2018 Key Highlights
• Investment volumes have exceeded £185,000,000, beating last year’s total of £150,000,000.
• Yields for prime assets have fallen with the sale of IFC 1, developed by Jersey development Company, achieving a yield of sub 6% and closing the yield gap with the UK regions.
• Gaspe House set a new record being the largest lot size to have ever transacted in the Channel Islands.
• Improving liquidity, given demand for prime assets led by HNW’s, south east Asian investors and syndicates. This follows on from middle eastern investors who were active in 2017.
• Take up in Jersey was around 250,000 sq ft, well ahead of 2017 which was a 5 year record.
• Take up in Guernsey was in excess of 79,000 sq ft, a significant increase from 2017.
• The vacancy rate in Jersey as a percentage of total stock has fallen significantly from around 12% in 2017 to 7.5% by YE 2018. There is minimal Grade A space available in both Jersey and Guernsey.
• In Guernsey, headline rents of £42 psf have been achieved in 2018, slightly below £44 psf achieved in 2017.
• Prime headline rents in Jersey for floor plates of around 10,000 sq ft is now firmly established at £40 psf for the best space.
• We expect prime yields to compress further in 2019, however lease length and quality of the building will be the key driver of performance.
D2 -CI Office Market -Jersey Final
