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
The Thames Valley area, from Heathrow International Airport to Reading, offers surprising ease of access to Central London via rail and road. The Thames Valley is one of the wealthiest parts of the European Union, aided by a skilled workforce, the area’s accessibility to London and access to international transport hubs. The commercial market is dominated by wealth-creating, knowledge-based industries that include information and communication technology and life sciences. As a result, the area is a prime location for the headquarters of many U.K. and international companies. More than 72% of the world’s top 25 software companies have offices in the Thames Valley region, including tech titans such as Microsoft, Dell, Adobe Systems, Computer Associates and Symantec.
The Thames Valley has a diverse commercial real estate market with easy accessibility to the London office sector. The office market rebounded strongly in 2013 with occupier take-up increasing by 47% over the year. This caused a decline in vacancy rate – to the lowest level in a decade. There is now a shortage of Grade A office space across the region and even though c.90% of the office stock is more than 10 years old the current shortage will lead to rental growth and falling letting incentives in the coming years. To meet the increased demand, speculative development activity is now at its highest level since 2009. Office investment demand is being led by U.S. investors redeploying cash from Central London sales.
Most high streets in the Thames Valley have suffered with higher vacancy rates as many of the U.K.’s multiple retailers consolidate their operations into new purpose-built shopping malls such as Westfield in White City.
In addition, with omni channels to market, retailers are no longer as reliant on their bricks and mortar to generate sales. These effects have caused a reduction in rental levels in most Thames Valley towns.
The U.K.’s most expensive logistics and manufacturing properties, both in rental and capital-value terms, are located around Heathrow Airport. Take-up of modern and second-hand stock in this area has been strong to the extent that speculative development has now recommenced. Elsewhere in the Thames Valley, this scenario is, to a degree, replicated, with the supply of good-quality stock at an all-time low. This general lack of supply means that corporate occupiers requiring more space have restricted choice and are more often forced to consider build-to-suit solutions. The investment market is also very strong with institutional investors, sovereign wealth funds, REITS and public companies all keen to buy well let assets.
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.