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OFFICES INDUSTRIAL
RETAIL LEISURE
INVESTMENTRESIDENTIAL
DEVELOPMENT LAND
5YEARS OF ANALYSIS
DEMANDSUPPLYHEADLINE RENTPRIME YIELDS
SOUTH WEST OF ENGLAND & SOUTH WALES
Market Monitor
Contents
2 Welcome
3 Acrosstheregion
5 Bath
7 Bristol
9 Cardiff
11 Exeter
13 Gloucester
15 Newport
17 Plymouth
19 Swansea
21 Swindon
23 Taunton
25 Truro
27 Yeovil
29 Aserviceoverview
AlderKingMarketMonitor20141
Welcome to the 2014 edition of Market Monitor.
This report provides a review of the commercial property market in the South West of England and Wales over the past 12 months, with data, trends and market analysis on 12 key regional centres.
After a year of steady GDP growth and improved confidence, particularly in the manufacturing, construction and service sectors, prospects for the region’s occupier market are at their most optimistic since the downturn began in 2008.
As forecast in last year’s Market Monitor, stronger office and industrial take up combined with a greater shortage of new well-specified space led to a return of speculative development in 2013, the first for over four years. Two high profile office schemes are now underway in Bristol city centre, both of which could push rental levels over the £27.50 per sq ft mark. There are also speculative industrial schemes underway in Bristol, Gloucester, Wellington, Bridgwater and Newquay.
The region’s retail sector benefits from continued investment, with new retail schemes either in the pipeline or recently completed in Swindon, Gloucester, Exeter, Plymouth, Newport, Swansea, Taunton and Yeovil.
Together with a resurgent residential land market and strengthening investor confidence in the regions, we expect to see improving occupier demand and an increasing level of development and investment activity in 2014.
Simon Price, Head of Agency at Alder King
100 Temple Street, Bristol.
2www.alderking.com
Industrial
Offices
Across the region
(sqm)sqft
occupational summary
• Takeupin2013decreasedonthepreviousyearinallbutCardiff,Gloucester,Taunton,YeovilandTruro,withalackofgoodqualitysupplybeingaconstrainttoactivityintheothercentres.
• Supplycontinuedtofallacrosstheregion,withtheexceptionofGloucesterwheretherewasanincreaseasaresultofSuperGroup’srelocation.
• SupplyinBristolisnowatitslowestlevelfor10years.
• Demandisincreasinglyfocusedonbetterspecifiedspace,withnewbuildactivitycurrentlyunderwayinBristol,Gloucester,Wellington,BridgwaterandNewquay.
• Withanimprovingnumberofmediumsizedrequirements,occupiersareincreasinglyonlyabletosatisfytheirneedsviathedesignandbuildroute.
• Withthelackofsupplyandrisinglevelsoftakeup,particularlyinthedemandtriangleofBristol,Gloucester,SwindonandTaunton,weanticipatefurtherspeculativeactivity.
• Theoverallreductioninsupplyisalreadyresultinginreducedincentivelevelsinsomelocationsandtheprospectsforrentalgrowthareimproving.
officeheadlinerent£psf
industrialheadlinerent£psf
0
10
8
6
4
2
rent
occupational summary
• 2013sawincreasedofficetakeupinBristol,Exeter,Gloucester,SwindonandYeovil.
• Aspredictedlastyear,2013alsosawthereturnofspeculativeofficedevelopmentincentralBristolwithbothSkanskaandSalmonHarvestercommencingmajornewdevelopments.
• TheintroductionofPermittedDevelopmentRightshasalreadyresultedinasignificantlevelofproposalsforconversionofsecondaryofficebuildingstoresidentialuse.
• ThepositiveimpactofthesePDRproposalsislikelytobetwo-fold:reducingthesupplyofpoorerquality,secondhandspaceandpushingmoreoccupiersintothemarket.
• Theoverallreductioninsupplyisalreadyresultinginreducedincentivelevelsinsomelocationsandtheprospectsforrentalgrowthareimproving.
Simon Price T 0117 317 1084 E [email protected]
Andrew Ridler T 0117 317 1071 E [email protected]
(16
1)15
(18
8)
17.5
Swin
don
0
30
25
20
15
10
5
intown outoftown
Glouc
este
r
(124
)11
.5 (18
8)
17.5
Bath
(226
)21
Bristo
l
(29
6)
27.5
(231
)21
.5
Newpo
rt
(172
)16
(129
)12
Cardi
ff
(237
)22
(129
)12
Swan
sea
(15
6)
14.5
(116
)10
.75
Taun
ton
(18
3)
17(1
78)
16.5
Yeov
il
(14
0)
13(1
40
)14
Trur
o
(118
)11
(9
1)8
.5
Exete
r
(178
)16
.5(1
88
)17
.5
Plymou
th
(12
)15
(16
7)
15.5
Swin
don
(73
)6
.75
Glouc
este
r
(65
)6
Exete
r
(75
)7
Bath
(81)
7.5
Bristo
l
(81)
7.5
Newpo
rt
(43
)4
Cardi
ff
(54
)5
Swan
sea
(45
)4
.2
Taun
ton
(75
)7
Yeov
il
(70
)6
.5
Trur
o
(75
)7
Plymou
th
(64
)5
.95
AlderKingMarketMonitor20143
Retail Market Summary Residential Development Land
zoneAheadlinerent£psf
0
100
50
300
250
200
150
outoftownrent£psf
0
20
10
50
40
30
Swin
don
(30
1)2
8
Bath
(377
)30
Bristo
l
(377
)30
Cardi
ff(3
23)
30
Swan
sea
(377
)35
Taun
ton
(20
5)
19
Yeov
il
(24
8)
23
Newpo
rt
(26
9)
25
Exete
r
(30
1)2
8Glo
uces
ter
(26
9)
25
Plymou
th
(?)
20.5
Trur
o
(215
)20
• FollowingaperiodofimprovingGDPgrowthandanincreaseinconsumerspending,thelatterpartof2013sawacautiouslevelofconfidencereturntotheretailsector.
• Primerentallevelshavegenerallystabilisedacrosstheregionandtherearereasonableprospectsforgrowthinsomecentresduringthecourseof2014.Goodlevelsofdemandremainforprimelocationsinlargertownandcities.Selectivedemandhasreturnedtogoodsecondarylocations.
• Followingseveralyearsofnodevelopment,2013sawthecompletionofanewleisuredevelopmentatStStephen’sPlace,Trowbridge.In2014,themixedretailandleisureRegentCircusdevelopmentinSwindonwillopenandproposalsforthedeliveryoftheFriarsWalkShoppingCentreinNewportin2015areprogressing.
• Thefood-storesectorremainsveryactivebothinandoutofcentre.Thebigfiveoperatorscontinuetodriveexpansionthroughtheirconvenienceformatsandsizerequirementsforlargerformatstoreshavegenerallyreduced.
• Inmostlocations,discounterscontinuetodominatedemandforboththefoodandnon-food,withAldi,Lidl,B&M,Poundlandand99pStoresactivethroughouttheregion.
• TheleisuresectorcontinuestothrivebothinandoutofcentreandA3operatorsareprovingawelcomeadditiontothetenantmixinmanyestablishedshoppingcentresandretailparks.2013hasalsowitnessedconsiderablegrowthindemandfromthebudgetgymoperators.
Development land market summary
• 2013wasthemostactiveresidentialdevelopmentlandmarketinrecentyears.Housebuildingwasatitshighestlevelforadecade,withhousepriceshittingarecordhigh,fuellingdeveloperdemandfornewopportunities.ThispositivechangeinsentimentwasstimulatedbyGovernmentinitiativesmakingavailableupto95%LTVmortgages.
• Asanticipatedinlastyear’sMarketMonitor,demandforwell-locatedqualityresidentialdevelopmentlandisoutstrippingsupplywithconsequentupwardpressureonlandvalues.Consented,fullyservicedsitesingoodlocationsarenowregularlyexceeding£1millionpernetdevelopableacre.
• Thereismuchactivityongreenfieldlandontheperipheryofcities,townsandvillages.Sitesrangingfromfiveto200acresareinshortsupplyandourResidentialDevelopmentteamhasbeenverybusyadvisinglandowneranddeveloperclientsonConditionalContracts,Options,PlanningPromotionAgreementsandJointVentures.
• Housebuildersarere-enteringthehighdensitycitycentremarketandweanticipatemoresmallandmediumsizedapartmentschemesin2014.Wehavealsoreceivedinstitutional-backed,deliverableproposalsoncitycentresitesforhigh-densityPrivateRentalSchemes(PRS)whichareprogressing.
• TherehasbeenaverypositivereactiontotheGovernment’srelaxationofPermittedDevelopmentRights,enablingchangeofusefromofficestoresidential.InBristolalone,circa0.5millionsqftofdevelopmentisinthepipeline.
• Withahugeamountofconstructioncapacitylostsince2007,coupledwithanupturninconstructionactivity,materialandlabourcostsarebeginningtorise.Anydifferentialbetweenconstructioncostsandhousepriceswillimpactdirectlyonlandvalue.Currently,theequationisinequilibrium.
• Demandremainsstrongintheretirement,careandstudentmarkets.
Charles Russell-Smith T 0117 317 1043 E [email protected]
Chris HaworthT 0117 317 1042E [email protected]
Investment
investment market summary
• Increasedconfidenceinasustainedeconomicrecoveryandrenewedactivityintheoccupierleasingmarkethasledtotheregionalcommercialinvestmentmarketgaininginstrengththroughout2013,mostnotablyinthefinalquarter.
• Strongestdemandhasbeenforprimeorindex-linkedincomestreamsbut,withsupplyconstrained,thishasledtoimprovementsforsecondaryassets,asinvestorsbecomemorewillingtoacceptincreasedriskintheirhuntforimprovedreturns.
• InvestmentintheSouthWestandSouthWalesisdominatedbyUKinvestorsbutthereisoverseasinterestinprimetrophyassets.Allassettypeshavebenefitedwiththestrongestdemandforregionaloffices,industrialandalternativesectorsincludinghotels,studentaccommodationandhealth.EarlyinterestinthePrivateResidentialSectorisalsogainingmomentum.
• RelaxationofPermittedDevelopmentRightshasseenstrongdemandforsecondaryofficeswithpotentialforalternativeresidentialorstudentuseandthistrendwillcontinueinto2014.
• Barringunforeseeneconomicshocks,weexpecttoseethesetrendscontinueinto2014,withstrongdemandacrossallassettypesforprimeandsecondaryproperties.Yieldswillcontinuetohardenasdemanddeepensandevidenceofrentalgrowthisconfirmed.
valueofinvestmenttransactions£ms
John Benson T 0117 317 1100 E [email protected]
Bath
Bristo
l
Cardi
ff
Exete
r
Glouc
este
r
Newpo
rt
Plymou
th
Swan
sea
Swin
don
Taun
ton
Trur
o
Yeov
il
0
350
300
250
200
100
50
150
41.6
16.6
349
.64
21.4
5
123.
98
131.
33
52
.85
67.
18
319
9.6
3
8.8
7 42
.75
(1,6
15)
150
Swin
don
(1,0
76)
100
Glouc
este
r
(2,15
3)
200
Bath
(2,15
3)
200
Bristo
l
(Cab
ot C
ircus
)
(59
2)
55
Newpo
rt
(2,4
22)
225
Cardi
ff
(1,0
76)
100
Swan
sea
(59
2)
55
Yeov
il
(2,15
3)
200
Exete
r
(1,6
15)
150
Plymou
th
(1,18
4)
110
Trur
o
Taun
ton
(96
8)
90
4www.alderking.com
Bath
Industrial
Offices
(sqm)sqft
Simon Price T 0117 317 1084 E [email protected]
Andrew Ridler T 0117 317 1071 E [email protected]
demand
• Theupturninoccupierdemandwitnessedin2012continuedinto2013withanotherstrongyearoftakeup.Atthebeginningof2014,anumberoflargeenquiriesareactivelyseekingspaceinthecitycentre.
• Thelargestdealsoftheyearincludedtheacquisitionof14,000sqft(1,300sqm)byBritishMaritimeTechnologyatPlymouthHousetogetherwiththesaleofLawrenceHouse,LowerBristolRoadcomprising16,577sqft(1,540sqm).
• Onceagainmostactivityinthemarketcamefromtheservicesandprofessionalservicessectors.TheTMTsectoralsocontinuestogrow.
supply
• TotalavailabilitywithinBathreducedfurtherduring2013to240,000sqft(22,296sqm).
• WithnonewGradeAspacecurrentlyunderconstructioninthecity,themajorityoftheavailablespaceisofaperiodcellularnatureandnotcapableofmeetingoccupierdemandforflexibleopenplanaccommodation.
• Thesupplypictureissettotightenfurtherduring2014asanumberoftheavailablebuildingsarecurrentlythesubjectofproposalsforalternativeuses,mostcommonlyforhotel,studentandprivateresidentialuses.
headline rent
• Thebestheadlinerentachievedduring2013matchedthelevelsetin2012at£21.00psf(£226psm).
• AnyfurtherrentalgrowthatthetopendofthemarketislikelytobehamperedintheshorttermbythelackofavailableGradeAspaceinthemarket.
• Thegeneralreductioninavailabilityinthemarketisalreadyresultinginareductioninincentivelevelsbeingofferedtosecureoccupiers.
demand
• Goodfreeholdowneroccupierdemandremainsalbeitwithlimitedopportunities.
• Thelackofgoodqualitymodernspaceisholdingbacktakeup.
• Thereisincreasedinterestinthecityfromtradeandroadsideusesbutagainfewsuitableopportunities.
supply
• Nospeculativeindustrial/distributiondevelopmenthastakenplaceinBath.
