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Regional office market outlook: JLL's Big 6 breakfast

By Nadia Elghamry on February 28, 2013 9:59 AM | No TrackBacks
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Jones Lang LaSalle's Big 6 Office Market Outlook Breakfast this morning was packed out. 

If that's a sign no-one really knows what's going on in the region then I don't know what is. 

Things learnt from this morning's presentation: Manchester has completely overtaken Birmingham as the number 1 city (in terms of take-up, see pie chart below) this year; overseas investors are 'irrantional and emotional' (JLL's words not mine); and they need a bigger room for next year's breakfast.


Source: JLL

Headline bullet points are below:

Job creation
London been the driver but, have seen job creation in wider regional economy.

Regional job creation winners: Leeds & Manchester, led by professional services.

Others have more reliance on public services so are losing a bit more ground.

Grade A take-up for all the Big 6 grade would fit in the Shard with 100,000 sq ft left over. 

Birmingham deals down 5% Grade A down 40%

Bristol Grade A down 80%. JLL will be passing round a hat later for the Bristol agents

Scotland
Edinburgh Grade A up 60%
Glasgow deals up grade A down 60%
One city seen more pre lets than anywhere else in big 6 and even London - yes, you've guessed it Aberdeen. Out of town rents £27 per sq ft and JLL believe it will remain buoyant and robust. Take up was 850,000 sq ft in 2012, but there is no Grade A supply left.


Continue reading Regional office market outlook: JLL's Big 6 breakfast.


DJD report: Construction starts in key UK cities drop further

By Stacey Meadwell on September 28, 2012 11:51 AM | No TrackBacks
Drivers Jonas Deloitte published its annual UK crane survey today and the findings make for depressing reading but won't cause too much surprise. Looking at the key UK cities: Birmingham, Manchester, Leeds, Edinburgh and Glasgow it finds that construction starts have dropped 36% in the 12 months to July compared to previous 12 months period.

Offices, retail and residential schemes (over 10,000 sq ft) are the hardest to find with most activity restricted to student housing and education (click on diagram for a bigger version).

crane survey snapshot.jpg

Out of the five cities, it is Birmingham which has seen the most activity, jumping from 8 to 14 starts in 12 months. The comprehensive refurbishment of Five Brindleyplace is the most notable office scheme but this is eclipsed by the huge redevelopment of New Street Station which will include a 250,000 sq ft John Lewis.

At the other end of the scale are Scotland's two biggest cities: Edinburgh and Glasgow. Neither has seen any construction starts although both have projects underway - Edinburgh had a relatively busy crane survey last time around. Most notable development that is already underway is Edinburgh city council's speculative office development Atria which completes early next year. 

It is a similar picture for Glasgow in that there is development activity already underway, mainly around the 2014 Commonwealth Games site in the East End.

You can read the full report on DJ Deloitte's website


Spec development begins in Leeds

By Nadia Elghamry on July 6, 2012 8:11 AM | No TrackBacks
21 Queens Street Leeds.2.jpgIt's not often we get to write this these days, but, we've caught a whiff of some spec development that is about to start. 

As the rest of us are heading off to work next week, construction will begin on 21 Queen Street in Leeds (shown above), which is Formal Investments 37,500 sq ft office building. Now technically this is a redevelopment and refurbishment and will be ready by next summer, but it's noteworthy because the market has been eagerly waiting the news that this is getting started and the developer is adding two completely new floors to the building. 

It's the second bit of good news for the Yorkshire capital in as many days. Yesterday Leeds city council confirmed that KPMG had agreed terms on 60,000 sqft at Sovereign Street. The deal was widely expected but the fact that requirement has actually now landed at the development (which itself has had a pretty chequered past) is a vote of confidence in the city and the scheme. That and the fact Muse is now onboard (£). But its worth remembering that its almost a year exactly since the council agreed heads of terms with KPMG. One thing is for sure, nothing is moving fast these days.

Guest post: Are Yorkshire offices on the road to recovery?

By Nadia Elghamry on May 25, 2012 12:00 AM | No TrackBacks

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Jim Larkin is the head of research for Yorkshire and the North East at Estates Gazette 

As the economic storm clouds gather like giant packs of rabid, hydra-headed Greek pitbulls straining at the leash to bring death and destruction to our entire financial system (to quote yesterday's Newsround, probably) it's worth seeking out the occasional reason for optimism in the property industry. And in tomorrow's Estates Gazette you will find precisely that in our Yorkshire Focus, where the stats show an office market that seems to be making a recovery.

