LONDON MARKETS · KEY THEMES AND OUTLOOK 18 10 Million sq ft 6 12 14 16 8 0 2 4 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4

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LONDONMARKETS

International Property Consultants

Analysis of the London office market Winter 2018/2019

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Key schemes under constructionH2 2018 key deals

22 Bishopsgate 1,275,000 sq ft (85% available) AXA IM Real Assets / Lipton Rogers Developments

KGX1 King’s Boulevard 870,000 sq ft (fully let) Google

100 Bishopsgate 904,000 sq ft (11% available) Brookfield Europe Holding Ltd

HQ, 5 Bank Street 690,000 sq ft (62% available) Canary Wharf Group Plc

100 Liverpool Street 435,000 sq ft (63% available) British Land / GIC

Facebook 592,000 sq ft King’s Cross & Euston

Jane Street Europe Ltd 145,000 sq ft City

WeWork 159,000 sq ft Paddington

McCann Worldgroup 138,000 sq ft City

BGC Partners 130,000 sq ft Canary Wharf

www.geraldeve.com

£110per sq ft

West End Prime Rent

£70.00per sq ft

Midtown Prime Rent

£68.50per sq ft

City Prime Rent

4.5million sq ft

Q4 18 Take-up

31%

Grade A Availability

5.0%

Availability Rate

22%

Tenant Space

12.7million sq ft

Q4 18 Availability

LET

3

KEY THEMES AND OUTLOOK

18

10

Million sq ft

6

12

14

16

8

0

2

4Q

4 20

18

Q4

2015

Q1

2016

Q2

2016

Q3

2016

Q1

2017

Q2

2017

Q3

2017

Q4

2017

Q4

2016

Q2

2018

Q1

2018

Q3

2018

Central London 12-month rolling take-up Source: Gerald Eve

2018 take-up by business sectorSource: Gerald Eve

Canary Wharf East West Southbank

6% Associations

11% Corporate

13% Finance & Banking

3% Insurance

3%Retail

19% Professional Services

17%Serviced Offices

28% Media & Tech

Occupier sentiment continues to be strong

Despite the uncertainty and political fallout surrounding Brexit, London occupiers have been more acquisitive than at any point over the last decade. 8.8 million sq ft was leased across London in the second half of the year, a 25% increase on H1. Leasing activity was particularly strong in Q4, with 4.5 million sq ft taken, the highest quarterly volume recorded since before the global financial crisis.

Media & Technology driving demand

Media & Technology occupiers have once again been the main driver of occupier demand, and accounted for 28% of lettings over the last 12 months. The increasing level of demand from this sector reflects the changing nature of occupier employment, which looks set to continue despite the Government’s proposed new Digital Services Tax.

Serviced office expansion to continue

Serviced offices had their most acquisitive year in 2018, and accounted for 17% of central London lettings. Serviced office lettings increased by 19% over the last 12 months, demonstrating the sector’s growing confidence in the market’s fundamentals. Currently serviced offices occupy around 4% of London office stock, and we expect this to double over the next decade. WeWork added an extra 600,000 sq ft last year, which makes them the second largest occupier of space in London, behind the government.

Flight to quality increases second hand availability

The ability to recruit and retain the best talent has led to occupiers targeting higher quality office space. Throughout 2018, 51% of lettings were for new, grade A space, compared to the five year average of 39%. As a result, there is a lack of available grade A space, prompting an increase in pre-letting activity, but also a 24% increase in second hand availability.

Increasing focus on fintech

The finance & banking sector accounted for 13% of lettings in 2018, with the majority of activity continuing to be located in the East, with 52% of deals signed in the City. The demand from this sector has overwhelmingly been driven by lease events in the past, however the fintech sector is increasingly becoming an area of focus for financial service firms across London.

Transport and infrastructure help drive rents

Improved transport and infrastructure has already had an impact on a number of our London submarkets in recent years, notably rental values in Fitzrovia, Paddington and Farringdon & Clerkenwell. We expect this to continue with the construction around HS2 at Euston, but also when the benefits are seen from Crossrail, further rental growth is anticipated.

