- What Palace Capital has set a new record rent in York
- Why No grade A space has been delivered in the city for a decade
- What next The space at Hudson Quarter is due to complete in Q1 2021
Palace Capital has set a new rent in York of £25 per sq ft.
It has agreed a deal with solicitors Knights at its forthcoming Hudson Quarter project, which is due to complete in the first quarter of 2021.
Knights has agreed to take 4,588 sq ft of ground floor space on a 10-year lease at £12.50 per sq ft for the first two years with the subsequent step up to £25 per sq ft. There will also be an upward only rent review after five years.
Knights is also taking 3,100 sq ft at Palace’s newly refurbished office scheme on Museum Street until it takes occupation of Hudson Quarter, also at £25 per sq ft with a break option after one year.
Hudson Quarter will comprise four separate buildings. They will include 127 flats and almost 40,000 sq ft of offices.
Neil Sinclair, chief executive of Palace Capital, said: “To have completed our first commercial pre-let a full year ahead of Hudson Quarter’s completion and at the same time setting a new rental tone for York is very pleasing. Moreover, our ability to secure this lease while accommodating Knights at our other asset in the City of York in the interim is testimony to our asset management skills and ability to manage occupier needs across our portfolio.
“This is the first time in more than 10 years that new, grade A speculative office space is being offered into the York market, where supply is very tight alongside growing demand, and we are seeing strong appetite for the remainder of the office space we have on offer.”