leeds office market q2 2019...and blue apple training are the retained tenants. • leeds city...
TRANSCRIPT
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£136
.40m
£109
.40m
£62.
70m
£55.
22m
£19.
45m
191,4
64
134,
579
222,
318
214
,994
145,
329
350,
000
350,
000
275,
000
180,
000
130,
000
5.00
%
5.00
%
5.00
%
5.00
%
5.00
%
Q2 2019 Q2 2019
Q2 2019 Q2 2019
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£136
.40m
£109
.40m
£62.
70m
£55.
22m
£19.
45m
191,4
64
134,
579
222,
318
214
,994
145,
329
350,
000
350,
000
275,
000
180,
000
130,
000
5.00
%
5.00
%
5.00
%
5.00
%
5.00
%
Q2 2019 Q2 2019
Q2 2019 Q2 2019
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£136
.40m
£109
.40m
£62.
70m
£55.
22m
£19.
45m
191,4
64
134,
579
222,
318
214
,994
145,
329
350,
000
350,
000
275,
000
180,
000
130,
000
5.00
%
5.00
%
5.00
%
5.00
%
5.00
%
Q2 2019 Q2 2019
Q2 2019 Q2 2019
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£136
.40m
£109
.40m
£62.
70m
£55.
22m
£19.
45m
191,4
64
134,
579
222,
318
214
,994
145,
329
350,
000
350,
000
275,
000
180,
000
130,
000
5.00
%
5.00
%
5.00
%
5.00
%
5.00
%
Q2 2019 Q2 2019
Q2 2019 Q2 2019
TAKE-UP* (sq ft)
Q2 2019 214,994
Q2 2019 vs 10 year quarterly average 56%
AVAILABILITY (sq ft)
Q2 2019 130,000
Q2 2019 vs 10 year quarterly average 59%
OCCUPIER HEADLINES
INVESTMENT HEADLINESPURCHASERS
(last 12 months)
VENDORS (last 12 months)
UK Overseas
INVESTMENT VOLUMES (£)
Q2 2019 £55.22m
Rolling 12 Month Average £247m
PRIME YIELD (NIY)
Q2 2019 5.00%
Forecast 2019 5.00%
• The leasing market remained buoyant in Q2 2019, with take-up reaching 214,994 sq ft, a fraction below (3%) Q1 2019. This meant that take-up in the H1 2019 period totalled 437,312 sq ft, 30% above H1 2018.
• The 135,915 sq ft lease to Sky Betting & Gaming at 4 Wellington Place was the largest deal of Q2 across all the UK regional cities. Consequently, the technology sector accounted for 74% of take-up in Leeds in Q2.
• The second largest deal was IWG (Spaces), advised by Knight Frank, taking 23,498 sq ft at 7 Park Row. This deal demonstrates sustained interest in the city.
• Grade A availability fell to 130,000 sq ft, 59% below the 10-year quarterly average. There are several comprehensive refurbs underway with the major speculative one at 34 Boar Lane (formerly CGU). Channel 4 has now pre-let 25,000 sq ft at Majestic, with 4 Wellington Place pre-let in its entirety.
• Office investment volumes increased to £55.22m in Q2 2019, with five deals completed. This is 19% above the 10-year quarterly average.
• Gatehouse Financial Group’s acquisition of The Mint for £41m was the largest deal to transact in Leeds in Q2 2019. The 120,000 sq ft office building is fully let to airline Jet2. Vendors Patron Capital were advised by Knight Frank on the leasing and sale.
• The second largest deal was the purchase of two office buildings at 56-58 Wellington Street for £5.35m by Westcourt Group. DCLG, Ison Harrison and Blue Apple Training are the retained tenants.
• Leeds city centre continues to attract overseas investors, with this buyer group accounting for 55% of volumes.
3%
40%
55%
5%41%
59%
3%
40%
55%
5%41%
59%
£
LEEDS OFFICE MARKET Q2 2019
KEY TRANSACTIONS
PRIME RENT (£ per sq ft)
DEVELOPMENT PIPELINE (sq ft)
£30.00
Q2 2019 Year end 2019
£32.00
Speculative
90,000
38,000
99,000
20212019 2020
Dates indicate the potential completion date of schemes under construction as at Q2 2019.Development schemes are inclusive of both new and comprehensive refurbishment.
ABERDEEN LEEDSGLASGOW BRISTOL EDINBURGH CARDIFFSHEFFIELD NEWCASTLEBIRMINGHAM MANCHESTER
OverseasUK Private
TENANT: Sky Betting & GamingTERM: 10 years SIZE: 135,915 sq ftRENT: £30.00 per sq ft DATE: Q2 2019
TENANT: IWG (Spaces)TERM: 15 yearsSIZE: 23,498 sq ftRENT: £26.00 per sq ft DATE: Q2 2019
PURCHASER: Gatehouse Bank plcVENDOR: Patron Capital PartnersPURCHASE PRICE: £41mYIELD: 6.50%DATE: Q2 2019
4 WELLINGTON PLACE 7 PARK ROW THE MINT, SWEET STREET
PURCHASER: Westcourt GroupVENDOR: UK institutionPURCHASE PRICE: £5.35mYIELD: 5.50%DATE: Q2 2019
56-58, WELLINGTON STREET
Important Notice
© Knight Frank LLP 2019 – This report is published for general information only and not
to be relied upon in any way. Although high standards have been used in the preparation of
the information, analysis, views and projections presented in this report, no responsibility
or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage
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a general report, this material does not necessarily represent the view of Knight Frank
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