In a generally downbeat interim management statement, West London’s biggest landlord Brixton said the re-focusing of their portfolio to predominantly concentrate on West London had helped keep it in a good position within the general commercial property market.
Showing they believe further falls in the property market may be round the corner, Chief Executive Tim Wheeler said: "Property yield pricing will undoubtedly drift out further". He added: "Whilst we continue to closely monitor our customer base, it is too early to definitively declare that business prospects have started to decline, although sentiment – often the precursor to this – has."
He continued: "We have previously commented that when the property market turned negative the effect would be greater on secondary property than on prime property. This has proven to be the case with better quality industrial property in West London appearing to be more resilient."
"The best properties in the best locations with quality occupiers have always proven more resilient in a downturn and Brixton’s business philosophy has been to focus and specialise in the West London market which does remain supply constrained and is the highest value location for this type of real estate in the world. In these markets we continue to show good levels of rental growth outperformance".
Key recent West London lettings include:
– Unit 3, Polar Park, Heathrow let to the Metropolitan Police: 60,051 sq ft at £13.25 per sq ft, a record rent for the north side of the Airport in this cycle.
– Unit 12, Premier Park, Park Royal let to HR Owen: 21,471 sq ft at £11.75 per sq ft, the top rent that Brixton has ever achieved for industrial space in Park Royal for a unit over 5,000 sq ft.
– Units 10 and 11, Premier Park, Park Royal let to Next Group: 29,234 sq ft at £11.70 per sq ft.