Tags Posts tagged with "DTZ"

DTZ

124

The Standard Life Investments Heritage With Profits Fund has completed separate deals with supercomputer company Cray UK Limited and the online food ordering service JUST EAT to take over 18,000 sq ft of space at Broad Quay House on Prince Street, Bristol.

JUST EAT, the world’s leading online takeaway ordering service, has signed a ten-year lease for the 10,057 sq ft second floor which they will occupy from early June. The new office space will house the company’s Technology Innovation Hub, with JUST EAT being attracted to Bristol’s strong demographic for this area of operations.

Cray UK Limited, a global leader in supercomputing, has signed a five-year lease for the 8,000 sq ft ground floor, following a deal late last year with the UK Met Office to help advance their world-leading weather and climate services.

Will Fulton, Fund Manager, Standard Life Investments Heritage With Profits Fund commented: “We’re delighted to welcome JUST EAT and Cray as our latest tenants at Broad Quay House.  As one of the top six regional markets in the UK, Bristol continues to be a key location for companies to do business, and these lettings clearly demonstrate the strong draw of the City and appetite for quality office space amongst leading businesses.”

Carlos Morgado, CTO of JUST EAT commented:  “Technology and innovation is at the heart of JUST EAT and our success in recruiting exceptional talent in the city over the past year has given us the confidence to establish a permanent residence here. With JUST EAT’s new Technology Innovation Hub in Bristol, providing space for almost 100 engineers, we are excited to have access to the brilliant pool of tech talent based throughout the South West.”

Jones Lang LaSalle and DTZ advised Standard Life Investments, Martin Levy Commercial advised Cray and GVA advised JUST EAT.

112

The UK’s regional industrial and retail markets are the most attractive for prime commercial property investment according to DTZ’s Fair Value Index.

The UK Fair Value Index identifies the most attractive office, retail and industrial markets for prime commercial property investment now on a five year hold period. The list pinpoints those cities with the most attractive pricing for investors looking to enter the market now. The report shows that the most underpriced markets are to be found in regions outside of London, while most London markets are now fairly priced due to lower yields than those in the regions.

Of the most underpriced markets in the UK currently, three out of five are in the industrial sector with Cardiff topping the list for prime investment potential.

DTZ UK Fair Value Index™, Q1 2015: Number of markets in each category by region Source: DTZ ResearchJames Bladon, Associate Director in DTZ’s Midlands Investment team, comments: “The investment markets in the East Midlands have followed the national trend with considerable investor demand resulting in rising prices. Nevertheless, with interest rates remaining low and healthy rental growth (2%+ per annum) arising from improving occupational markets, projected returns are expected to exceed the returns that investors should require over a 5-year horizon. DTZ assess that the retail and office sectors in Nottingham remain ‘fairly priced’, while the industrial sector is ‘under-priced’, with a clear margin between expected returns and the required return.”

Overall DTZ’s Fair Value Index™ for the UK fell to 58 in Q1 2015 from the previous quarter’s figure of 72, meaning that UK property has become less attractive to investors. According to DTZ’s research, keener pricing of property markets this quarter as a result of significant yield compression has reduced the UK Fair Value Index™ score. Since gilt yields are at very low levels, UK property still looks attractive on a relative basis due to favourable yield spreads. However the strong weight of capital targeting property means the market is now becoming more fully priced.

Fergus Hicks, DTZ’s Global Head of Forecasting, said: “Our latest UK Fair Value Index™ shows that UK property’s attractiveness to investors is starting to diminish as many of the major markets have now become fairly priced due to significant yield compression, particularly in the office sector. We believe that, going forward, UK property’s attractiveness will continue to diminish throughout the rest of this year so investors need to be much more selective about targeting better value opportunities.”

The industrial sector is currently the most attractively priced sector in the UK, with three of the top five most underpriced markets in DTZ’s UK Fair Value Index™ all in this sector. Higher income yields than the office and retail sectors make it particularly attractive to investors, given the wider spread over government bond yields.

Over the next five years regional markets are expected to offer the most favourable risk-adjusted returns, while the majority of London markets are now fairly priced after seeing significant yield compression over the last few years.

