M25 The Report 2018 - Thames Valley UK
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The M25 Report 2018
2 | KNIGHT FRANK: M25 Report 2018 KNIGHT FRANK: M25 Report 2018 |3
Foreword Emma Goodford
Head of National Offices
emma.goodford@knightfrank.com
Structural change is upon us. It is challenging the dynamic of the M25
market. It requires a new approach to investment and development that
utilises new wave technologies to offer service, flexibility and vibrancy
through real estate.
A new reality is emerging in the M25 smaller, flexible requirements, and often
market. Since we started specifically demanding a serviced approach. In 2016
researching the market 30 years ago, just 2% of take-up was from serviced
we’ve seen cycles- the early 90’s crash, operators- this rose to 12% in 2017.
the dot.com bubble of 2001, quickly Some M25 centres are now attracting
followed by 9/11, the Global financial providers outside the ‘traditional’
crash of 2007. After each, we saw the operators. This take-up is in response
market dynamic recover to a similar to the new demand dynamic.
DEFINITIONS pattern of supply and demand, some
The quality of the workplace is also
markets quickly back to equilibrium,
affected by age- and with stock in the
TAKE-UP others taking longer.
M25 centres now showing signs of
Take-up figures refer to space let, Several themes are driving a change obsolescence caused by age, there is a
pre-let, or acquired for occupation within to the historic cycles. The dominance case for selective new development. We
schemes exceeding 10,000 sq ft
of London as a source of labour, the have seen the recent completion of the
imminent arrival of the Elizabeth Line, speculative development wave, which
SUPPLY and most significantly technology, the started in 2016. From mid 2018 supply
Office space that is immediately available and demand for offices space to be seen as will peak and then reduce.
being marketed in properties over 10,000 sq ft a service, not just as bricks and mortar
So while we may believe the uncertainty
and for workspaces to be vibrant and
surrounding Brexit has been the biggest
PRIME RENTS exciting- talent magnets. The old cycles
impact on the market; by stealth, the
Rents stated are prime headline rents are over and a new structure has begun
impact of technology, the demands
for units over 10,000 sq ft, let to a top to emerge.
quality tenant for a 10 year plus term placed on the office workplace to be
With its proximity to London, the M25 service centered and dynamic, and the
LEASE EVENTS
and Thames Valley region is well placed need for flexibility have been impacting,
to respond to this new structural reality accelerating the changing face of
Known lease breaks and expiries in
and those landlords with assets which occupier take up. Imperative to this is an
the four year period (2018-2021) in
schemes in excess of 10,000 sq ft address the demands of the forward understanding of demand, how investors
thinking occupier will be the winners. will respond, and what’s coming in
Key centres with the best connections the pipeline.
DEVELOPMENT PIPELINE (MARKET PAGES)
stand out- Reading, Maidenhead,
A combined total of schemes that are Structural change is upon us. Ultimately,
Watford and Woking. Many might think
either under construction, proposed and it will play-out in different ways across
this means only town centres will thrive-
expected to start within 24 months, and different markets. In an area as diverse
those with potential to start within five years think again. As overarching ownerships
as the M25 it is vital to have a detailed
in business parks allow for the curation
and granular understanding of current
of services that are bespoke to a group
PRIME RENTS FORECAST market conditions and future dynamics.
Our forecast for prime headline rental levels The old cycles are over and a new of customers whose data informs the
landlord what’s needed, and what’s not,
Consequently, this year’s report
at Q1 2021 in units over 10,000 sq ft let to provides you with detailed analysis of
a top quality tenant for a 10 year term structure has begun to emerge. those edge of town schemes can provide
exciting alternative choice.
18 key markets across the M25. Each
submarket page provides the insights
CAGR Over the last 24 months the market and data necessary to guide your next
Compound Annual Growth Rate dynamic has shifted to one focussed on market move.
4 | KNIGHT FRANK: M25 Report 2018 KNIGHT FRANK: M25 Report 2018 |5
Milton Park,
Oxford
The Brinell Building,
Contents
Brighton
White City Place,
2-3
London
Foreword
The old cycles are over and a
new structure has begun to emerge
6-7
Mapping the future market
Which aspects of change will have the
greatest impact on the demand and supply
dynamic over the next five years?
8-9
Blackwater Valley
Bracknell
10-11 Breakspear Park,
Hemel Hempstead 20-21
Brighton Investing in the future
Cambridge
The M25 market continues to attract a
diverse range of capital, but how can
investors future-proof performance?
22-23
12-13 Reading
Crawley / Gatwick Slough
Croydon
The Foundry,
Hammersmith
The Porter Building, 24-25
Slough
Staines-upon-Thames
Catherdral Square,
14-15 Uxbridge
Guildford Guildford
Heathrow
26-27
Watford
West London
16-17
Maidenhead The Bower,
Stockley Park, Heathrow 28-29
Oxford Wimbledon
Woking
18-19 30
Chiswick Park, Leavesden Park,
Chiswick The development landscape Watford Knight Frank contacts
6 | KNIGHT FRANK: M25 Report 2018 KNIGHT FRANK: M25 Report 2018 |7
Mapping
will intensify as new wave technologies In this sense, traditional landlords
such as artificial intelligence, virtual must recognise the threat and nullify it
reality, augmented reality, robotics through, at the very least, the adoption
and automation take greater hold. of its key features. Landlords must adapt
the future
The occupational market will therefore to a new supply side dynamic, with
FUTURE
continue to see demand arising out innovation moving beyond the design
of disruption. of the built product and towards soft-
services, community and well-being.
market GAZING
The application of new wave technologies
also has a positive impact on supply. 3. PLACE ACTIVATION – ACTIVE
The use of sensors, mobile telephony and MANAGEMENT TO CREATE
monitoring hardware and software – VIBRANCY AND BUZZ
the raw materials of the so called ‘Internet
of Things’- will allow the emergence of This drive towards highly serviced
environments that create a physical and Landlords must adapt, with innovation FIVE FUTURE FORCES OF CHANGE
smart buildings within the M25 market.