LET

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LONDON OFFICE RENTS

NationalTheatre

London South Bank University

Tower Bridge

Tower of London

30 St Mary Axe

City Hall

Tate Modern

Whitechapel Gallery

London Stadium

Bank of England

Mansion House

Somerset House

St Paul’sCathedral

Barbican Centre

London Eye

Sadler’s Wells

Geffrye Museum

The Old Truman Brewery

Brick Lane MarketOld Spitalfields Market

Scala

The British Library

The WallaceCollection

BBC

Buckingham Palace

Selfridges

Kensington Palace

Science Museum

Royal Albert Hall

The National Gallery

Royal Opera House

V&A

Harrods

Southbank Centre

Imperial War Museum

The Oval

Westminster Abbey

Westminster Cathedral

Battersea Power Station

Palace of Westminster

Canary Wharf

Regent’s Park

Lincoln’sInn Fields

SouthwarkPark

Tower HamletsCemetery Park

Hyde Park

Green Park

St James’s Park

Victoria Park

Southbank

£47.50£65.00

Grade A

Grade BRent Free 18 months

Victoria

Rent Free 24 months

£55.00£75.00

Grade A

Grade B

Knightsbridge

Rent Free 24 months

£67.50£85.00

Grade A

Grade B

Mayfair & St James’s

Rent Free 24 months

£87.50£110.00

Grade A

Grade B

Paddington

Rent Free 21 months

£55.00£77.50

Grade A

Grade B

Marylebone

£67.50£85.00

Grade A


Soho

£70.00£90.00

Grade A


Fitzrovia

Rent Free 24 months

£60.00£82.50

Grade A

Grade B

Covent Garden

Rent Free 21 months

£65.00£77.50

Grade A

Grade B

Midtown

£55.00£70.00

Grade A


Fa

rringdon & Clerkenwell

Rent Free 21 months

£55.00£70.00

Grade A

Grade B

King’s Cross & Euston

Rent Free 18 months

£65.00£80.00

Grade A

Grade B

5

See inside back cover for definitions

NationalTheatre


Tower Bridge

Tower of London

30 St Mary Axe

City Hall

Tate Modern

Whitechapel Gallery

London Stadium

Bank of England

Mansion House

Somerset House


Barbican Centre

London Eye

Sadler’s Wells

Geffrye Museum



Scala

The British Library


BBC

Buckingham Palace

Selfridges

Kensington Palace

Science Museum

Royal Albert Hall


Royal Opera House

V&A

Harrods

Southbank Centre

Imperial War Museum

The Oval

Westminster Abbey




Canary Wharf

Regent’s Park


SouthwarkPark


Hyde Park

Green Park

St James’s Park

Victoria Park

Ten year term

City

£60.00£68.50

Grade A


Shoreditch

Rent Free 24 months

£50.00£70.00

Grade A

Grade B

Canary Wharf

Rent Free 24 months

£37.00£50.00

Grade A

Grade B

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The largest transactions over the last 12 months have taken place in the City. Notably in the second half of the year, the National Pension Service of Korea (NPS) agreed to buy Plumtree Court, the new London headquarters of US investment bank Goldman Sachs, for £1.16bn, reflecting a net initial yield of 4%. This followed GIC’s and British Land’s sale of 5 Broadgate to CK Asset Holdings, for £1bn earlier in the year. Prime, long-let assets such as these, continue to be the focus of investor attention.

Overseas investors were also active in the West End with DEKA Immobilien’s purchase of 10 Bressenden Place for £460m in September, reflecting a NIY of 4.6%.

However, beyond the headline deals, trading has been fairly quiet, particularly in the final quarter of the year, due to a combination of low stock volumes, worsening fundamentals and concern over the impact of Brexit on both occupier demand and liquidity. The value-add deals that are still in demand, where there is an opportunity for strong income growth, but further yield compression is unlikely.

As a result, 2019 total investment volumes are expected to be slightly lower than the last couple of years. Market uncertainty will remain high and transactions will slow as Brexit approaches and investors hold off on decision making, as we saw in 2016, until the political and economic environment becomes clearer.

With an easing of demand over the next couple of years, London office performance will continue to be driven by income return, which we forecast will be 3.9% a year on average over the next five years.

By the end of 2020, capital values will have fallen by 2%, due to a combination of yield softening, and also a lack of strong positive rental growth. However this is expected to reverse from 2021 leading to a greater total return performance.

Despite the reduced investment performance forecasts over the next two years, central London offices will remain attractive due to the strong performance of the occupier market, as well as attractive looking yields and bond spreads compared to what is on offer in other European cities.

ContactLloyd DaviesMobile +44 (0)7767 [email protected]

CENTRAL LONDON INVESTMENTInvestor demand for prime office buildings pushed transaction volumes to £13 billion in 2018, the capital’s highest volume in four years. Overseas investors, lured by the fall in sterling, a slight softening in yields, and long-term faith in London, were overwhelmingly responsible for this pattern.

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16

10

£ billion

2

4

8

6

0

12

14

2018

2017

2016

201

5

2014

2013

2012

2011

2010

2009

2008

2007

Q1Q2

Q3Q4

8.0

7.0

6.0

%

2.0

3.0

1.0

5.0

4.0

0

-1.0

-2.0

2017

2018

2019

2020

2022

2021

Income returnCapital growth

Total return

Central London annual investment volumes Sources: Property Data, Gerald Eve

Central London forecastsSources: MSCI, Gerald Eve

5.0

3.5

%

0.5

1.0

2.0

1.5

0

4.0

4.5

2.5

3.0

Ber

lin

Mun

ich

Am

ster

dam

Fran

kfur

t/M

Dus

seld

orf

Mad

rid

Sto

ckho

lm

Mila

n

Bar

celo

na

Lyon

Dub

lin

Lond

on

Ham

burg

Par

is

Prime office net initial yieldSpread over 10 year bonds

European office prime net initial yield and bond spreads Sources: Property Data, MSCI, Gerald Eve

7

Hyde Park

Edgware Road

Paddington

Lancaster Gate

300000s sq ft

250

0

150

200

50

100

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

600000s sq ft £ per sq ft

300

500

400

200

100

0

90

70

60

80

50

40

30

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

2020

450000s sq ft

200

150

300

250

400

350

100

50

0

Q1

2016

Q4

2018

Q3

2018

Q2

2018

Q1

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

DemandQuarterly take-up and five year average

Source: Gerald Eve

SupplyAvailability by grade

DevelopmentDevelopment pipeline and prime rent

Paddington enjoyed its most successful year in 2018, with take-up volumes reaching 540,000 sq ft, the highest annual volume of activity for the submarket on record. The majority of leasing activity occurred in the second half of the year, with both quarters exceeding the five year average.

Serviced offices were the most active in H2 2018, and accounted for 49% of all deals, which was largely driven by WeWork’s sublet of 159,000 sq ft across seven floors at 5 Merchant Square from M&S.

Another notable deal was the Premier League signing a 39,000 sq ft pre-let at Derwent’s Brunel Building. This was in addition to Hellman and Friedman which took 20,500 sq ft across the top two floors meaning the property is now 64% pre-let. The 243,000 sq ft office scheme occupies a prime location, and is set to complete in H1 2019.

There were also a couple of lettings at the recently refurbished, The Point, highlighting the demand for grade A office space in the submarket. The Press Association took 17,000 sq ft across the third and part of the ninth floor, whilst A2 Dominion let 12,000 sq ft on the remaining part of the ninth.

Development activity is increasing in Paddington, with three schemes currently under construction. The first to deliver will be the Brunel Building, followed by 5 Kingdom Street in 2021, and Paddington Square. Paddington Square is the largest development with 355,000 sq ft of office space likely to be delivered in 2022.

