jan 2011 capital watch

8/6/2019 JAN 2011 Capital Watch

1/8

ALSO IN THIS ISSUE

1

EDITION FIVE: JANUARY 2011

www.cushmanwakefeld.com/london

The latest on London real estate from Cushman & Wakeelds London Group

MEDIA SECTOR SPOTLIGHTThis quarter we take a look atthe Media Sector in London.Page 2

LONDON IN FIGURESA round up o the latestquarters ofce and investmentmarket statistics.Page 4 & 5

DEVELOPMENT& PLANNINGLondon residential marketbucks national trend.Page 6

LONDON OCCUPIERSLondon lacking awareness olease accounting changes.Page 7

LONDON LOWDOWNReview o the leading indicatorsor Londons economy.Page 8

Improved optimism rom London occupiers

London based Financial and Professional Services are exceeding the UK growth trend

London emerged more posi-tively from 2010 than imag-ined at the start of the year,despite the nancial andbanking backlash. More posi-tive economic measures arebeing seen in some but notyet in all areas but econom-ic growth forecasts remainabove trend. The upturn is be-ing led by nancial and busi-ness services sectors and withLondon much less affected bypublic spending cuts than oth-er regions, the economic out-look seems to one of meas-ured optimism.

The question is what does thismean or business prospects andwhether it will boost the Lon-don property market into 2011?Cushman & Wakefeld commis-sioned Ipsos MORI to undertake

some corporate research with theaim o taking the temperature obusinesses today and to under-stand the issues that are inuenc-ing property directors behaviour.A total o 294 London based com-panies gave their views; o these39% had turnover in excess o400 million.

The conclusions were reassur-ing, with the consensus view be-ing optimistic particularly whenfrms were being asked abouttheir own business intentionsrather than just the general econ-omy. Whilst just under a quartero those surveyed anticipated amore positive economic outlook,53% o London based companieswere expecting their businessprospects to get better over thenext 12 months (see Fig 1). Againstthe backdrop o ears over public

sector job cuts, the act that overa third o frms said they plannedto increase job numbers was es-pecially good news.

What was apparent was that,despite improved optimism sur-rounding job growth, occupiersare looking to work their spaceharder and to improve the e-fciency o their space throughgreater productivity, with just20% anticipating an increase inthe number o properties thatthey operate rom over the next12 months. Interestingly, smallercompanies, by revenue, are morelikely to increase their propertyholdings than larger companies,with the latter probably alreadyholding surplus property intowhich to expand.

Continued page 3.

FIG 1: IS THE OUTLOOK BETTER OR WORSE FOR THE NET 12 MONTHS?

0

10

20

30

40

50

60

Own business

Economy wide

Same

%

ofsamp

le

Worse Better

Source: Cushman & Wakefeld London Group Research in conjunction with Ipsos MORI


2/82

SECTOR SPOTLIGHT: MEDIA

The media sector encompasses abroad and disparate range o sub-sectors including broadcasting,publishing, new media, advertis-ing, marketing, PR and the sectorconvergence being witnessed be-tween inormation technology &

telecoms (ITT) and media, and allwere active during 2010. The totaltake-up fgure has been skewedby several major transactions inrecent months, namely Bloomb-erg pre-purchasing 500,000 sq.tat Walbrook Square, Aegis sign-ing or 117,000 sq.t at 10 TritonStreet and Mindshare leasing78,000 sq.t at Central St Giles.

Covent Garden, North o Ox-ord Street and Soho continue tobe where the majority o mediadeals have taken place over thelast 12 months, accounting or40% o deals by number (see Fig1), while the rise o digital mediawas reected in the act that al-

most one in fve media deals wasto a company whose primarybusiness was digital based.

Industry trends2010 saw the UK media sector

start to recover rom the globalrecession and a number o areasstarted to expand. Television hasperormed relatively well duringthe downturn, due to consumersspending a greater amount o timeat home and continues to growas economic recovery takes hold.The recent expansion in new tele-vision technologies, such as high-defnition and recorders, has pro-moted an increase in the amount

o viewers watching programmes.Advertising spend in the UK

increased by an estimated 6.6%in 2010, the strongest year since2004. It is widely thought that theVAT rise led advertisers to bringorward spending into 2010 andthus boosting year end growth fg-ures. Advertisers remain cautiousabout the uture and it is likelythat they will not commit to am-bitious expansion plans while highunemployment and debt remains,and government spending cutsthreaten demand recovery. Nev-ertheless, industry orecasts pointto urther growth in the order o2.3% in 2011.

Printed advertising still domi-nates advertising expenditure, butinternet revenue continues to in-

crease steadily (see Fig 2). Therehas been a shit o budgets romtraditional media to online cam-paigns, boosted by new ormatssuch as mobile and social mediaand which oer greater sophistica-tion and customer tracking capa-

bilities. Internet spending regainedsome momentum in 2010, albeitrom a low base, and is thought tosee growth levels approaching 10%in 2011.

The Olympics will uel a ur-ther spurt o media activity in2012 and spending will continueto see strong levels o growth asa result. It is predicated that bothTV and On-line will account or alarger share o advertising expen-diture at the expense o printedmatter moving orward.

These healthy predictions orindustry growth are also reectedin the sentiment o media com-panies. Most companies believethat the prospects or their or-ganisation will improve over the

next 12 months, with increasedrevenue anticipated in more casesthan not, as a result o a moreaggressive sales/growth strategycombined with continued ocuson controlling costs. Indicative othe turnaround in prospects in theindustry is the expectation thatheadcounts will start to rise inthe coming year, at a steady ratherthan spectacular pace.

Impact on propertyOn behal o Cushman &

Wakefeld, Ipsos MORI recentlygathered opinion on key location-al actors rom some o Londonstop Creative and Media organisa-tions (see Fig 3).

The results showed Media oc-cupiers wishing or a balance be-

tween location and costs withoutcompromising on the ability toattract and retain sta. Given thatits a people based industry, theavailability o talent is paramountto success. As such the strong tieto traditional media locations mayresult in detering any signifcantrelocations urther afeld.

