Frost Meadowcroft

Market Update Q2

July 10

Will the improved demand for offices continue into the 3rd quarter of the year, or have concerns about public spending cuts, European debt, and a volatile stock market slowed demand?
The healthier demand during the course of 2010 lulled somewhat in May and June during the lead up to the election and the ‘you’ve never had it so bad budget.
Hopefully the recent budget, whilst being painful for many, will now provide at least the certainty that was lacking in May and June so that companies can make the decisions required to grow and then relocate. We have noticed a marked pickup in enquiries after the budget, so perhaps this will be the case.
Generally in the 2nd quarter, rents for the best space in Hammersmith have been achieved at around £27.50 to £28.50 per sq ft and those tenants such as Elizabeth Finn and Espresso who acquired Hythe House, 200 Hammersmith Road in the last quarter of 2009 can already look back with contentment that at £25 per sq ft they are already paying below the market level. Hermes Real Estate certainly considered these rents below the market rent value when they outbid other investors to acquire this building for £20.5 million (6.78%) in May.

Download File: 50_Market_Update_NEW__Q2.pdf

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