• Thereisanegligibleamountofgoodqualitystockandtheshortageofmodernspaceissettocontinue.
headline rent
• Asaconsequenceofthelackofsupply,headlinerentallevelshaveincreasedto£7.50psf(£80.73psm).
Alder King Market Monitor 20145
demand000ssqft
50
0
100
125
150
2010 2011 2012 2013
75
25
2009
65(6)
65(6)
92(8.5)
82(8)68
(6)
supply000ssqft
200
0
400
500
600
2010
2011 2012 2013
2011 2012 2013
300
100
255(24)
350(33)
360(33) 305
(28)240(22)
2009
headlinerent£psf
15
0
20
2010 2011 2012 2013
2011 2012 2013
10
2009
5
(215
.27
)20
(215
.27
)20
(19
9.13
)18
.5
(226
)21
(226
)21
demand000ssqft
10
0
20
25
30
15
5
headlinerent£psf
4
0
8
10
6
2
2009 2010
(69
.96
)6
.5
(64
.58
)6
(67.
28)
6.2
5
(75
.34
)7
(81)
7.5supply000ssqft
20
0
40
50
70
30
10
2009 2010
60 65(6)
50(5)
30(3)
30(3)
20(2)
citycentre
20(2)
20(2)
25(2.3)
7.5(0.7)
15(1)
2009 2010 2011 2012 2013
1. Little SouthGate, Bath. Courtesy of SouthGate Limited Partnership.
2. CGI of Saw Close, Bath. Courtesy of Deeley Freed/Aaron Evans.
Investment
Retail & Leisure Charles Russell-Smith T 0117 317 1043 E [email protected]
John Benson T 0117 317 1100 E [email protected]
1 2
zone A headline rent
• Duringthecourseof2013,TKMaxxopenedanewstoreinHighStreetandCotswoldOutdooropenedinAbbeygate.
• BHSannouncedthatitwillcloseinJanuary2014.ItisunderstoodthatPrimarkwillopenanewstoreinthepremisesfrommid-2014.
• AnthropologieisbelievedtohaveagreedtermstooccupytheformerHabitatstoreinNewBondStreet.
• InthepopularsuburbofTwerton,MorrisonshasopeneditsfirstLocalstore.
out of town rent
• OnLowerBristolRoad,LidlhasconfirmedthatitwillshortlysubmitanewplanningapplicationonbehalfoftheformerHermanMillersite.Acornfieldhasannouncedthatitwillcommenceconstructionoftworetailunitsontheremainderofthesiteinearly2014.
• TheSecretaryofStatehasrefusedTesco’sappealformixedusedevelopmentontheformerBathPresssite.
• Sainsbury’shaswithdrawnitsapplicationforanewfoodstoreonthecurrentHomebasesiteatWesternRiverside.
leisure headline rent
• TheformerBeauNashpubonMilsomStreetistoreopenasaMiller&Cartersteakhouse.
• Elsewhereinthecity,PrezzohasopenedintheVaultsandtheStableinGeorgeStreet.Bill’shasopenedinCheapStreet.
• DeeleyFreedhassubmittedaplanningapplicationforthedevelopmentofacasino,148bedhotelandtworestaurantsatSawClose.Thedevelopmentisanticipatedtoopenin2016.
• TheCouncilhasannouncedproposalstotransformGrandParadeandtheUndercroftintoanexclusivediningquarter,includinguptothreenewupmarketrestaurants.
value of investment transactions
• ThetotalvalueofinvestmenttransactionsinBathin2013was£123.98m,asignificantincreasefromthepreviousyearandthehighestlevelinthelastsixyears.Aconsiderableproportionofthistotalwasfromonetransaction-thesaleofaninterestintheSouthGateretailcentre.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 7%
- Office 7%
- Retailhighstreet 5.5%
- Retailoutoftown 6%
investment by sector
• ThelargesttransactioninthecitywasMultiSouthGate(LP)’ssaleofits50%shareintheSouthGateretailcentretoBritishLandfor£101m.Thecentrehas55retailunits,14leisureunits,acarparkand25,000sqftofficespace.
• TherewerelimitedindustrialinvestmenttransactionsinBath.Onenotabledealwasthesaleofthemulti-letWansdykeBusinessCentrefor£1.2m(NIY10.24%).
• AnothersignificantinvestmentdealwasthesaleoftheTravelodgeonRossiterRoadfor£11.2m(NIY9%)toLaSalleInvestmentManagement.
2
6www.alderking.com
50
100
125
150
175
75
25
zoneAheadlinerent£psf
150
0
250
300
2011 2012 20132010
200
100
2009
50
(2,5
29.4
2)
235
(2,6
90
.88
)25
0
(2,4
21.9
0)
225
(2,4
21.9
0)
225
(2,15
3)
200
outoftownrent£psf
20
0
40
60
2010 2011 2012 2013
30
10
2009
50
(430
.54
)4
0
(430
.54
)4
0
(430
.54
)4
0
(376
.72
)35
(323
)30
leisureheadlinerent£psf
0
5
10
15
30
2010 2011 2012 20132009
cinema health&fitness A3/A4
25
20
(139
.93
)13
(10
7.6
4)
10(2
69
.09
)25
(139
.93
)13
(96
.87
)9
(322
.91)
30
(139
.93
)13
(15
0.6
9)
14
(15
1)14
(96
.87
)9
(96
.87
)9
(118
)11
(33
4.4
5)
32
(376
.72
)35
(377
)35
valueofinvestmenttransactions£ms
0
2010 2011 2012 20132009
27.8 25 22.5
37.57
123.98
5
3
7
8
6
4
investmentbysector
2009 2010 2011 2012 2013
primeyields%
industrial
office
retailhighstreet
retailoutoftown
1%
industrial
retailhighstreet
other90%
9%
Bristol 1
Industrial
Offices
(sqm)sqft
Simon Price T 0117 317 1084 E [email protected]
Andrew Ridler T 0117 317 1071 E [email protected]
demand
• 2013sawoccupierdemandreboundstronglyfollowingapooryearin2012.Inparticularthecitycentreperformedwellwithdemandbeatingthefiveyearaverage.
• MajordealsduringtheyearincludedBristolCityCouncil’sacquisitionof130,000sqft(12,077sqm)at100TempleStreetandImperialTobacco’sdevelopmentofanew85,000sqft(7,897sqm)HQatWinterstokeRoad.
• Severallargepre-letenquiriesarenowactiveinthemarket,particularlyfromthefinancialservicesandprofessionalservicessectors.
supply
• Inthecitycentre,lessthan260,000sqft(24,154sqm)ofnewGradeAspaceisnowimmediatelyavailable,withlessthan30,000sqft(2,787sqm)availableinnorthBristol.
• TwonewspeculativeGradeAdevelopmentsarenowunderconstructioninthecitycentrewithSkanskaonsitewith61,000sqft(5,667sqm)at66QueenSquareandSalmonHarvester/NFUMwith98,500sqft(9,151sqm)at2GlassWharf,TempleQuayCentral.
• ThechangesinPermittedDevelopmentRightsarealreadyresultinginproposalstoconvertasignificantamountofpoorersecondhandofficespacetoresidentialuse.
headline rent
• ThebestheadlinerentsagreedonnewGradeAaccommodationinboththecitycentreandnorthBristolmarketsremainedsteadyatthesamelevelsachievedin2012.
• IncentivelevelsforthebestremainingnewGradeAspacearelikelytoreduceduring2014assupplytightens.
• TheprospectsforincreasesinGradeAheadlinerentallevels,especiallyinthecitycentre,areimproving.
demand
• Thereisarealshortageofgoodqualitystock,particularlymodernspace,whichimpactedontakeupinthesecondhalfof2013andisholdingbackactivity.
• Therehasbeenareturnofmid-rangerequirementsinthe25,000–75,000sqft(2,323–6,968sqm)sizerangewithlimitedavailability.
• SignificantdealsincludeCulina’sleaseholdacquisitionof211,000sqft(19,603sqm)oftheCrossflow550BuildingandArla’s115,000sqft(10,684sqm)atDC115,bothonCabotPark,Avonmouth.
supply
• Supplyisata10yearlowandlargelycomprisespoorqualitysecondhandspace.
• WebelievethereisrealpotentialfordesignandbuildactivityasevidencedbyWBC’sacquisitionof20,000sqft(1,858sqm)inWarmley.
• Thecity’sfirstspeculativeindustrial/distributiondevelopmentcomprisingfiveunitstotalling15,000sqft(1,394sqm)isduetostartatCaxtonBusinessPark,Warmley.
• Owneroccupierscontinuetoseekgoodfreeholdopportunitiesbuthavealimitedchoice.
headline rent
• Thereisnonewspaceimmediatelyavailable,andweanticipatethatrentalsofcirca£7.75psf(£83.40psm)couldbeachievedforaccommodationbelow10,000sqft(929sqm).
• Rentsformodernandmid-rangebuildingsremainat£6.50psf(£70psm).Goodqualitysecondhandbuildingsarecommandingrentsofaround£4.75-£5.50(£51.11-£59.18psm).
• Withthereducedlevelsofgoodqualityavailablestock,rentalincentivesforprimespacearebeginningtoreduceandleasedurationsareextending.
Alder King Market Monitor 20147
2010 2011 2012 2013
demand000ssqft
400
0
800
1,000
1,200
1,400
1,600
2010 2011 2012 2013
600
200
2009
594(55)
860(80) 700
(65)658(61)
735(68)
supply000ssqft
1,000
0
2,000
2,500
3,000
3,500
4,000
1,500
500
2009
1,900(177)
2,350(218)
2,650(246)
2,550(237) 2,380
(221)
headlinerent£psf
15
0
25
30
2010 2011 2012 2013
20
5
2009
10
(29
0.6
1)2
7
(29
6)
27.5
(29
6)
27.5
(29
6)
27.5
(29
6)
27.5
(215
.27
)20
(226
.03
)21
(226
.03
)21
(231
)21
.5
(231
)21
.5
citycentre outoftown
demand000ssqft
1,000
0
2,000
2,500
3,000
3,500
2010 2011 2012 2013
1,500
500
2009
2,100(195)
2,400(223)
2,400(223)
2,325(216)
2,200(204)
supply000ssqft
2,000
0
3,000
4,000
5,000
7,000
2010 2011 2012 2013
1,000
2009
6,000
headlinerent£psf
3
0
5
8
2010 2011 2012 2013
4
2
2009
1
6
7
(80
.73
)7.
5
(80
.73
)7.
5
(80
.73
)7.
5
(81)
7.5
(83.
42
)7.
75
5,500(511)
4,500(418)
4,500(418)
3,750(348)
2,750(255)
1. 2 Glass Wharf, Bristol. Courtesy of Salmon Harvester Properties/NFUM.
2. 66 Queen Square, Bristol. Courtesy of Skanska Property Development.
3. The Mall at Cribbs Causeway, Bristol.32
Investment
Retail & Leisure Charles Russell-Smith T 0117 317 1043 E [email protected]
John Benson T 0117 317 1100 E [email protected]
zone A headline rent
• CabotCircuscontinuestoattractnewretailerstothecitycentre.VansopenedinthesummerandPull&Bearopeneda48,000sqftstore,itsfifthintheUK,inDecember.
• TheMallatCribbsCausewayhasre-shapeditsretailofferthroughanumberofrelocations.NewlettingsincludeSuperdry,JackWills,Lakeland,BoseandLinksofLondon.
out of town rent
• RedevelopmentoftheformerBigW&TJHughesstoreatAbbeyWoodShoppingParkisnearingcompletion.NewtenantswillincludeAsda,B&M,Frankie&Benny’s,Nando’sandCosta.
• AtthenearbyShieldRetailCentre,HomeBargainshaspre-let14,300sqft(1,328sqm).
• ThegrantofplanningconsenttoSainsbury’sattheMemorialStadiumisnowsubjecttoJudicialReview.
• Foodstoreactivityremainsstrong.Sainsbury’sisshortlytocommenceworksonanewstoreinPortishead.AnewWaitroseatChippingSodburyisnowtrading.
leisure headline rent
• CabotCircushasaddedtoitsexistingfoodandbeverageofferthroughtheintroductionofTGIFriday’sandWagamama.
• WhiteladiesRoadcontinuestoseegoodlevelsofactivity.TheformerRanchhasbeenlettoBe.InGroupandthepopularCowshedhasextendedintotheformerPictureHouse.
• FurtherafieldDominionCorporateTrust,theownersofYateShoppingCentre,isfinalisingproposalsforanewleisuredevelopmentcomprisingasixscreencinemaandsixrestaurants.
value of investment transactions
• ThetotalvalueofinvestmenttransactionsinBristolin2013was£319m.Thisissignificantlyhigherthanthe2012totalof£155m.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 6.75%
- Office 6.75%
- Retailhighstreet 6.75%
- Retailoutoftown 6%
investment by sector
• OneofthelargestindustrialtransactionsinBristolwasthesaleofadistributionwarehouseonWesternApproachlettoDSGRetailLtduntil2031.M&GPropertyacquiredthepropertyfor£23m(NIY7.13%).
• Therewasahighlevelofofficeinvestmentactivityinbothoutoftownandcitycentrelocations.ThesaleofPortwallPlacewasthelargestofficetransactionoftheyear.Termsofthedealwereconfidentialalthoughweunderstandthepropertyachievedclosetoitsaskingpriceof£53m(NIY6.9%).
• Asignificantretailandmixeduseinvestmenttransactionwasthesaleof15-33UnionStreetfor£8.6m(NIY9%).