On page 84 we publish EGi's office agents league table looking at take up figures for the last year in both Leeds and Sheffield, and what's surprising isn't necessarily the order in which agents are placed, but the sheer volumes transacted. 

In Leeds, the top agent disposed of more than 240,000 sq ft, while in Sheffield the figure is even higher at more than 280,000 sq ft. These figures are a respective 2.6 and 3.1 times higher than the top totals were for the previous year.

And it isn't simply a case of the big agents getting more powerful at the expense of the rest. The 10th placed agent in Leeds disposed of 3.6 times more space than the previous year's equivalent, while in Sheffield that figure is 5.8.

Now, it's worth bearing in mind that the previous year was what is known in property circles as an absolute stinker, and these figures are still slightly below the 10-year average, but it is nevertheless a remarkable achievement given the pervading doom and gloom. 

How to explain it? Maybe it's that both cities enjoyed massive one-off deals unlikely to be matched any time soon (63,000 sq ft at 2 & 3 Victoria Place in Leeds and 54,000 sq ft at The Balance in Sheffield), maybe it's that agents have been more generous with their incentives and maybe it's just that EGi has got better at collecting data. 

All of these are possible. But what is encouraging is that, as a number of high profile leases are coming to an end, occupiers aren't just playing it safe and staying put. Despite the economic climate, Yorkshire is looking ahead with characteristic steadfastness. The rest of the country could learn from this...

jim.larkin@estatesgazette.com

The best and the worst of the regional office markets in Q1

By Stacey Meadwell on May 16, 2012 3:12 PM | No TrackBacks
Knight Frank released its amusingly named ROMP report yesterday (that's Regional Office Market Presentation - just don't google ROMP on its own on your office computer - well maybe a colleagues) in which it compares and contrasts the market performance in 11 regional cities around the UK. 

One of the most interesting graphs within the report shows Q1 2012 take up vs the average quarterly take up for 2011 ie how well has each city done this year so far? Now you have to look at the figures in context but before we do that here is how the 11 cities rank in terms of take up in Q1 2012 vs its 2011 quarterly average:

  1. Leeds +50%
  2. Glasgow +32%
  3. Edinburgh +23%
  4. Manchester -5%
  5. Liverpool -11%
  6. Bristol -16%
  7. Sheffield -29%
  8. Cardiff -40%
  9. Aberdeen -165%
  10. Birmingham -209%
  11. Newcastle -376%
Now the context bit, Leeds had a good 2011 but it was its first year of increased take up since 2007 and the Q1 figure includes one particularly large deal of over 60,000 sq ft (Medical Protection Society's purchase of 2 & 3 Victoria Place). 

Glasgow and Edinburgh on the other hand, while having had storming starts to Q1 compared to everywhere else, actually didn't have great 2011 for office take up so they are coming from a lower base.

The flip side of that is Aberdeen which looks like it has had a terrible start to the year when in fact it had a phenomenal 2011 recording the highest average quarterly take up of all 11 cities and it still ranks the fifth highest take up for Q1 2012.

And then there is Newcastle, while there was a brief filip last year, office take up in the city actually peaked in 2004. Ouch.

Sparkling night for RICS and EG winners at Yorkshire awards

By Stacey Meadwell on May 14, 2012 8:45 AM | No TrackBacks
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Around Ireland with a fridge comedian Tony Hawks popped up at another RICS regional awards on Friday, this time in Yorkshire (yes he did the being mistaken for Tony Hawk the skateboarder joke, again).

Bedecked with sparkling lights, the Centenary Pavilion on Eland Road in Leeds saw around 250 of the county's property professionals gather to see who had won the RICS Pro Yorkshire awards - the Hepworth Gallery in Wakefield had a very good night - and we handed out our own Yorkshire & North East adviser and property company of the year awards.

Picking up the adviser award for the 8th year running was Sanderson Weatherall. No Tim 'Bananaman' Caterall this year but David Rastrick and Richard Dunn were on hand to celebrate in the usual exuberant Sanderson style. Raising not just a (pint) glass or two (see pic right)

Henry Boot Developments lifted the property company award. Speaking afterwards Vivienne Clemants said how surprised they were to win as the company normally keeps a low profile.

With the awards dispensed it was time to hit bar and with only our West Midlands awards left to present EG's regional awards are nearly over for another year.

Congratulations to Sanderson Weatherall and Henry Boot and all our other winners.

A few unofficial official snaps can be seen in the slide show below, and we'll add in the official photos as they arrive. 