The high level of leasing activity over the last 12 months has led to a significant decrease in the availability rate, which has led to a rise in prime rents to £77.50 per sq ft. Whilst Paddington has always benefitted from excellent transport links to Heathrow and the Thames Valley, the near arrival of Crossrail will increase the submarket’s connectivity further, and could encourage more firms to relocate here. As a result, we expect to see more positive rental growth over the next few years.

PADDINGTON

£77.50Prime Rent

4.9%Availability Rate

26.2%Tenant Space

3Underground Stations

0Michelin Star Restaurants

33Pubs

49%Serviced Offices take-up

460,500 sq ftUnder Construction

187,206 sq ftUnder Offer

ContactPatrick RyanMobile +44 (0)7792 [email protected]

Take-upFive year average

CompletedUnder construction letUnder construction availablePrime rent (RHS)

NewRefurbishedUnrefurbished

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Source: Gerald Eve

The Wallace Collection

Edgware Road

Baker Street

Marble Arch

Cavendish Square

Portman Square




Whilst Marylebone is characterised by 18th century buildings and Cavendish and Portman Squares, recent development activity has helped boost demand. As a result, 475,000 sq ft was let during 2018, the submarkets highest annual leasing volume since 2012.

Professional service firms were the most active business sector in H2 2018, and accounted for 42% of all deals. This included CBRE’s decision to sign a 43,000 sq ft pre-let expansion at Henrietta House. This is expected to complete in 2020.

Availability continues to be low and on a net basis, Marylebone has actually lost space over the past five years, with the amount of space demolished or converted to other uses outweighing the amount of space added through construction. As a result, the overall availability rate remains one of the lowest across central London at 2.8%.

With a lack of good quality available space, new schemes are in high demand, highlighted by the development of 1–9 Seymour Street (55,000 sq ft), which completed in April 2018 and became fully let within a few months.

In the pipeline, there are two buildings under construction; the largest is Almacantar’s 1 Marble Arch Place (100,000 sq ft), which is expected to deliver in the first half of 2020; whilst Regent House, George Street (56,000 sq ft) is also set to complete next year. The competition for this new space, will help keep rents elevated over the next 12 months.

MARYLEBONE

£85.00Prime Rent


24.8%Tenant Space



54Pubs

42%Professional Services take-up



ContactRhodri PhillipsMobile +44 (0)7768 [email protected]

300000s sq ft

250

0

150

200

50

100

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

450000s sq ft

150

250

300

350

400

200

100

50

0

95

70

80

85

90

75

65

60

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

400

250

350

300

200

100

50

150

0




9

MAYFAIR & ST JAMES’S

Hyde Park

Green Park

St James’s Park

Bond StreetOxford Circus

Hyde Park Corner

Piccadilly Circus




Leasing activity remained strong throughout 2018, with over 1.1 million sq ft taken, and with each quarter exceeding the five year average. This was the largest annual volume of space leased since 2007 and demonstrates that high occupier demand for Mayfair & St James’s remains. This level of leasing activity looks set to continue in 2019 with over 150,000 sq ft of space currently under offer.

The finance and banking sector was the most active in the second half of the year, and accounted for 38% of the deals. Notably Houlihan Lokey took 44,000 sq ft at 1 Curzon Street. Having grown their business through a number of acquisitions, the Los Angeles-based firm signed a lease on the third and fourth floors and expects to move in during the first quarter of 2019.

Elsewhere, investment managers Lansdowne Partners signed an 18,000 sq ft pre-let at 25 Berkeley Square, which is currently being refurbished by Lazari, and Cerberus Capital Management took 21,000 sq ft across the first four floors at 5 Saville Row.

Due to tight planning restrictions, new office developments rarely add significant amounts of new space in the submarket. However the construction of 18–20 Hanover Square, which started on site as part of the Crossrail project, will deliver 163,000 sq ft of new high quality space next year, 65% of which is currently available. The completion of this scheme, along with other projects such as 65 Davies Street (65,000 sq ft) will add some much needed grade A office space to the locality and could lead to an increase in prime rents as occupiers compete.

£110.00Prime Rent


8.3%Tenant Space



82Pubs

38%Finance & Banking take-up



ContactPatrick RyanMobile +44 (0)7792 [email protected]

Source: Gerald Eve

000s sq ft

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

400

350

300

0

200

150

250

50

100

600000s sq ft

100

300

400

500

200

0

130

90

110

120

100

80

70

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

1600

800

1200

600

200

400

0

1400

1000




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KNIGHTSBRIDGE

Hyde Park Green Park

Victoria

Sloane Square

000s sq ft

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

100

90

0

70

60

80

40

30

50

20

10

000s sq ft

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

90

30

60

70

80

50

40

20

10

0

95

75

85

90

80

65

70

50

55

60

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

250

100

200

150

50

0




Leasing activity remained subdued throughout 2018 with take-up volumes totalling only 64,000 sq ft, a 45% decrease on 2017. The professional service sector was the most active in the second half of the year, and accounted for 52% of all lettings. Notably real estate investment firm, Round Hill Capital took 11,400 sq ft at 1 Knightsbridge on an assignment.

Elsewhere, Exor Investments took 4,000 sq ft at 28 Headfort Place, whilst CapitalRise Finance Ltd and YX Capital Partners took space at 18 Coulson Street and 21 Knightsbridge respectively.

Availability remains low in the market and with only two schemes delivered over the last 10 years; 127–135 Sloane Street (78,000 sq ft) in 2016, and 50 Sloane Avenue (22,500 sq ft) completed in 2017, there is limited grade A space available.

However, new high quality space is on the way; Chelsfield Partners LLP have begun development of The Knightsbridge Estate, which will deliver a much needed 67,000 sq ft of new high quality space to the market, within a wider mixed use scheme. In addition, Motcomb Estates, advised by Gerald Eve, will also deliver 30,000 sq ft of grade A space with the refurbishment of 27 Knightsbridge, which will help ease the supply squeeze for grade A office stock.

Despite the lack of recent leasing activity, Knightsbridge’s low availability and its prestigious location means properties here can still command high rents.