8www.alderking.com
200
400
500
600
700
300
100
28%
4%
65%
zoneAheadlinerent£psf
0
50
150
250
350
2010 2011 2012 20132009
Broadmead TheMall CabotCircus
100
200
300
(2,0
45
.07
)19
0
(1,9
91.2
5)
185
(1,8
83.
70)
180
(1,8
83.
70)
175
(1,8
84
)17
4
(3,3
36.6
9)
310
(3,3
36.6
9)
310
(2,4
21.7
9)
225
(2,15
2.7
0)
200
(3,2
29.2
0)
300
(3,2
29.2
0)
300
(3,2
29)
300
outoftownrent£psf
20
0
40
50
2010 2011 2012 2013
30
10
2009
(430
.54
)4
0
(430
.54
)4
0
(376
.72
)35
(323
)30
(48
4.3
6)
45
leisureheadlinerent£psf
0
10
20
30
50
2010 2011 2012 20132009
cinema health&fitness A3/A4
40
(16
1.45
)15
(139
.93
)13
(26
9.0
9)
25
(16
1.45
)15
(139
.93
)13
(322
.91)
30
(16
1.45
)15
(139
.93
)13
(322
.91)
30
(16
1.45
)15
(16
1)15
(129
.16)
12
(129
)12
(322
.91)
30
(323
)30
valueofinvestmenttransactions£ms
0
2010 2011 2012 20132009
262
349
49
2
155
.19
319
primeyields%
5
3
7
8
2012 20132011
6
4
20102009
investmentbysector
industrial
office
retailhighstreet
other industrial
office
retailhighstreet
retailoutoftown
(2,15
2.7
0)
200
(2,15
3)
200
(2,15
2.7
0)
200
3%
Cardiff 1
Industrial
Offices Owen Young T 029 2038 1996 E [email protected]
Owen Young T 029 2038 1996 E [email protected]
demand
• 2013sawa30+%reductioninoccupierdemandcomparedtothefiveyearaverageof443,000sqft(41,156sqm).Currentactivedemandexceeds350,000sqft(32,516sqm)
• Over80%ofdealswerelessthan5,000sqft(464.5sqm).50%wereout-of-town.
• NotabledealsincludedSouthWalesUniversitytaking21,958sqft(2,039sqm)atAtlanticHouseandHughJamesSolicitorstaking19,383sqft(1,800sqm)atHodgeHouse.
supply
• Supplydecreasedslightlyandcomprisesmainlysecondarystock.ItisarguablewhetheranyGradeAstockremainswithinthecitycentre.
• PotentialnewGradeAwilloccuratCapitalQuarter,CallaghanSquareandCentralStationwithmanyoftheopportunitiesinpublicsectorownership.
• Itispredictedthatover300,000sqft(27,871sqm)ofnewdevelopmentwillbecompletedbymid-2015.
headline rent
• Headlinerentwasmaintainedinthecitycentrewithlettingsat3AssemblySquaretoWelshLifeSciencesHub,WelshMinistersandITV.Futuredevelopmentschemeswilltestheadlinerents.
• LettingsatCardiffGatetoFosterCareAssociatesandJDHullmaintainedoutoftownheadlinerents.
• Reduceddemandhasnotaffectedincentivesbutweexpectthemtotightenin2014.
demand
• Afteraslowstarttothefirsthalfof2013,occupierdemandstrengthenedtorecordaslightincreasecomparedtothefiveyearaverage.
• Over90%ofdealswerelessthan10,000sqft(929sqm).
• Notabledealsincludedthelettingof38,000sqft(3,530.3sqm)atTridentParctoGSSand27,000sqft(2,508sqm)atParcTyGlastoRampworldCardiff.
supply
• Supplyremainedrelativelystaticwheresecondhandbuildingscomingtomarkethaveoffsetdemand.
• Stockprovidinglessthan10,000sqft(929sqm)accountsforapproximately76%oftotalavailability.
• 177,000sqft(16,444sqm)hasbecomeavailableatWentloogAvenue,formerlyoccupiedbyG24i.
headline rent
• £5psf(£53.82sqm)hasprevailedsince2011andisnotexpectedtoincreaseoverthenext12months.
• Ashortageofgoodqualitystockandaslightincreaseindemandshouldreflectinheadlinerentsincreasingforqualitystock.
• Otherinfluences,suchasthedelayintheratingrevaluation,willundoubtedlynothelpmorefragilesecondarylocations.
(sqm)sqft
Alder King Market Monitor 20149
demand000ssqft
0
200
300
400
500
600
700
2010 2011 2012 2013
100
2009
379(35)
437(41)
639(59)
380(35)
300(28)
supply000ssqft
400
0
800
1,000
1,200
1,400
1,600
2010 2011 2012 2013
600
200
2009
1,214(113)
1,200(111)
1,200(111) 1,100
(102) 1,000(93)
headlinerent£psf
0
5
10
15
20
25
2010 2011 2012 20132009
citycentre outoftown
(226
.03
)21
(226
.03
)21
(215
.27
)20
(236
.81)
22
(237
)22
(16
1.45
)15
(15
0.6
9)
14
(139
.93
)13
(139
.93
)13
(129
)12
demand000ssqft
0
200
300
400
500
600
700
2010 2011 2012 2013
100
515(48)
516(48)
518(48)
572(53)
631(59)
2009
supply000ssqft
0
500
1,000
1,500
2,000
2010 2011 2012 20132009
2,043(190) 1,894
(176)
1,467(136) 1,368
(127)
1,986(184)
headlinerent£psf
0
2
3
4
5
6
7
2010 2011 2012 2013
1
2009
5.5(59.20)
5.5(59.20) 5
(53.82)5
(53.82)5
(54)
1. Alder King offices at 18 Park Place, Cardiff.
2. 380 Newport Road, Cardiff.
3. The Levels Industrial Park, Cardiff.2 3
Investment
Retail & Leisure Owen Young T 029 2038 1996 E [email protected]
John Benson T 0117 317 1100 E [email protected] Owen Young T 029 2038 1996 E [email protected]
zone A headline rent
• StDavid’sShoppingCentrecontinuestodominatecitycentretradingespeciallywithfashionretailers.DespitetheclosureofGillyHicks,mostofthe1.4msqft(130,064.2sqm)Centreisnowoccupied.
• QueenStreetremainspopularasaretailandleisurelocation,asevidencedbytherecentrelocationofSpecsaversandthenewdevelopmentofPrimarkattheformerBHSpremises.
out of town rent
• CardiffGateandLeckwithRetailParksarefullyoccupiedattopachievablerents.
• NewportRoadcontainsthelargestmassofretailstoresinthecitybuthasbecomemoresecondaryevenwithanewMorrisonssuperstore.Notabletransactionsin2013includedB&MBargainstakingtheformerKwikSaveandHomeBargainsoccupyingthelastunitsatAvenueRetailPark.
leisure headline rent
• Mitchells&ButlerswillbetakingthegroundflooroftheformerHabitatbuildinglocatedinTheHayes,reinforcingtheleisureofferadjoiningStDavid’sCentre.
• BudgetgymscontinuetothriveasevidencedbythelettingoftheformerPorcelanosaunitonNewportRoadtoTheGymGroup.
value of investment transactions
• ThetotalvolumeofinvestmenttransactionsinCardiffincreasedby67%onthe2012figures,risingfrom£78.43mto£131.33m.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 7.25%
- Office 7%
- Retailhighstreet 5.5%
- Retailoutoftown 6%
investment by sector
• ThelargestretailinvestmenttransactioninCardiffwasablockonQueenStreetwhichwasboughtbyNFUMutualfor£45.5m(NIY4.7%).TenantsincludeZara,TopshopandRiverIsland.
• AnothersignificanttransactionwasthesaleofHelmontHousefor£23.15m(NIY8%).Thepropertycomprisesa60,000sqftmulti-letofficeanda200bedPremierInnhotel.
• AleisurecomplexonMaryAnnStreetwithtenantsincludingCineworldandGalaCasinosoldfor£18.96m(NIY6.9%).
10www.alderking.com
1%
15%
60
120
150
180
210
90
30
zoneAheadlinerent£psf
0
200
300
400
500
600
2010 2011 2012 20132009
100
outoftownrent£psf
25
0
35
40
2010 2011 2012 2013
30
20
2009
15
10
5
(376
.72
)35
(322
.91)
30
(322
.91)
30
(322
.91)
30
(323
)30
leisureheadlinerent£psf
0
10
20
30
60
2010 2011 2012 20132009
cinema health&fitness A3/A4
40
50
(16
1.45
)15
(139
.93
)13
(322
.91)
30
(139
.93
)13
(139
.93
)13
(10
7.6
4)
12
(10
7.6
4)
12
(322
.91)
30
(322
.91)
30
(139
.93
)13
(322
.91)
30
(14
0)
13(1
18)
11
(431
)4
0
valueofinvestmenttransactions£ms
0
2010 2011 2012 20132009
174.4
129.6
204.36
78.43
131.33
primeyields%
5
3
7
8
2012 2013
6
4
201120102009
investmentbysector
industrial
office
retailhighstreet
retailoutoftown
47%
36%
(3,
013
.78
)28
0
(2,
475
)23
0
(2,
422
)22
5
(2,
422
)22
5
(2,
69
0.8
8)
250
industrial
office
retailhighstreet
other
(118
.40
)11
Exeter
Industrial
Offices
(sqm)sqft
Noel Stevens T 01392 353093 E [email protected] Collison T 01392 353091 E [email protected]
Noel Stevens T 01392 353093 E [email protected] Collison T 01392 353091 E [email protected]
1
demand
• Therewassteadytakeupbothinandoutoftown.
• Therearethefirstsignsofoccupiersseekingbespokequalityspace.
• Manyoccupiershavere-negotiatedtheirexistingleaseterms.
supply
• Therehavebeennonewbuildstartsforthreeyears.
• Weexpectsupplylevelstohavepeaked.Theincreasesfrom2013aremadeupofsmallerstockratherthanlargebuildingsbecomingvacant.
• SeveralofficebuildingsarebeingconvertedtoresidentialunderPermittedDevelopmentRights.
headline rent
• ThelettingofEagleHousetoBlurGroupoffanaskingpriceof£17.50psfisalandmarkdealdemonstratingpotentialforviablenewbuild.
• Rentalsforsecondhandspacearestartingtoriseandincentivesreduced.
demand
• Inabsolutetermsdemandhalvedcomparedto2012.Howeverthe2012figurewasinflatedduetoa500,000sqft(46,452sqm)requirementfromasupermarket.Inrealtermsdemandisupon2012.
• TheAmbulanceSpecialOperationsCentreagreedtermsona22,000sqft(2,044sqm)buildingatSkyPark.
• AtMatfordGreen,VWagreedterms(subjecttoplanning)toleaseanew35,000sqft(3,252sqm)dealership.
• GeoPostisfinalisingtermsona60,000sqft(5,574sqm)leaseholdfacility.
supply
• Supplyremainsbroadlyinlinewithpreviousyears.
• ThereisagoodsupplyofservicedlandreadyfordevelopmentinprimelocationsaroundExeter.
• InfrastructureworkssuchastheClystHonitonBypasswhichopenedinOctober2013ishelpingtoimprovetransportlinksacrosstheregion.
• Wepredictspeculativedevelopmentwillreturntothemarketin2014.
headline rent
• Headlinerentswillmoveupto£7.00psf(£75.34psm)fornewbuildstockintheearlypartof2014.Thisisdrivenbydemandfornewstockandtheincreasingcostsofdeliveringqualitybuildings.
• Weexpecttoseeareductioninincentivesonexistingbuildingsin2014asthemarketimprovesandthedevelopmentpipelinelagsbehind.
Alder King Market Monitor 201411
demand000ssqft
50
0
100
125
150
175
200
2010 2011 2012 2013
75
25
2009
185(17)
150(14)
140(13)
100(9)
135(12)
supply000ssqft
100
0
200
250
300
400
450
2010 2011 2012 2013
150
50
2009
350
200(19)
215(20)
310(28.8)
350(33)
410(38)
headlinerent£psf
6
0
10
12
14
16
18
2010 2011 2012 2013
8
2
2009
4
citycentre outoftown
(177
.60
)16
.5
(177
.60
)16
.5
(177
.60
)16
.5
(177
.60
)16
.5
(177
.60
)16
.5
(178
)16
.5
(177
.60
)16
.5
(177
.60
)16
.5
(177
.60
)16
.5
(18
8)
17.5
demand000ssqft
200
0
400
500
600
700
800
2010 2011 2012 2013
300
100
2009
190(18)
200(19)
310(29)
600(56)
310(29)
supply000ssqft
200
0
400
500
2010 2011 2012 2013
300
100
2009
250(23)
390(36)
305(28)
300(28)
300(28)
headlinerent£psf
3
0
5
8
2010 2011 2012 2013
4
2
2009
1
6
7
(72
.65
)6
.75
(67.
27)
6.2
5
(64
.58
)6
(64
.58
)6
(75
.34
)7
Investment
Retail & Leisure Lee Southan T 01392 353090 E [email protected]
John Benson T 0117 317 1100 E [email protected] Scott Rossiter T 01392 353089 E [email protected]
3
1. Ambulance Special Operations Centre, SkyPark, Exeter. Courtesy of St Modwen.
2. CGI of Volkswagen Showroom, Matford Green, Exeter. Courtesy of Eagle One.
3. Exeter College Technology Centre, Exeter. Courtesy of Stride Treglown.2
zone A headline rent
• Exeter’sretailsectorremainsstrong,withlimitedvoidsfillingquickly.
