Frost Meadowcroft

Market Update Q3

October 10

Apart from a few notable exceptions the office market for the 3rd quarter of the year has been mostly flat similar to the housing market, along with UK lending, consumer spending and industrial activity. It is unlikely the upwardly revised 1.2% UK growth figure for Q2 (recovering about quarter of the ground from the recession) will be replicated in quarter 3.
With the Government implementing large scale cuts, Victoria, which has traditionally attracted a high percentage of public sector occupiers, is likely to be harder hit than Kensington & Chelsea and Hammersmith & Fulham but the fact that the 80,000 sq ft new office building named The Peak in Victoria SW1, (completed in Autumn 2009) remains vacant, is a concern.
Also vacant is the 67,000 sq ft West 45 in Beadon Road, which was refurbished in the Summer of 2008.
Best rents in Hammersmith remain between £25 and £30 per sq ft but stock levels down from late 2009.
Frost Meadowcroft completed the final letting within Diageo PLC’s 80,000 sq ft Landmark House. The last floor of 4,024 sq ft was let to Coupon Star in Q3 for £25 per sq ft. Satmatrix also leased 4,000 sq ft at Threadneedle’s refurbished Colet Court in Hammersmith Road for £30 per sq ft, and we also let 3,900 sq ft at 66 Hammersmith Road to Egypt Air at £26.50 per sq ft.
The majority of these transactions have been led by lease events due to break clauses and expiries and have not been a result of expansion and confidence. We expect more of the same in Q4.
Landmark deal as featured in Property Week

Download File: 47_Market_Update__NEW_Q3_JUSTIN.pdf

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