This technology, or more accurately emotional connection is something that moving beyond the design of the built Reshaping skills Adapting to a new social Rethinking
The conventions of market supply and demand the data emerging from it, enables more landlords must pay growing attention
environment and towards soft-services, & education & demographic reality space & place
effective and pro-active workplace and to. Occupiers want to attract and
are under attack. An effective understanding of, retain talented staff. They will locate in community and well-being. Corporate Technological
asset management. It also creates
and response to, the emerging market dynamic much needed evidence to support the buildings and locations that support re-engineering disruption
them in this task. They are seeking what
is essential for the future competitiveness business case for a prospective occupiers
I have referred to previously as talent
real estate move – cases that are now
and performance of the M25 and South East typically focused on metrics relating to magnets; locations that have a buzz,
vibrancy and cohesion. SUPPLY DEMAND
office market. increased productivity, staff retention,
space utilisation and total real estate WHAT TO DELIVER? WHO WILL OCCUPY AND WHY?
spend or savings. Used correctly, data
will shape future built products or
reconfigure existing stock to better meet
occupier needs. OVER THE NEXT
2. SPACE AS A SERVICE – GOING
For landlords the market 5 YEARS
Corporate
Tenure / use Family space
DE
BEYOND THE PHYSICAL PRODUCT dynamic demands change. AC
E class flexibility & attractions Science in
the city
universities
M
AN
Dynamic (Adj.) The use of data derived from within office PL Innovation &
space to influence future product design
As the saying goes ‘old ways experience centres
IC
D
Smart construction Immersive
M
i.(of a process or system)
won’t open new doors’.
DY
smart living Networking &
has been central to WeWork’s meteoric Healthcare
NA
learning
learning events
NA
characterised by constant change, Data firms
rise across the globe. It is just one way
DY
City of
MI
activity, or progress Artificial
in which the emerging flexi, co-working neighbourhoods Cohesion OVER THE NEXT
C
intelligence Maker
ii.(of a person) phenomenon – which is not of course 2 YEARS cities
positive in attitude and full of Community Data Intrapreneurship
limited to WeWork - should be influencing Civic partnerships security
energy and new ideas An environment
more traditional supply side players. Key laboratories for all ages Fintech
Dr Lee Elliott
amongst these influences is the necessary Landlords must invest more time (and yes Advanced Virtual reality
Partner, Global Head of The new dynamic emerging within transition from viewing real estate simply money) in activating their schemes and
20 minute Transport Centres of knowledge robotics
the M25 office is challenging both our neighbourhoods vs centres of energy
Occupier Research as a physical product and towards the buildings. This encompasses the creation New models of Digital
production
thinking about the source and needs concept of ‘space as a service’. of a brand identity which supports the Virtual
education provision disruption
New wave Rainmaker
of future occupiers and about how we, Community
marketing of a scheme to occupiers and city / estate app Built in as family technology launch pads
in the property industry, can create in Co-working and flexi providers – to date flexibility Sector
employees. The best practice example Business
the second sense of the definition, more relatively limited within the M25 market – Place convergence
of this remains, almost twenty years process
dynamic places and workplaces. Knight place tremendous emphasis on providing activation outsourcing
Team of teams
since its inception, Chiswick Park. The Crowd sourced
Frank have sought to define, through our real estate and associated services that public services Talent
‘Enjoy Work’ brand has proven to be magnets SOUTH EAST
Future Gazing mind-map (opposite), this support the creation of a highly connected, OFFICE
Rise of
a marketing masterstroke in raising freelancing Headcount
emerging market dynamic. collaborative community housed within Active communal
MARKET
Elephants
light / tech heavy
profile and challenging preconceptions space & fleas
a modern, curated and highly serviced Infrastructure
The map outlines aspects of change of the location. Yet as Chiswick Park
environment. The strength of connection Gig
that could alter the demand and supply also ably shows, place activation is Amenity
and satisfaction that the ‘customer’ (note rich
Co-working economy Engagement Info-
dynamic over the next five years. about much more than a catchy slogan. A new centre for toxicated Automation
the language) has with the space will be Digital and VR arts & events
with space /
We must be mindful of these issues when It is about creating events, educational broadcasting hub place
key as co-working providers increasingly
making occupational or investment programmes, temporary installations, Activity based Productivity
seek to compete for occupiers of scale Artisan and 3rd spaces
decisions. It is how such decisions can be site specific apps and even concierge working Dis-aggregation:
through their emerging enterprise model. community markets From talent
Grey hair,
erosion of space
future-proofed and de-risked. Amongst staff to consistently and continually Leisure heavy grey matter
Space as shortage to advantage
the many themes, there are three which bring substance to the brand. To date, places talent alignment
a service
present the strongest challenge to many traditional landlords have baulked Virtual galleries Multi-generational
landlords within the M25 market and at such active asset management, but Corporate workforces
Retail back to the future: incubators Wellness From hot desk
hence are worthy of further elaboration. in a world where staff retention is the digital high streets to thin desk
WO
key to retaining occupiers and avoiding Open / secure
Platform Information
employment elites
RK
1. NEW WAVE TECHNOLOGY – expensive voids it is becoming an corporate space
IC
Landlords must adapt to a Work / life
PL
essential part of the investment process.
M
DISRUPTOR OR ENABLER? Bringing out of town
balance
NA
From jobs
AC
retail in town Walkability
The South East office market is no new supply side dynamic, with A new dynamic is emerging in the M25
Mottainai to tasks
DY
E
YN space
AL
D
stranger to occupational demand from market. Several of the key centres are
the technology sector. In fact, the tech
innovation moving beyond well placed to address the opportunities
AM Office as an off- The sandwich CI
SO
IC grid sanctuary generation
Living longer,
sector has accounted for, on average, the design of the built product this dynamic represents. Traditional Concept /
experience stores
working longer
23% of annual office take-up over the market orthodoxies are being challenged
last five years and has absorbed some and towards the provision of by occupier activity and demands.
3.8 million sq ft during that period.
Similarly, occupiers drawn from other
soft-services, community and New market entrants will be ushered
in. More importantly it will create new
sectors have been transformed by well-being. opportunities for those investors and
the application of new technology to developers bold enough to recognise that,
business processes, often fuelling new as the saying goes, ‘old ways won’t open
property requirements. This pressure new doors’.
8 | KNIGHT FRANK: M25 Report 2018 KNIGHT FRANK: M25 Report 2018 |9
Blackwater Valley Bracknell
Home to household names in the tech and pharmaceutical sectors,
A market driven by business parks and home to an increasingly the market has undergone regeneration but presents little upcoming
diverse pool of occupiers of international repute. office development.
BUSINESS PARK DOMINANCE OCCUPIER DIVERSITY REDUCED SUPPLY A TOWN IN TRANSFORMATION TECH TENANTS NEW SUPPLY SOON?