£85.00Prime Rent


32.2%Tenant Space



32Pubs




Source: Gerald Eve

ContactSophie O’SullivanMobile +44 (0)7880 [email protected]




11

Green ParkHyde Park


Victoria

Pimlico

St James’s Park

Hyde Park

Westminster

Green Park

000s sq ft

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

450

350

300

400

0

200

150

250

50

100

000s sq ft

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

700

400

600

500

300

200

100

0

85

75

80

65

70

50

55

60

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

1000

400

800

600

200

0

900

700

500

300

100




Following a slow down during the summer months, leasing activity picked up at the end of the year, with 262,000 sq ft taken in Q4.

However, despite this increase in demand, a sharp rise in tenant space has resulted in an availability rate of 7%, the second highest across central London. However this should begin to recede as more firms relocate to Victoria, with currently 117,000 sq ft under offer.

Firms from a variety of industries, across central London, are moving to Victoria, attracted by the new developments that have been delivered, and improved infrastructure. In particular, the market is attracting demand from serviced office firms looking to bring start-ups into the area, and in H2 2018, serviced offices were the most active sector accounting for 64% of deals, with Regus IWG’s 80,500 sq ft at 25 Wilton Road, the most significant.

Despite the recent drop in demand, prime rental growth is expected to continue over the next few years as near-term fundamentals will be supported by a lack of further new construction.

Following the recent completion of London & Oriental’s Buckingham Green scheme (55,000 sq ft), and Quadrum’s 21 Dartmouth Street in Q1 2019 (53,000 sq ft), there are few new development starts expected in the near term. However there are a number of refurbishment projects coming through, notably 64 Victoria Street, which will deliver 100,000 sq ft in Q1 2019.

VICTORIA

£75.00Prime Rent


25.1%Tenant Space



76Pubs





Source: Gerald Eve




www.geraldeve.com

SOHO

Soho Square Gardens

Golden Square

Oxford Circus

Tottenham Court Road

Piccadilly Circus Leicester Square

000s sq ft

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

160

0

120

100

140

20

60

40

80

000s sq ft

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

350

200

300

250

150

100

50

0

100

90

95

75

80

60

65

70

85

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

400

300

200

0

350

250

150

100

50




Occupier sentiment in Soho continues to be positive with leasing activity exceeding the five year average in both the final two quarters of 2018. Across the year, 371,000 sq ft was leased, which represents a 25% increase on 2017.

Occupier demand has held up better in Soho than in other parts of central London since the referendum, supported by the market’s enduring popularity with firms from the media and technology sector. In H2 2018, this sector accounted for 33% of total take-up, including Mubi UK leasing 9,000 sq ft at 7 Newburgh Street; and Total Media taking 8,000 sq ft at 7-12 Noel Street. Elsewhere, WeWork continued to take space, adding 21,300 sq ft at 21 Soho Square in Q4.

Continued infrastructure improvements and more upmarket retail and leisure options, particularly along the eastern end of Oxford Street, where Crossrail will arrive, have also helped keep the market attractive to occupiers. However despite this, the market has

recently lost some occupiers to other parts of London, notably; Framestore, COS and Turner Broadcasting have left the submarket for Midtown and the City, respectively, while Sony Pictures agreed a deal to move to Paddington in April 2018. As a result the availability rate for the market has increased slightly.

Currently there is only one notable scheme under construction, Soho Estates’ Ilona Rose House, which will deliver 163,000 sq ft in 2020. However following recent development successes such as 30 Broadwick Street, and 1 Dean Street, it is expected that most, if not all of this scheme will be let before completion. The next significant scheme in the pipeline is Derwent London’s Soho Place, which will bring 209,000 sq ft of new space to the market in 2022.

With strong demand for this new, high quality space, we expect to see a gradual increase in prime headline rents over the next few years, keeping Soho as one of the most expensive office locations in London.

£90.00Prime Rent


31.3%Tenant Space



91Pubs

33%Media & Technology take-up



Source: Gerald Eve





13

RIBA

British Museum

University College London

Great OrmondStreet Hospital

Wigmore Hall

Russell Square

Goodge Street

Holborn

Tottenham Court RoadOxford Circus

000s sq ft

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

250

200

150

0

50

100

000s sq ft

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

800

700

600

500

300

400

200

100

0

90

75

85

80

65

70

50

55

60

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

500

400

300

0

450

350

250

200

50

150

100




Despite a slow start to 2018, amplified by the lack of availability, leasing activity picked up in the final two quarters of the year where 267,000 sq ft was leased, a 61% increase on the first half of the year.

During this period, serviced office firms were the most active and accounted for 25% of all deals. Notably Knotel took 23,000 sq ftat 101 New Cavendish Street. The New York serviced office provider, has taken the fourth floor of the building, on a new 10-year lease. In addition, WELPUT announced that the British Olympic Association (BOA) and the British Paralympic Association (BPA) have taken 11,000 sq ft on a 10-year lease, taking the building to full occupancy.

Whilst the overall availability rate has fallen to 3.1% in Fitzrovia, the increased presence of serviced office firms has led to a rise in availability for smaller units, as firms looking for less space are migrating towards serviced offices instead of traditional leases. However the local amenities plus the benefits of Crossrail at Tottenham Court Road, mean that demand for new, larger lot sizes remains strong. This is demonstrated by 80 Charlotte Street, one of the largest developments in the West End, which is now fully let despite being 12 months from completion.

With only Great Portman Estates’ One Newman Street (80,000 sq ft) in the pipeline, and the refurbishment of 30 Cleveland Street (39,000 sq ft), as well as retailer New Look’s decision to cancel its move to King’s Cross, thus retaining its head office at 45 Mortimer Street, overall availability is expected to fall further over the next 12 months leading to a rise in the prime headline rent to £85 per sq ft.