The research additionallyshowed that Media is the one ma-

jor sector most likely to be drivenby cost issues. They generally op-erate property within 5-10% orevenues and remain concerned

about property costs, pressureson profts and total costs. As a re-sult o rising rental levels this mayspur new letting activity. Howevercompanies are generally reluctantto relocate, with only one in sev-en media companies consideringmoving outside core Central Lon-don in order to oset an increasein rents. They are more likely toaccommodate more sta in theirexisting buildings. Some may takethe view that they no longer re-quire or can aord to be locat-

ed in ofces in Noho and Soho,where prime rents have increasedby 10% over the last 12 months.They are possibly more likely tomove to areas on the ringe, allow-ing them to beneft rom cheaper

rent and better value or theircustomersBoth industry growth and an

upturn in headcount, coupled withan estimated 11 million sq.t pluso lease expiries rom media com-panies over the next fve years, allpoint to an upturn in letting activ-ity starting in 2011.

Healthy predictions

or Media Sector

To discusscontact:

George Roberts

London Occupier Representationt: +44 (0) 20 7152 5199e: [email protected]

The research showed that Shoreditch, Euston

and Clerkenwell were most frequentlymentioned as acceptable alternative locationsto the traditional media areas in CentralLondon. Few believed that locations furtherout were really acceptable alternatives.Elaine Rossall, Head o London Group Research, Cushman & Wakefeld

FIG 1: TAKE-UP BY NUMBER OF DEALS

nMayair nMidtown

nPaddington nBloomsbury

nCity Fringe nVictoria

nSoho nNoho

nCovent Garden nEuston & Marylebone

nCity Core

9%

6%

3%

3%

9%

9%

11%19%

9%

11%

11%

Source: Cushman & Wakefeld London Group Research

FIG 2: GLOBAL SHARE OF ADSPEND BY MEDIUM (%)

nInternet

nOutdoor

nCinema

nRadio

n Television

nMagazines

nNewspapers

0

20

40

60

80

100

2008 2009 2010 2011 2012

Source: Zentih Media

FIG 3: TOP FIVE MOST IMPORTANTFACTORS TO CREATIVE AND MEDIAFOCUSED ORGANISATIONS, WHENCHOOSING BETWEEN DIFFERENTLOCATIONS IN LONDON

FACTOR SCORE(10 = essential)

Cost 8.12

Retaining andattracting sta

7.76

Large open planefcient oorplates

7.53

Internal specifcation

o the building

7.41

Location 7.29

Source: Ipsos MORI 2010

Letting activity to companies in the media sector strengthenedthroughout 2010, as business recovery started to lter throughto property requirements and just over 1.1 million sq.ft ofspace was let to the sector across Central London.

MOVERS &SHAKERS

Movers:

WPP subsidiary,MINDSHARE, has taken78,000 sq.t on the 7th and8th oor at Central SaintGiles on a 15 year lease witha 10 year break. In additionWPPs PR agency,BURSONMARSTELLER, are also taking20,000 sq.t on part o the 6thoor.

SPECIFIC MEDIA UK hastaken 25,503 sq.t on the 10thFloor at Central Saint Giles, ona 10 year lease.

COGNIzANT has taken

20,300 sq.t on a 12 year subleaserom Misys at 1 Kingdom Street.Paying 49.50 per sq.t. and11 months rent ree.

UNIVERSAL PICTURESINTERNATIONAL is underoer on the ground oormezzanine, 1st, 2nd and part othe 3rd oor c.112,000 sq,t atCentral Saint Giles.

Shakers:FACEBOOK is looking or25-40,000 sq.t or expansion/consolidation purposes andcurrently carrying out a WestEnd wide search.

EURO RCSG UK is lookingor 20-30,000 sq.t in CoventGarden, moving due to a possibleexpiry in 2011/2012.

COLART requires a sel-contained building up to 25,000sq.t West End wide or a LondonHQ. Budget 40 per sq.t.

VIACOM the telecomscompany, is looking or 15,000sq.t in Camden or expansionpurposes.

All inormation correct at time o going topress. This inormation comes rom Cushman& Wakefelds The Week That Was.To receive this weekly update please [email protected]

Cushman & WakeeldAuctions 2011

If you are considering sellinga property this year then

why not take advantageof the auction route.

C&W auction dates9 March, 12 May, 6 July,11 October, 7 December

For urther details pleasecontactJohn Townsend

+44 (0) 20 7152 5025 or visitcushmanwakeeld.com/auction


3/8 3

FEATURE STORY

Continued rom ront page.Whilst occupiers have been driv-en by containing costs over thelast couple o years, there is asea-change occurring in terms ocorporate strategy, which will ul-timately drive the prospects orboth headcount and occupationalneed moving orward. Two-thirdso those interviewed in the re-cent Cushman & Wakefeld Occu-pier Survey, are looking or at leastsome kind o growth opportunitywithin the next 12 months. Almostone in fve companies are now

ocusing on seeking an aggressivegrowth orientated stance (see Fig.2), while more than hal o thosesurveyed are looking to pursuegrowth should the opportunityarise. Large companies are mostlikely to be looking to grow or-ganically and while similar propor-tions o companies at broad sectorlevel are still concentrating on costcontrol, proessional and bankingservices companies are least likelyto be intent on pursuing aggressivegrowth and are likely to be morereactive to prospects that arise intheir market than any other sector.Whilst this growth may not imme-diately translate into an increase

in demand or space, it provides asolid oundation or uture activity(see Fig 2).

Cost still remains the over-riding actor when corporatesmake property choices, with bothproperty and labour costs eatur-ing high in terms o importance tofnal decisions. Over hal o com-panies surveyed believe that realestate is an important businessissue or most companies todayand it has risen up the corporateagenda, with almost two thirdso corporates believing that theirboard now has a good under-

standing o real estate costs andthe issues that relate to property.In act more companies than notstated that they were now payingmore attention to property costsas a way o increasing proftability.

The ability to attract and retainsta is, as to be expected, a keyactor in choosing a new building,with 23% o those surveyed class-ing availability o labour as a criti-cal actor. In addition more thanone in fve believes that choosing abuilding to enhance the employeeexperience/brand is important, as

companies turn to their accom-modation as a way o attractingemployees. Proessional servicescompanies seem to pay particularattention to the ability to retainand attract sta when they con-sider new locations across thecapital, whilst, o all the key sectortypes, the media sector is ar moreocused on costs than any other(see Figure 3).

Some o the comments madeincluded the ollowing:

Brand is very importantand the building needsto paint a picture, createan environment.Telecoms Company

A good location ensuresthat we can recruit andretain staff.Media Company

Location is number 1.We need to be close toour customers and in abuilding appropriate forthe customer. Number 2is access to people andnumber 3 is connectivity

from a network and public

transportation standpoint.ICT Company

We are particularly drivenby cost but we have to bein the right location thereis no debate we cannot bein the wrong location.Media Company

Cost pressures over the lasttwo years have limited the take upo technology and intelligent spacedesign to some degree. This is re-ected in that actors such as theability to use wireless technology,the ability to adopt exible work-ing and the green credentials o abuildings were rated much lowerdown the decision hierarchy, with

only around one in ten classiyingeach o these issues as absolutelyessential. Media companies rankedsustainability more highly than anyother sector, whilst companies inthe insurance sector seemed topay least heed to the energy e-fciency o the building.

