MARKET COMMENTARY

OCTOBER 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

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

Rents in SE1 range from £20 per sq ft for economical offices to £30 per sq ft for offices fitted to a high specification. Prices are currently ranging from £250 per sq ft - £400 per sq ft.

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 takeway 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 takeway 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 takeway 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 takeway 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 takeway 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 takeway 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 takeway 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 takeway 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 takeway 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 takeway 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 takeway 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

Contacts

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
Residential Sales/Lettings Andrew Jackson andrewj@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.


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