FITZROVIA

£82.50Prime Rent


20.4%Tenant Space



57Pubs





Source: Gerald Eve




www.geraldeve.com

COVENT GARDEN


River Thames

Leicester Square

Charing Cross

Covent Garden

Embankment

000s sq ft

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

350

250

300

200

150

0

50

100

000s sq ft

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

500

450

400

300

200

250

150

100

0

85

75

80

65

70

50

55

60

350

50

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

800

500

0

700

600

400

300

100

200




Since the EU referendum in June 2016, Covent Garden has been one of London’s best performing submarkets with several significant lettings taking place amid strong demand from firms in the media and technology sector. However, during 2018 leasing activity eased off, with only 479,000 sq ft leased across the year, 47% less than in 2017.

Professional service firms were the most active during the second half of the year representing 40% of lettings. This included law firm Harbottle & Lewis, taking 30,000 sq ft at 7 Savoy Court.

The largest deal over this period was signed by Rothsay Life. The insurance firm signed a 49,000 sq ft pre-let at The Post Building, a move would triple its London footprint as they currently occupy 14,000 sq ft at the Leadenhall Building. The Post Building, which is one of Covent Garden’s largest speculative developments, completes in Q1 2019, and is now 70% let, highlighting the market’s draw for new high quality space. Elsewhere, Google took an extra 20,000 sq ft at Central St Giles in Q4.

However, whilst larger, newer buildings have recorded strong demand recently, the availability of smaller buildings has been rising since mid-2016. One possible cause could be the increasing presence of serviced office firms in the submarket, which has lured smaller firms that might previously have signed traditional leases elsewhere (a trend which is replicated across much of London). The likes of WeWork and Regus have both taken sizeable spaces in Covent Garden recently, WeWork leased 131,500 sq ft at 125–133 Kingsway and Regus took 31,000 SF at 60–62 St Martin’s Lane in 2018.

£77.50Prime Rent


16.7%Tenant Space



86Pubs





Source: Gerald Eve




15

MIDTOWNMuseum of London

Leicester Square

King’s Cross

Farringdon

Blackfriars

Euston

Picadilly Circus

Chancery Lane

Russel Square

Holborn

000s sq ft

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

1200

1000

600

400

0

75

65

70

55

60

40

45

50

800

200




Leasing activity continued to be strong in Midtown throughout 2018, with each quarter exceeding the five year average and over 1.6 million sq ft of space taken. This is a 54% increase on 2017.

The largest deal in the second half of the year was signed by Deloitte Digital, which is returning to Athene Place in 2020, having signed terms for 100,000 sq ft. Athene Place was acquired by Henderson Park and Endurance Land and Deloitte, which previously occupied the entire building, will relocate its digital side of the business to the building.

Whilst Midtown has traditionally been associated with the legal profession, in recent years a more diverse range of occupiers has been attracted to the submarket. Over the last six months a number of serviced offices have signed deals, including The Office Group (40,000 sq ft), and Office Space In Town (38,000 sq ft) at Summit House and 22 Tudor Street respectively. Elsewhere Gartner (53,000 sq ft), and The Health Foundation (26,000 sq ft), took space at 8 Salisbury Square.

The combination of strong demand and a slowdown in new deliveries has resulted in a fall in the availability rate to 3.7% from 5.6% 12 months ago. There is currently 102,000 sq ft under construction across three schemes, namely AXA’s One Smart Place, Mayfair Capital’s 16-20 Red Lion Street, and Lenta’s Thanet House, 231 Strand.

£70.00Prime Rent


13.3%Tenant Space



76Pubs




ContactAmy BryantMobile +44 (0)7551 [email protected]

000s sq ft

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

600

0

400

300

500

200

100

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

1400

0

1200

1000

800

600

200

400

Source: Gerald Eve




www.geraldeve.com

Mornington Crescent

King’s Cross

Euston

000s sq ft

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

800

0

600

500

700

400

100

300

200

000s sq ft

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

400

350

200

150

0

85

65

70

55

60

40

45

50

250

50

75

80

100

300

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

300

0

250

200

150

100

50




Leasing volumes fell just short of 1 million sq ft across 2018, which is King’s Cross & Euston’s best year since 2014 in terms of take-up. This was largely a result of Facebook’s 592,000 sq ft pre-let across three buildings around Canal Reach. This was London’s second-largest office letting in the past decade and further builds on the market’s reputation as a destination for creatively-led businesses along with Google, Universal Music, and media multinational Havas. Facebook are expected to occupy its new space on completion in 2021.

The high demand for new, high quality space in this market has led to a flurry of pre-letting activity, and all new deliveries have performed extremely well. Such robust demand has meant that the overall availability rate remains the lowest across all of the central London markets despite the volume of new deliveries in the region.

Whilst there is high demand for new, grade A space, the market has seen an increase of tenant space released back to the market, which has increased the availability rate slightly.

However, despite a number of upcoming refurbishments; including Wellcome Trust’s 210 Euston Road (61,000 sq ft); and Lazari’s Stephenson House (147,000 sq ft); the availability rate is likely to remain at relatively low levels over the next few years, as the majority of schemes currently under construction or expected to start imminently are either fully pre-let or under offer. As a result, we expect to see further prime rental growth over the next few years.

KING’S CROSS & EUSTON

£80.00Prime Rent


44.7%Tenant Space



60Pubs





Source: Gerald Eve




17

Farringdon

Chancery Lane

Barbican

Old Street

000s sq ft

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

1000

900

500

400

0

80

60

40

50

20

30

600

100

70

200

700

300

800




Farringdon & Clerkenwell enjoyed a strong second half of the year with take-up volumes reaching 1.3 million sq ft. The submarket’s growing appeal to creative firms, combined with the upcoming arrival of Crossrail at Farringdon station, and a host of recent refurbishments, is a real draw to occupiers in search of larger lot sizes.

The media and technology sector was the main driver of leasing activity and accounted for 45% of all deals. Notably Ticketmaster took 63,000 sq ft at 34-36 St John Street, Live Nation took 59,000 sq ft at the Farmiloe Building, 34 St John Street, The Trade Desk took 54,000 sq ft at 1 Bartholomew Close, and social media company LinkedIn took 50,000 sq ft at The Ray, 119 Farringdon Road.

