Record office rent agreed to support firm’s growth
Legal and professional services business, Knights, is investing in a new office in the centre of York to support the group’s plans to significantly increase its presence in the city.
Having recently opened its York office at 5 Museum Street, Knights will relocate to Hudson Quarter, a modern, open-plan workspace opposite York Railway Station.
Listed real estate investment trust, Palace Capital, has said its completion of the pre-let agreement with Knights sets a record office rent in York city.
And it marks the first commercial agreement at Hudson Quarter, which is due to complete in the first quarter of 2021 and where 30% of the residential units are already sold or under offer.
The Knights move is expected to take place in spring 2021.
Knights will occupy 4,588 sq ft of ground floor office space on a 10-year lease at £12.50 per sq ft for the first two years, after which point the rent will rise to £25 per sq ft, marking a record office rent for the city of York, with an upward only rent review at five years.
Until the completion of Hudson Quarter, Palace is accommodating Knights at its newly refurbished office space at Museum Street where they have taken occupation of 3,100 sq ft and where it has signed a two-year lease, also at £25 per sq ft, with a break option after one year.
Hudson Quarter, which is located within the walls of the City of York, will eventually comprise four separate buildings. A total of 127 apartments will be delivered in three of the blocks, which will be named Victoria, Waverley and Kings, in a nod to York’s railway heritage.
The offices being let to Knights comprises all of the commercial space available in the Victoria building.
Waverley and Kings will be entirely residential, while the fourth building, to be known as “HQ”, will provide a further 35,000 sq ft of grade A office space.
Neil Sinclair chief executive of Palace Capital, said: “To have completed our first commercial pre-let a full year ahead of Hudson Quarter’s completion and at the same time setting a new rental tone for York is very pleasing.
“Moreover, our ability to secure this lease while accommodating Knights at our other asset in the city of York in the interim is testimony to our asset management skills and ability to manage occupier needs across our portfolio.
“This is the first time in more than 10 years that new, grade A speculative office space is being offered into the York market, where supply is very tight alongside growing demand, and we are seeing strong appetite for the remainder of the office space we have on offer.”
Jonathan Moore, Partner at Knights, said: “We recently launched our York operations with great growth ambitions, supported by a strong and experienced team.
“Today’s update provides us with a great runway for growth in the region, as we continue to make positive steps to build the leading legal and professional services business outside London.
“The space at Hudson Quarter is an ideal location to expand our employee base in York, through the recruitment of high calibre professionals who would like to be part of an ambitious business and are attracted to our unique culture and risk-free corporate model.”
