glasgow office market - knight frank...glasgow university took up an additional 9,791 sq ft at tay...
TRANSCRIPT
KEY TRANSACTIONS
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£92.
8m
£64.
7m
£139
.4m
£42.
1m
£171
.1m
235,
001
144,
466
330,
963
252
,491
104,
378
33,3
53
26,9
10
61,0
26
33,3
53
33,5
33
5.50
%
5.50
%
5.25
%
5.25
%
5.25
%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£92.
8m
£64.
7m
£139
.4m
£42.
1m
£171
.1m
235,
001
144,
466
330,
963
252
,491
104,
378
33,3
53
26,9
10
61,0
26
33,3
53
33,5
33
5.50
%
5.50
%
5.25
%
5.25
%
5.25
%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£92.
8m
£64.
7m
£139
.4m
£42.
1m
£171
.1m
235,
001
144,
466
330,
963
252
,491
104,
378
33,3
53
26,9
10
61,0
26
33,3
53
33,5
33
5.50
%
5.50
%
5.25
%
5.25
%
5.25
%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
£92.
8m
£64.
7m
£139
.4m
£42.
1m
£171
.1m
235,
001
144,
466
330,
963
252
,491
104,
378
33,3
53
26,9
10
61,0
26
33,3
53
33,5
33
5.50
%
5.50
%
5.25
%
5.25
%
5.25
%
TAKE-UP* (sq ft)
Q1 2019 104,378
Q1 2019 vs 10 year quarterly average -29%
GRADE A AVAILABILITY (sq ft)
Q1 2019 33,533
Q1 2019 vs 10 year quarterly average -89%
OCCUPIER HEADLINES
INVESTMENT HEADLINES
PRIME RENT (£ per sq ft)
PURCHASERS (last 12 months)
VENDORS (last 12 months)
DEVELOPMENT PIPELINE (sq ft)
OverseasUK Private
INVESTMENT VOLUMES (£)
Q1 2019 £42.10m
Rolling 12 Month Average £338.90m
PRIME YIELD (NIY)
Q1 2019 5.25%
Forecast 2019 5.25%
£31.00
Q1 2019 Year end 2019
£32.50• Occupier take-up reached 104,378 sq ft in Q1
2019. Notably, 39 deals were completed during Q1, the highest total for a quarter on record.
• Notable deals included the 15,744 sq ft lease of 2, West Regent Street to Gamma Telecoms who secured the last remaining two floors. TMT occupiers were most active, accounting for 32%. Glasgow University took up an additional 9,791 sq ft at Tay House.
• Availability of new grade A stock stood at 33,533 sq ft, 2.75% of total supply. Occupiers seeking the best space will have to wait until early 2020 for the next speculative development to complete, with 362,889 sq ft of new space in the pipeline.
• Prime rents breached the £30.00 per sq ft mark on refurbished product (HP at 191 West George Street), with anticipation to increase further in 2019.
• Investor activity slowed in Q1 2019 with £42.1m of stock sold. The total is 55% above the 5-year quarterly average.
• The largest transaction to complete in Q1 was the £22.25m acquisition of 2, Atlantic Quay by Corum Asset Management. The office building is at the centre of Glasgow’s financial district and is fully let to Lloyds Banking Group.
• Domestic investors continue to dominate the market, accounting for 56% of total investment in the last 12 months.
35%
3%
56%9% 13%
84%
3%
35%
3%
56%9% 13%
84%
3%
Speculative
282,889200,542
75,687
20212019 2020
Dates indicate the potential completion date of schemes under construction as at Q1 2019Development schemes are inclusive of both new and comprehensive refurbishment.
£
GLASGOW OFFICE MARKET
ABERDEEN LEEDSGLASGOW BRISTOL EDINBURGH CARDIFFSHEFFIELD NEWCASTLEBIRMINGHAM MANCHESTER
TENANT: Gamma TelecomsTERM: 10 years SIZE: 15,744 sq ft RENT: £25.00 per sq ft DATE: Q1 2019
TENANT: Glasgow UniversityTERM: 5 years SIZE: 9,791 sq ft RENT: £18.50 per sq ft DATE: Q1 2019
PURCHASER: Corum Asset ManagementVENDOR: Moorfield REF III LPPURCHASE PRICE: £22.25MYIELD: 6.25%DATE: Q1 2019
2 WEST REGENT STREET TAY HOUSE, 300 BATH STREET ATLANTIC QUAY, 2
PURCHASER: Private investorVENDOR: Credit Suisse Asset ManPURCHASE PRICE: £14.90MYIELD: 6.62%DATE: Q1 2019
ATLANTIC QUAY, 4
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