Following the LinkedIn deal, The Ray was fully let on completion, highlighting the high demand for new space in the market. This is also the case for 17 Charterhouse Street (160,000 sq ft), which will be delivered in 2020 but already fully pre-let by Anglo American.

The high level of leasing activity, as well as the demolition of a couple of large, empty buildings, namely 150 Holborn and 17 Charterhouse Street, has reduced the overall availability rate to 3.1%. This is likely to remain low in the near term, with Crossrail’s imminent arrival likely to lure more firms to this increasingly popular part of London.

FARRINGDON & CLERKENWELL

£70.00Prime Rent


12.6%Tenant Space



116Pubs




000s sq ft

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

900

0

600

500

800

400

100

300

200

700

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

1400

0

1200

1000

800

400

200

600

ContactAmy BryantMobile +44 (0)7551 [email protected]

Source: Gerald Eve




www.geraldeve.com

SHOREDITCH Brick Lane Market

Old Spitalfields Market

Shoreditch High Street

Liverpool Street

Whitechapel

000s sq ft

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

£ per sq ft

2020

500

450

250

200

0

80

60

40

50

20

30

300

50

70

100

350

150

400




Shoreditch ended the year positively with leasing activity reaching 251,000 sq ft, exceeding the five year average. This raised the annual take-up volume to over 880,000 sq ft, a 10% increase on 2017.

Media and technology occupiers were the most active in the second half of the year and accounted for 52% of all deals. Notably there were two deals at 100 Leman Street; firstly Exponential-E Ltd took 65,000 sq ft across six floors; and Forward 3D Ltd took 25,000 sq ft. Elsewhere in the market, serviced offices continued to increase their presence with Fora taking 37,000 sq ft at 35-41 Folgate Street.

The robust levels of demand have led to a fall in availability across the year, from 5.7% to 3.6% in December 2018. During this period there was 445,000 sq ft of development completions, however 80% of this space was let on completion so the amount of new space released to the market was limited.

Currently there is 438,000 sq of new space under construction which will be delivered over the next two years. Notably Great Portland Estates’ Cityside House will complete later this year, will add 75,000 sq ft of new space to the market. In 2020, Cain International’s The Hewett (70,000 sq ft), and The Bard (137,000 sq ft), will be delivered although these are now fully let.

£70.00Prime Rent


30.2%Tenant Space



57Pubs




000s sq ft

Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

350

0

250

200

300

150

50

100

000s sq ft

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

600

0

500

400

300

100

200

ContactFergus JaggerMobile +44 (0)7787 [email protected]

Source: Gerald Eve




19

CITYLiverpool Street

Cannon Street

Farringdon

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

2020

4.0

3.5

Million sq ft

2.0

3.0

2.5

1.5

1.0

0.5

0

75

55

65

45

50

60

70

40

£ per sq ft




The City has performed well over the last 12 months with leasing activity totalling 4.7 million sq ft, a 24% increase on 2017. Net absorption has been stronger here than in most London submarkets, with high pre-letting activity preventing a spike in the overall availability rate despite significant development activity. Notably Hiscox, Beazley and AXA agreed the first pre-lets at 22 Bishopsgate, the City’s largest scheme under construction, and in Q4 McCann Worldgroup announced plans to relocate 11 of its agencies to a single site by taking 138,000 sq ft at 135 Bishopsgate.

Encouragingly, firms are also moving here from other submarkets, boosting net absorption.

A combination of robust rental growth, and high pre-letting activity, has led to increased developer confidence and a high volume of construction starts since 2015. Indeed, 2019 is set to be a big year for deliveries, with over 1.4 million sq ft of office space set to complete over the next 12 months, more than any other submarket.

Overall there is currently 4.1 million sq ft under construction across 13 schemes, with 31 % of the space already leased. In 2019, the largest scheme to complete will be 100 Bishopsgate (914,000 sq ft), although due to an increasing demand for high quality office space, only 11% of this space remains available. Other notable schemes which will deliver this year include 135 Bishopsgate (62% available), 51 Eastcheap (100% available), and Premier Place (100% available). 22 Bishopsgate (1.275 million sq ft) will deliver in 2020, with 85% of space currently available.

£68.50Prime Rent


22.5%Tenant Space



179Pubs

25%Finance & Banking take-up

4,100,000 sq ftUnder Construction


Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

1.6Million sq ft

0

1.2

0.8

1.4

0.6

0.4

0.2

1.0

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

6

4

2

Million sq ft

5

3

1

0

ContactSteve JohnsMobile +44 (0)7833 [email protected]

Source: Gerald Eve




www.geraldeve.com

Waterloo

London Bridge

Embankment

Elephant and Castle

Tate Modern

Oxo Tower

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

2020

1000

800

Million sq ft

500

700

600

300

200

100

0

70

50

60

40

45

55

65

30

£ per sq ft

35

400

900




Southbank leasing activity reached 1.1 million sq ft in 2018 with Q4 exceeding the five year average. Serviced offices continued to increase their presence in the region and accounted for 33% of take-up over the last six months. Notably WeWork agreed to lease eight floors at Kennedy Wilson’s Friars Bridge Court, totalling just over 85,000 sq ft. Elsewhere media and technology company, Cloudflare took 34,000 sq ft on the 6th floor on Westminster Bridge Road.

The recent rise in lettings has led to an overall decrease in the availability rate, which has fallen to 3% from 4.1% over the last 6 months. With limited available space in the development pipeline, a substantial rise in availability is not likely in the near term, and therefore prime rents should remain flat.

The majority of development activity under construction is surrounding the redevelopment of the Shell Centre. Vertical construction completed on the 273,000 sq ft One Southbank Place in August 2018, and the 290,000 sq ft Two Southbank should complete at the beginning of 2020. One Southbank Place will hold the headquarters for Shell International’s downstream business once fit out is complete later this year. Two Southbank has been leased in its entirety to WeWork in a 20-year deal. The two buildings are part of Braeburn Estates’ 1.5-million sq ft redevelopment of 5.5 acres adjacent to London Waterloo station.