As cost control moves downthe agenda in avour o oppor-tunistic growth, real estate has abigger role to play than seems tohave been acknowledged to date,particularly in delivering sustain-ability and supporting new work-

ing practices. The ocus o CSR inthe wider organisation is begin-ning to flter down to real estatedecisions, as companies start toconsider the impact o their oc-cupation on the environment. Asa result there is a view that thesewider corporate sustainability is-sues are having some impact onthe overall cost o real estate tothe organisation. There was also ageneral agreement that occupiersshould be paying more or leas-ing buildings with above averageenergy efciency. However in thecurrent climate only one in tenelt strongly about this with themajority tending to eel that it was

something they ought to be do-ing. A property director rom aninvestment bank commented:

The green agenda is beingdriven by the board and isnow impacting on our realestate decisions.Investment Bank

There were mixed views re-garding the impact o increasedregulation on Londons com-petitive position. However largercompanies and fnancial compa-nies were more likely to think thatincreasing regulation would makeLondon a less attractive location.Proposed changes to both taxand regulation are not leading toa mass exodus rom the capital,with over two-thirds o compa-nies stating that it was very im-portant to be located in the Capi-tal, whilst a urther 20% thought

that it was airly important to havea presence. Ultimately the endur-ing appeal o London is that it isa major centre or many dierentindustry sectors, whether that isfnance, media, insurance or legal,as well as having a wide, diverseand highly skilled talent pool romwhich to recruit rom. In act, overthe last 12 months there has beenan inux o overseas companiesinto London, with the City in par-ticular benefting rom businessrom emerging markets, includinginvestment rom a number o Chi-nese, Indian and Brazilian Banks.

It is still the biggestconcentration ofinternational clients,

London is still the preferredplace to do business nobody is interested inmoving. It is the preferredentry point.Private Swiss Bank

There is no doubt that theeconomic environment will re-main challenging during thecourse o 2011 and that businessconditions will remain tough. Oc-cupiers clearly hold the key tothe recovery in the London o-fce market and there is a sensethat uture activity will be betterand, given the boost to occupierconfdence evidenced by the sur-vey data, is set to improve urther.Many occupiers are more conf-dent about the uture, althoughthere will still be a desire by com-

panies to make their property as-sets sweat or them, rather thanmoving i it can be helped. There isa natural stickiness or a companyto stay with what they have, un-less there are business, cultural orstrong fnancial reasons to move.The challenge or developers andlandlords is to frmly understandwhat is driving each organisationsdecision making process and tostructure a transaction to eithersuccessully retain or attract anoccupier to their building.

To discusscontact:

Elaine RossallHead o London Group Research

t: +44 (0) 20 7152 5319e: [email protected]

FIG 2: WHICH OF THE FOLLOWINGBEST CHARACTERISES YOUR COMPANYSSTRATEGY OVER THE NET YEAR?

n Opportunistic growth

nCost control

nGrowth orientated

nDont know

nOther

53%

3%

18%

4%

22%

Source: Cushman & Wakefeld London Group Researchin conjunction with Ipsos MORI

FIG: 3 AFTER COST HOW IMPORTANT OR UNIMPORTANT ARE EACH OF THE FOLLOWINGFACTORS WHEN CHOOSING BUILDINGS AND PROPERTIES IN LONDON?1 = NO IMPORTANCE AT ALL 10 = ABSOLUTELY CRITICAL

AVAILABILITY OF TRAINED STAFF

AVAILABILITY OF SUITABLE PREMISES

LOCATION OF MAJOR CUSTOMERS

COST OF STAFF

TRANSPORT INFRASTRUCTURE

INTERNATIONAL TRANSPORT LINKS

BUILDING ENHANCING BRAND

SENIOR EXEC NEED/WANT TO BE IN LONDON

LOCATIONS OF MAJOR COMPETITORS

CORPORATE TAX LEVELS

PERSONAL TAX LEVELS

CROSSRAIL

OLYMPIC GAMES8.07.06.05.04.03.02.01.00.0

Source: Cushman & Wakefeld London Group Research in conjunction with Ipsos MORI

London occupiers

on new strategic path


4/8

TITLE GOES HERE AND CAN GO OVERTWO LINES MAIMUM

44

LONDON IN FIGURES

London witnesses stronger

KINGS CROSS42.50 psf

BLOOMSBURY47.50 psf

SOHO &COVENT GARDEN

52.50 psf

MIDTOWN50.00 psf

CORE CITY55.00 psf

NORTH FRINGE40.00 psf

OUTER CORE42.50 psf

SOUTHBANK42.50 psf

EASTFRINGE

42.50 psf

CANARY WHARF37.50 psf

DOCKLANDS20.00 psf

EUSTON &MARYLEBONE

50.00 psf

NORTH OFOXFORD STREET

62.50 psf

MAYFAIR& ST. JAMESS

95.00 psf

VICTORIA

57.50 psf

KNIGHTSBRIDGE57.50 psfKENSINGTON

42.50 psf

HAMMERSMITH32.50 psf

PADDINGTON50.00 psf

Prime rents by submarket*

* Prime rental fgures relate to new, high specifcation units o a standard size commensurate with demand in eachlocation and reect the market at the top end.

