South Coast Offices & Industrial Review. Spring Property World

Transcription

1 South Coast Offices & Industrial Review Spring 2017 Property World

2 Welcome to the Spring 2017 edition of Property World from JLL s Southampton team. We enjoy an enviable reputation in advising investors, developers, occupiers and the public sector across the full range of commercial and residential property. We are currently advising on some of the largest and most prestigious commercial property schemes and projects across the South Coast. We are successful because we put our client s ambitions first. Portsmouth Harbour

3 3 Market overview South Coast Office Market The South Coast office market is undergoing a major transformation, with significant public and private sector investment in new infrastructure, amenities and mixed-use commercial development. Allied Properties has undertaken a major residential led mixed-use development in Ocean Village and Harbour Hotel is due to open a 5-star hotel in September Hammerson has completed the development of a new shopping and leisure development at WestQuay Watermark and there is also a new 400m retail and residential scheme proposed at Mayflower Park, Southampton. With significant investment taking place along the South Coast, businesses are focusing on taking advantage of acquiring accommodation. However, the recent rise in occupier demand, coupled with the reduction in supply, partly brought about by a change to planning legislation, means that there is a lack of quality offices in the city centre. With little prospect of developers undertaking speculative office development the demand for refurbished space will continue to increase. Landlords in Bournemouth appear to be making the first move in developing three brand new Grade A offices. The first of which will be available in Spring Lymington is leading the way of Grade A developments with Stirley House (circa 13,500 sq ft) due for completion end of May 2017.Three brand new Grade A offices are already being developed in Bournemouth, with the first being available in Spring We have witnessed a number of properties exceeding rental expectations. One Insurance took Grade A space at Gateway House, achieving a headline rent of per sq ft. Daisy Wholesale is due to complete at Natwest House on a 10-year lease at a rent of per sq ft. Radcliffe took Grade B refurbished space at Meridians House achieving per sq ft on a 10-year lease with a break at year five. PWC achieved a straight 10-year lease at a rent of per sq ft. Smith & Williamson, at Cumberland House, achieved a rent of per sq ft, which was quoting per sq ft in We expect further increases in headline rents as further refurbished stock comes to the market over the next 12 months. South Coast Industrial Market The UK industrial & logistics market once again performed well in Take up in the Metropole region for 2016 was at 3 million sq ft, which is lower than 2015 by 500,000 sq ft; although this was predominantly down to a lack of supply as demand remained ahead of 2015 figures. The industrial & logistics sector once again outperformed the office and retail sectors across the Metropole region. This can be directly attributed to the lack of speculative development in the previous six years. Regionally, we are seeing both the manufacturing and logistics businesses investing in new premises due to expansion, supported by the long-awaited availability of bank funding and improving sales growth. We predict in 2017 the industrial market will continue to grow, although there are macroeconomic factors that may have an affect such as Brexit. As demand for industrial & logistics space continues to increase, there are various developments in the pipeline within the Metropole region due to complete later in the year which shall help meet that demand. Examples include Mount Park in Southampton, a speculative scheme providing four units totalling 366,457 sq ft, Alpha Park with three units totalling 84,308 sq ft and the South Central scheme of three units totalling 205,930 sq ft. As a result, we believe more national and multi-national organisations will be drawn to the area, which will further improve the region s economic strength and the industrial market. However, there remains a critical shortage of smaller units and those in the 10,000-50,000 sq ft range. Prime rents continue to slowly increase and are now at 9.50 per sq ft with some trade counter units reaching per sq ft. We are also finding incentives and rental incentives are reducing which is due to the critical shortage of good quality stock. Prime rents - Offices (per sq ft) Prime rents - Industrial (per sq ft) Southampton city centre Southampton Lakeside, Portsmouth Chandlers Ford Winchester Solent Business Park Bournemouth Chichester Portsmouth Bournemouth

