Sussex Business Space Crawley / Gatwick & Mid Sussex Office Focus Q1 2012

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1 ussex Business pace Crawley / Gatwick & Mid ussex Phoenix House East Grinstead Town Centre Offices 12,700 sq ft TO LET t John s House Crawley New Offices Ready March 2012 TO LET

2 Crawley / Gatwick & Mid ussex THE MARKET CRAWLEY/GATWICK REGION Office take-up in 2011 finished at 117,000 sq ft, some 57% higher than in A healthy year compared with previous. Majority of the space taken up has been of good quality refurbished space has started with a large transaction to Nestle at 1 City Place (127,000 sq ft). Vacancy rates at start of 2012 now at 13.7% (January %). Crawley office take-up (sq ft) Jan 2012 econd Hand 200,000 Grade A 180, , q.ft 140, , ,000 80,000 80,514 59,140 40,467 76, ,500 44, ,000 40,000 20, ,000 97,000 93,191 20,000 22,000 74,984 70,785 72,697 53,000 42,700 18,300 7,835 3, Year RENT & LETTING Rent of psf at 3 City Place still remains the highest achieved in the current cycle. Good time for occupiers to move, with choice of accommodation and competitive offers, but interest levels showing signs of recovery. Nestle join Amey and OC as new expanding or relocating companies to Crawley. Crawley Prime Office Rents Jan Quoting Rents Achieved Rents CRAWLEY PRIME OFFICE RENT Rent per q. Ft

3 Crawley / Gatwick & Mid ussex 2012 starts with a vacancy rate of 13.7%, significantly lower for the same time last year. Grade A availability currently at 280,000 sq ft (32% of total availability). The largest building currently available is G23 at 62,000 sq ft. Construction of t John s House (39,000 sq ft) in Crawley town centre anticipated ready for occupation early CRAWLEY OFFICE UPPLY CRAWLEY OFFICE UPPLY Jan 2012 Grade A Grade B Refurbished Jan-12 ep-11 May-11 Jan-11 ep-10 May-10 Jan-10 ep-09 May-09 Jan-09 ep-08 May-08 Jan-08 ep-07 FOR THE FUTURE/ FORECAT upply of Grade A accommodation is now at a good level compared with other centres, and is attracting companies from outside the region. Nestle transaction likely to put Crawley back on the map for larger companies considering relocating in the outh East. Lack of available offices over 60,000 sq ft and lack of development likely to frustrate larger occupier demand. ELECTION OF OFFICE First Point Gatwick Airport 3,000-32,500 sq ft Astral Towers Crawley 5,000-43,000 sq ft

4 Crawley / Gatwick & Mid ussex PRIME RENT/ HORHAM REGION 2011 saw encouraging letting activity (approximately 50,000 sq ft let) with demand constant. ignificant deals include ega taking 9,000 sq ft in pire Court and Komfort ystems taking 13,600 sq ft at the Broadlands Business Campus and Global 4 taking 7,500 sq ft at Chancery Court. Despite good take-up figures in 2011, Horsham s vacancy rate is still relatively high at 175,000 sq ft (18% vacancy rate). Grade A availability includes 13,000 sq ft at pire Court and 25,000 sq ft at pringfield House with good interest already being shown in both buildings. Demand has stabilised in the last six to eight months. With rents at 15 psf to 16 psf for good quality refurbished space, the town represents value for money when compared to other larger centres. Activity is expected to continue at similar levels throughout ELECTION OF OFFICE Prewett s Mill 3,000-10,259 sq ft pringfield House 25,500 sq ft pire Court 3,438-13,000 sq ft Graylands Estate 1,200-6,000 sq ft

