Research Underpins All Our Business Decisions

Naissance Capital Real Estate has a dedicated research team reviewing and analysing key considerations during the due diligence process and for on-going asset management.

Supply

Is there future supply of similar properties in the local area and what is the likely impact on demand?

Flexibility

Is alternative use of the building and vacant possession value included in valuation? Is there a contingency plan if the tenant moves out half the staff midway through lease?

Security of Income

Is this a key location for business or a subsidiary (which means tenants less likely to quit) and what are the rental obligations? Are the tenants paying market rent – is the property over rented/ under rented?

Potential Costs

What is the age of building and will there be capex requirements to maintain fabric/structure (structural survey).

Market Data

What point in the office property market cycle are we at – based on historical data, is the office market likely to rise/fall from here and does the investment strategy take this into account?

Comparability

What similar properties are in the local area and how does this office and tenant compare?

UK Economic Statistics

1.9%

Growth of Weekly Earnings

Adjusted for inflation, weekly earnings increased by 1.9% compared to 2014. This is the first increase since 2008, and is due to a combination of growth in average earnings and a low level of inflation.

1.6%

Growth of Gross Annual Earnings

For the year ending 5 April 2015 median gross annual earnings for full-time employees were £27,600, an increase of 1.6% from the previous year.

1.8%

Growth of Gross Weekly Earnings (Public vs. Private Sectors)

Median gross weekly earnings for full-time employees increased by 1.8% in the public sector, and by 1.6% in the private sector. Private sector earnings have remained consistently at around 85% of public sector earnings since 2009.

3.5x

Earnings Gap of the Top 10% versus Bottom 90%

In April 2015 the bottom 10% of full-time employees earned less than £297 per week. At the other end of the distribution, the top 10% of full-time employees earned more than £1,035. Since 1997, earnings at the 90th percentile have remained consistently at around 3.5 times earnings at the 10th percentile.

9.4%

Decreased Gender Pay Gap for Median Earnings of Full-time Employess

The gender pay gap for median earnings of full-time employees decreased to 9.4%, from 9.6% in 2014. This is the lowest since the survey began in 1997, although the gap has changed relatively little over the last 4 years. A similar trend is seen when full-time and part-time employees are combined, although the gap is unchanged from 2014, at 19.2%.

1.8%

Growth of Median Gross Weekly Earnings for Full-time Employees

In April 2015 median gross weekly earnings for full-time employees were £528, up 1.8% from £518 in 2014. This follows an annual growth of 0.2% between 2013 and 2014. Growth has been slower since the economic downturn, averaging around 1.5% per year between 2009 and 2015.

February 8, 2016

Published by Gina Fontanini at February 8, 2016

CBRE Mansion Tax

Development Opportunities Knight Frank’s produced along with Barton Willmore, the planning consultancy, examines where economic fundamentals converge with planning and local knowledge to suggest the best […]

February 8, 2016

Published by Gina Fontanini at February 8, 2016

European Quarterly Report | Commercial Asset Classes Reports

Knight Frank’s Quarterly report providing a concise overview of European commercial property market trends. Data and infographics are included, summarizing prime rents, prime yields and investment […]

February 8, 2016

Published by Gina Fontanini at February 8, 2016

Knight Frank Global Tax Report

Knight Frank’s inaugural Global Tax Report, produced in conjunction with EY, assesses the impact of property and tax costs for foreign investors. It compares the associated […]