West End

FIG 1 ANNUAL TAKE-UP 2001-2010

0

1

2

3

4

2010

2009

2008

2007

2006

2005

2004

2003

2001

2002

AnnualTake-Up(millionsq.ft)

FIG 2 AVAILABILTY (AS AT Q4 2010)

0

0.5

1.0

1.5

2.0

Victoria

Soho

&Coven

tGdn

Paddingto

n

North

ofOxfordStree

t

Mayfair&

StJames

s

Knightsbridg

e

Kensingto

n

Hamm

ersmith

KingsCro

ss

Euston&

Marylebon

e

Bloom

sbury

Availability(millionsq.ft)

FIG 3 DEMAND BY BUSINESS SECTOR(AS A % OF TOTAL FLOOR SPACE DEMANDED AT Q4 2010)

23%

19%

18%

17%

11%

6%

6%

Other

Manufacturing

Public & Government

Financial & Banking

Retail & Leisure

Professional Services

Technology Media & Telecoms

Total % of floor space

FIG 4 PURCHASER ACTIVITY (Q4 2010)

UK Property Company

Overseas Fund

UK Private

UK Fund

Owner Occupier

Overseas Private

Overseas Property Company

43.1%

23.8%

8.5%

7.2%

14.8%

0.5%2.0%

Total % of overall spend

n Under Construction

n Grade B

n Grade A

FIG 5 INVESTMENT YIELDS (Q4 2005-Q4 2010)

Yield(%)

Sep-10

Dec-10

Jun-10

Mar-10

Dec-09

Sep-09

Jun-09

Mar-09

Dec-08

Sep-08

Jun-08

Mar-08

Dec-07

Sep-07

Jun-07

Mar-07

Dec-06

Sep-06

Jun-06

Mar-06

Dec-05

0

1

2

3

4

5

6

7

Source: All data rom Cushman & Wakefeld London Group Research January 2011

2010 witnessed a stronger than anticipated recovery,with leasing activity rebounding and prime supply lev-els contracting. As a result, prime rents across CentralLondon rose sharply with Mayfair & St Jamess record-ing increases of 27% and the City core increasing by

25%. Take-up activity across London nished the yearsome 80% ahead of the total for 2009, as just under11.5 million sq.ft of space was let in 2010, which is thehighest level for 10 years.

Supply o space continued on its downward path, ollowingthe fllip in supply last quarter, and ended the year 9% belowthe start o 2010, at 18.0 million sq.t (see Figs 2 & 7).

West End supply declined over Q4 2010 to stand at 6.2million sq.t, the lowest level or seven quarters and 650,000sq.t lower than the end o 2009. Limited completion activityadded to the absorption o space, as just 31,000 sq.t o reur-bished space was brought to the market. Grade A space ell byover hal a million sq.t over the quarter and now accounts or62% o space on the market. Although high as a proportion, itdisguises the shortage o large units available across the WestEnd. There are only 12 Grade A units in excess o 50,000 sq.tcurrently on the market and these are distributed across justour sub-markets. There has been an increase in space underconstruction over the quarter as developer confdence in-

creases. Schemes that went on site include British Land start-ing Regents Place Three (312,000 sq.t) and Land Securities62 Buckingham Gate (258,000 sq.t); both are scheduled orcompletion in 2013.

Availability in the City also ell over the quarter, with sup-ply ending the year over a million sq.t lower than at the samepoint in 2009. A total o 11.8 million sq.t is currently avail-able, which equates to a vacancy rate o around 7.5%. Totalspeculative space under construction in the City is around 3.0

million sq.t, o which 1.0 million sq.t is due or completion in2011. Three major City buildings over 100,000 sq.t are dueto be delivered this year: Heron Tower, Cannon Place and 200Aldersgate Street, while Westfelds 128,000 sq.t scheme atOne Stratord Place is due or completion in Q3 2011. Stron-ger leasing activity is spurring on a number o developers andit was recently announced that construction is planned tostart at Land Securities Walkie Talkie at 20 Fenchurch Street(638,000 sq.t) and British Lands Cheesegrater/The Leaden-hall Building (587,000 sq.t).

Both the City and West End markets witnessed a strength-ening in leasing activity in 2010 (see Figs 1 & 6). There was anotable rise in large deals, with twice as many lettings over50,000 sq.t completed this year compared with 2009. Just un-der 2.5 million sq.t o space was let in the City, which tookthe annual total to 7.6 million sq.t. This fgure was boostedby a number o major pre-lets/pre-purchases, accounting orapproximately 30% o annual lettings, as the lack o pipelinestarted to impact on the choice or occupiers. In Q4 2010, JP

Morgan purchased the 1.0 million sq.t 25 Bank Street, whileBloomberg also purchased Walbrook Square, Queen VictoriaStreet or the construction o a 500,000 sq.t London head-quarters. Not surprisingly, fnancial services companies led therevival in take-up in the City, accounting or 56% o all take-upin the year and, due to the letting to Bloomberg, the TMT sec-tor was the second most active.

Quarterly West End take-up reached 1.04 million sq.t inQ4, boosted by the pre-purchase o Building B1, Kings CrossCentral by BNP or their new 350,000 sq.t headquarters. Thisis the largest single deal recorded in the West End this year.Annual total take-up reached 3.85 million sq.t, which is morethan double the activity in 2009. This was boosted by 11 dealsover 50,000 sq.t being completed compared with just one in2009. The Banking & Financial sector were the most active in2010 accounting or 27% o all space let in 2010, ollowed byTMT (19%) and Proessional Services (18%). Over the yearall sectors saw a strengthening in activity, with ProessionalServices seeing the greatest year on year improvement, albeitrom a low base.

Active requirements remain low by historic standards andcurrent active demand is around hal o the peak levels record-


5/8

TITLE GOES HERE AND CAN GO OVERTWO LINES MAIMUM

55

LONDON IN FIGURES

recovery than expectedLondon Rental League TableLondon Rank(previous Q'tr)

Submarket CurrentPrime(ps)

Rise/all(previous Q'tr)

Rise/all(12 months)

Prev Q'trPrime(ps)

12monthsago

Historical Peak (date) ShortTermForceast

1 (1) Mayair & St James 95.00 6% 27% 90.00 75.00 130.00 (Sept 07 - June 08) stable up

2 (2) North o Oxord Street 62.50 0% 9% 62.50 57.50 90.00 (Dec 07 - Sept 08) stable up

3 (3) Knightsbridge 57.50 0% 5% 57.50 55.00 97.50 (Sept 07 - June 08) stable

3 (4) Victoria 57.50 5% 10% 55.00 52.50 67.50 (Dec 07 - June 08) stable

5 (4) City Core 55.00 0% 25% 55.00 44.00 65.00 (Marc 07 - Dec 07) stable up

6 (6) Soho and Covent Garden 52.50 0% 11% 52.50 47.50 70.00 (Dec 07 - June 08) stable up

7 (9) Euston and Marylebone 50.00 -5% 18% 52.50 42.50 57.50 (Sept 08) stable

7 (7) Paddington 50.00 0% 11% 50.00 45.00 55.00 (Sept 07 - Sept 08) stable

7 (7) Midtown 50.00 0% 18% 50.00 42.50 60.00 (Sep 07 - June 08) stable up

10 (9) Bloomsbury 47.50 0% 12% 47.50 42.50 52.50 (Sept 07 - June 08) stable

11 (11) Southbank 42.50 0% 13% 42.50 37.50 45.00 (Mar 07 - Sept 08) stable up

11 (12) Kensington 42.50 0% 13% 42.50 37.50 55.00 (June 07 - June 08) stable

11 (12) East City Fringe 42.50 0% 21% 42.50 35.00 45.00 (Sept 07 - Dec 07) stable