• DemandagainbuckedtheregionaltrendinthecitycentrewithnewoccupiersincludingTheWhiteCompany,Saltrock,CoralandTwo-Seasonsaswellasahighnumberofnewindependentoperators.
• Rentsremainedstablewithincentivepackagesreducingassupplydiminishes.
out of town rent
• InOctober2013Ikeaannouncedplanstoopena£60mstoreontheoutskirtsofthecity.Ithassubmittedplanningpermissionandislookingtoopenin2015.
• Thecompletionofthe23,000sqft(2,137sqm)AlphingtonRetailParkprovedpopular,withthreeoutoffourunitscompletedorunderoffertonationalcovenants.
• SecondaryretailofferingsprovedstrongwithvoidsintheStThomasNeighbourhoodCentretransactingabovetheaskingrents.
• Discountretailer99pStorescontinueditsexpansion,completingontheD&BsiteatExeBridgeRetailPark.
leisure headline rent
• ThefoodandbeveragesceneinExetercontinuestotradewell.Newentrantsin2013includedCoteBrasserie,Bill’s,Lloyd’sKitchen,Brody’sBreakfastBistroandUrbanBurger.
• Demandfromgymoperatorscontinuedthroughout2013;findingsuitablestocktoaccommodatethemprovedproblematic.
• Planstoredevelopthecitycentrebusstationintoaleisureandretailschemearemovingeverclosertobeingfinalised.
value of investment transactions
• Thetotalvolumeofinvestmentactivityin2013was£52.85m.Thisisafallfromthelevelrecordedin2012,althoughthiswasimpactedbyasinglelargeretailwarehousetransaction.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 7%
- Office 7.5%
- Retailhighstreet 6%
- Retailoutoftown 6%
investment by sector
• ThelargestofficetransactionwasthesaleofPeninsulaHousefor£17m(NIY6.75%).TheofficeislettoSouthWestWaterfor17years.
• AsignificantretailtransactionwasthesaleoftheHouseofFraserstoreinthecitycentrefor£7.15m(NIY6.5%).ThepropertyislettoHouseofFraseruntil2038andwaspurchasedbyCordeaSavills.
• TheAlphingtonRoadRetailParkwassoldfor£13.8m(NIY7.5%).ThethreepurposebuiltretailwarehouseunitsarelettoB&Q,IcelandandAldiwithanAWULTof9.75years.
12www.alderking.com
50
100
125
150
175
75
25
leisureheadlinerent£psf
0
10
20
30
50
2010 2011 2012 20132009
40
(18
2.9
9)
17
(18
3)
17
(86
.11)
8
(86
)8
(18
2.9
9)
17
(430
.54
)4
0
(431
)4
0
valueofinvestmenttransactions£ms
0
2010 2011 2012 20132009
158.74
63.36
40.4252.85
82.03
primeyields%
5
3
7
8
2012 2013
6
4
201120102009
outoftownrent£psf
10
0
20
30
2010 2011 2012 2013
15
5
2009
25
(26
9.0
9)
25
(26
9.0
9)
25
(26
9.0
9)
25
(24
7.5
6)
23
(30
1)2
8
zoneAheadlinerent£psf
150
0
250
2010 2011 2012 2013
200
100
2009
50
(2,3
67.
97
)22
0
(2,15
2.7
0)
200
(2,15
2.7
0)
200
(2,15
2.7
0)
200
(2,15
3)
200
HighSt.
investmentbysector
industrial
office
retailhighstreet
retailoutoftown
cinema health&fitness A3/A4
(29
6)
27.5
(118
.40
)11
(86
.11)
8
(118
.40
)12
(86
.11)
8
(29
6)
27.5
(118
.40
)11
(86
.11)
8
industrial
office
retailhighstreet
retailoutoftown
other
9%
40%
22%
26%
2%
Gloucester 1
Industrial
Offices
(sqm)sqft
Adrian Rowley T 01452 627133 E [email protected]
Adrian Rowley T 01452 627133 E [email protected]
demand
• Overalltakeupwasuponthepreviousyear’sfigure.
• Significanttransactionsin2013includedthesaleofthe25,000sqft(2,323sqm)Building4CarterCourtatWaterwellsBusinessParkandthelettingofthe7,000sqft(650sqm)Building1250LansdowneCourtonGloucesterBusinessPark.
• Asinrecentyears,themajorityofactivityoccurredoutoftown.Howeveractivityinthecitycentrehasnowincreased.
supply
• Generallytheavailabilityofstockremainslow,particularlyforGradeAofficespace.
• Partlyasaresultoftheabove,itisanticipatedthattherewillberenewedactivityindesignandbuildopportunities.
headline rent
• Headlinerentsremainedconstantat£17.50psf(£188.36psm).
• Theshortageofstockcontinuestoapplyadownwardpressureonincentives.
demand
• Overalltakeupishigherthanthepreviousyear’sfigure.
• OfkeyimportanceisthenewbuilddevelopmentatQuedgeleyWestwheresome75,000sqft(6,968sqm)intwobuildingsisbeingbuiltforListerPetterandGardnerBros.
• Itisanticipatedthattherewillbefurtherdesignandbuildactivitycontinuingthrough2014inresponsetotheshortageofGradeAspace.
supply
• Generallytheavailabilityofstockremainslowinmostsectorsoftheindustrialmarket.
• Thetotalsupplyincreasedonlastyear’sfigureprimarilyduetothenewavailabilityoftwolargewarehousebuildingswhicharebeingvacatedbySuperGroup.
• Glenmorecommittedtotheregion’sfirstspeculativeindustrialdevelopmentforfiveyearswiththeconstructionofPhoenixHouseatWaterwellsBusinessPark.This21,900sqft(2,035sqm)developmentisdueforcompletioninJanuary2014.
headline rent
• Headlinerentsremainedconstantat£6.00psf(£64.59psm).
• Thereiscontinuedpressureonincentivesasmarketconditionsharden.
Alder King Market Monitor 201413
demand000ssqft
50
0
100
125
150
175
200
225
2011 2012 20132010
75
25
130(12)
200(19)
100(9)
95(9)
120(11)
2009
supply000ssqft
100
0
200
250
300
350
400
2010 2011 2012 2013
150
50
170(16) 150
(14)
250(23)
200(19)
120(11)
2009
headlinerent£psf
6
0
10
12
14
16
18
2010 2011 2012 2013
8
2
2009
4
(123
.78
)11
.5
(18
8.3
6)
17.5
(123
.78
)11
.5
(18
8.3
6)
17.5
(123
.78
)11
.5
(123
.78
)11
.5
(124
)11
.5
(18
8.3
6)
17.5
(18
8.3
6)
17.5
(18
8)
17.5
citycentre outoftown
demand000ssqft
200
0
400
500
600
700
2010 2011 2012 2013
300
100
2009
600(56)
400(37)
300(28) 275
(26)
300(28)
headlinerent£psf
2
0
4
5
6
7
2010 2011 2012 2013
3
1
2009
(64
.58
)6
(64
.58
)6
(64
.58
)6
(64
.58
)6
(65
)6
supply000ssqft
400
0
800
1,000
1,200
2010 2011 2012 2013
600
200
2009
400(37)
450(42) 350
(33) 275(26)
625(30)
1. 4 Carter Court, Waterwells Business Park, Gloucester.
2. Morrisons supermarket, Triangle Park, Gloucester. Courtesy of Gloucester Citizen.
3. CGI of Lister Petter’s new unit at Quedgeley West. Courtesy of St Modwen.2 3
Retail & Leisure John Hawkins T 01452 627135 E [email protected]
Investment John Benson T 0117 317 1100 E [email protected] Adrian Rowley T 01452 627133 E [email protected]
zone A headline rent
• TheopeningofthenewM&SonEastgateStreethasincreasedfootfalltothecitycentre.
• TheimminentarrivalofTKMaxxtothecoveredEastgateShoppingMallwillfurtherrejuvenatethecitycentre.
• TheCityCouncilhassignedanexclusivityagreementwithStanhopeonproposalsfortheKingsQuarterredevelopmentandadjacentbusstation.
out of town rent
• SignificantprogresshasbeenmadeatTriangleParkwherethenewMorrisonsstoreandpetrolstationisnowopenandtrading.Pre-lettermshavealsobeenagreedwithCostaCoffee.
• AtWhittleSquare,Barnardosisfittingoutanew2,000sqft(186sqm)storeleavingjusttwovacantunits.
• AtSt.OswaldsPark,WrenKitchenshasleasedhalfoftheformerCometstore,andplanningconsenthasbeengrantedforanewMcDonaldsrestaurantanddrive-through.
leisure headline rent
• AtGloucesterQuays,thenewCineworld10screencinemahasopened.
• ThenewcinemahasprovidedthecatalystforthearrivalofnewrestaurantsincludingChimichanga,Zizzi’sandEd’sEasyDiner.
• JDWetherspoonisalsoopeningintheDockshavingacquiredtheformerCootscaféoffLlanthonyWay.
• Withinthehealthandfitnesssector,demandremainsstrongfrombudgetgymoperatorswhocontinuetosearchfortherightopportunities.
value of investment transactions
• ThevolumeofinvestmentsalesinCheltenhamandGloucesterincreasedslightlyto£41.6m.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 7%
- Office 7.5%
- Retailhighstreet 7%
- Retailoutoftown 6.25%
investment by sector
• Oneofthelargestindustrialtransactionsintheregionin2013wasthesaleofBamfurlongIndustrialEstateinCheltenham.Thepropertysoldfor£3.37m(NIY6.5%).Theyieldreflectedthegroundleasenatureoftheincome.
• TwyerHouse,Gloucesterwasboughtfor£9.65m(NIY7%)byGreenridgeCorporation.The1960sofficebuildingislettoHMLandRegistryuntil2067.
• ThemostsignificantretailwarehousetransactionwasthesaleofTheRangeunit,TewkesburyRoad,Cheltenhamfor£6.03m(NIY8%).ThepropertyislettoCDSsuperstoresInternationalLtduntilJune2020.
14www.alderking.com
zoneAheadlinerent£psf
75
0
125
150
175
2011 2012 20132010
100
25
2009
50
15
25
30
35
20
5
10
EastgateSt. KingsWalk
(1,4
53.
07
)13
5
(1,2
91.6
2)
120
(1,4
53.
07
)13
5
(1,2
91.6
2)
120
(1,0
76.4
0)
100
(1,0
76.4
0)
100
(1,0
76)
100
(1,0
76.4
0)
100
(1,0
76.4
0)
100
(1,0
76)
100
outoftownrent£psf
10
0
20
25
2010 2011 2012 2013
15
5
2009
(26
9.0
9)
25
(26
9.0
9)
25
(26
9.0
9)
25
(26
9)
25
(236
.80
)22
leisureheadlinerent£psf
0
2010 2011 2012 20132009
cinema health&fitness A3/A4
(129
.16)
12
(129
.16)
12
(129
.16)
12
(129
)12
(16
1.45
)15
(34
4.4
5)
32
(34
4.4
5)
32
(34
4)
32
valueofinvestmenttransactions£ms
30
0
60
75
90
105
2010 2011 2012 2013
45
15
2009
91.9
57.2
62.98
40.29 41.6
primeyields%
5
3
7
8
2012 2013
6
4
201120102009
investmentbysector
industrial
office
retailhighstreet
retailoutoftown
(118
.40
)11
(86
.11)
8
(16
1.45
)15
industrial
office
retailhighstreet
retailoutoftown
other
(10
7.6
4)
10
(96
.88
)9
(96
.88
)9
(97
)9
1%
50%
17%12%
20%
Newport
Industrial
Offices
(sqm)sqft
Owen Young T 029 2038 1996 E [email protected]
Owen Young T 029 2038 1996 E [email protected]
demand
• 2013takeupwashalfthatof2012and20%downonthefiveyearaverage.
• ThetrendisturningmoretowardsthecitycentreandawayfromfringelocationssuchasCelticSprings.Admiral’snewbuildingisnearingcompletionandshouldstimulatesomemuchneededactivityinthearea.
• OneofthelargesttransactionswasthesaleofShireHall,aresidentialconversioncomprising17,894sqft(1,662.4sqm).
supply
• Theamountofvacantspacereducedasaresultoflackofdevelopmentandcontinuedtakeupofsecondarystock.
• SimilartoCardiff,thereisarealshortageofGradeAstockinthecitycentre.
• Thenumberofresidentialconversionsisexpectedtoincreasereducingavailabilitystillfurtherin2014.
headline rent
• HeadlinerentwasmaintainedinthecitycentrewiththelettingtothePassportOfficeatNexusHouse.Thetransactionrepresentedthelargestlettingfortheyearat23,868sqft(2,217sqm).
• Outoftownrentshavesufferedwithamplequalityspaceavailableinseverallocations.
demand
• 2013sawareductioninoccupierdemandcomparedtothefiveyearaverageof575,000sqft(53,419sqm).
• Over90%ofdealswerelessthan10,000sqft(929sqm)withagrowingnumberoffreeholdsalesandrequirements.
• NotabledealsincludedthesaleoftheformerSPTSsiteatImperialParkcomprising89,500sqft(8,315sqft)toG24i.ReeveslandIndustrialEstatecontinuedtobeactivewiththelettingof52,000sqft(4,831sqm)toBisley.
supply
• Supplyfellby35%whencomparedtothefiveyearaverageandisdirectlyattributedtotakeupandalackofnewdevelopment.
• 76%ofstockcomprisesunitsoflessthan10,000sqft.Unitsofthissizeareprovingattractivetoowneroccupiers.
• Thereisalimitedsupplyofmodernqualityunitswherethetenantdemandremains.
headline rent
• Rentsremainedstaticin2013.