Blackwater Valley incorporates Aldershot, Although demand has proved relatively On the supply side, office stock in the area has Equidistant between the M3 and M4, 2017 was Bracknell is located at the heart of the UK’s answer Overall market availability dipped to just over
Farnborough, Fleet, Frimley and Camberley. diverse over time, the area has a strong historic seen a reduction of close to 10% in recent years, a pivotal year for Bracknell. A significant part to ‘Silicon Valley’ meaning the technology sector 400,000 sq ft at the end of 2017. Currently, there is
Supported by ease of access to the M3 and just a connection to the aerospace industry and as conversion to residential use has gained favour of the town centre’s extensive regeneration was has provided a basis for market growth. Over the no active development underway. Within the next
short hop to central London, an out-of-town office technology occupiers. The TMT sector, for through Permitted Development and market 726,000 SQ FT 626,500 SQ FT completed in September, bringing a much needed past decade, demand derived from technology five years, 252,600 sq ft across three substantial
market has developed within this region. The example, accounts for 18% of take-up over the past conditions rendered new speculative starts a high quality amenity offer to the town. firms has accounted for 38% of office take-up, schemes are in the pipeline.
Blackwater Valley accounts for 18% of total office 15 years, with firms such as IBM, Siemens, and bold call. Office space lost to Office space lost to with around 70% of that satisfied within one of
Permitted Development Centre stage of the work is the Lexicon, an With annual headline rents in the mid-twenties,
stock in the M3. Partly due to the limited appeal CSC all having established headquarters within Permitted Development Bracknell’s business parks. Resident firms now
This has meant that availability has shrunk investment of £240 million which created 580,000 it is impossible to justify speculative development.
of the town centres in this area, market activity is the Blackwater Valley. include Vodafone (formerly Cable and Wireless),
markedly, dipping to 396,700 sq ft at the end of sq ft of space. Its completion has established a retail Our forecast rent of £29.50 per sq ft by 2021
dominated by 10 business parks. Panasonic, Dell, Hitachi and Fujitsu.
Farnborough is also the home to the national 2017. Nonetheless, the Blackwater Valley still offer of 70 new shops, high quality restaurants and barely supports viability for the quality of space
Notably, Farnborough accounts for half of the headquarters of the UK’s largest aerospace accounted for 17% of available stock within the a 12 screen cinema. The skew towards the business park product in occupiers demand.
business park presence and whilst historically, company BAE Systems, Boeing’s state-of-the-art M3 region at year-end. Future development Bracknell has attracted the pharmaceutical and
The transformation of the town has been inclusive
occupier demand has been spread across the network-enabled centre for collaboration and in the area is limited and is dominated by research sectors. Leading industry firms such as
of the conversion of office space to residential
region, Farnborough has most recently been the experimentation and QinetiQ’s Cody Technology refurbishments. Boehringer Ingelheim, Syngenta and Johnson &
use. Close to 630,000 sq ft of office space has been
centre of activity. The town accounts for two thirds Park. Global brands such as BMW, Time Inc, and Johnson all have a presence.
of occupier take-up within the Blackwater Valley Fluor have also secured a significant presence in
The first phase of Canmoor’s Ascent scheme at 8.6* subject to residential planning, a number that has
over the past five years. the area in recent years. In fact, BMW’s acquisition
Farnborough Aerospace Centre has completed, House price to 6.2 now led Bracknell Forest Council to invoke Article
with the balance to follow over the next 12 months. 4, constraining further conversion.
of the Nokia Campus in 2013 represents the second income ratio House price to
Once complete, this will have delivered c.135,000
largest occupier acquisition in the South East since income ratio
sq ft of Grade A space to the market.
our records began.
TAKE-UP SUPPLY PRIME RENT TAKE-UP SUPPLY PRIME RENT
118,600 396,700 £27.00 211,900 426,200 £24.00
366* OF 4,300+
sq ft sq ft per sq ft GB retail destination
sq ft sq ft per sq ft
429 OF 4,300+
REVIEW OF 2017
ranking (CACI)
REVIEW OF 2017
34% below the 2.2 years 7% CAGR GB retail destination 40% above the 2.8 years 4% CAGR
10 year average market supply (5 years) ranking (CACI) 10 year average market supply (5 years)
A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
41 MINUTES
1,459,600 135,000 £29.00 780,300 252,600 £29.50
To central London
sq ft sq ft sq ft sq ft
60 MINUTES
PROJECTIONS
To central London
PROJECTIONS
Space subject to a Development pipeline Prime rent per Space subject to a Development pipeline Prime rent per
lease event 2018-2021 (5 years) sq ft by 2021 lease event 2018-2021 (5 years) sq ft by 2021
£110M
Redevelopment of
A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
‘The Square’ shopping
centre in Camberley £240M
A_ Blackwater Valley D_ Cambridge G_ Guildford J_ Oxford M_ Staines-upon- P_ West London A_ Blackwater Valley D_ Cambridge G_ Guildford J_ Oxford M_ Staines-upon- P_ West London
Thames The Lexicon opened Thames
B_ Bracknell E_ Crawley / Gatwick H_ Haeathrow K_ Reading Q_ Wimbledon B_ Bracknell E_ Crawley / Gatwick H_ Heathrow K_ Reading Q_ Wimbledon
N_ Uxbridge
in 2017 N_ Uxbridge
C_ Brighton F_ Croydon I_ Maidenhead L_ Slough R_ Woking C_ Brighton F_ Croydon I_ Maidenhead L_ Slough R_ Woking
O_ Watford O_ Watford
KNIGHT FRANK VIEW KNIGHT FRANK VIEW
The statistics speak for themselves – there We live in a digital age where cyber security is 235 Key lease events combined with the arrival
is a critical mass of blue chip companies becoming ever more important and could lead Aerospace companies of the Lexicon supported a strong year for
closely linked to the aerospace, defence and to increased occupier demand as new contracts in Hampshire £768M market activity in 2017. An unusual spike.
technology industries clustered around are awarded – the Blackwater Valley is well 2018 is anticipated to revert to the historical
Regeneration of Bracknell
Farnborough. Will it continue to lead the way placed to take advantage of this potential trend. take-up trends.
for Blackwater Valley in terms of investor and
Forest Borough
In addition, engineering firm Fluor, Attracted by low rental values, occupiers
occupier activity?
