NB Real Estate - Q4 2009 Review

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Take-up

Supply

Rental profile

Investment markets

Take-up

In Q4 take-up increased by 5% to 413,000 sq ft, up from 392,000 sq ft in Q3. Twelve months earlier in Q4 2008 take-up amounted to 441,000 sq ft.

In the year to December 2009 rolling 12 month take-up decreased slightly to 1.35 million sq ft, down from 1.38 million sq ft in the year to September.

Supply

In Q4 availability remained the same as in Q3 at 3.9 million sq ft. In Q2 it was 4.1 million sq ft.

In the last 12 months availability has increased by 30% up from 3.0 million sq ft available in Q4 2008.

271-277 High Holborn, WC1V
The University of the Arts has taken 71,000 sq ft of basement to ninth floor office space from a private Irish Investor. The terms remain confidential, however, the agreed rent is thought to be considerably less than £49.50 per sq ft which was quoted on best.

2 Arundel Street, WC2R
British American Tobacco plc Pension Scheme has taken 26,000 sq ft of office space at £19.50 per sq ft.

Chancery Exchange, 10 Furnival Street, EC4A
Schroder Exempt PUT has sold its freehold interest to an overseas purchaser for £38 million reflecting an initial yield of 6.75%. The property comprises 81,513 sq ft and is multi-let with the lease expiries between 2011-2019 at a rent equating to £33.72 per sq ft overall.