Metropolis April Round-Up

Metropolis ran 600 ‘movers’ in the month of April 2017. If all moves were added together the total would exceed 16 million sq ft of office transactions, researched by Metropolis’ unique market led intelligence team. London was the largest region with 286 leads during month, but there were also strong showings from the South East, West Midlands and Yorkshire. Financial services and professional were the two largest business sectors planning relocations.

The business leads covered the whole UK and provided details of the size of the office occupier, its likely move dates, a description of the reasons for the move, its business sector and full contact details including an address for written inquiries, at least one telephone number and in most cases an email address. Some of the largest planned moves amongst the 600 leads included leads on Sungard, Amazon, Royal Bank of Canada and HMRC.

The April 2017 leads included 175 ‘identified requirements’. Which means that the company confirmed to researchers that it has current or future plans to search for alternative office space. Of these 175 searches, 121 were new office searches, not previously notified.

The most recent research also included 184 ‘potential movers’ which were mainly longer-term leads on occupiers which are considering a relocation, but have yet to make a final decision on whether to search.

Most of the remaining stories covered companies that have signed for new office space and have set a move date, including some large pre-lets and companies inviting tenders for fit-out contracts. The shortest planned move date is just over a month away, whilst the longest was mid 2020.

If you would like some information on flexible Metropolis subscription packages, then please email Simon at simon@metroinfo.co.uk

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Cityoffices.net, the sister property leads service to Metropolis, saw a further 25 stories posted in April covering new development opportunities planning applications, consents, construction starts and development teams. The database now covers over 200 office schemes in the pipeline for construction starts in 2017-2020.

For more information on Cityoffices, email Andy at andy@metroinfo.co.uk

Corporate Fit-Out Winners 2012-2016

 

 

 

 

 

 

 

 

London Top 10’s

The Corporate Fit Out Winners 2012-2016

Metropolis Property Research has just released its latest report for the period 2012-2016 on the central London office fit-out market.

The report provides Top 10 Rankings for those firms involved in ‘CAT B’ projects for corporate occupiers taking new space for interior design, project management, fit-out ‘build’, and agents advising tenants.

 

The No 1 TOP 10 firms are:

No 1 Interior Architect  – TP Bennett

TP Bennett has been ranked as London’s No 1 interior architect with 4.7m sq ft of interior design projects for corporate occupiers taking new space 2012-2016.  This is 29% market share amongst the named TOP 10 firms.

 

No 1 Fit Out Contractor – ISG

ISG has been ranked as London’s No 1 fit out contractor with 5.0m sq ft of fit-out projects for corporate occupiers taking new space in 2012-2016.  This is 33% market share amongst the named TOP 10 firms.

 

No 1 Interior Project Manager – CBRE

CBRE has been ranked as London’s No 1 project manager on interior fit out projects with 3.5m sq ft of projects for corporate occupiers taking new space 2012-2016.  This is 24% market share amongst the named TOP 10 firms.

 

No 1 Tenants Agent – CBRE

CBRE has been ranked as London’s No 1 tenant agent with 6.2m sq ft of occupier deals done on new office space 2012-2016.  This is 30% market share amongst the named TOP 10 firms.

 

 

Editorial Notes

In the five-years covered by the research (2012-2016) a total of 57.3m sq ft of new office space has been let in central London. The report has looked at deals of 2,322 sq m (25,000 sq ft) and over – which are the focus of the analysis – and amount to 30.3m sq ft of office space fitted out in 433 projects.

The report ‘London Top 10’s – The Corporate Fit Out Winners 2012-2016’ is available from Metropolis Property Research.   For details please contact simon@metroinfo.co.uk

 

About Metropolis Property Research Ltd

Metropolis Property Research is an independent research and information company established in 1998.   The company carries out research into the London and UK office markets and corporate relocation leads.

Metropolis Website and Blog – http://www.metropolisleads.uk

 

Copyright Metropolis Property Research Ltd 2017

Leeds market focus

The latest Colliers International report on the Leeds office market revealed a quiet summer 2016 with only 73,100 sq ft of transactions across 25 deals. Some of the larger deals included Plexus Law taking 14,500 sq ft at Joseph’s Well, Slater & Gordon taking 10,000 sq ft at 2 City West, NHS Property taking 10,000 sq ft in Horsforth and Addleshaw Goddard nearly 8,000 sq ft at 3 Sovereign Square.

Total first half take-up in 2016 reached nearly 200,000 sq ft helped by Sky Bet taking 39,600 sq ft at 6 Wellington Place, RSM pre-let 25,000 sq ft at Central Square and Dentsu Aegis secured 13,800 sq ft at the newly refurbished 6 East Parade.

Local agents predict that the Leeds office market will remain slow due to occupier uncertainty and limited upcoming lease events, although there remain a number of active enquiries within the marketplace.

Metropolis is tracking around 40 companies looking for office space in the Leeds area, including HMRC Hub, Willis Towers Watson and Dart Group/Jet2 and some substantial requirements in the professional services sector. In addition, there are around 40 companies approaching lease expiries in 2017 where decisions are yet to be made, including a number of software groups. Further ahead, over half a million sq ft of lease events are scheduled in the next few years

New schemes launched in Leeds earlier this year include 6 Wellington Place, 6 East Parade and 120 Wellington Street. A further 500,000 sq ft has just been completed including 69,000 sq ft at 6 Queen Street, 75,000 sq ft at 5 Wellington Place and 200,000 sq ft at Central Square. Speculative schemes at Kirkstall Forge and Thorpe Park are set to boost grade A availability in the future.

 

Central London Lettings August 2016

Central London office lettings in August 2016 recorded just over 580,000 ft of deals from 41 mid-large size transactions (5,000 sq ft+) during the month. The August figure represents a fallback from the 850,000 sq ft total in July, but sees a rise in the number of deals over the month.