SOUTHBANK

£65.00Prime Rent


14.1%Tenant Space



129Pubs




Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

600000s sq ft

0

500

400

300

200

100

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

900

600

800

400

100

0

000s sq ft

700

500

300

200

ContactFergus JaggerMobile +44 (0)7787 [email protected]

Source: Gerald Eve




21

Canary Wharf

Blackwall

South Quay

Poplar

East India

CANARY WHARF

2019

2009

2010

2011

2012

2013

2014

2015

2021

2018

2017

2016

2020

1600Million sq ft

800

1200

1000

400

200

0

55

50

40

45

30

£ per sq ft

35

600

1400




Canary Wharf’s office market has weakened over the past couple of years, following a strong 2014–16, when firms such as Deutsche Bank, KPMG, EY and the Government Property Unit (GPU) moved staff here from other parts of London. While there have been some successes in 2018, such as The Office Group taking a combined 126,000 sq ft at 1 Canada Square and 15 Water Street, Wood Wharf, and BGC Partners taking 130,000 sq ft at 5 Churchill Place, overall leasing activity has slowed and net absorption has turned negative.

Space has also been released to the market at 15 Westferry Circus and 5 Canada Square. The delivery of new schemes such as One Bank Street, could also lead availability to rise further over the next couple of years.

Canary Wharf will however be supported to an extent, due to having; a broader tenant base than in the past; lower rents than other central London submarkets; and by Crossrail’s arrival boosting connectivity and making the area more attractive to occupiers.

Construction activity has picked up in Docklands recently, with the completion of the 690,000 sq ft HQ, 5 Bank Street development scheduled to complete in 2019. The Canary Wharf Group is also pressing ahead with the preparations for the second phase of its huge mixed-use scheme at Wood Wharf in 2019, which is set to include more than 300,000 sq ft offices that are largely aimed at the media & technology sector.

£50.00Prime Rent


32.5%Tenant Space



33Pubs


1,209,140 sq ftUnder Construction


Q1

2016

Q2

2016

Q3

2016

Q4

2018

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q1

2017

Q4

2016

600000s sq ft

0

500

400

300

200

100

Q1

2016

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2017

Q3

2017

Q2

2017

Q1

2017

Q4

2016

Q3

2016

Q2

2016

2500

0

000s sq ft

2000

1500

1000

500

ContactSteve JohnsMobile +44 (0)7833 [email protected]

Source: Gerald Eve




www.geraldeve.com

1. The effect of rent free periods

The right hand column in the map looks at the uplifts that would occur if there were no rent free periods being granted. As can be seen, the uplifts become material in every area of central London. On buildings let on leases of longer than 10 years, the effect on a rent review of rent free periods is much reduced on the second rent review. So older buildings (let on longer leases) may well see larger increases at rent review than newer properties.

2. The effect of fitting-out periods.

When a rent free period is analysed, in most cases the time required to fit out the property is deducted from the rent free period. That fit out period is longer for larger properties than it is for smaller ones. Generally total rent free periods for large buildings don’t increase (if at all) in line with the additional time to fit out. So larger buildings can see greater increases at rent review than smaller ones.

In conclusion, it’s counter intuitive, but the properties where the largest uplifts are likely to be seen are larger demises facing their second or later rent review in the lease.

Legal update

An ever increasing number of rent reviews go to a third party settlement. Because it’s commonplace, the formality of this process is easily overlooked. Perhaps it is timely therefore to be reminded that once agreed, a statement of agreed facts is binding and generally can’t be undone (see Great Dunmow Estates v Crest Nicholson).

Dec

embe

r 201

3 he

adlin

e re

nt

Dec

embe

r 201

8 he

adlin

e re

nt

Dec

embe

r 201

8 R

ent f

ree

mon

ths

Impl

ied

net

effe

ctiv

e re

nt

Pre

dict

ed u

plift

Upl

ift if

effe

ct o

f re

nt fr

ee p

erio

ds

disr

egar

ded

Mayfair & St James's

£105.00 £110.00 24 £90.80 0% 5%

Soho £85.00 £90.00 21 £76.50 0% 6%

Victoria £70.00 £75.00 24 £61.90 0% 7%

Covent Garden £65.00 £77.50 21 £65.90 1% 19%

Paddington £57.50 £77.50 21 £65.90 15% 35%

Knightsbridge £80.00 £85.00 24 £70.10 0% 6%

King's Cross & Euston

£60.00 £80.00 18 £70.00 17% 33%

Fitzrovia £67.00 £82.50 24 £68.10 2% 23%

Marylebone £82.50 £85.00 24 £70.10 0% 3%

Midtown £55.00 £70.00 24 £57.80 5% 27%

City £57.50 £68.50 24 £56.50 0% 19%

Farringdon & Clerkenwell

£42.50 £70.00 21 £59.50 40% 65%

Shoreditch £40.00 £70.00 24 £57.80 45% 75%

Canary Wharf £37.50 £50.00 24 £41.30 10% 33%

Southbank £47.50 £65.00 18 £56.90 20% 37%

London Average £63.47 £77.07 22 £64.61 10% 26%

CENTRAL LONDON RENT REVIEWSThere is little if any rental growth currently being seen across central London and five years ago, when passing rents were set, rents were rising sharply. It is therefore perhaps no surprise to see that our statistical analysis identifies that in many areas rent reviews are unlikely to see material uplifts. However, this isn’t the experience we are seeing in the market: why?