EG Yorkshire Focus synopsis

By Stacey Meadwell on March 26, 2012 11:50 AM | No TrackBacks

Yorkshire Focus 

Published May 26



Yorkshire Retail (includes Leeds, Sheffield and Bradford)
Analysis of sector
Contact: Helen Hamilton, freelance writer, 07758 833 735, bluesomeh@gmail.com

Yorkshire Offices (includes Leeds and Sheffield)
Analysis of the sector
Contact: Daniel Cunningham, North correspondent, 020 7911 1822, daniel.cunningham@estatesgazette.com

Yorkshire residential 
Analysis of the sector
Contact: Graham Norwood 07779 595 964, grahammmnorwood@me.com

Casino
What are the options?
Contact: Nadia Elghamry, deputy regional editor, 020 7911 1849, nadia.elghamry@estatesgazette.com

Regeneration

Assessment of key projects progress
Contact: Mark Simmons, freelance writer, 07787 561 032, msimmons@sourceform.co.uk

Market health check
We are on the look out for data up to end of Q1 2012 for offices, retail and industrial across the key Yorkshire markets. Contact stacey.meadwell@estatesgazette.com if you think you can help. We'll also be publishing the EGi agents league tables for Sheffield and Leeds. Send your deals to deals@egi.co.uk

For more details about individual features please contact the writers direct by Friday 27 April

Pics: EG Leeds Focus reception

By Stacey Meadwell on March 26, 2012 11:28 AM | 2 Comments | No TrackBacks
It was a tale of two guest types at the EG Leeds Focus reception. There were those who were feeling a little subdued the morning after a big night out and those who were ready and raring to start the weekend early (that'll be Tim Catterall and the Sanderson Weatherall team then).

Regardless, more than 70 people from across Yorkshire joined us at Aspire for a chat and to compare notes about the market. EG's Nadia Elghamry talked to Knight Frank's Alex Munro about development prospects in Leeds and you can hear what he had to say on a podcast. 

As usual we launched the synopsis for our main Yorkshire Focus of the year and you can find a list of topics covered and the writers contact details online.

The winner of the EGi deals competition was Carter Towler with Adam Peacock of Lambert Smith Hampton being crowned individual deal maker.

Click on the slide show below to see a selection of pics.

Listen: Leeds development ready to go

By Nadia Elghamry on March 23, 2012 3:38 PM | No TrackBacks

Development is around the  corner in Leeds. The  council's much awaited ( very much anticipated if that's not an understatement) at Sovereign street having landed KPMG will come forward. There's a feeling that other occupiers will see what's happening, realise if they are going to move then now might be the time to do it and McAleer and Rushe's city square will land one of those. That was the feeling at EG's Focus reception in the Yorkshire capital this lunchtime - pictures will be on the blog on Monday. 

Alex Munro at Knight Frank in Leeds reckons that two or three major deals will happen this and there are good requirements in the 30,000 sq ft which will get into schemes by piggy backing off these.  The market is unlikely to set any records for take up but headline rents should remain steady at around the £25 -26 per sq ft level.  

To hear what Munro has to say in full click on the recording above. 

MIPIM 2012: Sun sets on another show

By Stacey Meadwell on March 8, 2012 4:44 PM | No TrackBacks
And there it is, ladies and gentlemen. Another MIPIM is drawing to a close. Final meetings are concluding and preparations for dinners and parties are underway.

The UK cities have been here in greater numbers this year shouting about enterprise zones and development proposals. I've learnt that there is still a lot of the nitty gritty to work through on the EZs before they will finally fly, if indeed they do prove to be more than government window dressing. Sheffield's LEP chair James Newman was still negotiating details with the Treasury a couple of days ago.

But it feels like there has been more to say this year and that concrete things are starting to happen. Derby council has put money into kick starting the first spec office scheme in the city for 20 years - off the back of a meeting it held down here in Cannes a handful of years ago.

Newport is close to announcing an anchor tenant for its Friars Walk retail scheme and planning is due to be submitted at the end of the month. Manchester has launched a search for development partners for a medi-park and Birmingham has shortlisted three developers for its Digital Plaza hub.

On the one hand there haven't been as many leggy models adorning the Russian and Eastern European stands but on the other it doesn't feel quite as austere as last year. There seems to have been more champagne on offer, there have been some really fancy canapes and treats around (no cuddly toys though as far as I can tell) and developers have had dinners in very nice restaurants.

It's not goodbye MIPIM but au revoir, I'm sure we'll all be back again next year.




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