4 4 Let us achieve your property goals For owners, earning successful returns on leased commercial property means more than filling space. It begins with a firm grasp of what kind of space the most desirable tenants want and what they will pay for it. And it s followed by a marketing and agency leasing strategy that we ll execute to mix the best tenants at the best lease terms - and retain them for lasting value. Our South Coast Leasing team has extensive experience across all types of property, from city centre offices to out of town business parks, manufacturing facilities to distribution warehouses, and from high street shops to shopping centres. But it s our process that really makes us stand out. Our teams work across the country sharing expertise and knowledge to ensure that our advice is always thought through, is underpinned by exceptional market intelligence and in-depth understanding of what occupiers want and - most importantly - is focused on your commercial ambitions.

5 5 Finding the right space for your business needs Whether you are looking for new accommodation, expanding, contracting or have an upcoming lease event - we work with you to find and deliver creative property solutions that are aligned to your objectives. We do more than just find you a new office or industrial premises, we deliver strategies that enable you to achieve the best financial outcome and maximise the productivity of your space. Stage 1: Preparation Assignment > Planning > Requirements Stage 2: Market search & analysis Market Survey > Long List Stage 3: Shortlisting Detailed analysis > Short list Stage 4: Commercial negotiations Negotiation > Decision Stage 5: Lease agreement Completion

6 6 Instructions and recent successes As market leading advisers across the South Coast, we follow one guiding principle; to add value for your business wherever we can. We do this by achieving real, measurable results. For landlords this could be increasing occupancy or connecting you to the most competitive bidder. For occupiers, we ll work with you to ensure your property strategy supports your business objectives. You may not be aware of the breadth and depth of projects our Southampton teams are involved with. Across the next few pages are a few examples of current instructions and how we have achieved maximum value for our clients. Offices 3000C Parkway Solent Business Park, Whiteley PO15 7AG From: 7,000-53,126 sq ft Rent: per sq ft Prestigious HQ office suites prominently positioned on Solent Business Park Good access to motorway junction Air conditioning 1:293 sq ft parking ratio Four passenger lifts The White Building Cumberland Place, Southampton SO15 2UN From: ,409 sq ft Rent: from per sq ft Refurbished city centre offices Shower facilities Bike and locker stores Breakout and meeting room facilities Manned reception Holland House 20 Oxford Road, Bournemouth BH8 8DZ From: 7,983-19,378 sq ft Rent: per sq ft 4500 Parkway Solent Business Park, Whiteley PO15 7AYN From: 4,890 sq ft Rent: per sq ft Established city centre office building Refurbished open plan configuration Secure parking 1:1,000 sq ft Prestigious Ground Floor Office Suite Good access to motorway junction Good natural light 1:150 sq ft parking ratio Leander House 4600 Parkway, Solent Business Park, Fareham, Hampshire PO15 7AZ From: 10,741 22,099 sq ft Rent: per sq ft Stirley House Ampress Park, Lymington, Hampshire SO41 8LW From: 2,500 13,150 sq ft Rent: per sq ft To be refurbished Open plan configuration Landscaped surrounds 1:185 sq ft parking ratio Prominent Development Open-plan configuration BREEAM Status Very Good 50 car parking spaces

7 7 Client feedback Very refreshing to see JLL s whole process, they fully understood our requirements. Konica Minolta We did not have any experience in such transactions; it was great to know we could rely on JLL, with great communication at each stage. HJS Essentia 75% Let in 12 months The White Building Cumberland Place, Southampton SO15 2UN From: ,409 sq ft Investment for Sale 1490,1570, 1580 & 1590 Parkway Solent Business Park, Whiteley SO15 7AG 21,292 sq ft Price upon application Novum Law Keoughs James Cowper Chadwick Business Centres Rare investment opportunity Prime location on established business park Fully Let Building 4 Royal London Hedge End SO30 2LG From: 3,855-7,712 per sq ft Fully Let Gateway House Tollgate, Chandlers Ford SO53 3TG From: 7,150-31,838 per sq ft Close to Junction 7 of M27 New extended reception Fully refurbished Parking ratio 1:296 sq ft Comfort cooling KPMG Konica Minolta One Insurance Moore Blatch Acquired on behalf of Halesway Part Fifth Floor Offices Midpoint, Alencon Link, Basingstoke RG21 7PP 7,466 sq ft Acquired on behalf of Relx Lakeside North Harbour, Portsmouth 7,445 sq ft