11 (12) Outer City Core 42.50 0% 21% 42.50 35.00 45.00 (Sept 07 - Dec 07) stable

11 (12) Kings Cross 42.50 13% 21% 37.50 35.00 50.00 (Sept 08) stable up

16 (12) North City Fringe 40.00 0% 23% 40.00 32.50 45.00 (Sept 07 - Dec 07) stable up

17 (17) Canary Whar 37.50 0% 7% 37.50 35.00 47.50 (June 07 - June 08) stable up

18 (18) Hammersmith 32.50 0% 3% 32.50 31.50 42.50 (June 08 - Sept 08) stable

19 (19) Docklands 20.00 0% 0% 20.00 20.00 33.50 (Mar 01 - June 02) stable

To discuss contact:

Elaine RossallHead o London Group Research


City & Docklands

FIG 6 ANNUAL TAKE-UP 2001-2010

2

4

6

8

2010

2009

2008

2007

2006

2005

2004

2003

2001

2002

AnnualTake-Up(millionsq.ft)

FIG 7 AVAILABILTY (AS AT Q4 2010)

Dockland

s

Stratford

Midtown

South

bank

City

FringeCi

tyCore

0

2

1

4

3

6

5

8

7

10

9

Availability(millionsq.ft)

FIG 8 DEMAND BY BUSINESS SECTOR(AS A % OF TOTAL FLOOR SPACE DEMANDED AT Q4 2010)

Other

Legal

Insurance

Public & Government

Professional Services

Financial & Banking

Technology Media & Telecoms24%

17%

3%

17%

17%

14%

7%

Total % of floor space

FIG 9 PURCHASER ACTIVITY (Q4 2010)

0.5%

61.8%

17.8%

9.3%

10.1%

0.4%

Miscellaneous

UK Private

Overseas Private

UK Fund

UK Property Co

Overseas Fund

Total % of overall spend

n Under Construction

n Grade B

n Grade A

Source: All data rom Cushman & Wakefeld London Group Research January 2011

FIG 10 INVESTMENT YIELDS (Q4 2005-Q4 2010)

Yield(%)

Sep-10

Dec-10

Jun-10

Mar-10

Dec-09

Sep-09

Jun-09

Mar-09

Dec-08

Sep-08

Jun-08

Mar-08

Dec-07

Sep-07

Jun-07

Mar-07

Dec-06

Sep-06

Jun-06

Mar-06

Dec-05

0

1

2

3

4

5

6

7

The investment market looks set to remain competitivewith investment demand ahead o supply and a stronger oc-cupational market uelling interest in the UK Capital. Indeed,investor demand remains strong across all parts o the riskspectrum, including a number o investors who are looking

or developments, primarily in the City, which can be de liveredin 2012-13, with the aim o capitalising on the positive rentalgrowth orecasts. In the West End, private overseas buyersdominate activity, particularly on prime stock and account-ed or over 40% o transaction volumes in the fnal quarter.Overseas unds remained most active in the City, with NorthAmerican unds driving purchases last quarter. Yields are nowlargely stable, as shown in Figures 5 and 10, with prime yieldsholding frm in both the City and West End at 5.00% and 4.00%respectively. Yields are unlikely to see much urther markedcompression, although urther rental growth will drive valuesand strong levels o investor demand is anticipated in 2011.The question will be whether enough supply can be ound tomeet this demand.

ed back in 2007. There was some evidence o a marginal up-turn in active demand in the City over the fnal quarter, whilethe West End remained airly stable, although a number o newenquiries have emerged. There is still a sense that many oc-cupiers will avoid relocation i they can whilst there has been

an upturn in short term requirements, allowing occupiers tomanage their space needs exibly and in a cost eective man-ner. Larger active requirements are also emerging, as occupiersstart to take a longer term view and urther pre-letting activ-ity is anticipated to satisy their needs. TMT companies, ol-lowed by Proessional Services companies, dominate currentactive demand in the West End and, with improving businesssentiment and employment growth anticipated across thesesectors, a urther pick up in requirements rom these two sec-tors is anticipated throughout the course o 2011. Financialand Proessional Services are likely to lead City letting activityin 2011, given that they currently account or over hal o allcurrent active enquiries in the City and prospects or employ-ment growth in these sectors is positive (see Figs 3 & 5).

Prime rents in the West End increased by a urther 6%over the fnal quarter to 95.00 per sq.t, whilst City coreprime rents stood at 55.00 per sq.t. Given the shortage ograde A supply and relatively limited space due to be com-pleted in 2011, rents or prime space will continue to rise with

the West End anticipated to see slightly stronger growth thanthe City in 2011. In a urther s ign o the strengthening market,rent-ree periods or Grade A space on 10 year leases are nowat 2.4 months or each year term certain in the City, down20% rom the end o Q4 2009, whilst in the West End theymoved in rom 2.4/2.7 months or each year term certain toaround 1.8 months over the same period.

Central London ofce investment has seen healthy levelso activity over the course o the year, with both the num-ber o deals completed and the value o investments ahead o2009. Total annual investment volumes across Central Londonreached just over 10.0 billion, more than double the volumesseen in 2009. Over the fnal quarter, the West End was themost active market, with 1.99 billion transacted up rom1.22 billion the previous quarter, while 1.36 billion wortho deals were completed in the City. These quarterly trendsare illustrated in Figures 4 and 9. Most deals comprise smallerprime assets, although there has been a handul o larger dealsand as a result the average lot size agreed in Q4 stood at 58.7million in the West End up rom 35.9 million in Q3. The cor-responding fgures or the City were 68.3 million in Q4 and58.3 million in Q3.


6/86

DEVELOPMENT & PLANNING

At the heart o the matter liestwo actors; regional oversupplyand restricted mortgage provision.Outside o London, urban areasare struggling to clear an excessivesupply o apartments built specula-tively with cheap debt during theproperty boom. Simultaneously,mortgage provision has shrunkwith banks and building societiestypically oering no more thanthree times annual salaries andrequiring 15 to 20% deposits onhouse purchases. First time buyerswho do not beneft rom the banko Mum and Dad are orced intothe rental market eectively reez-ing house price growth higher upthe housing chain. Until the mar-ket clears and mortgages ree-up,the residential market will remainin the doldrums, probably or theremainder o this year.

