MARKET COMMENTARY Office | Residential
Recent transactions at inferior premises such as Quadrant Business Park and Queens Studios have achieved headline rents of close to £21.75 per sq ft. We believe the investment will attract a premium over this accommodation and highlight the below transactions within the wider area:
OFFICE
Queens Park's direct proximity to Central London, excellent transport links and attractive surrounds are major factors in the areas appeal. With a lack of well configured Grade A space available, particularly along Salusbury Road the area's core office focus, the investment's rental potential is largely unproven.
ITE Group recently regeared their lease to remove the 2014 break option at the existing passing rent in return for no rent free, suggesting the offices are reversionary.
| PROPERTY | SIZE (SQ FT) |
LEASE TERM | RENT (£PSF) |
DATE |
|---|---|---|---|---|
| 2 Kingdom Street, Paddington, W2 | 26,163 | 15 Years | £57.50 | May 2012 |
| 1 Kingdom Street, Paddington, W2 | 20,100 | 12 Years | £49.50 | January 2011 |
| 1 Sheldon Square, Paddington, W2 | 6,026 | 5 Years | £45.00 | January 2011 |
| 30 Eastbourne Terrace, Paddington, W2 | 8,746 | 10 Years | £37.50 | January 2011 |
| 3 Olaf Street, Notting Dale Village, W11 | 12,579 | 10 Years | £32.50 | December 2011 |
| Whiteley Centre, Queensway, W2 | 12,655 | 10 Years | £28.50 | October 2011 |
| The Phoenix Brewery, Latimer Road, W10 | 1,141 | 5 Years | £29.50 | February 2012 |
| The Phoenix Brewery, Latimer Road, W10 | 1,242 | 5 Years | £27.50 | April 2012 |
| 8 Canfield Place, Finchley Road, NW6 | 1,394 | 5 Years | £24.00 | August 2011 |
Zonemedia Management as subtenant are currently paying rents equating to £22.63 per sq ft and £24.95 per sq ft. Based on this and the above we believe the Property is capable of conservatively achieving in excess of £25 per sq ft headline.
