Speaking for the clients of Triangle Investments and Developments, it has been recently announced that Savills has confirmed the new letting in 36 Dover Street, W1 for Integration Management Consultancy, which will then increase the occupancy level of the Mayfair building up to its maximum potential; a great piece of
With reference to Savills’ latest Regional Office Market Review & Outlook report, there are growing concerns as to how competition for Grade A space is grossly outstripping the supply presently, and to be made available. With less than one year’s supply of such space confirmed for the market over the
BDC 319 : Aug 2024
Speaking for the clients of Triangle Investments and Developments, it has been recently announced that Savills has confirmed the new letting in 36 Dover Street, W1 for Integration Management Consultancy, which will then increase the occupancy level of the Mayfair building up to its maximum potential; a great piece of news for Savills and all those involved. Integration Management Consultancy, a leading provider of management consultancy services has confirmed a new, ten year lease on the office space, measured in at 2,567 square feet and sitting across the second floor of the property. They are to sit alongside those already occupying the building, which includes Victoria Beckham’s famous boutique on the ground floor, and Mercer Real Estate Advisors also. Nodding to the way in which its client has successfully managed to refurbish and increase the value of the property on Dover Street, Savills’ Director in the West End Agency Team, Mark Gilbart-Smith expressed his enamour at the confirmation of the new letting, regarding its status as now fully-let as testament to the quality of the refurbishment. In the Mayfair area, a traditional vacancy rate sits at about 3.8%, with the location considered to be highly sought after. The present average occupancy currently sits at the lowest figure on record since Q3 2007, as reported by Savills. Of the property in the area, the firm estimates take-up in Mayfair for 2015 to total in at 586,022 square feet, which is some 14% beyond the long-term yearly average of 505,000 square feet. As for Savills extensive role in the property, the organisation had previously advised with regard to the procurement of the property, and is now responsible for the management of the property as a whole – a clear nod to Savills expert advice, reputation and ability to delivery on such high-value properties in prime locations. Search OfficeSpace was the representing party for Integration’s deal.
With reference to Savills’ latest Regional Office Market Review & Outlook report, there are growing concerns as to how competition for Grade A space is grossly outstripping the supply presently, and to be made available. With less than one year’s supply of such space confirmed for the market over the course of the next three years, rents, specifically in regions such as Cardiff and Bristol is set to spike considerably. Presently, the average take-up across UK regions sits at approximately 4.6m, with availability down by circa 18% from the levels reported back in 2007. Speculative figures on developments have also risen by approximately 128% from last year, coming in at approximately 3.5m sq ft, yet, with 28% of that pre-let, it is expected that it will be mostly absorbed over the course of 2016. This lack of space has proven to be one of the key, driving factors for rising demands amongst value-add office opportunities to help cover the excess demand as opposed to supply – in fact, this January represented the 41st month of considerable refurbishment activity in a row. As a clear consequence of the demand and supply gap, so too has the gap between new-build rents and refurbished rents, with a deprecating differentiation between the average figures. This is a clear result of increasing rents, with Bristol potentially seeing the highest growth in rents of 12% by the end of 2016, as reported by Savills. Attributing the rise in UK-wide job creation as a driving factor behind the rising demand for quality space in prime locations, Claire Bailey, Associate Director of Savills Commercial Research has highlighted the potential for a pinch on new-builds between 2016 and 2017 due to the sheer quantity of developments already being pre-let and the rising demands for those in prime locations. As explained by Richard Merryweather, Joint Head of UK Investment at Savills, it is expected that occupier demands for space is more than likely to persist onto and into the future, where investors are then likely to continue looking into securing secondary assets in prime positions. This is effectively to take advantage of opportunities that may exist and to help fill the gap left open by limited available new developments; however, it may also develop a gap in the supply pipeline itself.