• Assupplydecreases,weexpectupwardspressureonrentallevelsonbetterqualitystock.
Alder King Market Monitor 201415
demand000ssqft
100
0
200
250
2010 2011 2012 2013
150
50
2009
43(4)
80(7)
172(16)
78(7)
99(9)
supply000ssqft
200
0
400
500
2010 2011 2012 2013
300
100
2009
340(32)
446(41)
460(43)
386(36) 345
(32)
headlinerent£psf
0
5
10
15
20
2010 2011 2012 20132009
citycentre outoftown
(172
.22
)16
(172
.22
)16
(16
1.45
)15
(172
.22
)16
(172
)16
(16
1.45
)15
(16
1.45
)15
(139
.93
)13
(139
.93
)13
(129
)12
demand000ssqft
200
0
400
500
600
700
800
900
2010 2011 2012 2013
300
100
2009
417(39)
407(38)
404(38)
652(61)
385(36)
supply000ssqft
0
500
750
1,000
1,250
1,500
1,750
2010 2011 2012 2013
250
2009
789(73)
1,080(100)
1,192(111)
1,104(103)
720(67)
headlinerent£psf
0
2
3
4
5
6
7
2010 2011 2012 2013
1
2009
4.5(48.44)
4.5(48.44) 4
(43.05)4
(43.05)4
(43)
1. Admiral House, Newport.
2. Wessex Garages, Newport Retail Park.
Investment
Retail & Leisure Owen Young T 029 2038 1996 E [email protected]
John Benson T 0117 317 1100 E [email protected] Owen Young T 029 2038 1996 E [email protected]
1 2
value of investment transactions
• ThetotalvalueofinvestmenttransactionsinNewportandthesurroundingareawas£8.9min2013.Thetotaltransactionfiguresshowa7%increaseonthe2012figures.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 8%
- Office 8.5%
- Retailhighstreet 7.75%
- Retailoutoftown 7%
investment by sector
• Therewereseveralsignificantofficeinvestmenttransactionsovertheyear.ClarenceHouse,amulti-let11storeyofficetower,soldatauctionfor£3.95m(NIY18.4%).
• ColumbusHouseonLangstoneBusinessParksoldfor£2.4m(NIY13.5%).ThismodernofficebuildingwaslettoTheSecretaryofStateforTransportandLocalGovernmentandRegionswith4.5yearsunexpired.
zone A headline rent
• Withnearlyaquarterofthecity’sretailingunitsvacant,thecityhaswelcomedthenewsthatfundingisinplacetocommenceconstructionoftherevampedFriarsWalkschemewhichwillbeanchoredbyDebenhamsandCineworld.Theschemeisduetoopeninautumn2015.
• NextandTopShophavealsodecidedtomovebackintothecityintothesamescheme.
• TheCelticManorResortwillbehostingthe2014NATOSummitandhasalreadyannouncedplansforanewinternationalconventioncentre.
out of town rent
• SpyttyRetailParkcontinuestostrengthenwithlettingsforanewWessexHyundaiCardealershipandinterestintheremainingvacantunitsontheschemewhichincludestheproposedredevelopmentoftheformerMegabowl.
• Notabledealsin2013includedWhat!StorespurchasingtheformerFocusDIYstoreinRogerstoneandHalfordstakingjustover20,000sqft(1,858.1sqm)on28eastRetailPark.
leisure headline rent
• SpyttyRetailParkrecentlyannouncednewlettingstoHarvesterandPizzaExpresswhichfurtherenhancestheout-of-townoffercompetingwiththecitycentre.
• Inthecitycentre,notabletransactionsincludednewsigningsatFriarsWalktoNando’s,Cosmo,Frankie&Benny’s,PrezzoandChiquitos.
2009
16www.alderking.com
10
20
25
30
35
15
5
76%6%
18%
zoneAheadlinerent£psf
75
0
125
150
2010 2011 2012 2013
100
50
2009
25
(1,3
99
.26
)13
0
(1,3
45
.44
)12
5
(1,3
45
.44
)12
5
(86
1.08
)8
0
(59
2)
55
outoftownrent£psf
10
0
25
35
2010 2011 2012 2013
15
5
2009
30
20
(236
.80
)22
(24
7.5
6)
23
(215
.28
)20 (29
0.6
1)2
7
(26
9)
25
leisureheadlinerent£psf
0
5
10
15
25
2010 2011 2012 20132009
cinema health&fitness A3/A4
20
(129
.16)
12
(129
.16)
12
(129
)12
(86
.11)
8
(86
.11)
8
(86
)8
(19
3.75
)18
(19
3.75
)18
(19
4)
18
(129
.16)
12(1
07.
64
)10
(215
.27
)20
(118
.40
)11
(86
.11)
8
(18
8.3
6)
17.5
valueofinvestmenttransactions£ms
0
2010 2011 2012 20132009
12.93
8.30 8.9
25.6
16.65
primeyields%
6
4
8
9
20132012
7
5
20112010
investmentbysector
industrial
office
retailhighstreet
retailoutoftown
office
retailhighstreet
other
1
Industrial
Offices
(sqm)sqft
Noel Stevens T 01392 353093 E [email protected]
Noel Stevens T 01392 353093 E [email protected]
demand
• Therewerefewsubstantialrequirementsin2013.
• Theserviceandpublicsectorspredictlittlenewdemand.
• ConversionofspacetoresidentialunderPermittedDevelopmentRightscouldsparkreneweddemand.
supply
• TherecontinuestobealackofGradeAspace.
• Supplyoverallfaroutstripsdemand.
• Therearenomajorschemesplannedduetotheweakmarketandlackofrentalgrowth.
headline rent
• Secondhandstockdominatesthemarketandrentallevelshaveremainedconsistentwith2012.
• Therearethefirstsignsofareductioninincentives.
demand
• Takeupreturnedtomorenormallevelsin2013followingthe385,000sqft(35,768sqm)saleanddemolitionoftheToshibapremisesin2012.Theunderlyingtrendshowspositivesignsforthemarket.
• PlymouthEnterpriseParkhasseengooddemandsinceitsinceptionwithlettingstoViSpring,WestCountryStorageSolutions,PlymouthKartingandFulcrumPowerGeneration.
• DXMailagreedtermstoleasea22,000sqft(2,044sqm)buildingatLangageScienceParkformaildistribution.
supply
• Thesupplypictureremainssimilartothatof2012but,importantly,isdownonthepeakfigureof2010.
• Supplyisheavilyweightedtowardsthesmallerendofthemarket.Only10%ofavailablebuildingsareinexcessof10,000sqft(929sqm)insize.
• Asin2013,thelargestsinglefacilityonthemarketistheformerStIvesPrintFactoryatLangage.
headline rent
• Headlinerentsremainedstaticat£5.95psf(£64.04psm).
• Incentiveswillcontinuetobestrongfortenantswithgoodcovenantsseeking3+yearleases.
Plymouth
Alder King Market Monitor 201417
demand000ssqft
100
0
200
250
2011 2012 20132010
150
50
2009
105(10) 90
(8)
95(9)
145(13)
95(9)
supply000ssqft
200
0
400
500
2010 2011 2012 2013
300
100
2009
275(26)
325(30)
330(31)
360(33) 310
(29)
headlinerent£psf
15
0
20
2010 2011 2012 2013
5
2009
10
(16
6.8
3)
15.5
(16
6.8
3)
15.5
(16
6.8
3)
15.5
(16
6.8
3)
15.5
(16
7)
15.5
citycentre outoftown
(172
.22
)16
(172
.22
)16
(172
.22
)16
(16
2)
15
(16
2)
15
demand000ssqft
200
0
400
500
2010 2011 2012 2013
300
100
2009
160(15)
200(19)
250(23)
500(46)
290(27)
supply000ssqft
1,000
0
2,000
2,500
3,000
2010 2011 2012 2013
1,500
500
2009
800(74)
1,000(93) 715
(66)720(67)
1,400(130)
headlinerent£psf
2
0
4
7
2010 2011 2012 2013
3
1
2009
5
6
(64
.04
)5
.95
(64
.04
)5
.95
(64
.04
)5
.95
(64
.04
)5
.95
(64
)5
.95
1. Drake Circus, Plymouth.
2. Sutton Harbour, Plymouth.
3. Tamar Bridge, Plymouth.2 3
Investment
Retail & Leisure
John Benson T 0117 317 1100 E [email protected] Rossiter T 01392 353089 E [email protected]
zone A headline rent
• RetailtrendsinPlymouthcontinuedmuchastheydidin2012.TakeupoutsideDrakeCircusisslow,withsupplystilloutstrippingdemandandmanyretailunitsremainvacantforlongperiodsoftime.
• Discountretailingprovidedthemostactivity,withPoundlandopeningitssecondstoreinthecityand99pStoreslookingforitssecond.Charityoccupiersandindependentdiscountclothingretailersalsoprovedacquisitivein2013.
out of town rent
• Constructionofthenew£800,000retailschemeatWoolwellwascompleted,withpre-letsagreedtoCompanionCareveterinarypractice,Barnardo’sandaDomino’sPizzaoutlet.
• HomeSupplyRetailtook5,000sqft(464sqm)ofgroundfloorretailspaceatGdyniaWayandEvansCyclestook7,500sqft(697sqm)atCharlesCross.
• SecondaryretailinginMutleyPlainprovedpopularwithmanymajorbrandsalreadyrepresentedandnewsupermarketentrantstakingpremisesoverthelast12months.
leisure headline rent
• HigherHomePark,AkkeronGroup’s£50mretailandleisureschemesurroundingPlymouthArgyleFootballClub,hasbeengrantedplanningconsent.The492,216sqft(45,729sqm)developmentwillincludeahotel,cinema,icerinkandcomplimentaryretailandfoodofferings.
• GaryRhodesopenedhisrestaurantRhodesatTheDomeonPlymouth’squayside.Ithasprovedapopularvenueprovidingrestaurantandbarfacilities.
value of investment transactions
• TherewasaconsiderablefallinthevolumeofinvestmentactivityinPlymouthin2013.Thetotalvolumeofinvestmenttransactionswas£9.6mcomparedto£26.3min2012.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 7.25%
- Office 8%
- Retailhighstreet 7.25%
- Retailoutoftown 6.5%
investment by sector
• TherewereanumberofsmallofficeinvestmenttransactionsinPlymouthin2013.HydeParkHouse,amulti-letmixeduseretailandofficeblockonMutleyPlain,wassoldfor£660,000(NIY16.5%).
• ThereweretwolargeretailwarehousetransactionsinPlymouth.AtLairaBridgeRetailPark,twounitslettoCarpetrightandGoOutdoorssoldfor£6.6m(NIY7.88%).SugarMillRetailPark,multi-letandanchoredbyTheRange,soldfor£4.7m(NIY9.19%).
Lee Southan T 01392 353090 E [email protected]
18www.alderking.com
100
200
250
300
350
150
50
zoneAheadlinerent£psf
150
0
250
2010 2011 2012 2013
200
100
2009
50
(1,9
37.4
3)
180
(1,8
83.
61)
175
(1,8
83.
61)
175
(1,6
14.6
0)
150
(1,6
15)
150
outoftownrent£psf
10
0
20
30
2011 2012 2013
15
5
20102009
25
(24
2.18
)22
.5
(24
2.18
)22
.5
(24
2.18
)22
.5
(24
2.18
)22
.5
(?)
20.5
leisureheadlinerent£psf
0
5
10
15
20
20102009
cinema health&fitness A3/A4
(16
1.45
)15
(13
4.5
4)
12.5
(19
3.74
)18
(139
.93
)13
(10
7.6
4)
10
(19
3.74
)18
2011
(139
.93
)13
(86
.10)
8
(16
1.46
)15
2012
(139
.93
)13
(86
.10)
8
(16
1.46
)15
2013
(14
0)
13(8
6)
8
(16
1)15
valueofinvestmenttransactions£ms
0
2010 2011 2012 20132009
86.43
278.2
9.6313.62
primeyields%
6
4
8
9
2011 20132012
7
5
20102009
investmentbysector
industrial
office
retailhighstreet
retailoutoftown26.33
29%
10%
49%
9% industrial
office
retailhighstreet
retailoutoftown
other
3%
Swansea 1
Industrial
Offices
(sqm)sqft
Owen Young T 029 2038 1996 E [email protected]
Owen Young T 029 2038 1996 E [email protected]
demand
• Takeupreducedto60%ofthefiveyearaveragewithlessthan35occupiertransactions.Onlyoneoccupationexceeded5,000sqft(464.6sqm).
• 95%comprisedoutoftownorcitycentrefringetransactions,manyinandaroundSwanseaEnterprisePark.
• Notabledealsin2013includedFieldbayLtdacquiring5,300sqft(492.4sqm)atChestnutHouseandtheBritishRedCrossSocietyacquiringKidwellyHouse,bothontheEnterprisePark.
supply
• AvailabilitydecreasedslightlyduetoalackofnewdevelopmentandthedemolitionofOldwayHouseinthecitycentre.
• SimilartoCardiffandNewport,thereisashortageofGradeAstockwithlittlenowavailableontheSA1waterfront.
• Over80,000sqft(7,432sqm)stillremainsatCruciblePark,SwanseaVale,sincefirstbecomingavailablein2008.
headline rent
• Therewasnogrowthinheadlinerentsduring2013.
• WithlittlemodernaccommodationavailableinSA1andthecitycentre,headlinefiguresshouldbemaintainedinto2014.
• Outoftownrentsandincentivesshouldcontinueatthesamelevelthrough2014.
demand
• 2013sawasubstantialdecreaseintake-upagainstabackdropofpositiveagentsentiment.
