MARKET COMMENTARY

DECEMBER 2011

We are pleased to say that all aspects of the property market in Central London and in particular the South East area has fared exceptionally well over the course of 2011 bucking the trend outside of London.

INDUSTRIAL

Demand for industrial property has improved and rent / capital values have turned a corner and are starting to edge up. There remains a lack of supply but demand is often from diverse users such as artists, churches and developers converting the space. Demand for investments is very strong but there is virtually no supply.

	PRIME	SECONDARY	TERTIARY
RENT £SPSF	11	8.5	6
SALES £SPSF	150	120	80

OFFICE

	PRIME	SECONDARY	TERTIARY
RENT £SPSF	30	20	12
SALES £SPSF	400	250	175

RETAIL

Retail demand remains good in prime locations and is particularly strong for A3 and A5 takeaway foods. Conveninece stores continue to be particularly acquisitive, with rents being offered from £12 to £20 depending on location and tenant. Rents for lock up shops are around £115 per sq ft per annym for a small off pitch units rising considerably for prime units.

Retail demand remains good in prime locations and is particularly strong for A3 and A5 takeaway foods. Conveninece stores continue to be particularly acquisitive, with rents being offered from £12 to £20 depending on location and tenant. Rents for lock up shops are around £115 per sq ft per annym for a small off pitch units rising considerably for prime units.

	PRIME	SECONDARY	TERTIARY
RENT £SPSF	50	20	12
SALES £SPSF	600+	200	110

DEVELOPMENT

Demand for development sites has increased significantly during the course of 2011 and KALMARs have been selling many sites to both big and small developers. Bank funding is however still difficult, particularly for commercial development and funding is generally from other sources including private individuals and institutions both suffering from the low interest rates

RESIDENTIAL

The residential market is much stronger in SE1 area than any other areas in the country, consequently rents and prices have risen. The demand being both local and overseas buyers. There is a significant shortage of supply consequently demand for new developments sites has increased dramatically.

RESIDENTIAL LETTINGS

Demand has been very strong indeed for residential lettings, with an acute lack of supply pushing rents up significantly over the last 6 months. This in part is due to properties that had been let when the sales market was weak now being offered for sale with greatly reduced supply of new properties being built.

	RENT £PW
BEDS	PRIME	SECONDARY
1	350	250
2	600	400
3	600+	450+

RESIDENTIAL SALES

Residential sales are currently very strong with a shortage of supply and those purchasers that are able to find the money readily available, consequently prices have edged up over the last year or so.

	SALES £PER FLAT
BEDS	PRIME	SECONDARY
1	350,000	250,000
2	450,000	350,000
3	600,000	450,000

For further information about the above please contact the following:

Development	Donald Walsh	donaldw@kalmars.com
Development	Vince Cheung	vincec@kalmars.com
Larger Offices	Adrian Gurney	adriang@kalmars.com
Offices	James Bardolph	jamesb@kalmars.com
Industrial	Vince Cheung	vincec@kalmars.com
Retail	Wez Mansfield	wezm@kalmars.com
Residential Manager	Mick Down	mickd@kalmars.com
Residential Sales/Lettings	Ben Power	benp@kalmars.com

These details are believed to be correct, but we cannot accept any liability whatsoever for any misrepresentation made either in these particulars or orally. All interested parties are therefore advised to make their own enquiries to check these particulars prior to placing any financial or other reliance on this information.