central london offices marketview_q12010

8/7/2019 Central London Offices MarketView_Q12010

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MarketView

Central London OfficesQ1 2010

CB RICHARD ELLIS

Quick Stats

Q1 09

2010, CB Richard Ellis, Inc.

Quarter at a Glance

Availability

Rental Values

Construction Starts

Yields

Take-up

Q4 09

Changes from

Near record levels of take-up inthe City and above average take-

up in the West End and theDocklands resulted in CentralLondon take-up racing past itslong-term average. Inevitably, thestrong tenant demand producedsharp reductions in supply. As themarket balance tips towards thelandlord, prime rents rose acrossall markets while rent free periodswere reduced.

OVERVIEW

Central London take-up strengthenedCentral London transaction levels were above average for the second quarter insuccession. At 4.4m sq ft, take-up for the first quarter was the highest in nearlythree years. The City accounted for 50% of Central London take-up as transactionlevels reached a near record 2.2m sq ft, while take-up in the West End and theDocklands was above the long-term average.

Supply squeeze continuedWith strong demand, supply conditions in Central London continued to ease andended the quarter at 16.7m sq ft. This pushed vacancy rates lower, the CentralLondon rate was 6.7%, assisted by falls to the City and the West End rates. Bycomparison, the vacancy rate in the other Central London markets edged up

slightly.

Prime rents continued to growThe recovery in prime rents over the last year has been quite remarkable. Rents inCentral London are still 4% lower than a year ago, according to the CB RichardEllis prime rent index; however, on a quarterly basis the Central London prime rentindex was 6% higher. These trends are reflected in prime rents which rose over thequarter to 47.00 per sq ft in the City and 85.00 per sq ft in the West End.

Completion levels expected to declineWith 2009 marking the peak of the development cycle, development completionsare expected to decline this year with only 4.1m sq ft of developments expected to

complete in 2010, compared with 6.5m sq ft last year. Only 1.3m sq ft ofcompletions are scheduled for 2011, which would make it the lowest level onrecord.

Transactions total dipped but yield compressed continuedCentral London transaction levels at 1.2bn were lower in the first quarter of 2010compared with the last quarter. However, it was the lack of stock that was theprimary factor behind the weaker first quarter as strong investor interest pushedyields lower. As a result, prime yields moved to 5.75% in the City and 4.5% in theWest End.

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Central London Rent Index Annual Growth


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aQ12010

MarketView

Centra

lLondonOffices Central London Take-up

Sector Structure of Central London Take-up, 2010Q1

Central London Availability


Page 2

Central London

Headlines

Take-up reached an above average 4.4m sq ftVacancy rate fell to 6.7%Prime rent index rose 6% over the quarter

There has been a remarkable turnaround in the

Central London office market from a year ago.Take-up for the first quarter was 4.4m whichcompares with 1.1m sq ft for the same quarter lastyear. Some 70% of take-up was of grade A space,while 58% was secondhand with 37% newlycompleted space.

The City market has been the main driving forcebehind this performance, although take-up in theWest End and Docklands was also above the long-term average.

In total there were nine deals over 100,000 sq ft inCentral London in the first quarter. In the largestdeal, Barclays took 346,000 sq ft at 20 CabotSquare, E14. In the City the largest deals were atDrapers Gardens, EC2 where BlackRock took270,600 sq ft and Ropemaker, EC2 whereMacquarie took 212,400 sq ft. The largest deal inthe West End saw the Aegis Group lease 117,400 sqft at 1 Regents Place.

Banking and finance accounted for 40% of take-upwhich is significantly higher than the long-termaverage of 29%. The next best performing sectorwas professional services which accounted for 17%of take-up on a par with the sectors long-termaverage. At 14% business services was the third bestperforming sector; however, this was below its long-term average of 18%.

The high level of take-up, which has been a featureof the market in recent months, has been fuelled bya combination of pent up demand from the creditcrunch as well as some opportunistic demand takingadvantage of low rents and generous incentives.Looking further ahead, demand will be tied to

economic prospects. The outlook for 2010 is quitemixed. Although the recession ended in the lastquarter of 2009 when output grew by 0.4%, the bestoutlook for the year ahead is growth of around 2%.The UK is expected to grow more rapidly thereafter.Although it will be some time before theimprovement in the economy feeds through toemployment and eventually to occupationaldemand.

