the past 12 months

940,000+Digital images taken(and counting)

50%

We speak to:

207Deals added every dayVolume of transactions recorded in 2014 vs 2013

a 14%increase

2013: 45,7272014: 52,274

Data Analytics News

80 Submarket Reports areupdated in CoStar Suiteevery quarter

Q1 Q2Q3 Q4

Investment Bulletinsent quarterly and yearly to

5,000 users

12,000news articles are available in Suite

28,000UK professionals receiveour news every day

20+ newsstories a day

That’s over

100 a week

One new clientsigns up to Costar Suiteevery single day

of our UK client basehave migrated to

CoStar Suite

CoStar Suite650 UK �rms

are now using

Access a unique combination of Data, Analytics and News, o�ering the mostcomprehensive macro to micro explanation of the UK commercial property market.

CoStar’s proprietary data, which underpins this book, is sourced directly from thousandsof property agents, owners and other involved parties to accurately re�ect the

transactional market in real time.

6

Give yourself a clear advantage. With the market well on track to break new records, are you lagging behind or leading the race to outrun your competition?

Over 650 UK firms have already signed up to CoStar Suite, from single surveyor practices to major property consultancies.

Get integrated Data, Analytics and News. visit www.costar.co.uk or call 020 3205 4500

Meet us at MIPIM - Stand D21. 15th-17th October, London.

7

Table of Contents

Office Markets

Birmingham Office ............................... 8

Birmingham Office Market Forum .. 12

Edinburgh Office .................................. 14

Glasgow Office .................................... 18

Leeds Office ........................................ 22

London City Office ............................... 26

London Docklands Office ...................... 30

London Midtown Office ......................... 34

London Southbank Office ...................... 38

London West End Office ........................ 42

Western Corridor Office ........................ 46

Industrial Markets

North West Industrial ............................... 50

Scotland Industrial ................................... 54

West Midlands Industrial .......................... 58


8

Birmingham Office

While the investment market for Birmingham offices has taken off in recent months, the leasing market has been notably short of large-scale transactions, following the series of landmark moves seen in early 2013 and 2012.

All that has of course changed post the voting period with the news that HS2 is to set up its 100,000 sq ft UK headquarters at Hines’ and Ballymore’s Two Snowhill in Birmingham. That is expected to prompt a host of satellite operations to need space in the city centre as the vision for the regeneration of Curzon

Station comes forward. HS2’s commitment, while a major endorsement of the city, has heightened the sense that there is a crisis in terms of the dwindling supply of Grade A stock.

In response, a significant number of developers are jostling to secure prelets and bring forward major new schemes, or are flirting with pushing the button on speculative development. This includes Goodman, Legal & General, Sterling Property Ventures and IM Properties.

Paul NormanEditor, CoStar News

Editor’s Choice Awards

CoStar News readers have been voting for two awards – the deal and dealmaker of the year - in each market.

Readers picked Bruntwood’s letting of 33,460 sq ft at its Centre City Tower to Legal & General as their deal of the year in Brum.

Perennial Birmingham dealmaker John Griffiths of GBR Phoenix Beard was one of only two people to repeat their success last year and be voted dealmaker of the year again.

Centre City Tower

Two Snowhill

9

Eyes on the market

0%2%4%6%8%10%12%14%16%18%

400

300

200

100

0

100

200

300

400

500

Q2 06 Q4 06 Q2 07 Q4 07 Q2 08 Q4 08 Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Q4 11 Q2 12 Q4 12 Q2 13 Q4 13 Q2 14

Change in Demand (LHS) Change in Supply (LHS) Vacancy Rate (RHS)

Vacancy Rate (%)Supply/Demand (000s SF)

Birmingham Office: Supply, Demand and Vacancy

Largest deals of the year*

Address Size sq ft

Occupier Landlord/Seller Agent

Tenant/Buyer Agent

Month

1 Centre City Tower 33,460 Legal & General Group Knight Frank, GVA, CBRE

DTZ Nov-13

2 NTI Building 27,506 Birmingham City University

JLL GVA Apr-14

3 Tricorn House 24,850 Housing 21 CBRE, GBR Phoenix Beard

Jaggard Baker Dec-13

4 20 Colmore Row 15,000 Allianz Insurance Cushman & Wakefield, GVA

Dexter Brown Aug-13

5 22 Gas Street 14,928 Carl Zeiss Vision UK CBRE, GBR Phoenix Beard

Deloitte Real Estate Jul-13

6 St Philips Point 14,682 Weightmans GBR Phoenix Beard DTZ Jan-14

7 2 Colmore Square 14,000 Vax CBRE, GVA Harris Lamb Nov-13

8 St Philips Chambers 13,500 CBRE CBRE, KWB CBRE Apr-14

9 19 George Road 12,138 Healthtrust Europe Company

DTZ Boston Fieldgate Jan-14

10 1 - 5 Broadway 11,514 Valuation Office Agency

Cushman & Wakefield, DTZ

N/A Feb-14

*Data collected by C

oStar from 1st July 2013 to 30th June 2014.

10

Winners Office 2014 (July 2013 - June 2014)

Top Agents by Availability sq ft

1 GBR Phoenix Beard 1,690,032

2 CBRE 1,315,677

3 JLL 1,032,528

4 GVA 988,889

5 DTZ 760,288

6 Savills 519,945

7 Colliers International 515,103

8 Knight Frank 416,845

9 Cushman & Wakefield 273,072

10 KWB Property Management 258,553

Top Agents by No. Instructions

1 GBR Phoenix Beard 126

2 JLL 84

3 KWB Property Management 75

4 Mason Young Property Consultants 70

5 DTZ 66

6 CBRE 54

7 Knight Frank 48

8 GVA 36

9 Siddall Jones Limited 29

10 Colliers International 25

Top Agents by Disposals sq ft

1 GBR Phoenix Beard 234,787

2 GVA 210,674

3 CBRE 178,039

4 KWB Property Management 159,185

5 DTZ 127,569

6 JLL 113,974




10 Mason Young Property Consultants 28,763

Top Agents by Acquisitions sq ft

1 DTZ 71,757

2 Savills 37,544

3 GVA 30,407

4 Jaggard Baker 24,850

5 Boston Fieldgate 22,138

6 Dexter Brown 15,000

7 Deloitte Real Estate 14,928

8 Lambert Smith Hampton 14,486

9 CBRE 14,351

10 Harris Lamb 14,000

Top Agents by Total Value of Lease Transactions (£ PA)

1 GVA 3,200,721

2 CBRE 2,987,604

3 GBR Phoenix Beard 2,662,210

4 DTZ 2,373,707

5 Knight Frank 2,362,285

6 KWB Property Management 1,270,984

7 Savills 1,050,634



10 JLL 596,089

Laura RobertsResearch Manager West Midlands T: 0141 354 0786 E: [email protected]

Laura RobertsResearch Manager Birmingham & West Midlands Industrial T: 0141 354 0625 E: [email protected]

Research Contact



Birmingham Office

11

Birmingham Office:The year in figures

299transactions completed

3,108,883 sq ft space

available

85.4%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft

contributed data to CoStar92 Agents



as at Q2 2014

Dealmaker of the year

Deal of the year

Name of building Centre City TowerSubmarket Birmingham City CoreDeal completion date 18/11/2013Size (sq ft) 33,460Landlord Agent(s) Knight Frank, GVA,

CBRETenant Agent(s) DTZRent £16.50 per sq ftTenant Legal & General Group

Name John Griffiths Company GBR Phoenix Beard

Centre City Tower, Birmingham

Where did you rank? If your firm is not represented in the top 10, but would like to know where you ranked, please get in touch with your research contact on the previous page.