who seem to be constantly expanding at accept the lack of the Elizabeth Line and
More than likely, given the continued letting Farnborough Business Park or the Aerospace fast train connections to London – both key
success of Farnborough Business Park over Centre, are also driving take-up levels. On French emperor Napoleon to the success of Reading and Slough. The
recent years (recently acquired by Frasers the flipside, some more marginal locations
Jack Riley III is entombed in the crypt new town centre is creating important place
Andy Nixon
in one of the largest South East investment seem to be struggling - Ancells Business jack.riley@knightfrank.com at Saint Michael’s Abbey, activation and improving demographics, andy.nixon@knightfrank.com
transactions in 2017) and because of the critical Park, for one - and there is much talk about Farnborough Bracknell Forest Council both key to the employer decision-making
lack of Grade A office supply other than the Novartis moving part of its operations to *REPRESENTATIVE OF was named Council of the process. Bracknell, however, will remain the
pipeline at Farnborough Aerospace Centre. West London, which would be a blow. FARNBOROUGH Year 2018 centre for ‘good value’ offices.
10 | KNIGHT FRANK: M25 Report 2018 KNIGHT FRANK: M25 Report 2018 | 11
Brighton Cambridge
The development of life sciences and technology clusters of global
standing underpins strong real estate market performance with new
A highly qualified and creative population is driving high levels of rental benchmarks being set, but the affordability of housing could
business start-ups which complement established big buisnesses. serve as a brake on growth.
GROWING IN REPUTATION 5G TESTBED SUB 4% VACANCY GROWTH VS. COHESION GROWTH IN LIFE SCIENCES FURTHER RENTAL GROWTH
Strategically located just an hour from central The creative sector in Brighton is at the forefront Brighton has 4.6 million sq ft of office Cambridge has developed based upon its long- Emerging government policy frameworks look set From a real estate standpoint, the ongoing
London and less than half an hour from London of its growth, with a plethora of digital advertising accommodation, predominantly located in the standing academic infrastructure, creating an to bring additional focus to Cambridge. The UK imbalance between Grade A supply and occupier
Gatwick Airport, Brighton ‘the business centre’ is and marketing agencies, design and gaming city centre, close to transport hubs and links to appealing commercial and residential centre Industrial Strategy, launched by the government demand has served to fuel greater competition
growing in reputation. Brighton is internationally studios. The digital tech spectrum is widening, London. Over the past five years, development
529,100 SQ FT 146,000 SQ FT of national and global standing. The city’s at the end of 2017, is underpinned by four key between occupiers for the very best space. This has,
renowned, not just for its tourist industry and supported by talent from two universities. activity has been very limited, which, combined highly qualified, highly skilled workforce has business sectors, one of which is life sciences. in turn, fuelled rental growth in the market with
trendy culture, but also big business, with with an upturn in demand, has meant vacancy Office space lost to Office space lost to underpinned the rapid growth of both life sciences This has a strong affinity with Cambridge – as prime rents standing at £38.00 per sq ft in the city
Following the approval of £1.2 million investment Permitted Development
American Express, BUPA and Legal & General all has fallen to below 4%. Permitted Development and technology clusters, which, in turn, have exemplified by AstraZeneca’s relocation of its R&D centre and set to rise to £42.50+ by mid 2018.
from the Government’s Local Growth Fund,
having established operational centres in the city. ensured that new office and laboratory space has facilities from Cheshire to the city.
Wired Sussex and the University of Brighton are CityView in the New England Quarter, completed In the absence of a significant development
Brighton also has a strong student foundation, with been regularly absorbed.
conducting a three year programme of 5G-related in 2016, delivered 32,000 sq ft and represented The policy focus will inevitably serve to pave the pipeline over the medium term, we anticipate
two top universities in Brighton and Sussex.
engagement. This is the UK’s first non-university the first major speculative completion since The key challenge for Cambridge is to ensure that way for further investment into Cambridge from further rental growth over the next 12-18 months,
Notably, Brighton also has one of the highest 5G testbed. Impressively, according to the 2017 2009. Developer McAleer & Rushe have now its growth does not negatively impact upon its venture capital funds and occupiers alike. particularly in the core market.
business start-up rates in the UK, ranked eighth in Tech Nation report, Brighton’s digital sector has commenced work on the 62,000 sq ft Brinell cohesion. There are growing concerns about both
the country by the Centre for Cities. grown by 29% since 2011. Building. Completion is expected in Q2 2019. the cost and range of housing available within the
city, with house prices now equivalent to those in
The U+I regeneration of Circus Street is the only 7.9 London. This could be a constraint on growth if
other office scheme underway. This will deliver 7.8 House price to not addressed.
33,000 sq ft of office space alongside residential and House price to income ratio
student housing. Again, completion is expected income ratio
in 2019.
TAKE-UP SUPPLY PRIME RENT TAKE-UP SUPPLY PRIME RENT
97,000 160,000 £31.00 460,000 660,000 £38.00
sq ft sq ft per sq ft 27 OF 4,300+ sq ft sq ft per sq ft
22 OF 4,300+ GB retail destination
REVIEW OF 2017
REVIEW OF 2017
GB retail destination ranking (CACI)
17% below the 1.4 years 9% CAGR ranking (CACI) 17% below the 1.2 years 5% CAGR
10 year average market supply (5 years) 10 year average market supply (5 years)
A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
53 MINUTES
679,400 352,100 £33.50 1,298,000 462,500 £44.00
sq ft sq ft 58 MINUTES To central London sq ft sq ft
To central London
PROJECTIONS
PROJECTIONS
Space subject to a Development pipeline Prime rent per Space subject to a Development pipeline Prime rent per
lease event 2018-2021 (5 years) sq ft by 2021 lease event 2018-2021 (5 years) sq ft by 2021
2018
A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R 39% A direct rail service A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
Population educated between Gatwick and
A_ Blackwater Valley D_ Cambridge G_ Guildford J_ Oxford M_ Staines-upon- P_ West London A_ Blackwater Valley D_ Cambridge G_ Guildford J_ Oxford M_ Staines-upon- P_ West London
to degree level Cambridge has opened
B_ Bracknell E_ Crawley / Gatwick H_ Heathrow K_ Reading Thames Q_ Wimbledon B_ Bracknell E_ Crawley / Gatwick H_ Heathrow K_ Reading Thames Q_ Wimbledon
C_ Brighton F_ Croydon I_ Maidenhead L_ Slough N_ Uxbridge R_ Woking C_ Brighton F_ Croydon I_ Maidenhead L_ Slough N_ Uxbridge R_ Woking
O_ Watford O_ Watford
KNIGHT FRANK VIEW KNIGHT FRANK VIEW
The development pipeline of offices in The Brinell Building is a good example One of the global hubs of innovation in the connectivity into London from the science
Brighton is naturally constrained by the sea as it will set record rents for the city and 12,600 3,000 life sciences and technology sectors and and business parks to the north of the city.
