Commercial Property

London’s Commercial Property Market 2014: The Year in Review

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As 2014 draws to an end, we can safely say that the London commercial property market has laid out the foundations for continued growth. Take a look at the latest developments that have taken place in the commercial property market across the UK’s capital city. But first, let’s get started with a synopsis of the year so far.

London’s commercial property market: the year in review


Overall, this year has been marked by steady growth and increasing optimism among both investors and occupiers. According to research carried out by M&G Real Estate, this upward trend can be attributed to two main factors. Firstly, the labour market has become stronger over the past 12 months. In November 2014, the unemployment rate reached a five-year low of 7.1 per cent. This fact has had a positive effect on the property market, especially in the retail sub-sector.

Secondly, there is the widespread belief that economic risks have decreased substantially in many Eurozone countries. As a result, commercial property rents have stabilised, and in some areas of London commercial rental values have even begun to grow. From an occupier perspective, changes in risk perception have also meant that firms in the financial, banking, insurance, and ICT sectors are now ready to extend their leases or to move on to larger premises.

Towards the end of 2013, market analysts predicted that rental growth values across all commercial sub-sectors would average 2.1 per cent. The predicted growth rates have been largely surpassed in the office property market, especially in areas like Midtown, where office rents have increased by nearly 6 per cent. In addition, the London office market has also seen the revival of the so-called fringe locations, where the demand for refurbished office floorspace has been steadily increasing. Continue reading “London’s Commercial Property Market 2014: The Year in Review” →

Focus On: Highgate Business Centre

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Highgate Business Centre

33 Greenwood Place, Kentish Town, London NW5 1LB

Highgate Business Centre is set in an imposing and characteristic warehouse built in the Victorian era, circa 1880, when the whole of Kentish Town went under huge development, both residential and commercial as a area for warehouses and the expansion of the UK railway network . More recently it has undergone a stage by stage renovation project to comprehensively overhaul each floor to create a modern and usable space. However, during renovation, specific focus has been directed towards maintaining the building’s historical features, character and style.

Refurbishments have included the fitting of fashionable up-lighting throughout; industrial elements are highlighted to create a modern, stylish feel; the external facade is maintained while multi-pane double glazed windows have been fitted with steel trimmings to sustain the theme. Floor by floor, the building has been upgraded and now provides spacious and economic office space and units that are stylish, bright, well-lit with natural light, spacious, airy and flexible in terms of use.

Current use

The building is currently used to provide contemporary studio offices, industrial spaces and accommodation. The majority of the office space has the versatility of demountable partitions which are used to change the layout of the internal area, providing office design flexibility for those companies wishing to rent space within the business centre. The on-site amenities include two lifts, disabled access and facilities, 24 hour access, a dedicated care-taker, an entry phone system and secure parking. The building is particularly popular with creatives including advertising, marketing, architecture, design and web-based companies. This type of clientele has played a large part in building the diversity and energy of the local area, which is now undergoing regeneration itself.

Getting there

Highgate business centre is easily accessible being situated on Greenwood Place, just off Highgate Road in up-and-coming Kentish Town. The centre is just five minutes walk from Kentish Town tube station which is served by the Northern line. Alternatively, Capital Connects over ground train line serves Kentish Town rail station. This mainline station has a direct pedestrian link to Kentish Town underground. From the tube station, turn right up Kentish Town Road and bear left as the road forks. Follow on to take Highgate Road, go past the HMV Forum music venue and turn left into Greenwood Place.

Highgate Business Centre Office Space

If you’re interested in finding out about office space at this centre give us a call on 020 3053 3893 or send us a message.

Click here to view other offices in Highgate and North London.

Commercial Property Value in the UK Weakened in February

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The performance of commercial property in the UK weakened this February according to CBRE’s latest Monthly Index. Total returns for commercial property in the UK fell to 0.1% and capital values fell by 0.4%. The downturn in commercial property performance came in spite of the fact that Central London offices have seen an improvement, with returns up from January, from 0.3% up to 0.5%. The weakening of property valuations covered the three main commercial property market sectors, shopping centres, shops and offices located outside of the Central London area.

On a more positive note, Central London offices have seen renewed growth, which is responsible for offsetting the decline of most parts of the commercial property market. Central London office property values saw an increase of 0.1% for the month.

According to the CBRE’s February 2012 UK Monthly Index survey total returns on all property were 0.1% for the month, with capital values down 0.4%. The retail property market suffered the most in February, providing a return of -0.1%, while industrial property returned 0.4% and offices returned 0.2% overall. Office property values for the rest of the country fell to 0.9% in February.

Rental values showed an improvement over the previous month while retail centres, shops and shopping centres suffered weaker returns, at -0.3%.The report went on to say that a third of commercial property investors have said that London is the most attractive property investment in the EU, ahead of Warsaw by more than 20%.

According to the CBRE’s Senior Analyst, Nick Parker, foreign investors are continuing to target and focus on the UK, and London in particular. Mr Parker said “this was because foreign investors are less constrained by a tight domestic debt market.” He also stated ‘Combine this finding with a healthy skew of respondents who said they intend to increase their overall purchasing activity in 2012 compared to last year, and the picture for the commercial property markets in London and the UK looks quite positive.”

References: Property Magazine and CBRE