Editor’s Choice Winners 2014

Best Newcomer - Midlands

Company HS2

12

Why was the Birmingham Office Market Forum formed?

Birmingham Office Market Forum was established in 2007 to present a coordinated voice to investors, developers and occupiers about Birmingham’s city centre office market.

Regional markets are attracting an increasingly diverse investor and occupier base. The days of relying on local occupiers churning over space and investment limited to a number of local and regional investors are long gone. Birmingham and other core cities are competing on a global basis for capital and corporate inward investment, and the way that market data is presented has to reflect this.

BOMF Members

GVA • JLL • Knight Frank • KWB • Lambert Smith Hampton • Marketing

Birmingham • Savills Vail Williams • BNP Paribas Real

Estate • CBRE • Colliers International •

Cushman & Wakefield • Deloitte Real Estate

DTZ • GBR Phoenix Beard

How important has CoStar’s input been? Our relationship with CoStar has been key. What the market wanted was to be able to benchmark and have a very clear and agreed starting point as to accurate stock levels to assess change.

A close cooperation from the start between the Forum and CoStar ensured the base data and benchmark information was accurate and relevant. For many years it used to be inconsistent. We know that Birmingham is on the radar with corporate occupiers and investors, and we know from them that they want information that is transparent and consistent. The response in the market has been great.

“We have a role to play in terms of guarding the future growth of the office market within the

city, and by working together as a single group we have a more powerful voice that will ensure that Birmingham remains a key

commercial location.”

John Griffiths,Chairman of BOMF

An interview with John Griffiths, chairman of BOMF

13

Can CoStar help you with your Market Forum?

email [email protected]

John Griffiths Consultant, GBR Phoenix Beard & Chairman of BOMF

Jonathan Lawes Director, Cube Real Estate

How important has improved transparency been?

If there is a lack of transparency and reliable data then that is unattractive for investors and corporate markets.

There are exacting requirements from investors and occupiers for accurate intelligence and we must be on a level playing field at the very least with London. That is what BOMF is about – dependable, reliable, up to date and relevant information on our market.

If we have achieved nothing more than this since launch, then that is highly valuable in terms of making Birmingham more attractive for investors, albeit it is not per se why they will invest of course. They will invest for all of the usual reasons to do with the quality of the real estate, infrastructure, demographics and the returns on offer.

BOMF is proud to have played its part in how this information is presented.

Why invest in Birmingham now? There is a buoyant feel to the market in Birmingham now, in part driven by some great lettings such as HS2’s recent commitment.

Many tenants are now realising that they are running out of good grade A space opportunities and if you have the right product and a proactive and flexible letting policy, as we do at 11 Brindleyplace, it will let well. We immediately leased 8,500 sq ft in a single floor letting to serviced office group MSO and will relaunch the remaining 45,000 sq ft through GVA and GBR.

How does transparency help?

We rely heavily on our agent advisers and the data they compile from sources such as CoStar to gain knowledge of occupiers, competing buildings and existing tenant locations. It is vitally important for us to be aware of every occupier searching for space in the market, where they are moving from and what else they are looking at.

This enables us to differentiate what we can offer and provide a flexible solution to meet their requirements whether it be flexible lease terms, creative incentive packages, expansion options etc.

Does transparency increase liquidity?

14

Edinburgh Office

The Edinburgh market has taken off in 2014, significantly outperforming the five-year average in the first quarter in particular.

Those figures were undoubtedly boosted by a headline-grabbing move from Scottish success story and games developer Rockstar North to a 75,000 sq ft headquarters at Barclay House. There has been a healthy level of movement elsewhere too, including law firm BTO’s expansion into 11,000 sq ft at One Edinburgh Quay and continued success at Atria One, the City of Edinburgh Council’s office development.

There are continued concerns about a lack of supply in Edinburgh’s core city centre. Encouragingly, however, a number of significant developments are at last coming forward with Standard Life Investments and Peveril announcing plans for 165,000 sq ft of mixed-use space at St Andrew Square, Tiger and Interserve preparing the Haymarket Goods Yard for development, and M&G teaming up with Moorfield to back speculative development at Quartermile.




Rockstar North’s move to Barclay House was deal of the year – a worthy winner in any era.

Dealmaker of the year was Peter I’Anson of Ryden for his work on the Rockstar letting and “so many of the city’s deals”. Other popular nominees were Michael Clements of CKD Galbraith and Colin Steele at Rapleys.

Barclay House

One Edinburgh Quay

15

Eyes on the market

0%

2%

4%

6%

8%

10%

12%

300

200

100

0

100

200

300

400

Q2 11 Q4 11 Q2 12 Q4 12 Q2 13 Q4 13 Q2 14



Edinburgh Office: Supply, Demand and Vacancy




Address Size sq ft


Tenant/Buyer Agent

Month

1 Barclay House 75,000 Rockstar North Ryden, Rapleys EYCO Mar-14

2 Capital House 54,600 Mellon Financial Corporation

CuthbertWhite, JLL JLL Sep-13

3 Atria One 32,343 PWC JLL, Montagu Evans Savills Aug-13

4 Argyle House 26,600 Codebase DTZ N/A Jan-14

5 1 Tanfield 20,600 Zonal Retail Data Systems

CBRE, Ryden Ryden Mar-14

6 33 - 40 Princes Street

14,815 Aberdeen Asset Management

JLL N/A May-14

7 1 - 4 Glenfinlas Street

12,339 Murray Beith Murray CBRE Montagu Evans Jan-14

8 Edinburgh Quay 1 11,994 BTO Solicitors DTZ Lambert Smith Hampton

Jan-14

9 Argyle House 10,000 Codebase DTZ N/A May-14

10 Waverleygate 8,633 Hogarth Worldwide Montagu Evans, JLL Ryden Jan-14

16



Gordon MacDonaldResearch Manager Scotland T: 0141 354 0844 E: [email protected]

Research Contact




1 JLL 916,549

2 Montagu Evans 672,429

3 Ryden 504,208

4 Cuthbert White 480,974

5 CBRE 405,794

6 WYM Real Estate 399,443

7 Savills 227,690

8 GVA James Barr 207,215

9 EYCO 193,900



1 Ryden 99

2 JLL 80

3 Montagu Evans 61

4 Edinburgh Commercial Property 39

5 GVA James Barr 37

6 CKD Galbraith 35

7 Cuthbert White 34

8 EYCO 32

9 CBRE 30

10 FT Linden 29


1 JLL 233,504

2 Ryden 178,892



5 Rapleys Consultants 75,000

6 EYCO 69,842

7 DTZ 59,780

8 CBRE 57,942


10 Savills 29,567


1 JLL 97,565

2 EYCO 97,551

3 Savills 47,109


5 Ryden 31,823



8 CuthbertWhite 13,538

9 BNP Paribas Real Estate 12,600

10 DTZ 10,965


1 Ryden 2,026,744

2 EYCO 1,961,523

3 Rapleys Consultants 1,500,000

4 JLL 1,084,745

5 DTZ 580,222


7 CKD Galbraith 243,039



10 Savills 132,804

Edinburgh Office

17



Edinburgh Office:The year in figures


90.6%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft



available

as at Q2 2014


Deal of the year

Name of building Barclay HouseSubmarket Edinburgh Old Town Deal completion date 30/03/2014Size (sq ft) 75,000Landlord Agent(s) Ryden, RapleysTenant Agent(s) EYCORent £20.00 per sq ftTenant Rockstar North

Name Peter I’AnsonCompany Ryden

Barclay House



18

Glasgow Office

Robust take-up figures in the Glasgow office sector in 2013 have continued into 2014, with lettings in Q1 2014 at 50% above the quarterly average.