to the south and the South Downs to the help cater to the pent up demand in the recognised as part of the Golden Triangle
Digital sector jobs based Digital and science The global draw of Cambridge, its position
north. This concentrates an already tight occupational market. brand (alongside Oxford and London),
in Brighton businesses based in as one of the UK’s fastest growing cities,
office supply dynamic in a town where too Cambridge has suffered a similar fate to
Cambridge coupled with the current supply and demand
few sites can be identified. Oxford due to its constraining historic city
imbalance, will push headline rents to a
centre. This trend is starting to reverse
A cool culture, dynamic workforce, big record level of £42.50+ per sq ft in 2018 –
however with the redevelopment of the area
business and entrepreneurial start-ups, making Cambridge the first South Eastern
around the main railway station drawing
creates perfect conditions for rental growth. centre outside of central London to reach
Jack Riley large occupiers such as Microsoft and Will Buttery
Prime headline rents currently sit at around this benchmark. Proposals announced for
Amazon into the city centre.
£31.00 per sq ft, although as new quality stock jack.riley@knightfrank.com the CaMkOx corridor linking by road the 70 william.buttery@knightfrank.com
comes to the market we believe this will Brighton is home to The first official game of Ongoing investment in infrastructure, miles in an arc from Oxford would further
support further rental growth. Britain’s oldest cinema – football was played on notably the opening of Cambridge North reinforce the strength of the city.
The Duke of York Parker’s Piece in 1848 Station in May 2017, has resulted in greater
12 | KNIGHT FRANK: M25 Report 2018 KNIGHT FRANK: M25 Report 2018 | 13
Crawley / Gatwick Croydon
Transport benefits coupled with relative cost advantage over the rest A remarkable commercial and cultural rebirth, together with the cull
of the South East has fuelled large-scale occupier deals, whilst record of older office stock, is changing the market dynamic and attracting
headline rents and limited future supply will support investor interest. a growing roster of occupiers migrating out from central London.
NEW HEADLINE RENTS LIMITED FUTURE SUPPLY LARGE SCALE LEASING COMMERCIAL REBIRTH MARKET RIGHT-SIZING COST ADVANTAGE
There is something of a contradiction at work Although supply of existing office product is There is a notable demand dynamic at work The forthcoming Westfield / Croydon shopping Almost 3 million sq ft of poorer, tertiary office Cost consciousness is firmly on the corporate
within the Crawley / Gatwick market. Analysis considerable, it is worth noting that new office within the Crawley / Gatwick market that is in centre – with a projected delivery date of 2022- space has been removed from the Croydon agenda and much occupier interest in the Croydon
of available stock shows a current glut of office development is negligible. As well as reflecting stark contrast to much of the wider South East 23 – and to a lesser extent, the opening of the market since Permitted Development rights market is financially motivated. The differential in
supply, especially on Manor Royal. Simple developer / investor concern over current supply office market. Although not receiving the press- 591,000 SQ FT 2.9M SQ FT innovative and cool BoxPark – have captured most were introduced in 2013 - resulting in an Article 4 total occupational costs between Croydon (circa
economics would maintain that this excess supply levels, an insatiable demand for industrial / headlines typically afforded to the Thames Valley, of the business headlines. Yet Croydon’s wider directive in October 2015. Accordingly, Croydon’s £50.00 per sq ft) and central London (well in excess
will inevitably dampen rental growth prospects distribution property has led to the hoovering up the market has seen a greater volume of larger- Office space lost to Office space lost to commercial rebirth has been remarkable, if less core office market has been right-sized and of £100.00 per sq ft) is now so significant that there
for a time. of most spare land within the Crawley / Gatwick scale office / R&D deals than anywhere else in the Permitted Development Permitted Development remarked upon, the exception being the 2016 tightened considerably. This has served to drive is a genuine story of out-migration to the Croydon
market at extraordinary price levels. South East, with perhaps the exception of Reading, 185,000 sq ft letting to HMRC at Ruskin Square. improved asset performance, with headline rental market for the first time since the 1980s.
Yet, in reality, we have seen rents move on with
Oxford and Cambridge. growth of 39% for the market’s best product over
headline rents hitting an all-time record level of However looking forward, at Horley Business Central to this rebirth has been the removal of A diverse range of occupiers, including Body Shop,
the last four years.
£27.00 per sq ft at 2 City Place, Gatwick. Park which lies just to the north of the airport (but Nestlé, Elekta, Virgin, Deloitte, L3, Thales, Novo dated office stock; the delivery of brand new, EDF Energy, Towergate and most recently Green
technically falls outside of the Crawley / Gatwick Nordisk, Boeing / Jeppersen, amongst others have or materially new, Grade A offices at the likes This in turn has generated growing investor Networks, are amongst those occupiers who have
In comparison to the remainder of the South
market boundary), up to 1.5 million sq ft of new office all made major, long-term commitments to the of Interchange and Renaissance, providing interest and confidence in the market, which made the jump in the last 24 months, paying rents
East this rental level looks extremely good value,
space can potentially be delivered over the next few market over recent years as they have sought to large, flexible floor-plates and superior building has led to greater speculative investment in both of up to £34.00 per sq ft - an all-time record for the
particularly when one considers the proximity
to London Gatwick Airport and the national and
years. Outside of this scheme, the choice available benefit from relatively cheap real estate costs but
7.1 7.5 performance that cater for modern business needs; new-build and refurbished office stock. The town. We expect more occupiers to follow them.
to those occupiers seeking high quality space will excellent connectivity into London, the South East and a new wave of London out-migration, as momentum achieved is now delivering a grade of
international connectivity offered by the airport House price to
become thinner as existing office stock ages. and internationally. House price to promised but rarely seen since the 1980s. office property that the Croydon market had for
itself, as well as the adjacent rail station. income ratio
income ratio many years, failed to deliver to an increasingly
discerning occupier.