0%

80%

40%

10%

20%

30%

50%

60%

70%

May

fair

/ S

t Jam

es’s

Soh

o

Vict

oria

Cov

ent G

arde

n

Pad

ding

ton

Kni

ghts

brid

ge

Kin

g's

Cro

ss &

Eus

ton

Fitz

rovi

a

Mar

yleb

one

Mid

tow

n

City

Farr

ingd

on &

Cle

rken

wel

l

Sho

redi

tch

Can

ary

Wha

rf

Sou

thba

nk

Mayfair &St James’

0%

10% Soho0%

10%

Victoria0%

10%

Covent Garden

0%

10%Paddington0%

10%

20%

30%

Knightsbridge0%

10%

Kings Cross & Euston

0%

10%

20%

30%

Fitzrovia0%

10%

20%

Marylebone0%

10%

Midtown0%

10%

20%

City0%

10%

Farringdon & Clerkenwell

0%

40%

10%

20%

30%

50%

60%

Shoreditch0%

40%

10%

20%

30%

50%

60%

70%

Canary Wharf

0%

10%

20%

30%

Southbank0%

10%

20%

30%

Predicted uplift

Uplift if effect of rent free periods disregarded

Predicted upliftUplift if effect of rent free periods disregarded

www.geraldeve.com

ContactTony GuthrieMobile +44 (0)7717 [email protected]

23

GERALD EVE IN THE MARKET

Stenprop, advised by Gerald Eve, has sold Euston House, NW1 to a joint venture between French-listed Eurazeo and London-based Arax Properties for £95 million. The price reflects a net initial yield of 4.64%.

Situated opposite Euston station, the 113,000 sq ft multi let office building is home to occupiers including Siemens, Learning Tree and i2 Offices. The landmark building was originally the home of London, Midland and Scottish Railways.

Lloyd Davies, partner at Gerald Eve who oversaw the sale, said:

Launched in September 2018, Gerald Eve coordinated interest from 86 parties. The campaign sale concludes Stenprop’s transition out of their London offices to focus on multi-let industrial. Euston continues to be an area of focus for the Gerald Eve team and one we believe will continue to outperform the market in the coming years.

NationalTheatre


Tower Bridge

Tower of London

30 St Mary Axe

City Hall

Tate Modern

Whitechapel Gallery

London Stadium

Bank of England

Mansion House

Somerset House


Barbican Centre

London Eye

Sadler’s Wells

Geffrye Museum



Scala

The British Library


BBC

Buckingham Palace

Selfridges

Kensington Palace

Science Museum

Royal Albert Hall


Royal Opera House

V&A

Harrods

Southbank Centre

Imperial War Museum

The Oval

Westminster Abbey




Canary Wharf

Regent’s Park


SouthwarkPark


Hyde Park

Green Park

St James’s Park

Victoria Park

43

3837

45

46

39

40

18

21

12

1413

23 16

7 8

9

2210

20

17

19

63

4

2

49

11

5

24

15

33 32

31

2836

2627

48

35

44

34

2930

41

47

42

1

Landlord / vendor1 Euston House2 30 St Mary Axe3 Bath & Cayton, 7-9 Bath Street &

4-12 Cayton Street4 14 Devonshire Square (x2 deals)5 150 Waterloo Road6 219 St John Street7 34-36 Bedford Square 8 37 Bedford Square 9 Whittington House, 29 Alfred Place10 Lynton House, 7-12 Tavistock Square (x2 deals)11 107 Cheapside

12 105 Piccadilly (x4 deals)13 55 Baker Street14 51 Welbeck Street15 The Peak, 5 Wilton Road16 20 North Audley Street (x2 deals)17 110 High Holborn (x2 deals)18 Smithson Tower, 25 St James's Street (x2 deals)19 100 Gray's Inn Road21 314-320 Gray's Inn Road (sale)22 77 Grosvenor Street23 350 Euston Road24 64 North Row25 55,56 & 57 Eccleston Square

Tenant / purchaser26 4 Moorgate27 Angel Court, 1 Angel Court28 5 Aldermanbury Square29 10 Crown Place30 155 Bishopsgate31 54 Hatton Garden32 Bureau, 90 Fetter Lane33 Floor East, Chancery House,

53-64 Chancery Lane34 31-33 Tanner Street35 Palace House, 3 Cathedral Street36 1 Aldermanbury Square37 Podium Building, 1 Eversholt St 38 222 Euston Rd

39 17 Slingsby Place40 The Peak, 5 Wilton Road41 174 -180 Old Street 42 10 Eastbourne Terrace43 15 Stratford Place 44 Talbert House, 52 Borough High Street45 122-128 Arlington Road, NW146 158-159 Drury Lane47 16-20 Boston Place48 15 Abchurch Lane49 The Walbrook Building, 25 Walbrook

We have been involved in some of the highest profile sales and lettings agreed in London over the last 12 months, both for the landlord and the tenant.

Euston House

www.geraldeve.com

Agency & Investment

Lloyd DaviesPartnerTel. +44 (0)20 7333 6242 Mobile +44 (0)7767 311254 [email protected]

Fergus JaggerPartnerTel. +44 (0)20 7653 6831Mobile +44 (0)7787 558756 [email protected]

Steve JohnsPartnerTel. +44 (0)20 7653 6858 Mobile +44 (0)7833 401249 [email protected]

Rhodri Phillips PartnerTel. +44 (0)20 3486 3451 Mobile +44 (0)7768 615296 [email protected]

Patrick RyanPartnerTel. +44 (0)20 7333 6368 Mobile +44 (0)7792 078397 [email protected]

Lease Consultancy

Tony GuthriePartnerTel. +44 (0)20 3486 3456 Mobile +44 (0)7717 225 600 [email protected]

Graham FosterPartnerTel. +44 (0)20 7653 6832Mobile +44 (0)7774 [email protected]

Research

Alex DunnAssociateTel. +44(0)203 486 3495Mobile +44 (0)7917 [email protected]

Disclaimer & copyright

London Markets is a short summary and is not intended to be definitive advice. No responsibility can be accepted for loss or damage caused by reliance on it.

© All rights reserved

The reproduction of the whole or part of this publication is strictly prohibited without permission from Gerald Eve LLP.

LONDON OFFICES

01/19

www.geraldeve.com

Documents

LONDON MARKETS · KEY THEMES AND OUTLOOK 18 10 Million sq ft 6 12 14 16 8 0 2 4 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4