There had been evidence that transactions in both Glasgow and Edinburgh offices had begun to slow as we approached the Referendum on Scottish Independence. Clarity will only come after the 18th September vote.

There is substantial speculative development of major office schemes in Glasgow. Abstract Securities’ St Vincent Plaza as well as CONNECT11ONS at 110 Queen Street and 1 West Regent Street are all

under construction, offering significant options for tenants in the centre.

Standout deals over the period have included Scottish Power’s pre-commitment to its 220,000 sq ft standalone headquarters on St Vincent Street, where construction is now underway too, and BAM Properties’ notable successes at its 143,000 sq ft CONNECT11ONS building.




There were more votes in the Glasgow office categories than in any other. Readers’ deal of the year was Atos IT Services’ move to Capella.

Gillian Giles at Cushman & Wakefield, advisor to British Airways Pension Fund on the building, was readers’ dealmaker by some margin.

Capella

CONNECT11ONS building on Queen Street

19

Eyes on the market

0%

2%

4%

6%

8%

10%

12%

14%

800

600

400

200

0

200

400

600

Q2 11 Q4 11 Q2 12 Q4 12 Q2 13 Q4 13 Q2 14



Glasgow Office: Supply, Demand and Vacancy




Address Size sq ft


Tenant/Buyer Agent

Month

1 Elphinstone Place 220,000 Scottish Power N/A CBRE Oct-13

2 Capella 37,582 Atos IT Services Cushman & Wakefield, Ryden

Cushman & Wakefield

Sep-13

3 Alexander Bain House

30,275 Criminal Injuries & Compensation

Authority

GVA James Barr, Ryden

GVA James Barr Mar-14

4 Pavilion 1, Watermark

30,092 Caley Ocean Systems JLL N/A Jan-14

5 Cumbrae House 27,051 Princes Careers Trust Colliers International N/A Jan-14

6 Clydesdale Bank Exchange

25,083 Ashurst Cushman & Wakefield N/A Oct-13

7 CONNECT110NS 25,000 Brodies Cushman & Wakefield, Phil Reid

Ryden Oct-13

8 89 Hydepark Street 19,721 NHS Education For Scotland

Ryden GVA James Barr Oct-13

9 Cuprum 19,526 SAS DTZ, JLL Cushman & Wakefield

Nov-13

10 389 Argyle Street 18,621 Siemens Cushman & Wakefield N/A Feb-14

20




Research Contact




1 Ryden 1,483,409

2 JLL 1,240,371

3 Cushman & Wakefield 1,005,731

4 DTZ 865,913

5 CBRE 743,770



8 Phil Reid Associates 293,626

9 Cargill Property Consultants 161,457

10 McManus Property Consultants 157,625


1 Ryden 211

2 JLL 121

3 Cushman & Wakefield 80

4 GVA James Barr 79

5 DTZ 62

6 CBRE 61

7 Cargill Property Consultants 33


9 Phil Reid Associates 24

10 Lambert Smith Hampton 19


1 Ryden 305,638


3 JLL 162,841

4 CBRE 161,292


6 DTZ 74,563



9 Gerald Eve 23,430



1 CBRE 231,566


3 Ryden 66,024



6 JLL 20,258






1 Ryden 3,792,150

2 GVA James Barr 2,069,952


4 JLL 1,150,778

5 CBRE 441,877


7 DTZ 342,070


8 Gerald Eve 331,173


Glasgow Office

21

Glasgow Office:The year in figures

263 transactions completed

89.0%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft



available



as at Q2 2014


Deal of the year

Name of building CapellaSubmarket Glasgow City CoreDeal completion date 04/09/2013Size (sq ft) 37,582Landlord Agent(s) Cushman & Wakefield,

Ryden Tenant Agent(s) Cushman & WakefieldRentTenant Atos IT Services

Name Gillian GilesCompany Cushman & Wakefield

Capella


Best Newcomer - Scotland

Company Abstract Securities


22

Leeds Office

The Leeds office market has followed a sensational 2013 for take-up with figures in the first half of 2014 that are understandably more in line with the long-term average.

However a particular feature of the year so far has been a significant increase in prelet requirements ahead of looming lease events for the city’s key occupiers in the financial services and legal sectors over the next two years.

That has sparked an upturn in new development with the 105,000 sq ft No. 6 Wellington Place under construction and due for delivery in December 2015

and the 220,000 sq ft Wellington Street due to be delivered in Q1 2016. There is also Sovereign Square, the joint development between Bruntwood and Kier Property, which will bring 95,000 sq ft of office space to the market by Q2 2016. Prime headline rents have been edging up from £25 per sq ft to closer to £27 per sq ft.




Deal of the year as voted for by readers is Highcross’s letting of the remaining space at the Broad Gate development on the Headrow to KPMG.

Dealmaker was one of the market’s long-term best operators, JLL’s Jeff Pearey.

Broad Gate

Sovereign Square

23

Eyes on the market

0%2%4%6%8%10%12%14%16%18%

400

300

200

100

0

100

200

300




Leeds Office: Supply, Demand and Vacancy




Address Size sq ft


Tenant/Buyer Agent

Month

1 Barclays House 44,274 N/A Savills N/A Jun-14

2 Broad Gate 28,500 KPMG Colliers International, CBRE, DTZ

Knight Frank Oct-13

3 15 - 16 Park Row 26,977 The University of Law DTZ N/A Feb-14

4 St Johns Centre 24,242 Sanef Operations DTZ, JLL WSB Apr-14

5 3 The Embankment 22,510 NHS Leadership Academy

JLL, DTZ Gerald Eve Sep-13

6 Granary Wharf House 21,550 Lhasa Allsop, Lambert Smith Hampton

N/A Nov-13

7 Wellington Plaza 20,884 Wage Day Advance DTZ, Carter Towler N/A Feb-14

8 1 Aire Street 19,971 The Office Group CBRE N/A Apr-14

9 West Gate 12,006 CSC Bruntwood Estates N/A Jun-14

10 West One 11,800 Stickyeyes DTZ N/A Nov-13

24



Laura FellResearch Manager Leeds T: 0141 354 0841 E: [email protected]

Research Contact



CBRE, Sanderson W

eatherall & Carter Tow

ler actively chose not to participate in the Leeds award


1 JLL 855,186

2 CBRE 558,434

3 DTZ 481,344

4 Wsb Property Consultants 341,946

5 Savills 301,687

6 Carter Towler 292,132


8 Sanderson Weatherall 182,007




1 JLL 83

2 CBRE 66

3 DTZ 53

4 Carter Towler 40

5 Wsb Property Consultants 36

6 Knight Frank 30

7 Savills 25

8 Sanderson Weatherall 22

9 Fox Lloyd Jones 16



1 DTZ 203,450

2 CBRE 126,793

3 JLL 124,036

4 Savills 64,013


6 Carter Towler 39,525







2 WSB Property Consultants 24,292

3 Gerald Eve 21,386

4 Mark Brearley & Company 17,629

5 OBI Property 8,237

6 JLL 7,369

7 GN2 3,853

8 DTZ 3,306

9 Savills 3,300

10 Mathias Perry 1,350


1 DTZ 2,129,512

2 JLL 906,276



5 CBRE 550,403




9 Savills 203,020

10 Ryden 194,560

Leeds Office

25



Leeds Office:The year in figures


88.0%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft



available

as at Q2 2014


Deal of the year

Name of building Broad GateSubmarket Leeds City CoreDeal completion date 21/10/2013Size (sq ft) 28,500Landlord Agent(s) Colliers International,

DTZ, CBRE Tenant Agent(s) Knight Frank Rent £25.00 per sq ftTenant KPMG

Name Jeff PeareyCompany JLL

Broad Gate



26

London City Office

The City of London’s leasing market over the last year has seen tenants being encouraged to think longer term about their London footprint and initiating requirements for office space, often five years before their break options.

