Property Focus: The Weekly Interview
Paul Fairhurst is head of Savills’ commercial department in Leeds, as well as being director and head of its business space team.
Savills in Leeds offers investment, retail, office agency, building consultancy, management, planning and residential advice.
Significant leasing acquisitions have taken place on behalf of some of the leading occupiers in the city including Ernst & Young, Bentley Jennison, solicitors DWF and DLA Piper.
Major instructions around the region include The Mint in Holbeck Village (115,000 sq ft), Tower Works for ISIS (200,000 sq ft offices), Criterion Place with Simons and Dandara, and Calder Park office park on behalf of Peel.
Fairhurst has more than 17 years experience in the Yorkshire property market.
1. What are your views of the current state of the commercial property and property development markets?
“You turn on the TV and all it sounds like is horrendous. The residential market seems to be weaker and that has a knock on effect for the market in terms of confidence. Those that have cash are still in the market but those borrowing money are struggling more.
“On the occupancy side it’s healthy which is encouraging. The first quarter on the office occupancy side I think last year was around 145,000 sq ft (in Leeds), this year it was around 133,000 sq ft.
“It only takes one or two big deals for all to be back where it normally is. But the development and investment side have been hit the hardest.”
2. What key challenges and pieces of legislation do you think will most affect your sector over the coming months?
“Sustainability and green issues. I sat in meetings 12 months ago advising and for developers it was the last thing on their list. Now it’s risen sharply in the space of 12 months and people are putting it at the top of their list.
“But still I think when it comes down to pounds, shillings and pence and location the issue is more down the list.”
3. Why do you think Yorkshire is a good place to do business?
“It’s such a diverse economic place. We’ve got universities, healthcare and telecoms. You’ve got a diverse and broad bed of occupiers which helps in these ‘hard times’ and it’s fundamentally healthy.
“We’re not seeing the same peaks and troughs we’re seeing in other parts of the country. And the region is right in the middle of the country in a great motorway and train network.”
4. Which is your favourite building/development in Yorkshire and why?
“I really like the Holbeck Urban Village and the Round Foundry and in some previous life I got involved with helping to create the development and thinking of what happened next at the location and then St James Securities and CTP came to sit around the table with the likes of Roland Stross.
“He was convinced it would work and created a vibrant, earthy development. There’s great demand in that location and a degree of luck. Bridgewater Place has helped drag some of the city centre down to the Holbeck area with it.”
5. If you could improve anything in the region, what would it be?
“An airport close to Leeds would be one thing but I can’t do much about that! In terms of decision making and making life easier and quicker in the region it would be nice to have a focal point or person who you could air your views with and make things focussed. Manchester has Sir Howard Bernstein.
“There’s no real character who people relate to and say if you’ve got a problem approach so-and-so to talk it over.”
6. What barriers have you had to overcome during your career and how have you overcome them?
“The only one I’ve really had in the market has been trying to get your share of the Yorkshire market. I have friends in the industry in London who are operating in a market with 5m to 6m sq ft of commercial space whereas in the Yorkshire market there’s a rush for 500,000 to 600,000 sq ft in a year.”
7. What was your first job and how did you enter your current line of work?
“I went to see the careers adviser at school and I saw a leaflet for the Land Agency and I thought ‘that looks fun’. My father was a surveyor so I thought I’m never going to do that.
“I did a year’s farming experience and that was a fantastic experience. I went to the Royal Agricultural College in Cirencester and studied estate management.
“When I finished I went to work in the Valuation Office in Harrogate. But it was a lucky escape as I was supposed to be going to Teesside! Following that I worked at Knight Frank for 15 to 16 years and then moved on to Savills.”
8. What do you most enjoy about your job?
“I enjoy the thrill of doing the deal and and buying sites and buildings and advising clients on sales for their developments. The camaraderie of the Leeds property community is also good. Everyone knows each other and all get along and we all have a bit of fun doing it.”
9. What is the best piece of advice you’ve ever been given?
“Don’t e-mail messages when you can do things face to face.”
10. And the worst?
“Don’t go back to the office after a long lunch.”