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MarketView

CentralLondonOffices

Vacancy Rate Annual: Ready-to-occupy Space

Central London Offices Under Construction

20 Cabot Square,E14

346,000Barclays Bank

Drapers Gardens

EC2

270,600BlackRock

Ropemaker, EC2212,400Macquarie

30 Crown Place,EC2

181,700Pinsent Masons

10 Upper BankStreet, E14

135,300LOCOG

AddressSq ftOccupier

Key Transactions, 2010 Q1

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The strong tenant demand has led to the absorptionof space, particularly of new space, resulting insignificant reductions in availability. Central Londonavailability fell to 16.7m sq ft from 18.5m. Themajority of the space on the market (69%) issecondhand, while only 8% is early marketed spaceunder construction, which is the lowest since 2005.

Supply levels translate into a Central London

vacancy rate of 6.7% and compares with a recentpeak of 7.7%. The Docklands has the highest rate at8.6%. These rates are some way off the peaks setduring previous market downturns, particularlyduring the 1990s recession.

There are currently 15 units available over 100,000sq ft in Central London. The largest unit is Central StGiles at 385,200 sq ft which is due to complete inthe second quarter and The Walbrook is the largestcompleted building at 381,000 sq ft.

There is currently 4.4m sq ft under construction inCentral London which is the lowest total since 2004 2.9m sq ft of which is available. In the first quarter,1.3m sq ft completed of which 52% was speculative.The largest of these completed buildings was TheWalbrook (381,000 sq ft) and the second largestwas 2 Kingdom Street (247,900 sq ft).

The development pipeline peaked last year with6.5m sq ft of completions in Central London and thisyear completion levels are expected to reach 4.1msq ft, before falling to 1.3m sq ft in 2011, which willbe the lowest recorded level.

As the supply and demand imbalance has intensifiedover the last few months, landlords have reacted byincreasing rents. This has been reflected in rises inprime rents across Central London. City prime rentsrose to 47.00 per sq ft and West End prime rents to85.00 per sq ft.

On a broader level, Central London prime rents rose6.0% over the quarter, according to the CB RichardEllis prime rent index, although prime rents were still4.0% lower compared with a year ago. City prime

rents registered the largest quarterly increase with a7.7% rise. Midtown and Southbank were the onlymarkets to record annual increases in prime rents each market saw a 1.4% increase compared with ayear ago.

Rent-free periods on a 10-year lease in the Citydecreased to 27 months from 30-33 months lastquarter, while rent frees in the West End moved to18-21 months from 21 months.

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City

Headlines

Take-up hit 2.2m sq ftAvailability continued to tightenPrime rents rose to 47.00 per sq ft

City take-up for the quarter reached 2.2m sq ft,

which was the second highest total on record,bettered only by the third quarter of 2000 whentake-up was only 43,000 sq ft higher. Take-up was30% higher than last quarter and nearly six timeshigher than the same quarter last year which was theworst on record. Take-up has been above the long-term average of 1.2m sq ft for the last threequarters.

Demand for newly completed space accounted forthe majority of take-up in the first quarter,representing 57% of take-up while secondhand

space accounted for 36%, with pre-lets accountingfor the remainder. Reflecting this, grade A spaceaccounted for 80% of the quarters take-up.

There were 10 deals over 50,000 sq ft during thefirst quarter, of which two were over 200,000 sq ft.In the largest deal of the quarter, BlackRock took270,600 sq ft at Drapers Gardens, EC2, this wasfollowed by Macquarie leasing 212,400 sq ft atRopemaker, EC2. There were three additional dealswhich were over 100,000 sq ft.

As a number of large deals dominated take-up, thistranslated through to take-up by sector. Banking andfinance accounted for 55% of take-up, which waswell ahead of the long-term average of 35%. Thiswas followed by the professional sector with 25%compared with a long-term average of 20%. Take-up from other business sectors was relatively weak.