While corporate expansion is not yet widespread, tenants have been encouraged to relocate before it is too late as a result of a tight supply of office stock, as well as a sector-specific perception that rival firms are on the move. There is an element of keeping up with the Joneses.

Rising prime rents do not seem to be dissuading tenants who are buying into the argument that the City will likely see further rental growth this year.

There have been a host of standout deals over the period and the good news is this is having a domino effect, causing more and more companies to launch large-scale requirements.




There has been strong voting for a series of mega lettings in the City, not least those involving tenants ING and M&G.

But the standout deal was Schroders’ move to Oxford Properties and Brookfield’s One London Wall Place. The dealmaker was one of central London’s key tenant agents - Bradley Baker of Knight Frank. One London Wall Place

Cannon Place

27

Eyes on the market

0%

2%

4%

6%

8%

10%

12%

14%

1,000

500

0

500

1,000

1,500

2,000

2,500




London City Office: Supply, Demand and Vacancy




Address Size sq ft

Occupier Landlord/Seller Agent Tenant/Buyer Agent

Month

1 1 London Wall Place 309,477 Schroders GM Real Estate, JLL Savills Dec-13

2 Two New Ludgate 192,949 Mizuho Bank JLL, Savills Allsop May-14

3 Cannon Place 140,313 CMS Cameron McKenna

Savills, CBRE CBRE Jul-13

4 The Banking Hall 133,905 ING Bank NV DTZ, JLL JLL Feb-14

5 10 Aldermanbury 104,061 Capita Business Services

DTZ, Cushman & Wakefield Capita Property & Infrastructure

Dec-13

6 Riverbank House 81,270 Field Fisher Waterhouse

James Andrew International, BNP Paribas

Real Estate

Knight Frank Aug-13

7 Commodity Quay 77,436 Clarksons Colliers International, Savills, Ingleby Trice

CBRE, J Peiser Wainwright

Jun-14

8 33 Finsbury Square 74,379 University of Liverpool

GVA, DTZ, Hatton Real Estate

Edward Charles & Partners

Dec-14

9 160 Queen Victoria St

67,129 Dechert DTZ Cushman & Wakefield

Apr-14

10 Cannon Bridge House

61,337 Natixis Securities London

CBRE GVA Apr-14

28



Lynsay DormanResearch Manager London & South West Corridor T: 0141 354 0671 E: [email protected]

Research Contact




1 JLL 4,094,927

2 DTZ 3,554,033

3 CBRE 3,156,437

4 Savills 3,007,514



7 BNP Paribas Real Estate 1,153,268

8 Allsop 828,639

9 Newton Perkins 673,740

10 Ingleby Trice 670,741


1 JLL 178

2 CBRE 175

3 Savills 114

4 DTZ 88

5 Newton Perkins 80

6 Ingleby Trice 75

6 Knight Frank 75

8 Allsop 59

9 Hall Kemp 58

10 Hatton Real Estate 53


1 JLL 1,666,272

2 CBRE 1,231,871

3 Savills 1,111,381

4 DTZ 1,004,150



7 Allsop 283,312


9 Ingleby Trice 262,437

10 Newton Perkins 235,485


1 CBRE 553,034

2 Savills 528,536

3 JLL 427,370



6 Allsop 204,976

7 Capita Property & Infrastructure 160,394

8 DeVono Property 134,419


10 Strutt & Parker 86,320



2 CBRE 32,156,084

3 Savills 31,208,567

4 JLL 29,822,884

5 DTZ 15,525,063



8 Deloitte Real Estate 6,461,614

9 Allsop 5,411,426

10 Hatton Real Estate 5,372,279

London City Office

29



London City Office:The year in figures


92.1%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft



available

as at Q2 2014


Deal of the year

Name of building One London Wall PlaceSubmarket City CoreDeal completion date 23/12/2013Size (sq ft) 309,477Landlord Agent(s) GM Real Estate, JLLTenant Agent(s) SavillsRent £61.00 per sq ftTenant Schroders

Name Bradley BakerCompany Knight Frank

One London Wall Place



30

London Docklands Office

The Docklands market has had a stellar start to 2014, with key transactions including the 205,000 sq ft acquired by EY at 25 Churchill Place and the 55,000 sq ft letting to HS2 at 1 Canada Square.

Take-up in the first half of 2014 has exceeded the annual total in each of the last three years, according to CoStar’s data. Beneath the headline figures, the drive among Canary Wharf Group and other landowners to expand the tenant base away from its traditional banking occupiers to embrace other sectors is clearly working to boost net absorption.

Two of the largest deals of recent quarters were accountant KPMG’s 205,300 sq ft letting at

30 North Colonnade in Q3 2013 and rival EY’s prelet of 205,000 sq ft at 25 Churchill Place at the start of 2014. The two firms will relocate from the City and Southbank respectively.

The main concern now is the significant lack of new readily available stock, particularly in the face of a drive towards residential development in the area.




Readers picked out EY’s prelet of 205,000 sq ft at 25 Churchill Place as their deal of the year, while Rupert Cherryman of the eponymous Docklands-based agent Cherryman was dealmaker of the year for the second year running – congratulations!

25 Churchill Place

30 North Colonnade

31

Eyes on the market

0%

2%

4%

6%

8%

10%

12%

14%

16%

1,000

500

0

500

1,000

1,500




London Docklands Office: Supply, Demand and Vacancy




Address Size sq ft


Tenant/Buyer Agent

Month

1 30 North Colonnade 205,341 KPMG JLL, DTZ N/A Aug-13

2 25 Churchill Place 205,039 EY CBRE, GM Real Estate, JLL

Cushman & Wakefield

Feb-14

3 1 Canada Square 152,226 Bank of New York JLL, CBRE N/A Jan-14

4 Citi Tower 61,026 International Power Cushman & Wakefield, Knight Frank

Deloitte Real Estate May-14

5 1 Canada Square 54,998 Highspeed Two (HS2) Deloitte Real Estate GM Real Estate Mar-14

6 1 Canada Square 54,224 HSBC Bank CBRE, JLL CBRE Sep-13

7 10 Upper Bank St 52,555 Infosys Technologies

CBRE, GVA Deloitte Real Estate Jul-13

8 1 Canada Square 47,016 MDU Services JLL, CBRE, GM Real Estate, GVA

N/A Apr-14

9 1 Canada Square 44,702 European Banking Authority

JLL, CBRE, GM Real Estate

CBRE Jun-14

10 Citi Tower 38,772 General Pharmaceuti-cal Council

Cushman & Wakefield, Knight Frank

GVA Mar-13

32




Research Contact




1 CBRE 2,445,229

2 JLL 2,209,168



5 DTZ 559,306

6 GM Real Estate 249,741

7 GVA 244,456

8 Cherryman 229,471

9 Savills 107,625



1 Cherryman 43

2 CBRE 28

3 DTZ 23

4 JLL 22

5 Knight Frank 18


7 Strettons Chartered Surveyors 11

8 Sbh Page & Read 9

9 Goodsir Commercial 8

10 Field & Sons (CPS) 7


1 JLL 1,185,361

2 CBRE 924,492

3 DTZ 296,575



6 GVA 138,795



9 Cherryman 42,186

10 Savills 33,272



2 CBRE 131,571


4 JLL 100,701

5 GVA 46,491




9 Charterwood 814


1 JLL 25,458,389

2 CBRE 16,757,897


4 DTZ 8,726,993


6 GVA 1,201,932

7 Cherryman 265,835

8 Sbh Page & Read 198,316

9 Dron & Wright 112,525

10 Field & Sons (CPS) 64,996

London Docklands Office

33



London Docklands Office:The year in figures


89.6%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft



available

as at Q2 2014


Deal of the year

Name of building 25 Churchill PlaceSubmarket Docklands CoreDeal completion date 07/02/2014Size (sq ft) 205,039Landlord Agent(s) CBRE, JLLTenant Agent(s) Cushman & WakefieldRent £48.50 per sq ftTenant EY

Name Rupert CherrymanCompany Cherryman

25 Churchill Place



34

London Midtown Office

The office sector in Midtown has been busily cementing its position as one of London’s key markets.

