Commercial property investment soars in Yorkshire
COMMERCIAL property investment activity levels across Yorkshire soared to more than £255m in the first quarter of 2011, according to research.
The latest UK Investment Transactions (UKIT) Q1 2011 by national commercial property firm Lambert Smith Hampton (LSH) found that £255.53m of transactions were recorded over the period up by more than 600% from the final quarter of 2010, but a fall of 17% on the first quarter of 2010.
Graham Foxton, surveyor within LSH’s Yorkshire agency team, said: “The Q1 figures for the Yorkshire region were boosted by transactions, indicating that institutional confidence remains high for the right product across all sectors.”
Boosted by Moorfield Group’s £48m purchase of West Riding House in Leeds, activity also included Gazeley Properties’ acquisition of a Westmoor Park in Doncaster for £37.5m, and Threadneedle Property’s purchase of Foss Island Retail Park in York for £26.25m.
UK Institutions accounted for 38% of activity, while overseas Investors committed £121m; a 48% market share in the first quarter of the year.
The research found that industrial sector investments remained buoyant, accounting for 33% of activity. However, the retail and leisure sector remained the main focus across the region, accounting for 39% of total activity.
Mr Foxton said: “The appetite for the retail sector has remained strong for well located properties, both in and out of town.
Investors are seizing opportunities to add value and seek potential for rental growth in a sector which has out performed others in terms of occupational demand.”
Meanwhile, according to a professional research report by Knight Frank, Sheffield’s office market made a ‘solid start’ to the year, with take-up in the first quarter exceeding the 2010 quarterly average.
The property consultancy’s Regional Office Market Presentation research (ROMP) reveals that total office take-up was 68,104 sq ft for the first quarter of 2011 – a 51% improvement on the last quarter of 2010.
Sheffield was also one of only three UK regional markets where first quarter take-up exceeded last year’s quarterly average, increasing by 6%.
Ventana House accounted for almost half of Sheffield’s quarter one take-up alone. BSkyB has acquired 23,577 sq ft at the Sheaf Valley development, while the Coal Board Pension Trust and Michael Page took 5,773 sq ft and 2,932 sq ft at the building respectively.
Based on the ROMP findings, commercial property expert Knight Frank is now predicting an even stronger level of take-up in quarter two of this year.
Tim Bottrill, partner at the Knight Frank’s Sheffield office, said: “This is a solid start for 2011. Despite ongoing pressure on the public sector, 2011 is shaping up to see stronger take-up than 2010.”
Notable deals currently in the pipeline include key buildings such as Aspect Court offering 38,000 sq ft in the city centre and Carbrook House, with 35,000 sq ft out-of-town space.
Activity was quieter for the out-of-town market in the first quarter, accounting for less than a quarter of the period’s take-up compared with nearly half the total in 2010.
Wassenburg’s 8,000 sq ft acquisition at Smithy Wood Business Park was the largest out-of-town transaction in the quarter.