One consequence of the very much higher level ofdemand over the last three quarters and the verystrong last quarter is that the amount of space underoffer at the end of March fell to 0.9m sq ft, thecorresponding figure last quarter was 1.6m sq ft.

Evidence that the second quarter will be significantlyweaker than the first.

Strong demand and a limited amount of new spacecoming on to the market has pushed supply lowerfor the third quarter in succession. Availability was6.6m sq ft at the end of the first quarter, which was2.5m sq ft lower than the peak set in the secondquarter of last year. The availability of all types ofspace fell, particularly secondhand. One of the moststriking features of recent trends is the small amountof available space currently under construction. This

fell to 758,300 sq ft, its lowest level since the secondquarter of 2006.

aQ12010

MarketView

Centra

lLondonOffices City Take-up

Sector Structure of City Take-up, 2010 Q1

City Availability


Page 4

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5/12

Q12010

MarketView


The City availability rate has fallen in line with thedrop in supply. At its peak, the rate was 12.9% in thefirst quarter of 2009, but it had declined to 10.2% bylast quarter and ended the first quarter of 2010 at8.9%. The last time availability reached this rate wastwo years ago. The vacancy rate stood at 7.3% atthe end of quarter which was down significantly onthe 8.5% recorded last quarter.

There were eight units over 100,000 sq ft availableat the end of March, of which four were newlycompleted and the rest were under construction. TheWalbrook, EC4 (381,200 sq ft), which completed inFebruary, is the largest available unit on the marketand 200 Aldersgate, EC1 (354,400 sq ft) is the onlyother unit over 300,000 sq ft. There are two otherbuildings over 200,000 sq ft: New Change, EC4(207,200 sq ft) and St Botolphs, EC3 (237,700 sqft).

Three schemes completed during the first quarter,

totalling 523,000 sq ft, which accounts for 24% ofthe development pipeline expected to complete in2010. With development completions peaking lastyear at 3.2m sq ft, only 2.2m sq ft is scheduled tocomplete this year. However, completions will reducerapidly thereafter with only 0.9m sq ft expected tocomplete in 2011. There is currently 2.5m sq ftunder construction in the City with 0.9m committed.

In a sign of the markets strength, rents haveincreased and incentives have become less generousover the quarter. At the end of 2009, City primerents were 43.50 per sq ft, rising to 47.00 per sqft during the quarter.

At the broader level, rents also strengthened over thequarter according to the CB Richard Ellis City primerent index which recorded a 7.7% quarterly increase,although the rent index was still 0.6% lower on aannual basis.

At the end of the first quarter, the rent free period ona 10-year lease was 27 months compared with 30-33 months the previous quarter.

City Development Pipeline

Prime City Rent Index (May 1988 = 100)

Drapers Gardens,EC2

270,600BlackRock

Riverbank House,EC4

101,900Royal Bank ofCanada

30 Crown Place,EC2

181,700Pinsent Masons

1 Finsbury Circus,EC2

128,500StephensonHarwood

Ropemaker, EC2212,400Macquarie


Key City Transactions, 2010 Q1

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6/12

aQ12010

MarketView

Centra

lLondonOffices West End Take-up

Sector Structure of West End Take-up, 2010 Q1

West End Availability


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West End

Headlines Take-up reached highest level since 2007Availability now 24% lower than 2009 peak Prime rental values showed 5% rise over quarter

The strong momentum in take-up seen in the finalquarter of last year continued in the first three

months of 2010. West End take-up reached morethan 1.3m sq ft in quarter one, 28% higher than thelong-term quarterly average and nearly three timesmore than the level recorded in the same period lastyear.

Take-up in the North of Oxford Street East, Eustonand Bloomsbury markets was the strongest relativeto the long-term trend this quarter. In contrast,transactions in North of Oxford Street andKnightsbridge were relatively muted.

The proportion of space acquired this quarter thatwas secondhand was in line with trend levels whilethe amount of newly completed space was very highat 324,500 sq ft. These transactions for new spacewere comprised of two of the quarters biggest dealsat 1&2 Regents Place. While the demand for earlymarketed space remains very weak, there was onekey deal where much of the St Martins Courtyardscheme, due for completion in the third quarter, wasacquired.