Meanwhile, the capitals hous-ing market is undergoing a dramat-ic recovery since September 2008and in some areas it is booming.

Generally, it is easier to view Lon-don and the rest o the UK as twoseparate residential markets.

The divergence can be broadlyexplained by the impact o a con-strained supply o new homes inLondon and importance o theglobal fnancial services sector u-elling demand. While many devel-

opers cannot raise debt to buildnew homes, the capitals housingmarket is propped-up by a combi-nation o international buyers andproessionals able to allocate largedeposits (equity and bonuses) ontheir new homes.

The economic crisis has badlyaected developers who tradi-tionally delivered around 10,000new homes to the London mar-ket annually. This dropped by athird in the months ollowing thecollapse o Lehman Brothers butthe amount o new homes hasrecently bounced back to tradi-tional levels. The dierence is thatnew homes are developed by avery small number o large housebuilders such as Barratt Homesand the Berkeley Group who havecornered a staggering 46% o Lon-dons market share in new homes.

The impact o restricted accessto debt or small to medium sizeddevelopers has not only allowedthe large house builders to sail

away rom the pack but has alsomeant that project completionsin London are orecast to all toaround hal o the annual norm in2011 and 2012.

Exacerbating the pressure ondemand is a prevalent shit in liv-ing patterns rom amily houses tosingle occupancy as more people

choose to (and can aord to) livealone. Over the last decade con-struction o houses in London hasallen rom 34% o the total marketto just 6% and one and two bed-room apartments now account or76% o new construction.

I the general picture in Lon-don is one o under supply thenthe market is ar rom uniorm.There has been a clear weightingo development activity in Lon-dons eastern boroughs. TowerHamlets, Greenwich and Newhamhave accounted or just over 40%o Greater Londons delivery be-tween 1999 and 2009.

The data shows there are25,800 units currently being con-structed across the capital with

just over hal the supply concen-trated within the inner boroughs(56%). The map (below) shows thedelivery picture across Londonin terms o sub region. While thenumber o schemes currently un-derway is airly constant across thesub regions (with the exception othe West and South West regionswhich have slightly ewer), thereis a wide disparity in the average

size o development rom regionto region. The average schemesize in the East stands at 260 units,whereas the average scheme in theSouth West is hal this at 130 units;the West is even lower with an av-erage scheme size o 120 units.

Unsurprisingly this has had apronounced impact in values and

the map shows the variations inapproximate average house pricesacross the capital. The eects othe downturn on the house build-ing industry were severe and lowsales rates and land values madenumerous sites inactive. Land val-ues in central London ell by asmuch as 50% in some locationsand as much as 27% was wiped oaverage house prices in all but theprime locations.

18 months on the picture ismarkedly dierent. Quantitativeeasing has begun to work throughthe system and most o the majorhouse builders have recapitalised.The volume o residential trans-actions is increasing each month,though it is still some way romthe market peak, the sentimentamongst house builders is that theworst is over. As confdence growsorder books are growing, buildrates are increasing and the num-ber o active sites is rising. Siteswith deliverable schemes are setto become valuable assets onceagain.

Longer term, London is unlike-ly to see little change in the un-

damental under-supply o housing.The planning system remains overcomplicated and in need o reorm,particularly with respect to thedelivery o key-worker housing.Inevitably this demand will triggerhigher levels o house price ina-tion and average prices are climb-ing steadily to about 7% o marketpeak. Nevertheless, buyers remaincautious; evidenced by the lengtho time that property remainson the market which has steadilyrisen rom 80 days at the start o2010 to 95 days today.

As London bucks the trend othe national housing market it islittle wonder that increasing num-

bers o commercial owners arelooking to the residential marketto optimise the values o their realestate.

London residential market

bucks national trendWith the gloomy prospect of a at housing market across mostof the UK this year, one might be forgiven for being bewilderedby the emergence of the residential sector in Central London.

To discusscontact:

Toby Grevil lePartner,Development & Planning Group


PLANNINGUPDATESCushman & Wakefelds PlanningTeam reviews some o the key

planning dates

Across Londoncounci ls:WESTMINSTER CITYCOUNCIL:The InspectorsBinding Report was receivedon the 10th November 2010.The Adopted Core StrategyDocument subject to theInspectors Binding Report, isplanned to be adopted in January2011.

CAMDEN BOROUGH

COUNCIL:On the 8th oNovember 2010 the CoreStrategy and DevelopmentPolicies Document was adoptedat Full Council.

THE CITY OF LONDONCORPORATION:The CoreStrategy was published or afnal stage o consultation inSeptember/October 2010. TheCore Strategy and the publicsrepresentations on it will beconsidered by an independentplanning inspector at a publicexamination to be held inspring 2011. The inspector will

subsequently issue a report onthe examination and the CoreStrategy is planned to be adoptedin autumn 2011.

TOWER HAMLETS:TheCouncil ormally adopted theCore Strategy at a meetingo the Full Council on 15September 2010. The adoptedCore Strategy incorporates thebinding recommendations o thePlanning Inspector as set out inthe Inspectors Report.

SOUTHWARK BOROUGHCOUNCIL: On the 26th

March 2010, the drat corestrategy was submitted to theSecretary o State. A provisionaltimetable anticipated the receipto Inspectors binding report tobe October 2010 and Adoptionand publication in January2011. The Planning inspectoranticipated his report would bepublished prior to 15 October2010 however this has beendelayed to enable the submissiono urther clariying inormationrom the council. A reviseddate or publication is expectedimminently.

All dates correct at time o going to press.

For more inormation on development and planning issues go towww. cushmanwakeeld.com/dpg

Hillingdon

Harrow

Barnet

Enfield

WalthamForest Redbridge

Havering

Barking&

Dagenham

Newham

HackneyIslington

CamdenBrent

Harrow

Ealing

Hammersmith

& Fulham

City of

WestminsterCity of

LONDON

Tower

Hamlets

Kensington

& Chelsea Southwark

LambethWandsworth

Lewisham

Greenwich

Bexley

Bromley

CroydonSutton

Merton

Richmond upon Thames

Hounslow

Kingston

upon

Thames

Haringey

Completions scale

300 Units 13,000 Uni ts

Source: NHBC

Inner London

Prime London

2010 AVERAGE SALES PRICE( PSF)

1,500 - 2,000+ Prime London

1,500 - 1,800 Kensington & Chelsea

1,200 - 1,750 Westminster800 - 1,400 City

750 - 1,000 Hammersmith , Islington

600 - 900 Camden, Wandsworth,Haringey

500 - 750 Richmond, Kingston

450 - 600 Hackney, TowerHamlets, Greenwich

450 - 600 Hounslow, Merton,Lambeth, Southwark,Ealing, Harrow, Brent

300 - 450 Hillingdon, Barnet,Sutton, Croydon,Redbridge, Bexley,Lewisham, WalthamForest, Enfeld,Newham, Barking

250 - 320 Havering, Bromley

Please note that these prices are based onaverages and may not reect prices achievedon individual transactions.