According to CoStar data a very strong quarter of net absorption, plus the demolition of a couple of large empty buildings, resulted in Midtown’s vacancy rate dropping sharply to 4.9% in Q2 of 2014, reflecting a drop of 200 basis points year on year. Vacancies are now 40 basis points below their 2007 floor and at their lowest point since 2001. Take-up in the second quarter of 2014 was well above the five-year quarterly average, a figure again achieved via a number of the large early commitment deals which characterised the market in 2013.

There have been several notable investment deals in this submarket in recent months, including Temasek’s 50% stake purchase in MidCity Place in August and China Overseas Land and Investments’ £160m purchase of Carmelite Riverside.Paul Norman

Editor, CoStar News



There has been fierce voting from readers for a series of standout Midtown deals. The winner was Hachette UK’s move to Orion and Quadrant’s Carmelite Riverside.

Central London agency stalwart Peter Lance of Allsop was readers’ dealmaker.

Africa House

Carmelite Riverside

35

0%

1%

2%

3%

4%

5%

6%

7%

8%

600

400

200

0

200

400

600

800




London Midtown Office: Supply, Demand and Vacancy




Address Size sq ft


Tenant/Buyer Agent

Month

1 6 Pancras Square 160,004 Google BNP Paribas Real Estate, CBRE

CBRE Apr-14

2 Carmelite Riverside 133,978 Hachette UK CBRE, Knight Frank JLL Dec-13

3 21 Bloomsbury St 74,368 Department for Culture Media & Sport

JLL Deloitte Real Estate Sep-13

4 Holborn Place 60,961 Octopus Investments JLL, Cushman & Wakefield

GM Real Estate Jun-14

5 2 Pancras Square 52,340 PRS For Music Savills, DTZ Strutt & Parker Sep-13

6 98 Fetter Lane 48,070 MacFarlanes DTZ, Knight Frank N/A Dec-13

7 Tudor Court 47,183 Tipall CBRE, Knight Frank N/A Jun-14

8 Buchanan House 39,958 London School Of Busi-ness & Finance

Gryphon Property Partners, BNP Paribas

Real Estate

James Andrew International

Jan-14

9 Carmelite Riverside 39,804 Gibson Dunn & Crutcher Trustees

JLL JLL May-14

10 Seven Dials Warehouse

36,440 Midasplayer.com DTZ Perrins Dooley Feb-14

Eyes on the market

36




Research Contact




1 Farebrother 1,226,767

2 CBRE 1,209,289

3 JLL 975,567

4 DTZ 858,397

5 Savills 841,822



8 Edward Charles & Partners 410,664




1 CBRE 92

2 Farebrother 87

3 Gale Priggen & Company 54

3 Monmouth Dean 54

5 DTZ 53

6 Savills 42

7 JLL 40

8 Hatton Real Estate 39


10 Edward Charles & Partners 26


1 CBRE 640,065

2 DTZ 427,839

3 JLL 373,479


5 Farebrother 328,909

6 Savills 321,250


8 Hatton Real Estate 162,707




1 CBRE 280,446

2 JLL 276,547

3 DTZ 110,710




7 Monmouth Dean 70,429





1 JLL 22,947,980

2 DTZ 18,739,147

3 CBRE 16,120,052


5 Farebrother 11,477,583

6 Savills 10,909,799


8 Edward Charles & Partners 6,242,346

9 Hatton Real Estate 5,784,874

10 Colliers International 5,386,707

London Midtown Office

37



London Midtown Office:The year in figures


95.0%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft



available

as at Q2 2014


Deal of the year

Name of building Carmelite Riverside Submarket HolbornDeal completion date 19/12/2013Size (sq ft) 133,978Landlord Agent(s) CBRE, Knight Frank, Tenant Agent(s) JLLRent £54.86 per sq ftTenant Hachette UK

Name Peter LanceCompany Allsop


Carmelite Riverside


38

London Southbank Office

The Southbank office market has continued to go from strength to strength in the period, in part aided by the significant development around London Bridge Station that is creating a major new business location for the capital.

2014 has already seen take-up at close to record levels for the London submarket that has an ever diverse list of occupiers and investors. The expected completion of a 370,000 sq ft letting to advertising and marketing firm Omnicom Group, at Royal Bank of Scotland’s M&G Real Estate-owned offices Bankside 2 and Bankside 3 in the third quarter, is set to keep the

good news coming for one of the UK’s most dynamic office locations.

Most of the leasing activity continues to happen in the London Bridge and Bankside areas, where more than half of the Southbank’s total office stock is located.

The robust occupier story is taking place against the backdrop of a bullish investment market, most notably St Martins’ UK record breaking acquisition of More London for £1.7bn in Q1 2014.




A string of deals at The Shard split the vote for Sellar Properties’ iconic scheme paving the way for Archlane and Deerbrook to win Deal of the Year for their letting to Ogilvy & Mather at Sea Containers House.

Dealmaker of the year for his work on that deal among others was Mark Kleinman at James Andrew International.

Sea Containers House

Bankside

39

Eyes on the market

0%

2%

4%

6%

8%

10%

12%

14%

600

400

200

0

200

400

600

800

1,000




London Southbank Office: Supply, Demand and Vacancy




Address Size sq ft


Tenant/Buyer Agent Month

1 25 London Bridge Quarter

430,167 News Corporation UK & Ireland

Colliers International, CBRE

BNP Paribas Real Estate

Jul-13

2 Sea Containers House

226,343 Ogilvy & Mather Group Bluebook, Deloitte Real Estate

Cushman & Wakefield, James Andrew International

Aug-13

3 The Shard 69,900 HCA Knight Frank, JLL N/A Feb-14

4 1 London Bridge 54,552 HowardKennedyFsi Cushman & Wakefield, Savills

Goldsmith Messing, Savills

Jun-14

5 Sea Containers House

37,512 WeWork Bluebook, Deloitte Real Estate

N/A Feb-14

6 Riverside House 34,433 Department for Communities & Local

Government

DTZ N/A Aug-13

7 240 Blackfriars Road 31,204 Ramboll UK DTZ, CBRE Braham Gold May-14

8 Cottons Centre 30,363 FDM Group Cushman & Wakefield

N/A Aug-13

9 Cottons Centre 30,000 Network Rail Cushman & Wakefield

BNP Paribas Real Estate

Nov-13

10 The Crane Building 28,443 Cheil Europe CBRE, Colliers International

CBRE Jan-14

40




Research Contact




1 CBRE 1,715,931


3 JLL 742,452



6 DTZ 436,093

7 Bluebook 287,174


9 Kalmars 268,666

10 ES (Group) 190,364


1 CBRE 62

2 Field & Sons (CPS) 54

3 Kalmars 47

4 ES (Group) 31



7 JLL 14

8 DTZ 12

8 Farebrother 12

10 Masons Property Advisers City 9


1 CBRE 643,200



3 Bluebook 287,174


6 JLL 163,624

7 DTZ 129,878


9 ES (Group) 82,841

10 Savills 80,454




3 James Andrew International 226,343

4 CBRE 77,231

5 Savills 59,616

6 Goldsmith Messing 54,552

7 Braham Gold 31,204



10 DTZ 15,898



2 Bluebook 11,873,475

2 Deloitte Real Estate 11,873,475

4 James Andrew International 10,185,435

5 CBRE 7,558,794

6 JLL 7,540,996

7 DTZ 5,817,776



10 ES (Group) 2,834,644

London Southbank Office

41



London Southbank Office:The year in figures


93.0%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft



available

as at Q2 2014


Deal of the year

Name of building Sea Containers HouseSubmarket Southbank WestDeal completion date 01/08/2013Size (sq ft) 226,343Landlord Agent(s) Bluebook, Deloitte Real

EstateTenant Agent(s) Cushman & Wakefield

James Andrew International

Rent £45.00 per sq ft Tenant Ogilvy & Mather Group

Name Mark KleinmanCompany James Andrew International

Sea Containers House



42

London West End Office

The West End market has remained strong throughout 2014, with a number of deals commanding over £100 per sq ft.