The presence of larger deals was also important thisquarter with 10 deals in excess of 20,000 sq ft;

compared to nine in the first three quarters of 2009.Business services were the largest driver of demandthis quarter with a third of transactions deriving fromthis sector. However, the banking and financesector, traditionally a key driver of demand, wasrelatively weak with just 11% of transactions. Boththe public sector and manufacturing, industrial &energy accounted for high levels of take-upcompared to their long-term averages.

There remains a very high level of space under offerin the West End at 981,500 sq ft; compared to a

long-term average of 781,000 sq ft, which pointstowards a strong second quarter. This includes afurther 240,500 sq ft of newly completed space.

The supply of available space in the West Endcontinued its sharp descent in the first three monthsof the year, falling almost 10% to 6.3m sq ft. Thisrepresents a 24% decline since the market peak inquarter two 2009 and brings availability back to thelevels seen in 2008. West End supply levels are nowjust 15% above the long-term average with muchof this located in non-core markets.


7/12

Q12010

MarketView

Centr

alLondonOffices

West End Development Pipeline

Prime West End Rent Index (May 1988 = 100)

St Martins Courtyard42,900Robert Walters

1 Southampton Row34,000Carpmaels & Ransford

Euston Xchange107,600Royal College of

General Practitioners2 Regents Place89,400Gazprom

1 Regents Place117,400Aegis Group


Key West End Transactions, 2010 Q1

Page 7


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At 4.8m sq ft, the supply of secondhand spaceremains elevated relative to the long-term trend of3.9m sq ft; however, this has fallen sharply sincequarter two last year and the amount ofsecondhand space returning to the market is belowaverage.

The amount of newly completed space has startedto fall back with 881,000 sq ft currently available,

although there are a number of large schemes stillto complete in coming months. It is the supply ofspace currently under construction where levels arevery tight. The 576,000 sq ft of early marketedspace is already 26% below trend, and there is verylittle development anticipated in 2011 meaning thiswill continue to fall sharply as schemes complete.

Reflecting the falling supply, and despite more than300,000 sq ft of completions this quarter, the WestEnd vacancy rate fell marginally to 6.4% from 6.8%.With a large amount of space due for completion

by the end of the year, this rate is unlikely to fallsignificantly until the end of the year. However,from this point, it will likely start to decline rapidlyas development completions all but cease.

Development completions are expected to reach1.1m sq ft in 2010, although 30% of this is alreadycommitted. Three new schemes completed in thefirst quarter of 2010, the largest being TwoKingdom Street, which was partially let, where172,400 sq ft remains available.

By the end of the year a further seven schemes aredue for completion. The largest is Central St Gileswith 385,200 sq ft for delivery in the secondquarter. By 2011 however, developmentcompletions will be very limited, there is currentlynothing under construction and just 110,000 sq ft isconfirmed to proceed. From 2012 it is expectedthat development completions will start to riseslowly.

After the marginal increase recorded on the WestEnd prime rent index in the final three months of2009, there was a much stronger 4.9% rise

recorded this quarter. While overall, the rent indexremains 7.3% lower than this time last year, therebound has been much stronger and quicker thanpreviously anticipated.

Following four consecutive quarters at 80.00 persq ft, the West End top prime rent increased to85.00 per sq ft in the first quarter. Similar riseswere recorded across all West End submarkets.Also reflecting the improved market sentiment, rentfree incentives on a 10-year lease came in slightlyto 18/21 months in the Mayfair & St Jamess core

and 21/24 months elsewhere.


8/12

aQ12010

MarketView

Centra

lLondonOffices Midtown Take-up

Midtown Availability

Southbank Take-up


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Midtown / Kings Cross

Take-up for the first quarter of 2010 totalled218,400 sq ft a 43% decline from the end of2009. As a result, demand was below the long termaverage of 326,000 sq ft. The majority of space letduring the quarter was secondhand accounting for87% of total transactions whilst the remainder wasnewly completed. The amount of space under offer

has increased over the first three months of the yearto reach 287,000 sq ft a 47% uplift from lastquarter 2009.

