NB Real Estate - Q3 2008 Review

Take-up

- In Q3 08 take-up increased by 36% to 1.3m sq ft, up from 939,000 sq ft in Q2 08. Twelve months earlier in Q3 07 take-up was 1.6m sq ft.
- In the year to September 08 the rolling 12 month take-up decreased to 4.7m sq ft, down from 5m sq ft in the year to June 08.

Take-up

Supply

Rental profile

Investment markets

Supply

- In Q3 08 availability decreased by 5% to 7.8m sq ft from 8.2m sq ft in Q2 08.
Over the last 12 months availability has increased by 46% from 5.4m sq ft available in Q3 07.
- This quarter the vacancy rate has decreased slightly to 9.8% from 10.2% in Q2 08.

click here for graphs showing grade, size, rental profile and investment market

20 Gresham Street, EC2V
Standard Bank have leased 127,000 sq ft from Hermes on the ground to part fourth floors. The terms of the deal remain confidential but it is thought that the bank paid £57.50 per sq ft on the bulk of the space and received 27 months rent free on a lease term of 16 years.

Moorhouse, 120 London Wall, EC2Y
Hammerson Plc and Pearl Assurance sold their interests to Deka Immobilien for £230m reflecting an initial yield of 6.4%. The property was completed in 2004 and comprises 305,000 sq ft of offices and 20,000 sq ft of retail and is multi-let to tenants including Macquarie Bank, Citadel and HVB.

107 Cheapside, EC2V
US law firm Orrick Herrington & Sutcliffe has taken a pre-let of 82,200 sq ft over the fifth to ninth floors with an option of taking an extra 19,716 sq ft on the fourth floor. It plans to sublease up to 20,000 sq ft. It is understood that a 12 year lease was granted at £52.50 per sq ft with 30 months rent free.