A lack of obvious solutions for occupiers in the traditionally supply constrained West End means prelets have continued to take up a significant proportion of the transactions completed, while the TMT sector and then the financial services sector were the dominant players swallowing up space. Fears that the rental growth story in the West End was running out of steam at the beginning of the year are yet to materialise, with the West End’s leading

landlords continuing to report strong leasing activity above Estimated Rental Value (ERV) in their half year results for 2014.

Standout deals included British Land’s 87,719 sq ft letting to Facebook at 10 Brock Street and Estée Lauder’s move to 1 Fitzroy Place in Mortimer Street.




Deal of the year involved British Land securing social media giant Facebook at its 10 Brock Street development, which prompted a spate of headlines about the tenant “liking” the building or clicking on to it.

Dealmaker of the year was DTZ’s West End star Richard Howard.10 Brock Street

1 Fitzroy Place

43

Eyes on the market

0%

1%

2%

3%

4%

5%

6%

7%

8%

600

400

200

0

200

400

600

800

1,000




London West End Office: Supply, Demand and Vacancy




Address Size sq ft


Tenant/Buyer Agent

Month

1 1 Fitzroy Place 152,424 Estee Lauder Cosmetics

CBRE, JLL Knight Frank May-14

2 10 Brock Street 87,719 Facebook Knight Frank, CBRE DTZ Oct-13

3 Henry Wood House 70,499 The Office Group Lambert Smith Hampton

N/A Apr-14

4 62 Buckingham Gate 63,831 Schlumberger Knight Frank, JLL N/A Aug-13

5 Enterprise House 45,074 Network Rail Infrastructure

N/A N/A Oct-13

6 111 Buckingham Palace Road

40,415 N/A N/A Monmouth Dean Sep-13

7 10 New Burlington St 38,176 Tudor Capital Europe CBRE Savills Apr-14

8 62 Buckingham Gate 36,683 Rolls Royce Knight Frank, JLL BNP Paribas Real Estate

Aug-13

9 37 North Wharf Road 35,891 Instant Managed Offices

Strutt & Parker, DTZ Colliers International Sep-13

10 48 Warwick Street 34,487 Avanta Serviced Office Group

Levy Real Estate, Cushman & Wakefield

Crown Estate Nov-13

44




Research Contact




1 CBRE 2,484,294


3 JLL 1,417,326



6 DTZ 725,054


8 Tuckerman 575,107

9 Savills 452,245

10 GVA 400,039


1 CBRE 132


3 Monmouth Dean 94

4 BDG Sparkes Porter 91

5 Knight Frank 81

6 JLL 68

7 Savills 61

8 Edward Charles & Partners 57


10 GVA 56


1 CBRE 1,019,888

2 JLL 636,498


4 Tuckerman 255,043

5 Savills 235,877



8 DTZ 186,730





2 DTZ 168,879

3 JLL 146,428

4 CBRE 133,818



7 GVA 95,897

8 Savills 90,547




1 CBRE 34,075,243

2 JLL 28,701,795


4 DTZ 17,133,602



7 Savills 13,290,369

8 Strutt & Parker 11,810,527

9 GVA 11,737,329

10 Monmouth Dean 9,110,150

London West End Office

45



London West End Office:The year in figures

1,083transactions completed

95.4%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft



available

as at Q2 2014


Deal of the year

Name of building 10 Brock StreetSubmarket NohoDeal completion date 02/10/2013Size (sq ft) 87,719Landlord Agent(s) Knight Frank, CBRE Tenant Agent(s) DTZRent £62.50 per sq ftTenant Facebook

Name Richard Howard Company DTZ

10 Brock Street


Best Newcomer - London

Company Bluebook


46

Western Corridor Office

The investment market for offices in the South East regional market has powered ahead in recent months thanks to soaring demand for space, plus the natural flow of capital from London to this key market as the economy recovers and property fundamentals improve.

Occupier-wise, following a promising 2013 the first half of 2014 has not yet quite lived up to expectations in terms of pen being put to paper. Take-up has been disappointing so far but there is significant demand and expectation of a strong end to the year, with

major requirements from the likes of Pepsico, TK Maxx, Dixons Carphone, Amadaeus and Lidl all expected to land before 2015 arrives. And there have still been many impressive transactions that have stood out, particularly in West London. Deals have been harder to get over the line but when they have come in they have been innovative and worth the wait.




In a period when tenants have proved particularly difficult to persuade to make a move readers felt the standout deal was Nexen’s letting of Bell Hammer and Rockspring’s 82,400 sq ft Stanza building in Uxbridge. There was strong voting for dealmaker for two agents in particular who were both instrumental in a series of key Thames Valley and West London lettings including dunnhumby at 184 Shepherds Bush Road, with Bray Fox Smith’s Richard Harding just missing out to CBRE’s Rob Madden, a worthy winner. The Stanza Building

Bridge Street Plaza, Reading

47

Eyes on the market

0%2%4%6%8%10%12%14%16%18%

600

400

200

0

200

400

600

800

1,000

Q2 07 Q4 07 Q2 08 Q4 08 Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Q4 11 Q2 12 Q4 12 Q2 13 Q4 13 Q2 14