Law firm Lovells achieved the largest deal of the firstquarter taking 42,000 sq ft at Meridian House,34/35 Farringdon Street, EC4. This was followed bythe charity Absolute Return for Kids which acquired14,000 sq ft at 65 Kingsway, WC2. The professionalsector recorded the highest proportion of lettings forthe first quarter with 54% of all deals done. Businessservices and the public sector each accounted for

16% of total take-up.

Availability in Midtown continued to contract further,albeit gradually, to 1.7m sq ft at the end of Marchfrom 1.8m sq ft the previous quarter. Supply isedging closer to the long term average of 1.6 millionsq ft. The majority of space available is secondhandwith 17% newly completed and 3% early marketed.

The largest unit of available space is at Nexus Place,Farringdon Street, EC4 where 86,000 sq ft is on themarket from Scottish Widows/ Teachers AssuranceSociety. No schemes completed during the firstquarter, however, looking ahead there is 292,000sq ft set to complete this year, although 83% isalready committed.

Over the quarter, the vacancy rate increased to 7.0%from 6.8% at the end of 2009.

The Midtown top prime rent increased to 47.00 persq ft level with the City market from 42.50 persq ft with rent free periods reducing. The CB RichardEllis Prime Rent Index showed an increase of 7.1%quarter on quarter and 1.4% annually.

Southbank

Take-up increased to just under 100,000 sq ft forthe first quarter of 2010 a two-fold increase fromthe previous quarter. There was a lack of pre-letsduring the quarter whilst secondhand spaceaccounted for the majority of deals at 72% andlettings for newly completed space totalled 28%. Thelargest deal of the quarter was by Comic Relief atCamelford House, 87/90 Albert Embankment, SE1.Under offers have increased incrementally to 72,400

sq ft from 62,300 sq ft at the end of 2009.


9/12

Q12010

MarketView


Availability in the Southbank increased to 568,700sq ft from 478,400 sq ft at the end of 2009. Themajority of space available is secondhand. Duringthe first quarter of 2010 PriceWaterhouseCooperscommitted scheme at 7 More London Riverside, SE1(450,000 sq ft) completed. Beyond this, thedevelopment pipeline is empty over the next coupleof years apart from The Shard which is currently

under construction and due to complete in 2012 total size 586,500 sq ft, of which 193,000 sq ft ispre-let.

The vacancy rate increased to 3.2% at the end of thefirst quarter from 2.7% in December 2009 as thelevel of ready-to-occupy space increased over thefirst three months of the year.

Southbank prime rents have increased to 42.50 persq ft from a steady 40.00 per sq ft in 2009 andincentive periods have declined. The CB Richard Ellis

prime rent index showed a 5.5% quarterly increaseand a 1.4% rise annually.

Docklands

Following very weak take-up through 2009,transactions in the Docklands reached an abovetrend 522,300 sq ft in the first quarter of the year.Driven largely by Barclays Banks acquisition of346,000 sq ft at 20 Cabot Square. In another majordeal, LOCOG acquired more space in theDocklands, with 135,300 sq ft at 10 Upper Bank

Street. Secondhand space accounted for all leasingactivity.

Despite the strong quarter, under offers remained atan above trend 361,800 sq ft which includes309,100 sq ft of newly completed space.

For the first time this cycle, total availability declinedto 1.6m sq ft down 14% on the quarter. Thesupply of secondhand space is very high at 1.1m sqft. In contrast, the amount of newly completedspace is only marginally above the long-term

average and there is no space under constructioncompared to a long-term average of 188,100 sq ft.

With the shift of some secondhand space becomingavailable for immediate occupation, there was a risein the Docklands vacancy rate to 8.6% from 8.0% atthe end of 2009. This remains significantly lowerthan the levels of vacancy reached during thedot.com downturn when rates were over 10% forthree years.

There was a slight rise in the Canary Wharf primerent to 36.50 per sq ft from 35.00 per sq ft in2009. Similarly, the Docklands prime rent indexrecorded a 4.2% increase over the quarter although it remains 4.4% lower than last year.