5 Crawley / Gatwick & Mid ussex PRIME RENT/ EAT GRINTEAD REGION 2011 saw an improved level of demand with circa 31,000 sq ft let. Despite improved 2011 activity, market predicted to remain under demanded moving into Availability remains relatively static at 57,000 sq ft approximately 9.4% of the built stock. Availability has remained relatively static over the last few years. No new developments planned for the foreseeable future. Quoting rents have remained steady at circa psf for better quality refurbished space, however, older buildings have seen rents dropped by circa 50% in an attempt to stimulate interest with transactions ranging from 5 to 10 psf depending on the building s condition. The outlook for the town is that supply will continue to outstrip demand. ELECTION OF OFFICE Phoenix House 12,700 sq ft Available from March 2012 Kings House 3,589 sq ft UNDER OFFER Medway House 2,690 sq ft NOW LET Premier House 3,663-7,646 sq ft For ale /

6 Crawley / Gatwick & Mid ussex FOR THE FUTURE/ FORECAT BURGE HILL/HAYWARD HEATH REGION Take-up levels in Mid ussex have remained modest since 2005 when peak letting activity saw 110,000 sq ft taken up in one year. Take-up for 2011 was very low. Availability stands at circa 125,000 sq ft. 22,000 sq ft available at Rockwood House and 38,000 sq ft in Oakfield House on Perrymount Road, make up nearly 50% of the total available space. (8,000 sq ft of Rockwood House currently under offer). Burgess Hill is still principally seen as an industrial location with Haywards Heath partnering as the office district. hortage of good quality stock has resulted in rental levels remaining stable in Haywards Heath compared with a number of other centres in the outh East. Rents for second-hand good quality buildings lie between 16 psf and 14 psf depending on age, size and specification. Historically, headline rent on Capital House (one of the only Grade A buildings) has been at circa with lettings to HBC and Lloyds TB. The proposed redevelopment of Haywards Heath station and surrounding area has now been put on hold which will further frustrate local occupiers with limited options over the next two to five years. ELECTION OF OFFICE Rockwood House Haywards Heath 2,902-22,341 sq ft One Floor UNDER OFFER Perrymount Road Haywards Heath 900 sq ft Martlet Heights Burgess Hill 2,420-14,141 sq ft 24 Church Road Burgess Hill 1,505-3,373 sq ft

7 Crawley / Gatwick & Mid ussex CURRENT ACTIVE/LIVE ACQUIITION Confidential Requirement Live requirement for national client to satisfy relocation to Norfolk. eeking circa offices of 7-10,000 sq ft. Dolby Vivisol Live requirement seeking an office in urrey/ussex circa 5-6,000 sq ft. NOW ATIFIED Laing O Rourke Live requirement for 5 acre site, 12 mile radius of Brighton. Confidential Requirement Active earch for national client seeking offices for call centre operation in Crawley extending to approximately 60,000 sq ft. Confidential Requirement Live client requirement in urrey/ussex looking for freehold or leasehold D1 premises suitable for nursery operations. CRAWLEY/ GATWICK BUINE PACE TEAM Adam Godfrey DDi: M: agodfrey@shw.co.uk Huseyin Djevdet DDi: M: hdjevdet@shw.co.uk Tim Hardwicke DDi M: thardwicke@shw.co.uk OTHER ERVICE INCLUDE NEW OFFICE AGENCY INDUTRIAL & LOGITIC AGENCY ACQUIITION & DIPOAL INVETMENT ALE & ACQUIITION RENT REVIEW & LEAE RENEWAL LEAE REGEAR/RETRUCTURING ENERGY PERFORMANCE CERTIFICATE VALUATION RETAIL AGENCY LPA RECEIVERHIP PROPERTY MANAGEMENT BUILDING CONULTANCY TOWN PLANNING BUINE RATE RATING Active management of rating liability to secure in excess of 250,000 savings to date 11 The Boulevard, Crawley 84,500 sq ft Contact: Paul Wade PROPERTY MANAGEMENT HW win renewal of the tender for the Co-Op outh East Property Management Mandate Contact: Trudi Allen-halless This review is published for general information only. High standards have been used in the preparation of the information, analysis, views and projections presented in this report, but no legal responsibility can be accepted by tiles Harold Williams for any loss or damage resultant from the contents of this document. As a general review, this material does not necessarily represent the view of tiles Harold Williams in relation to particular property or projects. The properties listed in this review are not a definitive list but merely an overview at the time of going to print. Reproduction of this review in whole or in part is allowed with property reference to tiles Harold Williams.