Ben Clarke, DTZ’s Head of UK Research, says: “Greater confidence on the part of developers means we have seen the return of speculative development in the office and industrial markets in the UK regions. Nevertheless, many of these markets remain supply constrained at the prime end of the market. This is supporting rental growth in these markets where yields remain well above what can be found in central London.”

With prime yields now at cyclical lows, a few office markets are now looking more fully priced, such as London’s West End and some regional markets such as Bristol and Leeds, where yields have fallen by 50 and 80 bps respectively over the last year. Nevertheless, most office markets still remain fairly priced, while regional industrial and retail markets offer the best value and are all under- or fairly priced.

The findings are based on the DTZ UK Fair Value Index™, which provides a quarterly insight into the comparative attractiveness of current property pricing across 32 UK markets. The classification for each market, based on a five year hold period, is determined by comparing the forecast return and the risk-adjusted fair/required return. A score of 100 indicates that all markets are underpriced and zero that all markets are overpriced. A score of 50 indicates a balanced number of over-and underpriced markets. In Q1 16 markets were rated as underpriced, 14 fairly priced and only two as overpriced.

65

The UK’s regional industrial and retail markets are the most attractive for prime commercial property investment according to DTZ’s Fair Value Index.

The UK Fair Value Index identifies the most attractive office, retail and industrial markets for prime commercial property investment now on a five year hold period. The list pinpoints those cities with the most attractive pricing for investors looking to enter the market now. The report shows that the most underpriced markets are to be found in regions outside of London, while most London markets are now fairly priced due to lower yields than those in the regions.

Of the most underpriced markets in the UK currently, three out of five are in the industrial sector with Cardiff topping the list for prime investment potential.

DTZ UK Fair Value Index™, Q1 2015: Number of markets in each category by region Source: DTZ ResearchJames Bladon, Associate Director in DTZ’s Midlands Investment team, comments: “The investment markets in the East Midlands have followed the national trend with considerable investor demand resulting in rising prices. Nevertheless, with interest rates remaining low and healthy rental growth (2%+ per annum) arising from improving occupational markets, projected returns are expected to exceed the returns that investors should require over a 5-year horizon. DTZ assess that the retail and office sectors in Nottingham remain ‘fairly priced’, while the industrial sector is ‘under-priced’, with a clear margin between expected returns and the required return.”

Overall DTZ’s Fair Value Index™ for the UK fell to 58 in Q1 2015 from the previous quarter’s figure of 72, meaning that UK property has become less attractive to investors. According to DTZ’s research, keener pricing of property markets this quarter as a result of significant yield compression has reduced the UK Fair Value Index™ score. Since gilt yields are at very low levels, UK property still looks attractive on a relative basis due to favourable yield spreads. However the strong weight of capital targeting property means the market is now becoming more fully priced.

Fergus Hicks, DTZ’s Global Head of Forecasting, said: “Our latest UK Fair Value Index™ shows that UK property’s attractiveness to investors is starting to diminish as many of the major markets have now become fairly priced due to significant yield compression, particularly in the office sector. We believe that, going forward, UK property’s attractiveness will continue to diminish throughout the rest of this year so investors need to be much more selective about targeting better value opportunities.”

The industrial sector is currently the most attractively priced sector in the UK, with three of the top five most underpriced markets in DTZ’s UK Fair Value Index™ all in this sector. Higher income yields than the office and retail sectors make it particularly attractive to investors, given the wider spread over government bond yields.

Over the next five years regional markets are expected to offer the most favourable risk-adjusted returns, while the majority of London markets are now fairly priced after seeing significant yield compression over the last few years.

Ben Clarke, DTZ’s Head of UK Research, says: “Greater confidence on the part of developers means we have seen the return of speculative development in the office and industrial markets in the UK regions. Nevertheless, many of these markets remain supply constrained at the prime end of the market. This is supporting rental growth in these markets where yields remain well above what can be found in central London.”

With prime yields now at cyclical lows, a few office markets are now looking more fully priced, such as London’s West End and some regional markets such as Bristol and Leeds, where yields have fallen by 50 and 80 bps respectively over the last year. Nevertheless, most office markets still remain fairly priced, while regional industrial and retail markets offer the best value and are all under- or fairly priced.