TAKE-UP SUPPLY PRIME RENT TAKE-UP SUPPLY PRIME RENT
70,100 291,800 £27.00 58,600 268,500 £34.00
sq ft sq ft per sq ft 28 OF 4,300+ sq ft sq ft per sq ft
77 OF 4,300+ GB retail destination
GB retail destination ranking (CACI)
REVIEW OF 2017
REVIEW OF 2017
42% below the 2.4 years 3% CAGR ranking (CACI) 50% below the 2.3 years 7% CAGR
10 year average market supply (5 years) 10 year average market supply (5 years)
A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
20 MINUTES
667,700 548,200 £29.00 1,038,300 1,288,000 £36.50
46 MINUTES To central London
sq ft sq ft sq ft sq ft
To central London
PROJECTIONS
PROJECTIONS
Space subject to a Development pipeline Prime rent per Space subject to a Development pipeline Prime rent per
lease event 2018-2021 (5 years) sq ft by 2021 lease event 2018-2021 (5 years) sq ft by 2021
2015
Article 4 imposed
A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R 540 ACRES to prevent further A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
Manor Royal coverage office conversion to
A_ Blackwater Valley D_ Cambridge G_ Guildford J_ Oxford M_ Staines-upon- P_ West London A_ Blackwater Valley D_ Cambridge G_ Guildford J_ Oxford M_ Staines-upon- P_ West London
residential use
B_ Bracknell E_ Crawley / Gatwick H_ Heathrow K_ Reading Thames Q_ Wimbledon B_ Bracknell E_ Crawley / Gatwick H_ Heathrow K_ Reading Thames Q_ Wimbledon
C_ Brighton F_ Croydon I_ Maidenhead L_ Slough N_ Uxbridge R_ Woking C_ Brighton F_ Croydon I_ Maidenhead L_ Slough N_ Uxbridge R_ Woking
O_ Watford O_ Watford
KNIGHT FRANK VIEW KNIGHT FRANK VIEW
Crawley / Gatwick’s fundamentals of multi- With a connection to the Elizabeth Line at 2.5 MINUTES What a change since then. Speculative
Croydon is no longer the town that Nestlé felt
modal transport, historically affordable land Farringdon from 2019, and London bound Train frequency to central £1.4BN compelled to leave in 2011, having exhausted office development, London out-migration,
and a strong local skills base has seen the trains every two minutes, infrastructure London by 2024 Cost to build the new all attempts to secure a property solution. a hugely improved cultural scene and
local market deliver major occupier deals, will be a key item for Gatwick. Oyster-users Westfield Shopping streetscape, a growing tech sector and 30%+
over many years - many on a pre-let basis. can already access the station, opening the Prior to this, local government inertia and a rental growth in less than five years.
Centre, due to complete
market ever-wider to the young, skilled poor urban environment rendered Croydon
The current supply conditions may dictate in 2022 an unappealing location, with only the Croydon still has a way to go – it still sees
London population. For these workers out-
that ‘vanilla’ office occupiers will have a fast rail service and relatively cheap South some adverse press coverage and it’s not
migration is simply a matter of convenience
range of standing options to choose from London staff pool providing reasons for pretty – but it really WORKS. With Westfield
and travel time, not address.
and will expect to negotiate hard - although low-level financial services and government and Hammerson still to come, it’s only going
Will Foster Will Foster
recent evidence suggests the best quality divisions to locate or remain here. to get better.
products in the market can still generate will.foster@knightfrank.com Gatwick was the world’s will.foster@knightfrank.com
improving rents. first airport to have a direct Croydon airport was
mainline train link with a the first to introduce air
dedicated railway station traffic control14 | KNIGHT FRANK: M25 Report 2018 KNIGHT FRANK: M25 Report 2018 | 15
Guildford Heathrow
Although rocked by some recent corporate out-migrations, the A market of international repute, Heathrow is starting to see the
market remains strong in its amenity offer and its educational influx of flexible office providers keen to offer solutions to corporate
infrastructure augurs well for a growing role in the tech sector. occupiers and their transitory workers passing through the airport.
A FLAGSHIP LOCATION OUT-MIGRATION? RECORD RENTS THE WORLD’S BUSIEST AIRPORT? BUSINESS PARK REFURBS FLEXIBLE CORPORATE SPACE
Guildford has, for many years, rightly considered It has not all been plain sailing recently, however. Despite this, Guildford remains the number As a major source of business generation for the With a total built office stock of over 10m sq ft, Heathrow is home to several large corporate
itself as the flagship commercial and residential The recently confirmed exit of major blue-chip one Surrey location for professional services, UK, a flourishing office market has developed Hillingdon, inclusive of Heathrow, accounts occupiers. Unsurprisingly, the aviation industry
location in the Surrey commuter belt. The Ericsson - and going forward, possibly Sanofi with accountancy and legal services providing around Heathrow. Growth of the airport is for 15% of the built stock in the M4 corridor. has a strong presence, with British Airways and
high street is one of the most popular shopping as well - to the Thames Valley provides cause good levels of on-going market activity. This is 134,150 SQ FT 297,000 SQ FT reaching the final stages of approval, with the final Significantly, approximately, two thirds of this BAA having an HQ on the Bath Road.
destinations in the UK, as evidenced by Guildford for concern. particularly the case in the town centre core, where Office space lost to parliamentary decision on a third runway expected office stock is business park space.
Office space lost to The technology sector, however, has been the
taking third position in the latest Knight Frank top office rents are now touching £34.00 per sq ft, in 2018 - yet still is in flux.
There is also an affordability factor: young workers Permitted Development Permitted Development Stockley Park and Bedfont Lakes are the dominant dominant source of new demand over the past 10
High Street Investment Ranking . an all-time high.
have difficulty getting on the local housing ladder, If approved, passenger numbers will rise from 78 parks close to Heathrow, with the former being the years, accounting for 32% of take-up. Global names
Excellent schools abound and the town is also with new apartments often commanding prices of In addition, the town is well-placed to capture a million to 130 million per year, making Heathrow longest established business park in the Thames such as Cisco, IBM, and Rackspace sit alongside
home to both the University of Law and the over £600.00 per sq ft. growing share of the burgeoning tech market. The the busiest airport in the world. Served by rail, Valley at 32 years old. pharma occupiers such as Gilead, Celgene, GSK,
University of Surrey, providing an excellent University of Surrey is highly rated in many fields underground and major road routes, connectivity and Merck.