• Theabsenceofanyparticular‘bigshed’transactionswithinthecountyboundaryhasbeenoffsetwithsomelargertransactionsalongFabianWayandintoNeathandPortTalbot.Theseneighbouringdealshaveaccountedforover600,000sqft(55,741.8sqm).
supply
• Supplyfellin2013,accountedforbythedemolitionofobsoletebuildingsandgeographicalre-categorisationofpropertyalongpartsofFabianWay.
• Stockprovidinglessthan10,000sqft(929sqm)accountsforapproximately73%ofallavailablestock.
headline rent
• Overthepastthreeyearsrentallevelshaveremainedunchanged.
• Thehighproportionofexistingsecondarystockandthelimitedamountofnewstockbeingbroughttothemarkethavehinderedanyrentalgrowth.
Alder King Market Monitor 201419
demand000ssqft
0
100
150
200
250
2010 2011 2012 2013
50
2009
163(15)
108(10)
68(6)
108(10)
54(5)
supply000ssqft
0
100
200
300
400
600
2010 2011 2012 20132009
500 540(50)
566(53)
490(46)
473(44)
521(48)
headlinerent£psf
15
0
20
2010 2011 2012 2013
5
2009
10
citycentre outoftown
(15
6.0
7)
14.5
(15
6.0
7)
14.5
(14
8)
13.7
5
(15
6.0
7)
14.5
(15
6)
14.5
(123
.78
)11
.5
(123
.78
)11
.5
(115
.71)
10
.75
(115
.71)
10
.75
(116
)10
.75
demand000ssqft
0
200
400
600
800
1,200
2010 2011 2012 20132009
1,000
459(43)
472(44)
461(43)
795(74)
180(17)
supply000ssqft
1,000
0
2,000
2,500
3,000
3,500
2010 2011 2012 2013
1,500
500
2009
2,938(273) 2,755
(256)2,755(258)
2,315(215)
1,724(160)
headlinerent£psf
2
0
4
5
6
7
2010 2011 2012 2013
3
1
2009
4.20(45.21)
4.20(45.21)
4.20(45.21)
4.20(45)
4.35(46.82)
1. Ethos House, Swansea.
2. Harbourside, Port Talbot.
3. CGI of Swansea University’s Bay Campus. Courtesy of St Modwen.2 3
Investment
Retail & Leisure Owen Young T 029 2038 1996 E [email protected]
John Benson T 0117 317 1100 E [email protected] Owen Young T 029 2038 1996 E [email protected]
value of investment transactions
• ThetotalvolumeofinvestmenttransactionsinSwanseawas£49.64m.Thisisasignificantincreaseonthe2012figuresandislargelyattributabletoonesingletransaction.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 7.75%
- Office 7.75%
- Retailhighstreet 7.25%
- Retailoutoftown 6.5%
investment by sector
• OneofthemostsignificantinvestmenttransactionsinSwanseawasM&G’scommitmenttoprovide£32mofdevelopmentfinanceforstudentaccommodationatSwanseaUniversity.M&Gacquiredalongleaseholdinterestwhichwillprovidea45yearrentalincomelinkedtoinflation.
• AlargeretailinvestmentsalewasaparadeonPrincessWaywhichismulti-letwithanAWULTofsixyearsandsoldfor£5.3m(NIY12.6%).
• InnearbyBridgend,the300acreBridgendIndustrialEstatesoldfor£20m(NIY9%).
zone A headline rent
• UncertaintysurroundsthefutureregenerationofthetowncentrewiththewithdrawalofHammerson,theCouncil’slatestdevelopmentpartner.Togetherwithotherregionaleconomicfactors,thishasnaturallyhadanegativeimpactondemand.
• Onthepositiveside,Hammersonisplanningtorevampits240,000sqft(22,296sqm)ParcTaweschemewithanewanchortenant.
out of town rent
• Therewasnogrowthinout-of-townrentsin2013.
• NotabledealsincludeOakFurnitureLandtakingtheformerEddershawspropertyonPhoenixWayandOneStopsettingupstoresonbothNeathRoadandPentregethinRoad.
• Secondaryandtertiarypropertiescontinuetotradeatrealisticprices,manythroughauctionhouses.
leisure headline rent
• A3rentshaveonceagainimprovedwiththelettingoftheformerLaTascapremisesonSalubriousPlacetoSmokeHaus.
• SwanseaUniversity’s£450msecondcampusoffFabianWayshouldprovideashotinthearmtothecitycentrewiththefirst£150mphaseexpectedtobecompletedbythesummerof2015.
20www.alderking.com
3%
(1,4
53.
07
)13
5
(1,2
37.8
0)
115
(1,18
4)
110
(1,18
4)
110
(1,0
76)
100
zoneAheadlinerent£psf
150
0
250
300
2010 2011 2012 2013
200
100
2009
50
outoftownrent£psf
20
0
40
70
2010 2011 2012 2013
30
10
2009
60
50
(430
.54
)4
0
(376
.72
)35
(376
.74
)35
(376
.74
)35
(377
)35
leisureheadlinerent£psf
0
5
10
15
25
2010 2011 2012 20132009
cinema health&fitness A3
20
(13
4.5
4)
12.5
(118
.40
)11
(215
.27
)20
(118
.40
)11
(129
.17)
12
(129
.17)
12
(129
)12
(10
7.6
4)
10
(10
7.6
4)
10
(96
.88
)9
(97
)9(16
1.45
)15
(18
2.9
9)
17
(18
2.9
9)
17
(215
)20
valueofinvestmenttransactions£ms
40
0
80
100
120
140
2010 2011 2012 2013
60
20
2009
47.7
17.9
113.9
8.65
49.64
primeyields%
5
3
7
8
2012 2013
6
4
201120102009
investmentbysector
industrial
office
retailhighstreet
retailoutoftown
3%
75%
19% industrial
office
retailhighstreet
other
Swindon
Industrial
Offices
(sqm)sqft
James Gregory T 01793 428106 E [email protected]
James Gregory T 01793 428106 E [email protected]
1
demand
• Therewasanoverallimprovementintakeup,withsignificantlettingsatWashingtonHouse,LydiardFieldstoOpenwork,WakefieldHouse,AspectParktoNationwideandStationSquareinthetowncentretoPrePayTechnologies.
• Themajorityofactivitytookplaceoutoftownwithlessthan25%ofalltransactionsbeinginthetowncentreorOldTown.
• Thenumberoftransactionswassimilarto2012buttheaveragesizeoftransactionwassignificantlylarger.
• Mosttransactionswereofaleaseholdnatureratherthanfreehold.
supply
• TheoverallsupplyremainedrelativelystableaslargesecondhandofficesatUKLifeCentreandDeltaOfficeParkhavecometothemarket.
• Therewasagradualreductioningoodqualityaccommodationwithnobrandnewofficespacecurrentlyavailableoutoftown.
• Therewasnospeculativedevelopment.
• Occupiersareincreasinglyseekingbetterqualitystock.
headline rent
• Theheadlinerentforoutoftownofficesincreased,reflectingthelackofgoodqualitystock.
• Towncentrerentscontinuedtostrugglebutthereweresomesignificantlettingsin2013.
• Rentfreeperiodscontinuetobegrantedinfavourofthetenant.
demand
• TakeuphasreachedthelongtermaveragelevelwithsignificanttransactionsattheOxfordBuilding,EuropatoKBRandGroundwellDistributionCentre,GroundwelltoNetworkRail.
• Thekeydrivertosecuringoccupierscontinuestobeensuringpropertiesareingoodconditionandcapableofimmediateoccupationtosatisfycontract-ledrequirements.
• 2013sawamarkedincreaseinfreeholdrequirementsandtherearestillanumberofunsatisfiedones.
supply
• Thereisnowarealshortageoflargebuildingsavailableforimmediateoccupationwiththeneedtobringforwarddeliverabledevelopmentbecomingurgent.
• Thereareveryfewgoodqualityopportunitiesforthemid-rangeoccupier.
• Thesupplyofallsizeshassteadilybeeneroded.
headline rent
• Rentsforsecondhandaccommodationhaveriseninsomecaseswherecompetitivesituationshavearisen.
• Occupiersunderstandtheneedtopayforearlybreakclauses.
• Rentalincentiveshavestabilisedandinsomecasesmovedinfavouroflandlords.
Alder King Market Monitor 201421
demand000ssqft
100
0
200
250
300
350
400
2011 2012 20132010
150
50
2009
205(19)
85(8)
170(16)
199(18)
131(12)
400
0
800
1,000
1,200
1,400
1,600
2011 2012 20132010
600
200
2009
1,270(118)
1,306(121)
1,320(123)
1,150(107) 1,020
(95)
supply000ssqft headlinerent£psf
0
5
10
15
20
2011 2012 201320102009
towncentre outoftown
(19
9.12
)18
.5
(19
9.12
)18
.5
(172
.22
)16
(172
.22
)16
(18
8)
17.5
(16
9.5
3)
15.7
5
(16
9.5
3)
15.7
5
(16
9.5
3)
15.7
5
(16
9.5
3)
15.7
5
(16
1)15
demand000ssqft
400
0
800
1,000
1,200
1,400
1,600
1,800
2010 2011 2012 2013
600
200
2009
1,823(169)
1,184(127)
986(92)
616(57)
1,043(97)
supply000ssqft
1,000
0
2,000
2,500
3,000
3,500
2010 2011 2012 2013
1,500
500
2009
2,512(233)
2,625(244)
1,900(176)
1,800(167)
2,302(214)
headlinerent£psf
2
0
5
7
2011 2012 20132010
3
1
2009
6
4
(72
.65
)6
.75
(72
.65
)6
.75
(72
.65
)6
.75
(72
.65
)6
.75
(73
)6
.75
1. Washington House, Lydiard Fields, Swindon.
2. Oxford Building, Swindon.
3. Interface Business Park, Royal Wootton Bassett.2
Investment
Retail & Leisure Alison Williams T 01793 428102 E [email protected]
John Benson T 0117 317 1100 E [email protected] James Gregory T 01793 428106 E [email protected]
3
zone A headline rent
• TheRegentCircusschemeiswelladvancedandwillopeninOctober2014.OccupiersalreadyincludeMorrisons,Cineworld,Nando’s,Ask,Prezzo,CoalGrillandJimmy’sRestaurants.ThedevelopmentiseagerlyawaitedandgeneratingfurthernewenquiriesinandaroundRegentStreet.
• TherehasbeenarenewedpromotionoftheBrunelCentre.
out of town rent
• Fastfood/convenienceoperatorscontinuetolookatmainarterialroutes,withanotherMcDonaldsnowproposedonGreatWesternWay.
• AnewMorrisonssupermarketandthreeotherretailerswillopenearlyin2014oppositeEdisonParkatDorcan.
• M&SSimplyFoodwillopena10,000sqft(929sqm)outletatManningtonroundaboutinJanuaryandWaitrosewillcompleteits40,000sqft(3,716sqm)storeatWichelstoweinMay.
leisure headline rent
• McArthurGlen/HendersonGlobalInvestorsarecreatinganadditional50,000sqft(4,645sqm)ofaccommodationin30newshopstoaddtotheexisting90retailandfoodoutlets.
• TheOasisLeisureCentreisbeingrefurbishedbyMoiraiandplanscontinueforthedevelopmentofalargemusicarena,indoorskislopeandhotelcomplex.
value of investment transactions
• TherewasasignificantincreaseinthevalueofinvestmenttransactionsinSwindonoverthelastyear,asubstantialrisefromthetotalvalueoftransactionsin2012.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 7.25%
– Office 8%
– Retailhighstreet 7.25%
– Retailoutoftown 6.5%
investment by sector
• OneofthelargestinvestmenttransactionsinSwindonoverthelastyearisthesaleoftheIcelandDistributionCentrefor£29.3m(NIY7.15%).ThewarehouseislettoIcelandFoodsLtduntilJune2027.
• AsignificantretailsalewasthehighstreetretailpropertytradingasSportsDirectandSpecsaversonRegentStreetfor£5m(NIY11%).
• 1&2WalnutCourt,KembreyParksoldfor£12m(NIY9.26%.)TheofficesarelettoThamesWaterUtilitiesLtduntilAugust2022.
22www.alderking.com
leisureheadlinerent£psf
0
5
10
15
20
2011 2012 201320102009
cinema health&fitness A3/A4
(118
.40
)11
(96
.87
)9
(19
3.74
)18
(118
.40
)11
(96
.87
)9
(19
3.74
)18
(118
.40
)11
(96
.87
)9
(19
3.74
)18
(118
.40
)11
(96
.87
)9
(19
3.74
)18
(118
)11
(97
)9
(19
4)
18
valueofinvestmenttransactions£ms
20
0
40
50
60
70
2010 2011 2012 2013
30
10
2009
zoneAheadlinerent£psf
150
0
250
2010 2011 2012 2013
200
50
2009
100
RegentSt. BrunelCentre
(1,0
76.3
5)
100
(1,0
76.3
5)
100
(1,0
76.3
5)
100(1,8
83.
61)
175
(1,8
29.8
0)
170
(1,8
29.8
0)
170
outoftownrent£psf
15
0
25
35
2010 2011 2012 2013
20
5
2009
10
30
(30
1.38
)28
(30
1.38
)28
(30
1.38
)28
(30
1.38
)28
(30
1)2
8
primeyields%
6
4
8
9
2012 20132011
7
5
20102009
investmentbysector
48.5
62.5
3.77
67.2
38.2
industrial
office
retailhighstreet
retailoutoftown
industrial
office
retailhighstreet
other
(74
3)
80
(74
3)
80
(1,6
14.5
8)
150
(1,6
15)
150
1%
55%
9%
35%
Taunton 1
Industrial
Offices
(sqm)sqft
Andrew Maynard T 01823 444879 E [email protected]
Andrew Maynard T 01823 444879 E [email protected]
demand
• Themarketremainedrelativelysubduedthroughout2013,withmodesttakeupbothinandoutoftown.