Western Corridor: Supply, Demand and Vacancy




Address Size sq ft


Tenant/Buyer Agent

Month

1 Bridge Street Plaza, Reading

86,000 Reading Borough Council

Strutt & Parker N/A Jan-14

2 Stanza Building, Uxbridge 82,403 Nexen Petroleum Knight Frank, CBRE NAI Haywards Jul-13

3 Reflex Bracknell 69,372 Honda Motor Europe

Savills, Hanover Green, Fryer Commercial

CBRE Jan-14

4 Building One Vanwall Road

53,283 Abbott Laboratories

Lambert Smith Hampton, JLL

Cyril Leonard Jan-14

5 Globe House Bracknell

53,135 Fujitsu Semiconductor

N/A Colliers International

Jan-14

6 59 - 63 Farnham Road Slough

45,886 Arvato Bertelsmann

Knight Frank, Altus Edwin Hill

Altus Edwin Hill Jan-14

7 Capitol Oldbury 42,543 Avnet Cushman & Wakefield, Savills

Colliers International

Apr-14

8 Building 12, Chiswick Park

41,088 Pernod Ricard CBRE, Cushman & Wakefield

Gerald Eve Mar-14

9 2 Longwalk Road 35,843 Suntory Europe Cushman & Wakefield, JLL

Savills Nov-13

10 450 Brook Drive, Reading 31,567 Holiday Lettings Lambert Smith Hampton

Lambert Smith Hampton

Oct-13

48




Research Contact




1 JLL 2,691,325

2 Lambert Smith Hampton 2,530,955

3 Savills 2,185,882


5 CBRE 1,671,942

6 Strutt & Parker 1,583,163

7 Campbell Gordon 1,533,291


9 Hollis Hockley 1,357,633

10 Altus Edwin Hill 1,141,969


1 Lambert Smith Hampton 219

2 Deriaz Slater 161

3 Duncan Bailey-Kennedy 153

4 Hollis Hockley 127

5 Altus Edwin Hill 125

6 JLL 124

7 Knight Frank 120

8 Campbell Gordon 117

9 London Clancy 113

10 Stupples Chandler Garvey 108



2 CBRE 331,209


4 JLL 291,837

5 Savills 282,929



8 Hanover Green 223,655

9 Campbell Gordon 200,253

10 Altus Edwin Hill 141,983


1 CBRE 168,859



4 Savills 81,523



7 Cyril Leonard 53,283

8 DTZ 44,393

9 JLL 43,221



1 CBRE 9,700,448



4 Savills 5,560,598

5 JLL 5,260,830


7 Campbell Gordon 4,432,056

8 Hanover Green 2,979,098


10 Gerald Eve 1,931,136

Western Corridor Office

49



Western Corridor Office:The year in figures

86.4%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft




available

as at Q2 2014


Deal of the year

Name of building The Stanza BuildingSubmarket HillingdonDeal completion date 22/07/2013Size (sq ft) 82,403Landlord Agent(s) Knight Frank, CBRETenant Agent(s) NAI HaywardsRent £32.00 per sq ftTenant Nexen Petroleum

Name Rob MaddenCompany CBRE

The Stanza Building



50

North West Industrial

Demand for prime industrial space in the UK has lifted this year and traditional sheds heartland, the North West ought to be in a good place to take advantage. That said, leasing has slipped back since the first half of 2013.

The problem is in part a lack of Grade A space able to satisfy the requirements of a number of large-scale occupiers that are in the market, such as Biffa, The Hut Group, Ocado, Missguided and GeoPost. That is undoubtedly encouraging developers to seek out opportunities and consider speculative development.

Notable among these developers is Canmoor, which is pushing the button on speculatively building more than 500,000 sq ft of sheds across its Greater Manchester sites, while Peel Holdings is working through unprecedented development as it bids to create a North West “super-region” based around its substantial landholdings, linking Liverpool to Manchester.




There were larger lettings in the period but the winner by some distance for deal of the year was Canmoor’s signing of Foot Asylum for 133,145 sq ft at M3 Mulberry in Heywood.

For that, and Canmoor’s commitment to developing further in the North West, readers picked Mark Braithwaite as their top dealmaker.

M3 Mulberry

The Pegasus, Stockport

51

Eyes on the market

0%2%4%6%8%10%12%14%16%18%

3,000

2,000

1,000

0

1,000

2,000

3,000

4,000

5,000

Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Q4 11 Q2 12 Q4 12 Q2 13 Q4 13 Q2 14



North West Industrial: Supply, Demand and Vacancy




Address Size sq ft


Tenant/Buyer Agent

Month

1 Omega North, Warrington

631,000 Travis Perkins N/A N/A Aug-13

2 The Pegasus, Stockport

194,607 European Glass GVA, CBRE, WHR N/A Mar-13

3 Switch Point, Bootle 160,048 KTC Cushman & Wakefield, B8 Real Estate

White Rose Estates Apr-14

4 Saturn, Liverpool 157,907 J.M.D Haulage Contractors

Littler & Associates, B8 Real Estate, CBRE

N/A Mar-14

5 Bury Point, Bury 154,843 Wincanton Davies Harrison, JLL Savills Aug-13

6 Jupiter, Liverpool 143,000 Toyota Tsusho UK JLL N/A Aug-13

7 Distribution HQ, Warrington

139,370 Eddie Stobart Group N/A N/A Jul-13

8 M3, Heywood 133,145 Footasylum JLL, B8 Real Estate Lawson Hubbard Lowe

Apr-14

9 Bee Mill, Oldham 126,480 Patterson & Rothwell Knight Frank, Nolan Redshaw

N/A Dec-13

10 Tame 115, Dukinfield 115,101 Ritrama JLL Ridley Thaw Mar-13

52

Winners Industrial 2014 (July 2013 - June 2014)


1 JLL 9,197,709

2 B8 Real Estate 8,138,141

3 CBRE 5,306,820

4 GVA 4,986,716

5 WHR Property Consultants 3,467,494

6 Davies Harrison 3,425,401

7 Taylor Weaver 3,227,936

8 Trevor Dawson & Co 2,822,087

9 Legat Owen Limited 2,393,573



1 B8 Real Estate 266

2 JLL 259

3 Trevor Dawson & Co 248

4 CBRE 246

5 Roger Hannah & Co 172

6 Altus Edwin Hill 170

7 Legat Owen Limited 167

8 Taylor Weaver 160

9 WHR Property Consultants 156

10 Robert Pinkus & Co 138


1 JLL 1,886,586


3 CBRE 912,048

4 GVA 698,490

5 WHR Property Consultants 667,756



8 Littler & Associates 380,355

9 Legat Owen Limited 379,523



1 GVA 205,381


3 White Rose Real Estates 160,048

4 Savills 154,843

5 Lawson Hubbard Lowe 133,145

6 Ridley Thaw 115,101


8 Robert Pinkus & Co 84,028

9 WHR Property Consultants 75,169

10 CBRE 68,613


1 JLL 6,056,080



4 GVA 1,643,206

5 CBRE 1,193,185

6 Altus Edwin Hill 1,189,483

7 Savills 1,145,292

8 Gerald Eve 1,021,420


10 Lamont Commercial 769,652


Stephen McLintockResearch Manager North West Industrial T: 0141 354 0637 E: [email protected]

Research Contact



North West Industrial

53



North West Industrial:The year in figures

87.7%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft




available

as at Q2 2014


Deal of the year

Name of building M3Submarket RochdaleDeal completion date 11/04/2014Size (sq ft) 133,145Landlord Agent(s) JLL, B8 Real EstateTenant Agent(s) Lawson Hubbard LoweRent £3.00 per sq ft Tenant Footasylum

Name Mark BraithwaiteCompany Canmoor

M3 Mulberry



54

Scotland Industrial

Gathering optimism within the manufacturing sector across the UK has seen demand in Scotland’s key industrial markets pick up significantly, and there has been a clear increase in take-up.

The long-term lack of new-build supply in key markets such as Glasgow and the west of Scotland is being exacerbated by this change in sentiment, particularly as an increasing number of estates are hitting full occupancy.

The upturn in occupier activity continues to be led by retailers and oil and renewable-related energy companies.

This is leading to some growth in rents and capital values. Unsurprisingly, and as with offices, Aberdeen has been the standout performer as the energy sector continues to drive its position as one of the UK’s booming commercial property markets. That has led to some speculative development coming forward in the Granite City, though it is less evident elsewhere in Scotland.

East of Scotland and West Lothian in particular have seen a notable uptick in transactions.



CoStar News readers have been voting for two awards – the deal and dealmaker of the year - in each market. The deal that caught readers’ imaginations was retailer Schuh’s move to take J4M8 in Bathgate at the back-end of last year.

The top dealmaker – Bryce Stewart at Colliers International – was involved in that transaction, among many others. One voter suggested Bryce had been involved in “1m sq ft of the 9m sq ft of industrial sold or leased in Scotland in 2013”.