The findings are based on the DTZ UK Fair Value Index™, which provides a quarterly insight into the comparative attractiveness of current property pricing across 32 UK markets. The classification for each market, based on a five year hold period, is determined by comparing the forecast return and the risk-adjusted fair/required return. A score of 100 indicates that all markets are underpriced and zero that all markets are overpriced. A score of 50 indicates a balanced number of over-and underpriced markets. In Q1 16 markets were rated as underpriced, 14 fairly priced and only two as overpriced.

64

DTZ, a global leader in commercial real estate services, has announced that it has significantly strengthened its Data Centres offering by recruiting a team of three to build on its existing success in this specialist area.

Senior director Mark Trevor, director Begoña Cerdan and associate director Michael Hunter will be based at DTZ’s UK headquarters in Old Broad Street, London, but will work with clients around the world.

They join director Steve Kirby and will report to international director Jon Leedham. The team provides services including consultancy, research, procurement, sales and leasing, commercial due diligence (for both real estate and business investors), operator and vendor strategy, valuations, planning support and site and facility due diligence.

Additionally, DTZ’s engineering team, led by Tony Comber, brings Uptime Institute accredited experience into data centre and mission critical systems design, technical due diligence and FM audit capabilities.

Mark Trevor, who has worked in the sector since its inception nearly 15 years ago, said: “Over that period IT operations have evolved to become a crucial aspect of most organisational operations. Every section of the UK economy now relies on data centres either directly or indirectly, whether through cloud or traditional data centres, including public sector, financial services, utilities, retail, telecommunications, technology, corporates and SMEs.

“IT outsourcing continues to grow at a significant rate as more and more companies, whatever their size, are finding that it offers them a cost effective and flexible alternative to operating in-house IT infrastructure.”

Whilst the US continues to be the world’s largest data centre market the UK, particularly in the south east with the 10 largest vendors providing over 2.6 million square feet of technical space or 370 MW of IT load, remains the largest concentration of data centres in Europe.

Jon Leedham added: “Data centres represent a distinct and key sector within real estate requiring specialist expertise. Expanding our team by bringing in Mark, Begoña and Michael, leaders in this field, alongside Steve puts us at the forefront of this growth area. It also gives us the ability to add significant value to our existing global occupier clients and other corporates.”

63

DTZ has announced the appointment of Sophie Magee as Senior Surveyor in to its Manchester-based Education, Residential and Investment team.

Previously with Bilfinger GVA working within their Valuation Consultancy department, Sophie joins DTZ’s growing Education, Residential and Investment team to work with clients such as Southampton University, PWC, Maplegrove Developments and DTZ Investment Management.

Her recent clients at Bilfinger GVA have included Nationwide, the Royal Bank of Scotland, HSBC, Santander, London and Continental Railways, Addleshaw Goddard, Catalyst, M7 and other local and national investment companies.

Mike Mitchell, Senior Director and head of the Education, Residential and Development at DTZ in Manchester comments: “I am delighted that Sophie has chosen to join us at DTZ. As activity levels and opportunities increase in the sector, Sophie’s appointment will add additional breadth to the existing team and help us with our ongoing commitment to delivering exceptional service to our growing client base.”

Sophie comments: “I’m excited to be joining DTZ and to be working within such a prospering sector. I look forward to working with Mike and Simon, developing new client relationships and firmly establishing myself within the sector.”

103

London’s West End remains the world’s most expensive location for office space at $29,000USD per workstation which is now nearly a third more expensive than second-placed New York, according to DTZ’s annual Global Office Thermometer.

The 18th annual edition of the report, which analyses 133 cities, shows that across the globe international occupiers are generally benefitting from significant drops in office costs. The annual USD cost of a workstation fell 3.9% globally on average in 2014. An appreciating US dollar, weak economic growth in Europe, and significant new supply in emerging markets combined to erode costs across many global markets. In addition, occupiers are using space more intensively in some cities, thereby reducing the average cost of a workstation. The report further reveals that workstation costs, measured in local currencies, showed only a modest rise overall.

Asia Pacific saw the fastest decline in USD workstation occupancy costs with an 8.3% decrease. Europe wasn’t far behind with an average decline of 7.8%. Workstation occupancy costs in North America and North Asia increased by 4.8% and 2.5%, respectively.