Southbank Availability

Docklands Take-up

Docklands Availability

Page 9


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2007Q1

2007Q3

2008Q1

2008Q3

2009Q1

2009Q3

2010Q1

m

illionsqft



10/12

Investment

Headlines

Investment levels reached 1.2bnOverseas investors still dominate marketPrime yield continued to compress

Despite strong investor demand, a lack of stock

restricted investment volumes in the first quarter to1.2bn. This is the lowest total since the first quarterof last year and is 42% lower than last quarter. Withsubstantially more stock having come on to themarket in the last few months, transactions levels areexpected to increase in the second quarter.

In the largest deal of the quarter, 5 Churchill Place,E14 was sold to an overseas investor by the CanaryWharf Group for 208m, reflecting a yield of 5.85%.There were two other deals over 100m: M1 RealEstate acquired Victoria House, 37-63 Southampton

Row, WC1 for 175m, off a yield of 6.5% and HIH,the German open-ended fund, bought 100 NewBridge Street, EC4 from DEGI for 110m, reflectinga yield of 6.15%.

Overseas buyers are still very active in the market,encouraged by the weakness of sterling and lowinterest rates. Foreign buyers accounted for 60% ofthe first quarters transactions, compared with 73%during 2009. Overseas investors have been mostactive in the acquisition of buildings in excess of100m. Middle Eastern and North African, andGerman investors maintained their strong interest inthe Central London market they accounted for40% and 12% of total investments respectively. Bycontrast, domestic investors were more active in thesmaller lot sizes and accounted for 40% of alltransactions.

Prime yields continued to recompress. Having startedthe quarter at 5.0%, West End prime yields endedthe quarter at 4.5%, while City yields moved to5.75% from 6.0% over the same period.

Investment trends in the City mirrored those in the

Central London market. Investment transactionstotalled 330m in the City, which like CentralLondon was 42% lower than the previous quarter.HIHs purchase of 100 New Bridge Street, EC4 wasthe largest single transaction and this pushedGerman investors share of total City transaction byvolume to 48%.

In the West End, investment transactions totalled531m for the first quarter which was only 6% downon the previous quarter. The largest West End dealwas the 175m purchase of Victoria House, 37-63

Southampton Row, WC1. This deal took the share ofWest End investments made by overseas investors to61%.

aQ12010

MarketView

Centra

lLondonOffices Central London Investment Transactions

City and West End Prime Yields vs Swap Rates

Investment Transactions By Purchasers, 2010 Q1


Page 10

0

1

2

3

4

5

6

7

2000Q3

2001Q1

2001Q3

2002Q1

2002Q3

2003Q1

2003Q3

2004Q1

2004Q3

2005Q1

2005Q3

2006Q1

2006Q3

2007Q1

2007Q3

2008Q1

2008Q3

2009Q1

2009Q3

2010Q1

Billion

Total 4 Quarter Average

2

2.5

3

3.5

4

4.5

5

5.5

6

6.5

7

2001Q1

2001Q3

2002Q1

2002Q3

2003Q1

2003Q3

2004Q1

2004Q3

2005Q1

2005Q3

2006Q1

2006Q3

2007Q1

2007Q3

2008Q1

2008Q3

2009Q1

2009Q3

2010Q1

%

City West End 5 Year Swap Rate

9%

2%

10%

1%40%

3%

12%

5%18%

UK Property Companies

UK Institutions

UK Other

UK Private

USA/Canada

Middle East/Africa

China

German

European Other


11/12

2.092.921.77Available1.84 1.276.345.20NewCentral London

1.921.484.65Let/Under Offer2.52 2.2912.1511.49Secondhand

4.01.40.42.36 3.56.708.496.69otal

Vacancy

Rate

%

0.000.000.00Available0.00 0.000.690.54NewDocklands


0.00.00.35.52 0.27.60.86.60otal

0.45.58.09.10 0.05.20.48.57otal


0.000.390.00Available0.03 0.020.040.04NewSouthbank

0.29.39.38.22 0.38.00.78.68otal0.240.240.14Let/Under Offer0.19 0.181.281.35Secondhand