8 8 Industrial & Logistics South Central Test Lane, Southampton, Hampshire SO16 9JX From: 39, ,935 sq ft 1.5miles to M27 (J3) Grade A detached units with secure yard On-site dedicated car, HGV and van parking 11m clear internal height Level & dock level loading doors Full access raised floor offices 2.5 miles to port BREEAM rating Unit H2 Hazleton Interchange Waterlooville, Horndean, Hampshire PO8 9JU 25,812 sq ft 0.5 miles to M27 Clear height 7.58m Ideal Distribution Centre Large loading yard Capable of having a secure yard Fully fitted first floor offices 3 phase electricity 37 car parking spaces Unit 6 Quadrangle Premier Way, Romsey, Hampshire SO51 9AQ 11,376 sq ft Unit 3B Carvers Trading Estate Ringwood, Hampshire BH24 1JS 4,206 sq ft 46,266 pax 3.3 miles to M27 End of terrace industrial unit Rear loading 6.6m eaves height Ground and first floor offices Allocated parking 3 phase power Excellent access to the A31 Newly refurbished exterior and roof 4,206 sq ft trade counter unit Popular trade estate with Screwfix, Brewers, Howdens, HSS & ATS Unit 14 Chancerygate Business Centre Millbrook, Southampton, Hampshire SO15 0AE3 3,765 sq ft POA Unit F Moorside Road Winchester, Hampshire SO23 7SB 8,426 sq ft 56,500 pax End of terrace Warehouse / Industrial unit with fully fitted first floor offices Type: Industrial / Logistics Size: 3,765 sq ft Rent: 32,945 per annum Modern unit with 6.4m clear height Close proximity to junction 9 of the M3 and the A34 Detached unit Large 9,976 sq ft secure concrete yard 8,426 sq ft unit with additional secure concrete yard Fitted offices Central Trading Estate Southampton, Hampshire SO14 5JP 4,510 sq ft 36,080 pax / For Sale Unit 16, Admiral Park Williams Road, Portsmouth 3,764 sq ft 45,000 pax Prominent corner location Suitable for trade counter use 5.5 m minimum eaves To be refurbished Established trade location End of terrace / road prominent Recently refurbished Other trade occupiers include Screwfix, PTS, Cromwell Tools and Capital Hair & Beauty

9 9 / For Sale Evolution 50 Walworth Business Park, Andover, Hampshire SP10 5LH 51,626 sq ft 1 mile to A303 New high quality detached distribution warehouse 10m eaves 2 x dock level and 4 x ground level full height loading doors Fully fitted first floor office Self-contained yard and loading area 106 car parking spaces / For Sale Daedalus Park Daedalus Enterprise Zone, Lee-On-Solent, Hampshire PO13 9JY From: 1,680-8,730 sq ft From 330,040 plus VAT Within enterprise zone offering rates relief Early interest can influence design Optional mezzanine levels can be included Superfast broadband Reserve a unit for 1,000 + VAT (Refundable) Option for Solar PV on roof to reduce energy costs / For Sale J9 South Cartwright Drive Segensworth 50,000 sq ft POA / For Sale Logistics City Andover Walworth Business Park, Andover 62,000 sq ft 190,000 sq ft, POA New build 50,000 sq ft industrial / warehouse unit Planning submitted Available 2018 B1, B2 & B8 uses Available on a new lease or to purchase Planning permission obtained for large distribution / warehouse units Design and Built to suit occupiers requirements B1, B2 and B8 uses 27 Acre site Available to lease or for purchase 85% Now Let / Under Offer Bordon Enterprise Centre Budds Lane, Eastleigh, Hampshire GU35 0JE From: 11, ,954 sq ft 3 miles to A3 Flexible lease terms All inclusive rents available Storage yard and buildings Secure site Limited repairing liabilities due to future development Up to 5 acres of open storage available Client feedback JLL handled the transaction in an expeditious and professional manner. We could not have asked for better representation International Health Care Corporation The service JLL provided has been excellent. It made the whole process relatively stress free and made decision-making straightforward as we had complete confidence in the advice and guidance they provided. Cooper Homewood