On a city level Moscow saw the sharpest fall in USD workstation occupancy costs in 2014, falling by a third on a USD basis. Other Eastern European cities including Bucharest (25%), Bratislava (23%) and Prague (21%) also posted sharp falls.

In contrast to this global trend, London’s West End saw workstation costs rise sharply. At $29,000 per workstation, it is 11 times more expensive than the cheapest European city Lisbon. Dublin registered the fastest increase in workstation occupancy costs in Europe with a rise of 13% in 2014 with London just behind on 11%, although Dublin remains significantly cheaper than London.

Some of the sharpest increases were in Middle East & Africa markets. Abu Dhabi saw the fastest increase in occupancy costs of any city in our global ranking in 2014, increasing by 36% on a USD basis. Other Middle East markets also saw some of the fastest increases notably Jeddah (20%) and Riyadh (11%). Similarly, occupancy costs in Lagos increased 8%.

Dublin posted the fastest increase (13%) in Europe, echoing the turnaround in the Irish economy. London (West End) witnessed the second fastest increase (12%).

Richard Yorke, Head of Global Occupier Research, and report author, said: “the appreciation of the US dollar has had a significant impact on the relative affordability of global cities. Nevertheless, our analysis of workstation costs in local currency terms also demonstrates the dampening impact of economic weakness in Europe. Similarly, the glut of new supply in some emerging markets is eroding workstation occupancy costs. In addition occupiers are using space more intensively, especially in expensive cities such as New York.”

James Maddock, Head of Global Occupier Services in EMEA, added: “London’s West End continues to power ahead as the most expensive city on the planet to have a desk and there are no signs that this will slow in the near future. The lure of London remains strong for occupiers who see the value of having space in one of the world’s major financial and business centres. It will be interesting to see the debate around the proposed EU referendum and what this means for London’s position as a destination of choice for many of the world’s major corporations.”

Within the UK’s regional cities, Edinburgh remains the most expensive although is 3.5 times cheaper than London. Costs per workstation have accelerated by 8% year on year as rising city centre rents begin to take effect.

DTZ Edinburgh’s Director in Agency, Development and Occupier Services, Mark Jones comments: “The rise compared to other UK regional cities is a direct indication that the supply of new and Grade A space, particularly within the city centre, is critically low. Cost rises in Scotland’s capital over the next 12 months will be substantially above the global average of 0.5%. Occupiers will need to budget appropriately, even in light of increasing workplace efficiency.”

He adds: “This should also act as a call that developers need to commit to producing new office stock; without it Edinburgh’s economic prosperity could be hampered as businesses look to expand in locations where there is availability.”

The report concludes that international occupiers will continue to benefit from ebbing cost pressures in numerous office markets. Overall global workstation occupancy costs are expected to increase on average by just 0.5% per year over the next two years, on a local currency basis. Occupiers in North America will enjoy an annual 1% cut in workstation occupancy costs in 2015 and 2016. Conversely, Asia Pacific is expected to post the strongest average growth of 1.7%. Greater China, however, costs are likely to remain unchanged. Similarly, EMEA cost increases are set to average just 0.8%.

117

The UK’s regional industrial and retail markets are the most attractive for prime commercial property investment according to DTZ’s Fair Value Index.

The UK Fair Value Index identifies the most attractive office, retail and industrial markets for prime commercial property investment now on a five year hold period. The list pinpoints those cities with the most attractive pricing for investors looking to enter the market now. The report shows that the most underpriced markets are to be found in regions outside of London, while most London markets are now fairly priced due to lower yields than those in the regions.

Of the most underpriced markets in the UK currently, three out of five are in the industrial sector with Cardiff topping the list for prime investment potential.

Nick Allan, Senior Director in DTZ’s UK Investment department, said: “The Cardiff investment market has not seen the same level of trading of prime core industrial investments as elsewhere in the UK and this has left yields notionally higher than in other centres, which suggests it might be underpriced and therefore more attractive. Going forward, relatively strong rental growth and modest yield compression lead us to believe that it will continue to offer good value to investors over the next few years”.