RESIDENTIAL COMPLETIONS OVER THE LAST 10 YEARS


7/8 7

LONDON OCCUPIERS

O those who are aware thatchanges to lease accounting areon the near horizon, ew havethoroughly evaluated the impactthat the changes will have on theirorganisation. And impact they will.An analysis o one well knownFTSE high street retail companyshowed that i their 2009 fnan-cial statements had been re-statedon the basis o the new account-ing standard, gearing would haveincreased rom 60% to 360% andproft beore tax o more than100m would have turned into aloss.

Although most o the real es-tate investment community willnot be directly impacted by theneed to adopt the accountingstandard (provided investmentproperties are carried in the bal-ance sheet at market value theyare exempted rom the standard),they will be indirectly impacted bythe changing behaviours o their

tenants.The trend or occupiers willbe to take shorter leases withleases o more than 15 years likelyto be the exception in the uturecompared to 25+ years in the past.Most commentators on the newlease accounting standard havebeen talking about the balancesheet impact, but it is the proftand loss account implications thatthat will drive the change in be-haviours.

The proposalsThe new lease accounting modelremoves the distinction betweenOperating and Finance Leases.

Currently, 99% o real estate leas-es are accounted or as OperatingLeases, which means that, in al-most all cases, the proft and losscharge simply ollows the cashpayment profle. In uture all leaseswill be accounted or as FinanceLeases. Subsequently the balancesheet will reect an asset and li-ability throughout the lease term.The day one asset and liability arecalculated by discounting the u-ture projected lease payments atthe companys incremental bor-rowing rate.

Over the lease term, the proftand loss (P&L) charge under thenew accounting standard is thesame as the current accountingstandard. However, the interestelement o the P&L charge has

a similar profle to a repaymentmortgage and is higher in the ear-lier years than the later years (asshown in Figure 1). So in the earlyyears o a new lease, the proftand loss charge is higher than theactual rental payment being made(and the charge under the existingstandard).

The longer the lease term thegreater the dierence betweenthe initial passing rent and theproft and loss charge. It is this ac-tor that will be the major driver outure behaviours (See Figure 2).

There are urther complica-tions. The new accounting stan-dard requires an evaluation outure contingent rentals. In realestate terms that means estimat-ing the impact o uture open mar-ket rent reviews, estimating utureindexation in CPI linked leasesor estimating turnover linked

rents where relevant. Additionally,where leases have break clauses,probabilities need to be applied tothe likelihood o exercising eachbreak. There is a mechanism thento determine the longest pos-sible lease term that is more likelythan not to occur

Cushman & Wakefelds view onthe impact o the changesIt is interesting that one o SirDavid Tweedies (International Ac-counting Standards Board Chair-man) amous quotes is One omy great ambitions beore I die isto y in an aircrat that is on anairlines balance sheet.

The P&L profle created bythe new lease accounting standard(higher charge in the early years,

diminishing in later years) is validor a wasting asset like an aircrat,but or real estate, where marketrental values will generally trendwith ination, this profle does notmake sense.

As a result o the adverseP&L impacts in the earlier yearso this profle, C&W believes thiswill accelerate the current trendtowards shorter leases and willalso make ownership o reeholda more attractive proposition ormany occupiers.

One o the key objectives othe IASB is to create more con-sistency across fnancial state-ments o dierent organisations.The new accounting standard hasa lot o areas where judgement isrequired and, in our view, will re-sult in more inconsistency thanthe current accounting treatment.

There is a lot o analysis re-quired by this new accountingstandard. The assumptions andanalysis have to be revisited at ev-ery fnancial reporting date (twicea year or most corporates) and

this standard will create a huge ad-ditional resource burden on manycompanies.

Company reactions so arC&W held a series o breakastseminars about the changes, whichwere attended by over 175 del-egates.

What was interestingwas the varying degreeof awareness about the

proposed changes. Certaincompanies have spent a

great deal of time preparingfor the changes andunderstanding the impact,whilst others really haventbegun this process.Matthew Stone,EMEA Capital Markets Group,Cushman & Wakefeld

The ollowing examples dem-onstrate just how the proposedchanges are starting to change be-haviours:l A London headquarteredfnancial services companyconsidered purchasing the reeholdinterest in the property they were

occupying on a long term lease.The accounting changes and theimpact on their Tier 1 capital werethe two o the main catalysts orthis considerationl A major European Hoteloperator has suspended takingnew leases until the standardis fnalised and its impact ullyunderstoodl An American corporate, with itsEuropean headquarters in London,is accounting or transactions asi the standard is in place today.They have adapted their IT andaccounting systems, policies andprocedures in preparation or theupcoming changesl A number o investors havealso expressed concern about theeect on capital values and theeect this will have on securingbank unding

Ipsos MORIs recent occupier survey commissioned byCushman & Wakeeld indicates that one in three businessesin the Capital are still unaware of the proposed accountingchanges.

To discusscontact:

Paul VernhamPartner,

Global Business Consultingt: +44 (0) 20 7152 5529e: [email protected]

How should companies prepare for the change?PREPARATION

Prepare a full lease inventory including the operational requirements

or each property. A company will also need to capture a orecast o theprojected rent over the lease term

Quantiy the eect o the changes on the nancial statements and KeyPerormance Indicators

Determine i there will be a breach obanking covenants

Consider how management remuneration measures will be aectedand how these should be adjusted (i necessary)

Review the accounting and real estate reporting systems to determinei they are sufciently exible to cope with the changes

Consider staff resources are they sufcient and are they sufcientlytrained?