As a result, certain business sectors within the Recent development work has centred on these
recruiting ground for businesses seeking high- of science, technology and R&D, with the centre is already a major business attraction.
regional office market, such as insurance and schemes, with 336,500 sq ft of major refurbishment Although not yet a stampede, flexible office
calibre graduates. for 5G mobile phone technology based on campus.
other mainstream financial services, may choose This will be bolstered by connections to the projects completed over the past 24 months. providers have begun to influence the Heathrow
locations such as Redhill or Woking which may be Also, encouragingly, in re-positioning the town at Elizabeth Line in 2019. In addition, consultation Additionally, LLF Real Estate completed market. IWG / Regus have two facilities on
more affordable for staff. the forefront of the value-add industry, computer for the Western Rail Approach to Heathrow is speculative works on the 84,000 sq ft Heathrow Stockley Park and other providers are expected
games is also a major growth story – in some circles
6.8 7.5 ongoing. The link to the Great Western Mainline Approach and Arora Group have built the 85,000 to follow and take advantage of the strong
Guildford is known as the ‘Hollywood of Gaming’. House price to House price to would increase rail traffic to and from Reading sq ft 4 World Business Centre to accommodate a corporate presence.
income ratio income ratio and the West of England. Works are expected to pre-let to tech firm Amadeus.
complete in 2024, if approved.
TAKE-UP SUPPLY PRIME RENT TAKE-UP SUPPLY PRIME RENT
85,000 148,000 £34.00 79,400 788,700 £37.50
sq ft sq ft per sq ft 37 OF 4,300+ sq ft sq ft per sq ft
GB retail destination
15 MINUTES
REVIEW OF 2017
REVIEW OF 2017
ranking (CACI) To central London
28% above the 2.2 years 4% CAGR 39% below the 6.0 years 5% CAGR
10 year average market supply (5 years) 10 year average market supply (5 years)
A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
2024
38 MINUTES
583,300 313,200 £35.00 902,300 185,100 £39.00
Western Rail Link to
sq ft sq ft To central London Heathrow opens sq ft sq ft
PROJECTIONS
PROJECTIONS
Space subject to a Development pipeline Prime rent per Space subject to a Development pipeline Prime rent per
lease event 2018-2021 (5 years) sq ft by 2021 lease event 2018-2021 (5 years) sq ft by 2021
44% 78M
A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
Passengers passed
Employees in Guildford
through Heathrow Airport
A_ Blackwater Valley D_ Cambridge G_ Guildford J_ Oxford M_ Staines-upon- P_ West London have a degree or higher A_ Blackwater Valley D_ Cambridge G_ Guildford J_ Oxford M_ Staines-upon- P_ West London
in 2017
B_ Bracknell E_ Crawley / Gatwick H_ Heathrow K_ Reading Thames Q_ Wimbledon educational qualification B_ Bracknell E_ Crawley / Gatwick H_ Heathrow K_ Reading Thames Q_ Wimbledon
C_ Brighton F_ Croydon I_ Maidenhead L_ Slough N_ Uxbridge R_ Woking C_ Brighton F_ Croydon I_ Maidenhead L_ Slough N_ Uxbridge R_ Woking
O_ Watford O_ Watford
KNIGHT FRANK VIEW KNIGHT FRANK VIEW
Other than the traffic, this is a genuine businesses and skilled staff, and can provide a Heathrow will remain a key hub due to its Rental growth has been significant in
lifestyle location, matching the charms of major differentiator over competing locations 5G 2018 status as a major centre for international Heathrow over the last five years, with
St Albans or Windsor and with rents to match such as Woking, Farnborough and Weybridge corporate businesses, although the third prime headline rents moving up from
The 5G Innovation Final Parliamentary
for best stock. Some businesses – especially and indeed, over those further afield as well. runway construction works may lead to some £29.50 to the mid £30’s, an increase of 27%.
Centre is the UK’s largest approval expected on the
their senior staff, perhaps – will be attracted to short term pain. Our forecasts indicate that growth will be
the town, although their staffing profile will academic research centre proposed third runway sustained, with an increase to £39.00 per sq ft
The serviced and co-working offering
increasingly dictate locational choice with anticipated by 2021.
must become increasingly sophisticated
employee turnover, a critical factor these days.
and grow in order to take advantage of the
The knowledge economy is the trump card major corporate occupier presence around
for the South East of England over other
Will Foster Heathrow. This occupational drive toward
Emma Goodford
regions and indeed other European locations. will.foster@knightfrank.com Guildford was the greater flexibility and amenity is filtering into Head of National Offices
Accordingly, the town’s relationship with location for the earliest Heathrow Terminal 5 is the business park model where we are already emma.goodford@knightfrank.com
its two universities look vital to the longer reference to cricket, the largest free-standing seeing Stockley Park and Bedfont Lakes
term retention and capture of high margin dated January 1597 structure in the UK become more service orientated.16 | KNIGHT FRANK: M25 Report 2018 KNIGHT FRANK: M25 Report 2018 | 17
Maidenhead Oxford
A market whose appeal will strengthen with enhanced connectivity via A market full of occupiers at the leading edge of bioscience, robotics
the Elizabeth Line and town centre regeneration progress, but one that and many new wave technologies and one set to further benefit
will need to witness a further injection of quality office supply in order to from enhanced connectivity between the city centre and out-of-town
convert that appeal into concrete commitment from occupiers. science and business parks.
EXTENSIVE REGENERATION LIMITED QUALITY SUPPLY GROWING TOWN CENTRE FOCUS COHESION THROUGH CONNECTIVITY COMMERCIAL KNOWLEDGE SCIENCE VALE
Maidenhead is fast gaining a reputation as a The heart of Maidenhead is constrained, creating a Given the supply and demand dynamic noted, the There are renewed attempts to enhance the Oxford’s academic pre-eminence has shown The emergence of Science Vale in the south Oxford
centre of strategic importance not only within the potential limiting factor for future growth. Choice emergence of high-quality space around the town’s cohesion of the Oxford market by creating stronger considerable commercial teeth over recent market, badged the UK’s home for scientists,
Thames Valley but also across the wider South East for occupiers is extremely limited at present at a train station will be crucial to the future success public transport connectivity between the city years. The establishment of the university’s own entrepreneurs and innovators has created a
office market. The almost £1 billion regeneration time when demand has been on the rise, driven by of the market. There are 10 development schemes 57,600 SQ FT 247,200 SQ FT centre and out of town science and business parks. innovation fund - Oxford Sciences Innovation knowledge based industry cluster, located midway
programme aimed at transforming the town the Elizabeth Line. within the town with consent for offices, but only – has sought to create an infrastructure and between the M4 and Oxford and supported by
Office space lost to Office space lost to Central to this would be the re-opening of the
centre, alongside the continued availability of good one – with a total size of 20,000 sq ft – actually has environment supportive of knowledge-based spin- local authorities in the area.