J4M8, Bathgate

DC2, Motherwell

55

Eyes on the market

0%

2%

4%

6%

8%

10%

12%

14%

16%

10,000

8,000

6,000

4,000

2,000

0

2,000

4,000

Q2 11 Q4 11 Q2 12 Q4 12 Q2 13 Q4 13 Q2 14



Scotland Industrial: Supply, Demand and Vacancy




Address Size sq ft


Tenant/Buyer Agent

Month

1 Pitreavie Business Park

260,286 FMC Technologies Colliers International N/A Aug-13

2 J4M8 240 240,000 Schuh Colliers International, GVA James Barr

Ryden Nov-13

3 College Milton, East Kilbride

206,861 Premier Pan European Colliers International N/A Jul-13

4 College Milton, East Kilbride

196,161 Abrastore Private Individual N/A Sep-13

5 DC2, Motherwell 172,600 Brake Bros Cushman & Wakefield Gerald Eve Oct-13

6 Porterfield Road, Renfrew

141,891 Doosan Babcock Energy Scotland

GVA James Barr, JLL N/A Nov-13

7 Carron Works, Falkirk 125,162 Clowes Developments DM Hall N/A Mar-13

8 Royston Road, Livingston

123,996 Lidl Colliers International N/A Nov-13

9 Edzell Base, Brechin 101,472 Peterson FG Burnett N/A Jun-14

10 7 Nettlehill Road, Livingston

96,933 Adston Lambert Smith Hampton, Ryden

DTZ Apr-14

56




Research Contact




1 Ryden 7,278,670


3 JLL 4,791,939


5 FG Burnett 3,001,605

6 Graham & Sibbald 2,601,820

7 J & E Shepherd 2,154,311


9 DM Hall 1,492,836

10 CBRE 1,355,994


1 Ryden 530

2 JLL 272

3 FG Burnett 232

4 Graham & Sibbald 213

5 GVA James Barr 190

6 J & E Shepherd 167


8 Knight Frank 100

9 DM Hall 88

10 JA Pollock Property Consultants 64




3 Ryden 1,857,439

4 JLL 1,378,899

5 FG Burnett 1,024,648

6 Graham & Sibbald 612,534


8 CBRE 334,302

9 J & E Shepherd 314,028

10 DTZ 312,098


1 Ryden 399,892


3 DTZ 121,843



6 FG Burnett 78,842

7 CBRE 61,735

8 JLL 59,380

9 Edwin Thompson 51,710



1 Ryden 4,474,589




5 JLL 1,431,060



8 FG Burnett 782,053

9 CBRE 654,525


Scotland Industrial

57



Scotland Industrial:The year in figures

89.4%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft




available

as at Q2 2014


Deal of the year

Name of building J4M8 240Submarket West Lothian Deal completion date 04/11/2013Size (sq ft) 224,644Landlord Agent(s) Colliers International,

GVA James Barr

Tenant Agent(s) Ryden Rent £6.85mBuyer Schuh

Name Bryce Stewart Company Colliers International

J4M8, Bathgate



58

West Midlands Industrial

Industrial take-up in key industrial heartland the West Midlands has been increasing across 2013 and 2014 with take-up for in particular 100,000 sq ft-plus units soaring over the period.

At the same time supply is falling back leading to some evidence of upwards pressure on rents in Birmingham, the Black Country and Solihull.

Occupiers are increasingly seeking build-to-suit opportunities and those sites that can offer speedy new build solutions are having particular success.

Unsurprisingly, speculative development is back on the agenda with Warwickshire based IM Properties for instance pressing the button on bringing forward schemes at Solihull Business Park.

Standout deals over the voting period have included TPN’s leasing of 367,500 sq ft at Park Lane in Sutton Coldfield, DHL’s leasing of 333,147 sq ft at Valley Cross in Rugby, and Euro Car Parts leasing of 258,000 sq ft at Prologis’s 594 Bonehill Road in Tamworth.




Euro Car Parts’ letting at Prologis Tamworth 594 ensured that industrial giant Prologis has repeated its success of last year to land readers’ deal of the year awards.

Dealmaker of the year was Richard Meering at CBRE.

Prologis Tamworth 594

Unit Dc4 - Park Lane, Sutton Coldfield

59

Eyes on the market

0%

2%

4%

6%

8%

10%

12%

14%

16%

4,0003,0002,0001,000

01,0002,0003,0004,0005,0006,000

Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Q4 11 Q2 12 Q4 12 Q2 13 Q4 13 Q2 14



West Midlands Industrial: Supply, Demand and Vacancy




Address Size sq ft

Occupier Landlord/Seller Agent Tenant/Buyer Agent

Month

1 Park Lane, Sutton Coldfield

367,500 TPN Savills, JLL, Gerald Eve N/A Dec-13

2 Valley Cross, Rugby 333,147 DHL Supply Chain GVA, Savills N/A Jan-14

3 Prologis Tamworth 258,000 Euro Car Parts North Rae Sanders, Dowley Turner Real Estate

CBRE Nov-13

4 RG1 Rugby Gateway 236,378 H&M Hennes & Mauritz UK

Cushman & Wakefield, CBRE

Chase & Partners Apr-14

5 City Gate Park, Wolverhampton

233,357 Task CBRE, Pritchard Group N/A Jun-14

6 Pointon Way, Droitwich

231,420 Vax BNP Paribas Real Estate, Savills

Harris Lamb Nov-13

7 Worcester Road, Kidderminster

229,625 Victoria Carpets N/A N/A Mar-13

8 Stone Business Park 215,160 RKW Edward Symmons, CBRE N/A Jan-14

9 Attenborough House, Nuneaton

208,581 Luxury For Less White Druce & Brown, North Rae Sanders

N/A Jul-13

10 DC5, London Road, Coventry

170,500 The Freeman Company

JLL, Gerald Eve, North Rae Sanders

Harris Lamb Oct-13

60



Laura RobertsResearch Manager Birmingham and West Midlands Industrial T: 0141 354 0625 E: [email protected]

Research Contact




1 Harris Lamb 6,823,279

2 JLL 5,092,180

3 CBRE 5,076,144

4 Bulleys 4,327,753

5 GVA 3,388,538

6 North Rae Sanders 3,041,197

7 Andrew Dixon & Co 2,705,065



10 Halls Commercial 2,269,766


1 Harris Lamb 471

2 Bulleys 320

5 Halls Commercial 262

3 Andrew Dixon & Co 209

4 Louis Taylor 169

6 Towler Shaw Roberts 149

7 Siddall Jones Limited 101

8 GBR Phoenix Beard 98

9 Sellers Chartered Surveyors 94

10 JLL 90


1 CBRE 1,862,194

2 JLL 1,489,128

3 GVA 1,434,075


5 North Rae Sanders 1,039,423

6 Savills 1,038,459



9 Bulleys 771,868

10 Andrew Dixon & Co 735,475


1 Harris Lamb 593,953

2 CBRE 318,212

3 Chase & Partners 236,378


5 Burbage Realty 128,470

6 Darby Keye Property 120,628


8 Chivers Commercial 74,226

9 DTZ 72,000




2 GVA 3,746,312

3 Savills 2,792,387

4 CBRE 2,492,250




8 Kingston Commercial Property Consultants

869,542

9 JLL 838,832

10 Darby Keye Property 834,153

West Midlands Industrial

61



West Midlands Industrial:The year in figures

92.8%Occupancy Rate

+ -/

ft

+ -/

ft

+ -/

ft

+ -/

ft




available

as at Q2 2014


Deal of the year

Name of building Prologis Tamworth 594Submarket TamworthDeal completion date 15/11/2013Size (sq ft) 258,000Landlord Agent(s) North Rae Sanders,

Dowley Turner Real Estate Tenant Agent(s) CBRERentTenant Euro Car Parts

Name Richard MeeringCompany CBRE

Prologis Tamworth 594



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