Letting of 11,300 sq ft of office space at Hudson Quarter, York
Palace Capital (LSE: PCA) the Main Market listed property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London with a focus on the office & industrial sectors, has leased a further 11,300 sq ft of grade A office space at its Hudson Quarter development in the City of York. The new letting brings office occupancy at Hudson Quarter, which completed in April of this year, to 41% with a further 3,600 sq ft currently under offer.
Great Rail Journeys, the tour operator headquartered in York, has leased the fourth and fifth floors, including the top floor terrace, of the HQ building on a 10 year lease with a tenant’s option to break at the end of the 6th year at an average headline rental of £26 psf subject to a short rent free period. The tenant has also taken 10 car parking spaces at an additional £22,500 per annum which is index linked annually, which would take the ultimate rent payable to £315,787 per annum.
Hudson Quarter has a total of 39,200 sq ft of office space which is EPC ‘A’, BREEAM Excellent and WiredScore Platinum rated. In 2020, Palace Capital set a new record for office rents in York in February 2020 when it leased 4,700 sq ft at £25 psf to solicitors Knights LLP.
Neil Sinclair, Chief Executive commented, “The latest letting we have secured at Hudson Quarter, York reflects the renewed demand we are seeing among occupiers for high quality, well connected office space, as well as the higher levels of office returns in the regions. When we launched HQ, it was the first grade A office space to be available in the York market for over 15 years and with constrained supply and an additional 3,600 sq ft under offer, we are pleased with the progress we are making against this market backdrop.”
JLL acted for Palace Capital & Sanderson Weatherall acted for the tenant.