10 10 Current Acquisitions Our succes ses We are currently instructed to source offices and industrial space for clients across the South Coast Metropole region. Advised Lockheed Martin, on its property strategy at Havant. Our advice included reviewing all options to restructure existing lease or relocate to 80,000 sq ft. Advised Halesway on its office relocation from Andover to Basingstoke. Provided comprehensive data to support their business strategy and agreed competitive terms at Midpoint. Advised Travis Perkins on the acquisition for Benchmarx Kitchens in Broadstone Way, Poole. Provided strategic advice and assisted in achieving favourable terms. Industrial Builders Merchant, Poole acres Open Storage Land (LH), Southampton & Surrounds acres Freehold Warehouse, close to Southampton Docks 15-20,000 sq ft Yard Space, Wickham + 10 miles acre Warehouse Requirement (LH), Basingstoke to Winchester 15-20,000 sq ft Our clients trust us as their impartial adviser to deliver bespoke solutions for their business needs, including: Identification of all opportunities, on or off-market Dedicated and accessible point of contact Expertise across all locations and size ranges A business focused approach to real estate solutions Unrivalled research to get ahead of the market. Office M27 Corridor with strong connectivity 6,000 sq ft Fareham 2-3,000 sq ft Southampton city centre 2-4,000 sq ft Portsmouth City Centre and Surrounds 5,000 sq ft M27 20,000 sq ft Our approach to acquisition is conducted in a strategic and transparent process Define overall objectives and vision Identify property needs and appraise accordingly Determine exit strategy and mitigate costs Assess market factors and opportunities Report on and tour all suitable properties Report clear financial modelling and forecasts Select the right property, negotiate the optimum terms Advise and manage fit-out and relocation, if required Develop on-going strategy as your business grows.

11 11 Contacts Emma Eaglestone Lead Director & Head of Residential Valuation +44 (0) (0) Buildings & Construction Agency Planning & Development Industrial & Logistics David McGougan Director +44 (0) (0) Simon Nicholls Director +44 (0) (0) David Ramsay Director +44 (0) (0) Sean Fraser Graduate Surveyor +44 (0) (0) David Bassett Director +44 (0) (0) Aiden Murray Graduate Planner +44 (0) (0) Offices Nella Pang Associate Director +44 (0) (0) Claire Ramsay Associate Director +44 (0) (0) Eleanor Hussey Senior Surveyor +44 (0) (0) Alexander Grossick Graduate Surveyor +44 (0) (0) Robert Shadbolt Associate Director +44 (0) (0) Michael Green Consultant +44 (0) (0) Affordable Housing and Residential Valuation Stephen Knight Associate Director +44 (0) (0) Professional Advisory Rebecca Newton Director +44 (0) (0) Valuation Advisory Steven Farndell Director +44 (0) (0) Corporate Solutions Jack Tompkins Surveyor - Residential +44 (0) (0) jack.tompkins@eu.jll.com Claire Elderfield Associate Director +44 (0) (0) claire.elderfield@eu.jll.com Donna Pickett Senior Surveyor +44 (0) (0) donna.pickett@eu.jll.com

12 Latimer House 5-7 Cumberland Place Southampton SO15 2BH +44 (0) jll.co.uk 2017 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to JLL and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of JLL and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of JLL. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.