• Therehavebeennonewbuildsforanumberofyears,despitealackofavailableGradeAaccommodationinthetown.
• Demandforfreeholdpropertycontinuedtobeweakwithfundingconstraintsandagenerallackofconfidencefromoccupiers.
• Therehasbeenmuchtalkofpotentialrequirementsfrompublicsectorbodiesbutthesehavesofarfailedtomaterialiseintotakeup.
supply
• Supplyhasreducedduringtheyearfollowinganumberoflettingsofbetween5,000to10,000sqft(464–929sqm).
• Thereisareasonablemixoftowncentreandoutoftownbuildingscurrentlyavailable,althoughthemajorityoftheoverallsupplyiswithinthetowncentre(55%).
headline rent
• Nonewbuildshavebeenundertakenforanumberofyears.
• Rentallevelsforpoorqualityaccommodationfellfurtherduringtheyear,whilelevelsforgoodqualityaccommodationhavebeenmorestable.
• Incentivelevelsfollowasimilarpatternwithgoodqualitystockseeinglowerincentivelevelsthanincompetingtownsandcities.
demand
• Followingdelaysformuchof2013theconstructionofHinkleyPointCislikelytostartinlate2014,sparkingoptimisminthemarketplace.However,itisdifficulttogaugetheextentofanyincreaseindemandalongtheM5corridor.
• Thereremainslatentdemandwithinthetownitself,butthishasnotresultedinanysignificantchangestotakeup,dueinparttothequalityandsizeofavailablestock.
• Enquiriesaregenerallyforleaseholdaccommodationwithveryfewfreeholdtransactionsoccurringduring2013.
supply
• Supplydecreasedbyaround12%withverylittlenewspacecomingtothemarket.
• Thelackofgoodqualitypremisescontinuestoconstrainthemarket.
• WhilewehaveseenspeculativedevelopmentintheneighbouringtownsofWellingtonandBridgwater,Tauntonremainsbereft,innosmallpartduetoalackofdeliverableallocatedemploymentland.
headline rent
• Nonewbuildshavebeenundertakenforanumberofyears.
• Rentallevelsaregenerallystableacrossalltypesandsizesofaccommodation.
• Thereissomeprospectofmodestrentalgrowthin2014,althoughthiswillbedependantonfurthernewstockcomingtothemarket.
Alder King Market Monitor 201423
demand000ssqft
50
0
100
125
150
2010 2011 2012 2013
75
25
2009
101(9)
100(9)
110(10)
90(8)
120(11)
supply000ssqft
50
0
100
125
150
175
200
2010 2011 2012 2013
75
25
2009
168(16)
170(16) 165
(15)156(14)
164(15)
headlinerent£psf
6
0
10
12
14
16
18
2010 2011 2012 2013
8
2
2009
4
towncentre outoftown
(15
0.6
9)
14
(18
2.9
8)
17
(18
2.9
8)
17
(18
2.9
8)
17
(18
3)
17
(18
2.9
8)
17
(177
.60
)16
.5
(177
.60
)16
.5
(177
.60
)16
.5
(178
)16
.5demand000ssqft
0
100
200
300
400
500
2010 2011 2012 20132009
180(17)
200(19)
250(23)
306(28)
160(15)
supply000ssqft
100
0
200
250
300
2010 2011 2012 2013
150
50
2009
250(23)
250(23) 220
(20)
279(26)
270(25)
headlinerent£psf
2
0
4
8
2010 2011 2012 2013
3
1
2009
6
5
7
(69
.96
)6
.5
(64
.58
)6
(64
.58
)6
(69
.96
)6
.6
(75
)7
1. Knightstone Building, Blackbrook Business Park, Taunton.
2. Riverside Chambers, Taunton.
3. Hunts Court, Taunton.2 3
Investment
Retail & Leisure Andrew Maynard T 01823 444879 E [email protected]
John Benson T 0117 317 1100 E [email protected] Maynard T 01823 444879 E [email protected]
zone A headline rent
• Rentlevelsforprimeandsecondaryhaveremainedconsistentthroughouttheyear.
• TheamountofvoidspaceinForeStreetandNorthStreethasreducedmarginally,althoughelsewherevoidshaveincreasedin2013.
• RBSboughttheOrchardShoppingCentreandisproposinga105,000sqftextension,subjecttotheschemebeingviable.
out of town rent
• CostaCoffeehasopenedanewdrive-thruunitontheHankridgeRetailPark.
• Severalnew‘convenience’formatsupermarketsopenedin2013,althoughnon-foodretailwaslessactive.
leisure headline rent
• TauntonDeaneBoroughCouncilpurchasedtheclosedBrewhouseTheatre,whichwillre-openinApril2014.
• Therehasbeenlittlenewactivitywithinthepast12months.
value of investment transactions
• Thetotalvolumeofinvestmenttransactionsin2013fellto£21.45mfor2013.Investmentactivityinthetownhasbeenconcentratedintheindustrialandretailsectors,withlimitedofficeandretailwarehousetransactions.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 7.25%
- Office 7.5%
- Retailhighstreet 6.25%
- Retailoutoftown 6.5%
investment by sector
• Oneofthelargesthighstreetretailtransactionsof2013wasthesaleof45/46NorthStreetfor£1.625m(NIY6.27%).ThepropertyislettoBarclaysBankuntil2027withatenantbreakin2022.
• Anothersignificantinvestmenttransactionwasthesaleofa64bedTravelodgehotelfor£2.56m(NIY6.57%).ThepropertyislettoTravelodgeHotelsLtdwithatermcertainof29years.
• InnearbyBridgwater,aportfolioofsevenindustrialestatessoldfor£8.5m(NIY11.1%).
24www.alderking.com
20
40
50
60
70
30
10
leisureheadlinerent£psf
15
0
25
2010 2011 2012 2013
20
10
2009
5 (129
.16)
12
(129
.16)
12
(129
.16)
12
(129
)12
(10
7.6
4)
10
(10
7.6
4)
10
(129
.16)
12
zoneAheadlinerent£psf
0
50
75
100
125
175
EastSt. OldMarketCentre
25
(1,18
3.9
9)
110
(96
8)
90
(96
8)
90
(96
8)
90
(96
8)
90
150
outoftownrent£psf
10
0
20
25
20112012 2012 20132013
15
5
20102011 200920102009
(20
4.5
1)19
(20
4.5
1)19
(20
4.5
1)19
(20
4.5
1)19
(20
5)
19
valueofinvestmenttransactions£ms
0
2010 20112009 2012 2013
31.34
14.03
21.45
36.10
6.03
primeyields%
5
3
7
8
2011 20132012
6
4
20102009
investmentbysector
industrial
office
retailhighstreet
retailoutoftown
health&fitness A3/A4 cinema
(86
.11)
8
(86
.11)
8
(86
)8(1
61.4
5)
15
(16
1.45
)15
(16
1)15
23%
33%
44% industrial
retailhighstreet
other
Truro 1
(sqm)sqft
Industrial
Offices Tom Duncan T 01872 227005 E [email protected]
Tom Duncan T 01872 227005 E [email protected]
demand
• Takeupreducedagainin2013comparedtopreviousyears.
• Themajorityoftakeupoccurredinthefirsthalfoftheyear.
• Demandwasaffectedbythelackofavailabilityofgoodqualitycitycentreaccommodationwithcarparking.
• Severallargerequirementsremainunsatisfiedwhichifsatisfiedshouldresultinincreasedtakeupfiguresin2014.
supply
• Thereisanover-supplyofsecondaryaccommodationabovegroundfloorlevelwithoutaliftorcarparkingoroutsideofthecitycentre.
• PotentialredevelopmentopportunitiesasaresultofPermittedDevelopmentofB1officestoC3residentialdwellingspassedinMay2013foraperiodofthreeyears.
• Citycentreofficesarenowbeingdevelopedforotherusetypes.Forexamplethe71,363sqft(6,630sqm)OldCountyHallistoberedevelopedforuseasahotel.
headline rent
• Rentsremaininlinewith2012levels,withacontinuedpreferenceformoderncitycentreaccommodation.
• Tenantscontinuetoseekshorterleasetermsortenantonlyoptionstobreakandincentivesintheformofrentfreeperiodsorsteppedrentalarrangements.
demand
• Takeupofspaceincreasedsignificantlyin2013incomparisonto2012figures.
• Thesizeofthemarketissuchthatasingletransactionofalargerunitcanhaveasignificantpercentageimpactonthefiguresreported.
• Enquirylevelsincreasedwithapreferenceforquality,modernunitswithgoodaccesstotheA30.
supply
• Supplysignificantlyreducedfromlevelswitnessedinpreviousyears.
• ThereisashortageofavailabilityofnewunitswithgoodA30access.
• Supplywillbebolsteredwiththespeculativedevelopmentof16,344sqft(1,518sqm)ofindustrialspaceatQuintdownsBusinessParknearNewquay.
headline rent
• HeadlinerentsinTrurowereinlinewithlevelswitnessedin2012,althoughtherewerealimitednumberoftransactionsinthecityitself.
• Rentlevelsfor2014areuncertain,duetotheinconsistencyofrentachievedin2013deals.
Alder King Market Monitor 201425
2010
demand000ssqft
20
0
40
50
60
2010 2011 2012 2013
30
10
50(5)
50(5)
40(4)
25(2)
58(5)
2009
supply000ssqft
100
0
200
250
2010 2011 2012 2013
150
50
150(14)
2009
170(16)
200(19)
200(19)
125(12)
headlinerent£psf
4
0
8
16
2010 2011 2012 2013
6
2
2009
(13
4.5
4)
12.5
(113
.02
)10
.5
(118
.40
)11
14
12
10
demand000ssqft
100
0
200
250
300
350
2011 2012 2013
150
50
2009
60(6)
60(6)
80(7)
200(19)
90(8)
supply000ssqft
200
0
400
500
600
2010 2011 2012 2013
300
100
2009
180(17)
200(19)
400(37)
480(45)
380(35)
headlinerent£psf
4
0
8
10
2010 2011 2012 2013
6
2
2009
(86
.11)
8
(75
.34
)7
(75
.34
)7
(75
.34
)7
(75
)7
(91.4
9)
8.5
(91)
8.5
citycentre outoftown
(118
.40
)11
(118
)11
1. Brunel Business Park, St Austell.
2. Old Post Office, Falmouth.
3. Quintdowns Business Park near Newquay.2 3
Investment
Retail & Leisure Tom Duncan T 01872 227005 E [email protected]
John Benson T 0117 317 1100 E [email protected] Tom Duncan T 01872 227005 E [email protected]
zone A headline rent
• VacancyratesincentralTruroincreasedin2013althoughtheyremainwellbelowthenationalaverage.
• TheWhiteCompanybecamethelatestadditiontothecitycentre.
• Availabilityoflargeprimeaccommodationisincreasinglylimited.
out of town rent
• Trurohasseenlimitedoutoftownactivity,withtheexceptionofHomeBargainstakingtheformerJJBunitatThreemilestoneRetailPark.
• Headlinerentsremaininlinewith2012.
• FoodstorerequirementsinTruroremainunsatisfied.
leisure headline rent
• Therewaslittleleisureactivityin2013withtheexceptionofOldCountyHallwhichisduetobedevelopedasaflagship40bedroomhotelandspa.
• ProgressontheproposedStadiumforCornwallremainsstalled.
value of investment transactions
• TherewasasignificantincreaseinthevolumeofinvestmenttransactionsinTruroin2013totalling£42.75m.Asignificantproportionwasfromasingletransaction.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 7.75%
- Office 8%
- Retailhighstreet 6.5%
- Retailoutoftown 6.5%
investment by sector
• ThemostsignificantinvestmentdealinTruroin2013wasthesaleofLemonQuayfor£40m.Tenantsofthemulti-letretailparadeincludeMarks&SpencerandDebenhams.
• ThelargestofficeinvestmenttransactioninTrurowasthesaleofthedetachedofficebuilding,ElizabethHouse,for£1.46m(NIY7.75%).
26www.alderking.com
10
30
40
50
60
20
outoftownrent£psf
10
0
20
25
2010 2011 2012 2013
15
5
2009
(215
.27
)20
(215
.27
)20
(215
.27
)20
(215
.27
)20
(215
)20
10
0
20
25
2010 2011 2012 2013
15
5
2009
(139
.93
)13
(26
9.0
9)
25
(26
9.0
9)
25
(215
)20
(215
)20
leisureheadlinerent£psf
valueofinvestmenttransactions£ms
0
2010 20112009 2012 2013
8.89
14.76
42.75
6.940
primeyields%
6
4
8
9
20132012
7
5
201120102009
zoneAheadlinerent£psf
75
0
125
175
20102010 2011 2012 2013
100
25
2009
50
150
(1,5
60
.71)
145
(1,3
45
.5)
125
(1,3
45
.5)
125
(1,18
4)
110
(1,18
4)
110
PydarSt.
investmentbysector
industrial
office
retailhighstreet
retailoutoftown
A3/A4
97%
office
retailhighstreet
3%
Yeovil
Industrial
Offices
(sqm)sqft
Andrew Maynard T 01823 444879 E [email protected]
Andrew Maynard T 01823 444879 E [email protected]
demand
• Anumberofbuildingswithinthetowncentrehavebeenpurchasedforconversiontoresidentialaccommodation.