REAL ESTATE STRATEGY

Consider i the companys real estate strategy needs to change in orderto mitigate the eects o the changes

Review i there are any planned leases which are signifcant and need tobe reconsidered

Identiy and prepare or upcoming lease events break options, lease

renewalsChallenge the current real estate ownership strategy (buy versus lease)in view o the proposed changes

London lacking awareness

o lease accounting changes

FIG 2: RENTAL PAYMENT AND P&L CHARGE

n P&L charge 5 year lease n P&L charge 20 year lease n Rent payments

Rent(000)

0 5 10

Years

15

2

4

6

8

10

12

14

16

18

The expense is higher in the early years o the lease and lower inthe later years. The longer the lease, the higher the Day One P&Lexpense

FIG 1: P&L EPENSECURRENT ACCOUNTING VS PROPOSED ACCOUNTING

Rent(000)

0 5 10Years

15

20

40

60

80

100

120

140

Current accountingstandard total1,500

New accountingstandard total1,500

INTEREST

AMORTISATION

Under new accounting, rent in the P&L is replaced by amortisationand interest. The expense in Day One is also higher than the current

accounting treatment


8/8

LONDON LOWDOWN

Indicators for the London mar-ket cooled somewhat in the au-tumn, with both business andconsumer sector data revealing

at best a leveling off in growthand at worst a renewed fall insome areas.

With the economy already ex-pected to ace some notable pres-sures in the year ahead in the shapeo cost increases, fscal measures andpossibly monetary tightening, thisdeterioration in data was taken bysome as the start o a possible newcold ront. However, as usual, dataor the end o 2010 and early 2011paints a more mixed picture

Consumer indicators in H2 2010certainly did show a plateauing inhousing market activity as well as a

slowing in retail sales. The renewedrise in unemployment was o coursea concern, coming ahead, as it did,o a yet deeper squeeze on public

spending this year. Indeed, with win-try weather hitting the shops and VATrises now impacting, the short termretail trading outlook is clearly weak-er than it was.

Nevertheless, the market is stillvery mixed, with some o the bestshopping streets seeing alling availabil-ity or example and resh record rentsbeing set in the fnal quarter o 2010.What is more, while London saw asharp all in ootall in November (ac-cording to Synovate), the capital alsosaw one o the best recoveries whenthe sales started ater Christmas.

When we look at business activ-

ity meanwhile, sentiment and employ-ment intentions have remained good.Indeed, while claimant count unem-ployment has increased, job vacancies

and numbers in employment are alsostill rising. Activity within the fnancialsector is up with share trading vol-umes rising in the fnal weeks o lastyear, IPO activity continuing to im-prove and M&A activity, while slowerin recent months, still well up on theprevious year and expected to riseurther in the coming 12-18 months.

On balance thereore, while werenot about to see the return o ademand-led market, the best way odescribing the environment will con-tinue to be polarised with areaso growing activity but also areas oongoing caution or even decline. As a

result, trends in availability and rentalgrowth will continue to vary by loca-tion and property quality and businessreal estate strategies need to there-

ore be exible to reect the realitieso supply and demand in each seg-ment o the market one size def-nitely does not ft all scenarios!

Leading Indicators or the London EconomyVariables: Change to

Nature Detail Period Q4 09 Q1 10 Q2 10 Q3 10 Latest Date

Job Vacancies Inner London Annual change -2.7% 19.8% 22.0% 21.4% 23.2% Nov

London Unemployment Cla imant count Quar terly change -0.2% -1.8% -3.5% 0.4% 1.0% Nov

Visitor Numbers Key London attractions Annual change 4.2% 6.8% 6.3% 7.4% 7.4% Nov

House Sa les (R ICS) Sa les per surveyor Annual change 6.7% 4.8% 3.6% 0.9% 0.1% Nov

Retail Sales Value, year on year Annual change 4.2% 4.4% 1.2% 0.5% 0.7% Nov

Share Trading Volumes Total, LSE 3 month avg change -13.9% -1.9% 2.2% -2.9% 4.2% Nov

IPO Issuance Total, UK main market Annual change -91.2% 718.4% 53.1% 29.0% 17.1% Dec

Mergers & Acquisitions Total, UK Annual change -8.5% 0.5% 13.3% 2.9% 2.9% Sep

n Positive change n Little change n Negative change

To discusscontact:

David HutchingsHead o European Research Group


LONDONGROUP CONTACTS

For additional subscriptions or

urther inormation please email

[email protected]

European Headquarters

43/45 Portman Square,

London W1A 3BG

t: +44 (0) 20 7935 5000

OFFICES

JAMES YOUNG

t: +44 (0) 20 7152 5113

e: [email protected]

RETAIL

PETER MACE

t: +44 (0) 20 7152 5039


CAPITAL MARKETS

CLIVE BULL

t: +44 (0) 20 7152 5179


DEVELOPMENT & PLANNING

WILLIAM JACKSON

t: +44 (0) 20 7152 5807


ASSET MANAGEMENT

POLLY PLUNKET-CHECKEMIAN

t: +44 (0) 20 7152 5831


HOSPITALITY

NICK PATTIE

t: +44 (0) 20 7152 5044


PROJECT MANAGEMENT

& CONSULTANCY

ALAN DAY

t: +44 (0) 20 7152 5146


VALUATION

RUPERT DODSON

t: +44 (0) 20 7152 5042

e: rupert [email protected]

OCCUPIER REPRESENTATION

GEORGE ROBERTS

t: +44 (0) 20 7152 5199


All inormation correct at time o going to press January 2011. 2011 Cushman & Wakefeld LLP. All rights reserved.

Londons cold ront passing by?

Marketing and managing the City of

Londons tallest tower, at 46 storeys,

440,000 sq.ft

Heron Tower

Advised Land Securities and Delancey on

the 131m sale to The William Pears Group

and LaSalle Investment Management

Notting Hill Estate

Appointed sole leasing agent by St Martins on

this 1 million sq.ft development comprising of

ofces, residential, retail and restaurants

London Bridge City

Consulting on the redevelopment of the

16 acre site for the MCC

Lords Cricket Ground

Sale of the existing Embassy in Grosvenor

Square and acquired the new Embassy site

at Nine Elms

US Embassy

Marketing 1 million sq.ft of ofce space at

the gateway to Londons Olympic Park

Westfeld Stratord

Cushman & Wakeelds London Group is playing an integral role within many of the Capitals high prole

real estate projects. We have taken further steps to be able to offer our clients the best possible real

estate solutions through creation of our 120 strong multi-disciplinary team that effectively offers a one

stop shop providing strategic business advice and comprehensive solutions across all London real estate.www.cushmanwakefeld.com/london

US EMBASSYLONDON BRIDGE CITY

HERON TOWERWESTFIELD STRATFORD

LORDS CRICKET GROUNDNOTTING HILL ESTATE

jan 2011 capital watch

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