August was characterised by 10 office deals over 20,000 sq ft, including Moneysupermarket at 1 Dean Street W1; Dimensional Fund Advisors at 20 Triton Street, NW1; New Day at Kings Cross, N1 and Hampshire Trust Bank at 55 Bishopsgate, EC2.

IT services topped the table of lettings by sector, followed by financial services, boosted by the Dimensional Fund Advisors letting. Insurance and business services are also performing well. Office deals under offer in central London remain around 2.8m sq ft and include two large pending deals in Midtown.

By area, the City accounted for 33pc of the office floorspace let in August. The West End saw 250,000 sq ft of take-up. Southbank had a good month with 80,000 sq ft of transactions. Current London office demand is calculated to be around 4.2m sq ft in the City and 3.1m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 239,000 sq ft (41% of the total), as transactions for new space kept momentum.

New research from Metropolis reveals there are some 400 medium/large companies in central London which have yet to make decisions on leases due to expire in 2017.

Active Belfast

A recent report on the Belfast office market by CBRE revealed record high levels of take-up at 232,000 sq ft from 31 midsize-large deals in the 6 months to July 2016. This was an increase of 165% based on the first half of 2015.

CBRE expect take-up in the remainder of 2016 to remain strong as a good number of deals are ‘under offer’, coupled with the large volume of requirements. CBRE estimate 750,000 sq ft of requirements for the Belfast market, mainly from existing occupiers looking to expand.

Metropolis is currently tracking around 20 requirements from medium or large companies looking for office space in Belfast.

Professional services firms and the public sector make up the majority of the existing requirements. Recent announced moves include lettings to Navinet, Liberty IT, PuppetLabs, Tourism NI, Regus, Genesys, BRS Golf, Genpact, Citi, Arup, EY and Shopkeep.com. Announced expansions include SpotXi, Manage, HighWire Press Inc, Sixty-5, Pearson Management Services and Alert Logic. PwC adding a further 21,200 sq ft to their existing base in Waterfront Plaza. Tullett Prebon intend to develop a new technology centre and create up to 300 new jobs in Belfast.

There is some 800,000 sq ft of available office space in Belfast in July 2016, down 66,500 sq ft over six months. The amount of existing Grade A space is 141,300 sq ft. Schemes due for imminent completion include Linen Lofts in Adelaide Street and Lincoln Building on Great Victoria Street. Both schemes are attracting letting interest. Construction work continues on the 96,000 sq ft City Quays 2 at Belfast Harbour for Q1 2017 completion. Around 215,000 sq ft of Grade A offices are to be developed at Bedford Square by McAleer & Rushe. An application to redevelop 35-47 Donegall Place in Belfast to provide additional Grade A office accommodation has also recently been made. Consent has been gained to build two office blocks at a £55m development on East Bridge Street.

Looking ahead, local agents say the effects of the Brexit decision are still unclear, however, the early signs are that long-term requirements are still moving ahead .

July 2016 Central London Lettings

Central London office lettings in July 2016 recorded just over 830,000 ft of deals from 35 mid-large size transactions (5,000 sq ft+) during the month. The July figure represents a major increase on the 640,000 sq ft in June and brings some signs of activity returning after the poor Q2.

July was characterised by 12 office deals over 20,000 sq ft, including Wells Fargo Bank at the under construction 33 Central, EC4; PA Consulting at the under construction Verde scheme, SW1; Guys & St Thomas NHS at Becket House, SE1 and Exterion Media at the recently-completed Lacon House, WC1

Financial services topped the table of lettings by sector, helped by the Wells Fargo deal. This was followed by professional sector, boosted by PA Consulting’s pre-letting. Media and business services are also performing well. Office deals under offer in central London remain around 2.9m sq ft and include two large pending deals in Midtown.

By area, the City accounted for 65pc of the office floorspace let in July. The West End saw 150,000 sq ft of take-up. Southbank had a good month helped by the Guys & St Thomas deal. Current London office demand is calculated to be around 4m sq ft in the City and 3m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month hit an impressive 429,000 sq ft (52% of the total), as transactions for new space recovered slightly in July.

New research from Metropolis reveals there are some 400 medium/large companies in central London which have yet to make decisions on leases due to expire in 2017.

Birmingham Summer 2016 Office Market Update

A recent report by Colliers International concluded that central Birmingham city office take-up reached 217,000 sq ft in 40 deals during Q2 2016, which was above the five-year quarterly average.

Birmingham office transactions in 2016 added up to 501,000 sq ft in 76 deals. Network Rail agreed to take 85,000 sq ft over three floors at Baskerville House in Centenary Square; Energy Systems Catapult is to relocate to 18,000 sq ft office space at Cannon House; DAC Beachcroft has signed to take 40,000 sq ft of office space on part third, fourth and fifth floors, at Tricorn House and Monarch Recruitment is taking another 10,000 sq ft floor at Temple Point, 1 Temple Row.

Metropolis is tracking over 30 medium/large requirements in Birmingham, including from searches from the likes of London Midland, Emcor and Zurich Insurance.

Birmingham city core is expected to bring onstream up to 1 million sq ft of new development between 2017 and 2019. Schemes include Stirling Property Ventures and Rockspring 235,000 sq ft at 103 Colmore Row, formerly Natwest Tower. Also 3 Snowhill will deliver 385,000 sq ft of Grade A office space by early 2019.

In the short term the refurbishment of 55 Colmore Row, will deliver 156,000 sq ft of prime Grade A space; the Cornerblock will deliver 110,000 sq ft of Grade A refurbished space in Q4 2016, while Ardstone Capital’s 1 Newhall Street will provide 45,000 sq ft of Grade A space by late 2016.