0.050.150.24Available0.03 0.200.500.33NewMidtown


0.770.760.65Available0.37 0.281.881.46NewWest End


1.271.620.88Available1.42 0.773.242.83NewCity

ExpectedCompletions

2010

m sq ft

Under

Construction

m sq ft

Total

Completions

2009

m sq ft

Q4

2009

m sq ft

Q1

2010

m sq ft

Q4

2009

m sq ft

Q1

2010

m sq ft

DEVELOPMENT SUPPLY PIPELINETAKE-UPAVAILABILITY

24,000SpeculativeEdison House, Old Marylebone Road, W1

15,000SpeculativeNo. 3 Savile Row, W1

Sq ftStatus

CENTRAL LONDON: NEW UNDER CONSTRUCTIONS

billion

0.730.66UK PurchasersCentral London

0.000.15UK PurchasersMidtown

0.050.00Overseas

0.05.15otal

0.030.01UK PurchasersSouthbank

0.000.00Overseas

0.03.01otal

0.52.30otal0.140.20Overseas

0.240.15Overseas

0.57.53otal

1.350.56Overseas

2.08

0.33

0.38

Q4 2009

1.22otal

0.38UK PurchasersWest End

0.10UK PurchasersCity

Q1 2010

INVESTMENT TRANSACTIONS

2010 CB Richard Ellis Limited

0.208Private Investor5 Churchill Place, E14

0.110HIH100 New Bridge Street, EC4

0.175M1 Real EstateVictoria House, SouthamptonRow, WC1

billionPurchaser

CENTRAL LONDON: MAJOR INVESTMENT DEALS

Q12010

MarketView

Centra

lLondonOffices

Page 11

1.4%

1.4%

-0.6%

-7.3%

Y-on-Y

42.505.5%Southbank

47.007.1%Midtown

47.00

85.00

7.7%

4.9%

City

West End

Prime RentQ-on-Q

CBRE RENTAL INDEX GROWTH


12/12

Disclaimer 2010 CB Richard EllisInformation herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we havenot verified it and make no guarantee, warranty or representation about it. It is your responsibility to independentlyconfirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example onlyand do not represent the current or future performance of the market. This information is designed exclusively for use byCB Richard Ellis clients, and cannot be reproduced without prior written permission of CB Richard Ellis. Copyright 2010CB Richard Ellis

CB Richard Ellis is the market leading commercial real estate adviser worldwide - an adviser strategically dedicated to

providing cross-border advice to corporates and investment clients immediately and at the highest level. We have 400offices in 58 countries across the globe, and employ 24,000 people worldwide. Our network of local expertise, combinedwith our international perspective, ensures that we are able to offer a consistently high standard of service across theworld. For full list of CB Richard Ellis offices and details of services, visitwww.cbre.com

aQ12010

MarketView

Centra

lLondonOffices


Page 12

For more information regarding theMarketView, please contact:

Central London Research

Kevin McCauley

Director, Central London Research

CB Richard Ellis

St Martins Court

10 Paternoster Row

London EC4M 7HP

t: +44 20 7182 3620

e: [email protected]

CENTRAL LONDON BUSINESS TEAM

MANAGING Adam HetheringtonDIRECTOR

OFFICE Digby Flower Central LondonAGENCY Mark Slim City

Emma Crawford West EndDan Roberts Canary Wharf/City

INVESTMENT Mike Edwards C entral LondonRob Silvester CityDavid Green West End

PROFESSIONAL Colin Manders Central LondonSERVICES Geoffrey Dale City

Mark Penson CityBen Coffin West End

DEVELOPMENT Adam Hetherington Central LondonSERVICES Adrian Bunnis City

Peter Burns West EndMatthew Black East London

TENANT ADVISORY Stewart Smith

RESIDENTIAL Jonathan Seal

Submarkets Map

RESEARCH & CONSULTING TEAM

PETER [email protected]

KEVIN [email protected]

IAN KISSANE

[email protected]

GARY [email protected]

ANNA [email protected]

Crown Copyright. All rights reserved. CBRE licence number: 100019184. Ordnance Survey.

central london offices marketview_q12010

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