Avison Young is the world’s fastest growing real estate service firm that delivers intelligent property solutions to user/occupiers and owner/investors. Our UK team mainly focuses on home territory, but it also acts as the intelligent hub for occupiers seeking to take advantage of business opportunities and expanding economies in EMEA and AsiaPac.
Avison Young’s model is deliberately disruptive. We’ve turned our back on traditional industry silos and pyramid structures. This stimulates a client-first, advice-led approach and a much broader and consistent team effort.
Our unique ownership structure creates the incentive for internal collaboration and a culture that delivers a better client experience, better results and exceptional career opportunities.
Avison Young is growing fast in the UK for compelling reasons. As the only global firm that is owned and operated by its Principals, Avison Young operates like a breath of fresh air in the UK market. Our solutions are created and executed by the very people who have organisational, reputational and financial accountability to clients. That's why every day new clients come to us - both here in the UK and internationally.
Whilst transactions are important, they are the end of a process designed to deliver sustained value for our clients. Our ownership model allows us to focus on the right advice irrespective of the size of the transaction fee.
Success breeds success. Our structure and our culture means that every day not only do we attract and retain new clients but also innovative thinkers and professionals who aspire to raise the bar for the whole real estate services industry.
Avison Young UK's advice-led solutions deliver value across the breadth of commercial property services.Our activities are tailored to both Users / Occupiers and Owners / Investors.
Because we recognise that, for most occupiers, the property burden represents the second highest cost and tends to be the biggest contingent liability, we focus on helping occupiers create property and workplace solutions that improve performance, increase competitiveness, adapt to changing markets and provide the optimum workplace environment for their staff.
Our UK team adds value right through the property lifecycle, from acquisitions to disposals, in a wide variety of sectors including: offices, retail, industrial and alternative sectors.
Our collaborative approach means we gain a more intimate understanding of the needs of owners and investors. As a result, we can provide customised advice that underpins intelligent and informed decisions.
Acquisition Services | Asset Management | Building Consultancy | Business Rates | Capital Markets | Development Consultancy | Disposal Services | Facilities Management | Lease Advisory | Occupier Solutions | Planning | Project Management | Property Management | Strategy & Feasibility | Supply Chain | Transition Management | Valuation | Workplace Consultancy
London, the capital city of the United Kingdom, is a leading global city. It has the fifth-largest city economy in the world, after Tokyo, New York City, Los Angeles and Seoul, generating more than 20% of the U.K.’s GDP, and rising to approximately 30% if the greater metropolitan area is included.
As a global city, London is the headquarters of more than half of the U.K.’s largest listed companies (the “FTSE 100”), and approximately 100 of Europe’s 500 largest companies are headquartered in Central London, while 75% of Fortune 500 companies have offices in the city.
While serving as a leading financial centre, London has welcomed more than 480 overseas banks that have offices in the city, along with many other major professional services, media, tourism, technology and retail firms.
A key international transport hub, London has the world’s largest city airport system. As part of hosting the 2012 Olympics, significant investment was made in London’s transport infrastructure. This investment continues with major rail transport projects including Crossrail which is due to open in 2018.
The global financial crisis in 2008 did affect occupier demand for offices in London and the South East. The recovery of the Central London office market has been faster than many predicted as a result of the city’s position as an international centre.
Measured over a five-year cycle, office rents have risen more than 65% in London’s West End market. The rise in rents is set to continue as occupancy rates are at historically high levels. New development has been restricted by the lack of finance with only well-funded companies and institutions undertaking projects. This trend in development activity is set to become more broadly based over the medium term.
Rising rents in Central London have rippled outwards into other office centres in the South East as occupiers have relocated to less expensive locations and taken the opportunity to trade up in quality of accommodation.
Rents are expected to continue to rise over the next two years.
Due to the growth of online shopping, in many areas retail occupiers are struggling to compete. As a consequence, much of the U.K. retail sector is still seeing falling rents and high vacancy rates.. However, with London shops being such a magnet for international visitors, there is a very different story here. London is a major retail centre and has one of the highest non-food retail sales of any city in the world. Demand for retail space is strong; there is persistent upward pressure on rental rates; and sales, leasing and development activity remains robust.
The U.K.’s warehouse logistics sector has seen extraordinary demand from a few large (mainly retail) operators, including Asda, Brakes Bros., Hermes, Marks & Spencer, Travis Perkins and others, with Amazon seeking units of more than 1 million square feet nationwide. The proximity of Heathrow Airport continues to have a positive impact on warehouse rents, which are rising faster than the national average. This trend is being driven by third-party logistics providers and retail distribution.
There is, however, a shortage of Grade A industrial and warehouse space, which will lead to speculative development and design-and-build solutions.
The UK commercial property market has shown exceptional performance since the low of the market in 2009. The strong underlying fundamentals of the property market has led to an investment market characterised by strong demand and poor supply. This combination of weight of money seeking opportunities and lack of available product in the market has led to strong competition and inevitably sharp yield compression. Prime all property yields dropped to 4.8% in July 2015, their lowest since September 2007. However, while they are now below the 10 year average, prime yields are still 39bp higher than pre-crises levels despite bonds being 280bp lower now. All property Total returns were circa 19% during 2014 and a healthy total retune of circa 13% is forecast for 2015.
The UK investment market has also been characterised in recent years by a large inflow of overseas money, with a mixture of sovereign wealth, institutions, private equity and high net worth’s. In 2014 overseas buyers accounted for 42% of the total value of UK transactions, and in the first half of 2015 they accounted for circa 50%.
The UK commercial property market is continuing to deliver good performance driven by strong investor demand and is backed up by a growing economy and an occupational market which is showing some signs of improvement. Taking this into account the outlook for the next year remains positive as we see no reason for the international inflow of capital into the UK market to slow. There is the potential for further downward yield compression as 10 year gilt yields remain close to historic lows, although performance will be increasingly driven by rental growth fundamentals moving forward.