2017 saw almost 135,000 sq ft of take-up in the Permitted Development Permitted Development Cowley Branch Line, which last took passengers
quality, affordable housing is appealing to a young works underway. offs. The fund searches Oxford’s Math, Physical,
market – a figure that is 15% above the long-term back in 1963. The proposed reopening of the line, Its aim is to build on the research talent within
and talented labour force seeking to migrate from Life Sciences, Medical Sciences, Computer
annual average. The consequence of this has been The consented office space within the London & which could be as early as 2019, would link Oxford the area to create one of the most significant
more expensive and central areas. Sciences and Engineering divisions to spot
that best quality supply presented by the market Aberdeen Groups The Landing development will Business Park and Oxford Science Park to the commercial knowledge based clusters in the
opportunities for commercialisation.
Of course, the arrival of the Elizabeth Line, in has been rapidly absorbed. obviously be significant over the longer term and city centre and Oxford train station in around world. Science Vale amounts to 216 hectares of
2019, will further add to the appeal of Maidenhead will serve to support the further promotion of the 10 minutes. The economic value of opening the To date it has raised over £600m to support more development land spread across seven distinct
This is leaving occupiers with no choice but to
as a place to live and work and will induce further city centre as a place of connection, talent and Chiltern corridor north to Oxford Parkway and than 40 companies in fields as diverse as drug locations. It benefits from two designated
extend their search areas beyond the city centre.
demand from global and national businesses vibrant amenity. Bicester is evident. The real benefit of enhanced discovery and cutting-edge machine learning. This Enterprise Zones – Science Vale Oxford and the
As they seek high quality space, occupiers are
seeking a regional hub within striking distance of train connectivity is reducing dependence on the is an important development in the context of the Didcot Growth Accelerator.
starting to focus their attention on either the 7.3
central London.
out-of-town market, or alternative centres, such as
7.3 car and the resulting congestion. Furthermore, Oxford real estate market – essentially creating a
Particularly encouraging is the fact that the
House price to this would be a key element of a wider transport pool of local, knowledge-intensive and potentially
Reading and Slough. House price to area is synonymous with emerging, new wave
initiative that could ultimately lead to the high-growth occupiers in the market.
income ratio income ratio technologies. For example, Science Vale has
redevelopment of Oxford’s main railway and the
recently been designated the first place within the
creation of an East-West rail link with Cambridge.
UK to host fully autonomous vehicle trials.
TAKE-UP SUPPLY PRIME RENT TAKE-UP SUPPLY PRIME RENT
134,600 436,400 £38.50 245,000 289,000 £31.00
sq ft sq ft per sq ft 306 OF 4,300+ 42 OF 4,300+ sq ft sq ft per sq ft
GB retail destination GB retail destination
REVIEW OF 2017
REVIEW OF 2017
ranking (CACI) ranking (CACI)
15% above the 3.7 years 4% CAGR 30% above the 1.5 years 8% CAGR
10 year average market supply (5 years) 10 year average market supply (5 years)
A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
836,400 396,900 £42.00 284,600 298,900 £36.00
22 MINUTES 56 MINUTES
sq ft sq ft To central London To central London sq ft sq ft
PROJECTIONS
PROJECTIONS
Space subject to a Development pipeline Prime rent per Space subject to a Development pipeline Prime rent per
lease event 2018-2021 (5 years) sq ft by 2021 lease event 2018-2021 (5 years) sq ft by 2021
A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
£1BN 23,200 A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R A B C D E F G H I J K L M N O P Q R
New investment for University students
A_ Blackwater Valley D_ Cambridge G_ Guildford J_ Oxford M_ Staines-upon- P_ West London regeneration of the A_ Blackwater Valley D_ Cambridge G_ Guildford J_ Oxford M_ Staines-upon- P_ West London
B_ Bracknell E_ Crawley / Gatwick H_ Heathrow K_ Reading Thames Q_ Wimbledon town centre B_ Bracknell E_ Crawley / Gatwick H_ Heathrow K_ Reading Thames Q_ Wimbledon
C_ Brighton F_ Croydon I_ Maidenhead L_ Slough N_ Uxbridge R_ Woking C_ Brighton F_ Croydon I_ Maidenhead L_ Slough N_ Uxbridge R_ Woking
O_ Watford O_ Watford
KNIGHT FRANK VIEW KNIGHT FRANK VIEW
The town centre has historically Given such improvements to the civic realm 26,400 Oxford’s historic city centre, the nature of Whilst the out-of-town science and business
underwhelmed new potential occupiers but and very little new space currently under which has restricted significant development, parks will continue to flourish with
with the recent appointment of the HUB construction, we anticipate further growth
2019 Digital sector jobs means the office and laboratory market demand from spin-outs from Oxford
Group as development manager on The in rents which have achieved annualised Four trains an hour to run remains driven by the out-of-town science University and the R&D cluster which
Landing scheme, London & Aberdeen Group growth of 4% over the last five years. on the Elizabeth line and business parks which have the available surrounds it, the next generation of product
are expected to submit a formal planning sites to deliver the high quality office space for the city will be led by the regeneration
application. Inclusive of office, retail and that occupiers demand. around the city centre sites, including Oxpens
residential space, The Landing scheme will and Osney Mead, which will also help spur
Over 200,000 sq ft of Grade A
provide a key enhancement in terms of the further rental growth.
accommodation is being delivered through
amenity provision and vibrancy of this centre Emma Goodford Will Buttery
speculative developments at Milton Park,
so often unfavourably compared to Marlow,
Head of National Offices Harwell and Oxford Science Park, although william.buttery@knightfrank.com
with it’s first-class high street but poor
emma.goodford@knightfrank.com Prime Minister Theresa Oxford University has much of this space is anticipated to be
connectivity.
May is the MP for educated 27 British committed at practical completion due to
Maidenhead Prime Ministers pent-up market demand.You can also read
