NB Real Estate - Q3 2008 Review

Take-up

- In Q3 08 take-up increased by 30% to 338,000 sq ft, up from 259,000 sq ft in Q2 08. Twelve months earlier in Q3 07 take-up amounted to 530,000 sq ft.
- In the year to September 08 rolling 12 month take-up decreased to 1.4m sq ft, down from 1.6m sq ft in the year to June 08.

Take-up

Supply

Rental profile

Investment markets

Supply

- In Q3 08 availability decreased slightly by 3% to 2.3m sq ft, up from 2.4m sq ft in Q2 08.
- In the last 12 months availability has increased by 24% from 1.9m sq ft available in Q3 07.
- The vacancy rate has decreased to 6.4%, down from 6.7% in Q2 08.

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

21 Tudor Street, EC4Y
Henderson Global Investors sold their leasehold interest to Lanebridge Property Fund for £65m reflecting a net initial yield of 6%. The leasehold interest has 117 years remaining and is subject to a 10% ground rent. The 97,250 sq ft property is let to Jones Day LLP for a further 16.5 years at a rent equating to £49.50 per sq ft.

5 New Street Square, EC4A
The law firm Stewarts and The Carbon Trust have each acquired a floor in 5 New Street Square of approximately 23,300 sq ft. Stewarts have taken an assignment from Howrey LLP for a term to expire in August 2018. The Carbon Trust have taken a new lease from Land Securities at a confidential rent. The quoting rent was £63.50.

90 Long Acre, WC2E
Arch Advisors (UK) Ltd has acquired 12,466 sq ft from Witkoff on a ten year lease at a rent equating to £70.00 per sq ft. The lease incorporates a break at the sixth anniversary of the term and a five month rent free period was granted.