• AgustaWestlandisrefurbishingabuildingonitsmainsitetoprovide50,000sqft(4,645sqm)ofofficeaccommodation.
• Anumberofoccupiershavemovedfromthetowncentretothewesternoutskirtsofthetown.
supply
• Supplyhasreducedduetoacombinationofpurchasesforconversiontoresidentialandreasonableactivityinthesub3,000sqftsizerange.
• TherefurbishedaccommodationatMaltraversHouseletwellandquicklyduring2012/13.
• Secondarystockremainschallenging,especiallywithinthetowncentre.
headline rent
• Nonewbuildshavebeenundertakenforanumberofyears.
• Rentallevelsforgoodqualitystockstabilisedduringtheyear.
• Themarketishoweverstillpolarisedwitholderstockbeingsignificantlycheaper.
demand
• ProposedchangesontheAgustaWestlandmainsitehaveresultedinseverallargescalerequirementsinthetown,whichareyettobesatisfied.
• Demandstrengthenedduringtheyear,withanincreaseindemandforfreeholdaccommodation.
• Themajorityofsmallerrequirementsarefromlocalmanufacturingcompanies,reinforcingthestrengthofthetown’sactivemanufacturingandengineeringsectors.
supply
• Supplyfellsharplyduringtheyearduetotheincreaseindemandandtransactionlevelsthroughouttheyear.
• Thereisverylittlegoodqualityfreeholdaccommodationwithinthemarket.Thiswillincreasethelikelihoodofnewbuildovercomingmonths.
• Alackoflargerformatbuildingshasbeenafeatureofthemarketforthepastcoupleofyearsandthepaucityofunitsover50,000sqft(4,645sqm)remainsaconstraintwithinthemarketplace.
headline rent
• Nonewbuildshavebeenundertakenforanumberofyears.
• Rentallevelsforgoodqualitystockremainedstableoverthecourseoftheyear.
• Giventheimbalanceindemandandsupply,thereislikelytobepressureonrentsandpricesforgoodqualitybuildingswithinthetown,especiallyonthewesternoutskirts.
Alder King Market Monitor 201427
2011 2012 2013 2011 2012 2013
outoftown
(14
0)
13
(14
0)
14
headlinerent£psf
0
10
15
20
5
2009 2010
(16
1.45
)15
(16
1.45
)15
(16
1.45
)15
(16
1.45
)15
demand000ssqft
20
0
40
50
60
30
1017(2)
2009 2010
supply000ssqft
50
0
100
125
150
75
25
2009
85(8)
82(8)
105(10) 90
(8)
73(7)
2010
demand000ssqft
100
0
200
250
300
150
50
211(20)
239(22) 220
(20)215(20)
230(21)
2009 2010
supply000ssqft
100
0
200
250
300
150
50
191(18)
280(26)
240(22) 230
(21)
150(14)
2009 2010
headlinerent£psf
0
8
10
12
2
4
6
2009
(80
.73
)7.
5
2010
(75
.34
)7
2011 2012 2013
2011 2012 2013 2011 2012 2013
(69
.97
)6
.5
2011
(69
.97
)6
.5
2012
(70
)6
.5
2013
30(3)
40(4)
60(6)
towncentre outoftown
35(3)
1. Maltravers House, Yeovil.
2. Quedam Shopping Centre, Yeovil.1 2
Investment
Retail & Leisure Andrew Maynard T 01823 444879 E [email protected]
John Benson T 0117 317 1100 E [email protected] Maynard T 01823 444879 E [email protected]
zone A headline rent
• Demandremainedrelativelyweakwithverylittlenewactivityin2013..
• Tenantsareincreasinglylookingtore-gearexistingleasestore-calibratetocurrentZoneAlevels.
• TheQuedamShoppingCentrerecentlysoldtofinancierBensonElliotforareported£15.1m,withthenewownerconfirmingplanstoextendtheshoppingcentreontoadjacentland.
• ZoneArentsareunderincreasingpressure,withpartsofMiddleStreetdecreasingto£30psf(£323psm).
out of town rent
• Nonewbuildwasundertakenduringtheyearwithinthetown.
• Somechangesinoccupiersarelikelyearlyin2014onthetown’sexistingretailparks.
leisure headline rent
• ConstructionofanewPremierInnandBeefeaterRestaurantwasdelayedbutwillstartimminently.
• Therewaslittlenewactivityin2013,followingthegeneraltrendwithinthetown.
value of investment transactions
• TherehasbeenasignificantincreaseinthevolumeofinvestmenttransactionsinYeovilwhichroseto£16.63min2013.Alargeproportionofthistotalwasfromonetransaction.
prime yields
• Ourcurrentviewofprimeyieldsisasfollows:
- Industrial 8%
- Office 8.25%
- Retailhighstreet 7.5%
- Retailoutoftown 7%
investment by sector
• ThemostsignificantinvestmenttransactioninYeovilwasthesaleoftheQuedamShoppingCentre,comprising45retailunitsinthetowncentre,for£15.1m.TenantsincludeBhS,Boots,Marks&SpencerandPrimark.
• AwarehouseonGazelleRoadlettoHowdenJoineryfor15yearswassoldfor£930,000(NIY7%).
28www.alderking.com
zoneAheadlinerent£psf
75
0
125
150
2010 2011 2012 2013
100
50
2009
25
(96
8.7
2)
90
(86
1.08
)8
0
(75
3.4
8)
70
(75
3.4
8)
70
(59
2)
55
outoftownrent£psf
10
0
20
30
2010 2011 2012 2013
15
5
2009
25
(215
.27
)20
(215
.27
)20
(24
7.5
7)
23
(24
7.5
7)
23
(24
8)
23
leisureheadlinerent£psf
0
5
10
15
20
2010 2011 2012 20132009
cinema health&fitness A3/A4
(139
.93
)13
(10
7.6
4)
10 (16
1.45
)15
(129
.16)
12
(129
.16)
12
(129
.16)
12
(129
)12
(86
.11)
8
(86
.11)
8
(86
.11)
8
(86
)8
(19
3.74
)18
(18
2.9
9)
17
(16
1.45
)15
(172
)16
valueofinvestmenttransactions£ms
20
0
40
50
2010 2011 2012 2013
30
10
2009
42.3
79.04
2.13
16.63
investmentbysectorprimeyields%
6
4
8
9
7
5
2009 2010 2011 2012 2013
industrial
office
retailhighstreet
retailoutoftown
94%
6%
industrial
retailhighstreet
A service overview
Agency & DevelopmentOurAgencyandDevelopmentteamshaveareputationforexcellence,deliveringaproactiveservicetoregionalandnationalclientslookingtoacquireanddisposeofcommercialpremisesandresidentiallandoneitheraleaseholdorfreeholdbasis.WinningEGi’sMostActiveAgentawardbasedonthenumberoftransactionsconcludedintheSouthWestfor12consecutiveyearsistestamenttooursuccess.WeadviseonmanyofthemosthighprofiledevelopmentsintheSouthWestofEnglandandSouthWalesacrossallcommercial,office,industrial,retail,leisureandresidentialpropertysectors.Wearealsowidelyrecognisedasamarket-leaderintheprovisionofdevelopmentviabilityadvice.
Asset RecoveryAlderKing’sdedicatedAssetRecoveryteamoffersspecialistadviceandexpertiseonallaspectsofassetrecoveryworkthroughouttheUKandIreland.WeactasFixedChargeReceivers,advisingabroadspectrumofbanks,financialinstitutionsandinsolvencypractitioners.
Building ConsultancyOurBuildingConsultancyteamadvisesclientsthroughouttheUKonhowbesttoprotectandenhancethevalueoftheirpropertyassets.Ourcommercialacumen,technicalexpertiseandcollaborativeapproachallowustodeliverarangeofspecialisedservicesincludingadviceonpropertyacquisitionanddisposal,developmentmonitoring,dilapidations,partywalls,newbuildconstruction,propertyrefurbishment,insuranceandgeneralbuildingmattersonallformsofconstruction.
OurProjectManagementteamoverseesthedevelopment,alterationorrefurbishmentofahostofcommercialpropertiesthroughouttheUK,includingresidentialandstudentaccommodation,aswellasretail,officeandindustrialspace.Specialistservicesincludebudgetcosting,contractadviceandadministration,appointmentofconsultants,monitoringandmanagementofallworksandensuringqualityofwork,complianceandcostcontrol.
Business RatesAlderKing’sspecialistBusinessRatesteamadvisesonandmanagesallaspectsofbusinessratesthroughouttheUK.Throughthecarefulmanagementofover7,500properties,wesaveclientsinexcessof£7millioneachyearontheiroccupiedportfoliosandafurther£1.5millionperyearonemptypropertyrates.Specialistservicesincludeundertakingappealsandnegotiationswithnationalbodies,presentingcasesatValuation&LandsTribunals,calculatingratesliability,includingphasingandadvisingonratingforemptybuildings.
EnergyOurenergyteamprovidesspecialistadviceandco-ordinatesamulti-disciplinaryserviceacrossthefollowingareasofpractice:
• Specialistpropertysearchandacquisitionadvice
• Negotiationofoptionagreementsforthesaleoracquisitionoflandtomeetenergyprojectrequirements
• Advicetolandownerswithlandsuitableforenergy-relatedprojects
• Feasibilitystudiesforenergyprojects
• Propertyvaluationservicesforacquisitionandlendingpurposes
• Projectandfacilitiesmanagement
• Planningconsultancyspecifictotheenergysector
Expert WitnessAlderKinghasmorethan20partnerswhoregularlyprovideexpertwitnessadviceinformalproceedings.Eachmemberofourexpertwitnessteamhasaminimumof10yearsprofessionalexperienceintheirspecialistfieldandallhavecompletedspecialisedtraining.
InvestmentAlderKing’sdedicatedinvestmentteamprovideshonestandobjectiveadvice,basedonyearsofexperienceacrosspropertyandeconomiccycles,onallaspectsofthesale,purchaseandfundingofpropertyinallsectorsandacrossawidegeographicalarea.
Usingourexcellentcontactsandin-depthmarketknowledge,weadvisepublicandprivatesectorpropertyownersincludinginstitutions,propertycompanies,charitiesandprivateinvestors.Specialistservicesincludeinvestmentacquisitions,disposals,assetmanagementanddevelopmentmaster-planning,viabilityandfunding.
Alder King provides a comprehensive, market-leading and award-winning package of services to clients throughout the UK.
AlderKingMarketMonitor201429
Lease AdvisoryOurLeaseAdvisoryteamprovidesafullrangeofservicesincludingnegotiatingrentreviewsandleaserenewalsacrossallsectorsofthecommercialpropertymarket.Weregularlypresentcasestoarbitratorsandindependentexpertsandoftenactasexpertwitnessesinleaserenewalproceedings.SeniormembersoftheteamactasarbitratorsandindependentexpertsinrentrevieworPACTdisputes.
Property & Facilities ManagementAlderKing’sPropertyandFacilitiesManagementteamshaveawealthofexperienceoptimisingrevenuesandmaximisingthecapitalvaluesofcommercialpropertyforpropertyinvestors,ownersandtenantsthroughouttheUK.WemanagesomeofthemostcomplexandhighprofilecommercialdevelopmentsthroughouttheSouthWestandWalesincludingshoppingcentres,businessparksandcomplexmixed-usecitycentredevelopments.
Ourproactivemanagementservicesincludetenantmanagement,rentandservicechargereviewsandaccountingsolutions,a24/7FMhelpdesk,energymanagementandbuildingmaintenance/refurbishmentmanagement.
PlanningAlderKing’sPlanningteamprovidesexpertplanningadvicetoprivateandpublicsectorclients,rangingfromindividualhouseholdersandsmallbusinessesthroughtonationalandinternationalcompanies.Ourexperienceworkingwithandforplanningauthorities,aswellasdevelopersandlandowners,enablesustoguideourclientsthroughthecomplexitiesoftheplanningprocess.Ourcomprehensiveplanningserviceincludes:
• Appraisals,strategyandpolicyadvice
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• ManagementandEIA
• Consultation
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TelecommunicationsWithaspecialistteamfocusingonthisever-changingandconsolidatingmarket,AlderKingsupportsmobilephoneoperatorsandpropertyclientsinterestedinmaximisingthepotentialofthetelecommunicationsindustry.Theteamprovidesarangeofservices,including:
• Negotiationofnewandre-negotiationofexistinglegalagreements
• Estatemanagement,includingleaserenewals,siteshareapplications,rentreviewsandmulti-siteagreements
• Representationforlandowners/landlordsontelecommunicationsinstallationsandproposeddecommissionedsites
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ValuationOurValuationteamprovidesprofessionalandinformedvaluationadvicetoclientsacrosstheregiononacquisitionsanddisposals,compulsorypurchaseandcompensationdisputesandvaluationsforbalancesheet,charity,loansecurityandtaxationpurposes.Weactforallthemajorlendinginstitutions,togetherwithpropertycompaniesandcorporate,publicsectorbodies,charities,trustsandprivateindividualsandhaveextensiveexperienceofvaluingcommercialandresidentialpropertyanddevelopmentschemes.
Formoreinformationonourrangeofservices,pleasevisitwww.alderking.com
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January2014.ThefiguresandforecastsinthisreportareintendedasageneralguideandalthoughAlderKinghasmadeeveryefforttoensureaccuracy,itcannotacceptliabilityforanyerrorsinfactoropinion.Allrightsreserved.Thisreportisstrictlycopyrightedandreproductioninanyformisprohibitedunlesspermissionisfirstobtained.Thestatedfiguresshouldnotbeusedforvaluationpurposes.
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