Overall DTZ’s Fair Value Index™ for the UK fell to 58 in Q1 2015 from the previous quarter’s figure of 72, meaning that UK property has become less attractive to investors. According to DTZ’s research, keener pricing of property markets this quarter as a result of significant yield compression has reduced the UK Fair Value Index™ score. Since gilt yields are at very low levels, UK property still looks attractive on a relative basis due to favourable yield spreads. However the strong weight of capital targeting property means the market is now becoming more fully priced.

Fergus Hicks, DTZ’s Global Head of Forecasting, said: “Our latest UK Fair Value Index™ shows that UK property’s attractiveness to investors is starting to diminish as many of the major markets have now become fairly priced due to significant yield compression, particularly in the office sector. We believe that, going forward, UK property’s attractiveness will continue to diminish throughout the rest of this year so investors need to be much more selective about targeting better value opportunities.”

The industrial sector is currently the most attractively priced sector in the UK, with three of the top five most underpriced markets in DTZ’s UK Fair Value Index™ all in this sector. Higher income yields than the office and retail sectors make it particularly attractive to investors, given the wider spread over government bond yields.

Over the next five years regional markets are expected to offer the most favourable risk-adjusted returns, while the majority of London markets are now fairly priced after seeing significant yield compression over the last few years.

Ben Clarke, DTZ’s Head of UK Research, says: “Greater confidence on the part of developers means we have seen the return of speculative development in the office and industrial markets in the UK regions. Nevertheless, many of these markets remain supply constrained at the prime end of the market. This is supporting rental growth in these markets where yields remain well above what can be found in central London.”

With prime yields now at cyclical lows, a few office markets are now looking more fully priced, such as London’s West End and some regional markets such as Bristol and Leeds, where yields have fallen by 50 and 80 bps respectively over the last year. Nevertheless, most office markets still remain fairly priced, while regional industrial and retail markets offer the best value and are all under- or fairly priced.

The findings are based on the DTZ UK Fair Value Index™, which provides a quarterly insight into the comparative attractiveness of current property pricing across 32 UK markets. The classification for each market, based on a five year hold period, is determined by comparing the forecast return and the risk-adjusted fair/required return. A score of 100 indicates that all markets are underpriced and zero that all markets are overpriced. A score of 50 indicates a balanced number of over-and underpriced markets. In Q1 16 markets were rated as underpriced, 14 fairly priced and only two as overpriced.

100

Planning practice, Quod North, is relocating its Leeds office into Evans Property Group’s newly refurbished Capitol office building within Bond Court.

Quod North has signed a 10 year lease for a 3,500 sq ft suite on the first floor, east wing of Capitol and has exclusive use of the roof terrace overlooking the transforming Bond Court in the heart of Leeds City Centre. CBRE and JLL are agents on Capitol and Quod North was represented by DTZ.

Quod North was set up in 2014 by Tim Waring as the northern office of London-based Quod Planning. In the last 12 months, the practice has experienced significant expansion and has outgrown its existing offices at Park Square.

Quod North has grown the team to 12 professionals in the last 15 months and is looking at more growth in the short term. The team is responding to an improving local and national property market, and is advising a range of clients including The Crown Estate, Hammerson, Land Securities, Commercial Estates Group, Lands Improvements, GMI, Evans, Wykeland, IKEA, Legal and General, amongst others. In the region, Quod is advising on the extension of the White Rose Shopping Centre (Leeds), redevelopment of the Yorkshire Post Building (Leeds), Princess Quay (Hull), and the proposed new settlement at Whinthorpe (York).

Last year Evans undertook a comprehensive 6 month refurbishment programme at Capitol to create 20,000 sq ft of high quality office accommodation on the first and third floors in addition to external improvements to the windows and elevation, a new double height enlarged feature reception, lift and stair core refurbishment and full common area modernisation.

Capitol has been a long-term investment for Evans and is home to occupiers such as Cap Automotive and Lifesearch. The transformation is part of a circa £20m investment programme being undertaken by Evans at the Bond Court area of Leeds. The Minerva office building on East Parade has become a flagship, Grade A office building for the city and demolition work will soon be underway on the development of a 90 bed 5* hotel.

Tim Waring, Director at Quod North, said; “We have experienced phenomenal growth in the last year or so, and Capitol will provide us with a long term base to continue to expand our team and our business.”

Alan Syers, Portfolio Director at Evans Property Group, said; “We are delighted that Quod North has selected Capitol as its Leeds base. The extensive refurbishment works have created high quality space in one of the most strategically positioned buildings within the city. Now that Capitol and Minerva have been launched and are steadily filling up with occupiers, the next phase of the Bond Court works will be the hotel and the public realm.”

Richard Bean at JLL added; “The works to Capitol were undertaken at just the right time, as supply of Grade A stock within the city is at an all-time low but occupier confidence is returning. Both Capitol and Minerva are proving very popular with occupiers who are keen to have presence in the core commercial area of Leeds with the added benefit of being on the doorstep of the retail quarter.”

78

DTZ has announced three new appointments to its Manchester office.

James Worthington joins as Senior Surveyor in Residential, Rebecca Sowerbutts as a Consultant in Planning and Harriet Smith as Graduate Consultant in to its Development Consulting team.

Previously an Associate Director with Eddisons and Surveyor at Paribas Real Estate, James joins the Residential team to undertake residential viability studies, land agency valuations and private rental consultancy. He will work with clients such as housebuilders, banks and investors. This will enable the team to expand on its residential offering to key clients.

Rebecca joins the Planning team to assist in the delivery of planning consultancy service across the north west with a specific focus on servicing DTZ’s Royal Mail Group, Education Funding Agency, and Land Registry Property Framework instructions. In addition to this, Rebecca will be working closely with the Residential Agency team at DTZ Manchester to advise on planning matters in relation to disposal and delivery of residential development proposals. Rebecca was previously an Assistant Planner at Knights LLP. She has a diverse range of experience across various sectors including office uses, hotel and leisure, sports stadia and residential.

Harriet Smith has joined the Development Consulting team from Hollins Strategic Land. In response to strong demand for DTZ’s comprehensive residential market analysis reports, she will assist the team in providing detailed property market research and analysis in supporting both private and public sector clients to deliver complex regeneration and development projects across the north west. She will also support the Development Consulting team’s public sector strategy work, including market assessments, strategic planning and development advice, development appraisals, economic appraisals and site assessments.

Derek Nesbitt, Residential Director at DTZ North West in Manchester comments: “I am delighted that James, Rebecca and Harriet have chosen to join us at DTZ. As activity levels and opportunities increase in the sector, their appointments will grow our residential, development consulting and planning team to 13. Growth of the team is crucial to meet the requirements of an expanding project portfolio across a number of key sectors, including residential, higher education, public sector, and corporate occupiers. These appointments match with DTZ’s growth ambitions at a regional, national and international level, and grows DTZ’s residential, planning and development consultancy capability further.”

140

An innovative mobile tyre fitting business has opened a new Midlands depot in Oldbury.

TyresOnTheDrive has taken a 13,112 sq ft warehouse located on Pearsall Drive in Oldbury on a 10 year lease. DTZ advised the landlord, GAP Properties whilst Cushman & Wakefield advised TyresOntheDrive.

Launched in 2011, TyresOntheDrive offers a 7- day mobile tyre fitting service which brings the garage to the customer, be it at home or at work. The unit will operate as the company’s Midlands distribution centre and includes an integrated two storey office accommodation, external parking and a yard.

Using state-of-the-art mobile units, TyresOnTheDrive offers an online booking service and a highly competitive pricing model.

John Sambrooks of DTZ’s Industrial agency team in Birmingham, commented: “This is a great move for TyresOnTheDrive and its growing customer base and means they can now offer coverage across Birmingham and the Black Country. We received considerable interest in the unit given its strong transport links to the M5 and M6 and the large secure yard which was a particular benefit to TyresOntheDrive as a growing business.”

Dominic Clark, CEO at TyresOnTheDrive, commented: “The opening of a new hub in Oldbury plays an important role in our plans for continued growth throughout the UK, aiming to raise industry standards for the UK motorists via our fleet of mobile tyre fitting units to every home in the UK by the end of 2015. The central location and impressive road network this new site offers will allow us to run a more cost effective and efficient service, ultimately keeping our costs down for the consumer.”