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Retail Park OSCAR 2009 Service Charge Analysis for Retail Parks


Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

Foreword

I am particularly pleased to have been invited to provide the foreword to this sixth edition of the Jones Lang LaSalle Retail Park OSCAR in these very challenging times for both Landlords and Tenants. There has rightly been a great deal of focus on Service Charges as both Retailers and Landlords concentrate on tight cost control. Greater transparency, dialogue and sharing of best practice are critical to cost control and quality benchmarking information is an essential factor in this

Contents

The accurate measurement and monitoring of costs set out in the OSCAR report is an essential tool for the Chartered Surveyor in developing effective property management strategies and measuring management performance.

Foreword

2

Introduction

4

Executive Summary

5

The database

6

Average service charge

8

Location and size

15

The Royal Institution of Chartered Surveyors (RICS) has worked closely with Jones Lang LaSalle to ensure that the industry Service Charge Cost Categories are compatible with those used in OSCAR. The highly respected OSCAR work is a considerable contribution towards our objective of more consistency and transparency within the property management sector.

Looking to the future

21

Definition of terms

22

Geographical areas

24

Contacts

25

process. The Jones Lang LaSalle OSCAR research provides this quality benchmarking information and the Retail Park OSCAR concentrating on the Out of Town retail sector gives that specialist edge that is required. I note that the size of the database has been enhanced this year maintaining the credibility of the conclusions drawn from the research. It now covers around one fifth of all multi let retail parks in the UK. The spread of parks included and their management through many separate organisations ensures that distortions from any particular group will be minimised. It is good to see that the analysis on budgets has been included again this year as this adds to the to the overall picture and helps to make the research more current and usable. It must be an aim for this aspect to be brought fully up to date so it can be used to inform budget preparations in

Data Contributors

the near future. Finally I would like to thank Jones Lang LaSalle for collating the data in the report and for presenting the analysis in such a clear and concise manner.

Francis Wright

Christopher Edwards Chair, RICS Service Charge Group

Director - Property Management – Retail PRUPIM






Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

Introduction

Executive Summary

Jones Lang LaSalle’s Retail Park OSCAR is now in its 6th year of publication

The guide “benchmarks” on Parks with varying classifications, sizes and

and represents the most extensive survey of service charges for multi-let retail

locations for both reconciled service charges and budgets.

parks in the UK. Our thanks yet again go to our contributors and their managing agents for Retail Park OSCAR 2009 provides research on 2008 reconciled service

their very considerable help in providing the data.

charge costs and 2009 service charge budgets. Analysis on service costs and benchmarking for individual Retail Parks In Retail Park OSCAR we have categorised all parks based on the tenant

can be provided by the Jones Lang LaSalle Retail Park OSCAR Team if

user for each unit to establish 3 groups based on their key characteristics.

required.

This has proved a reliable measure over the last 4 years and we have retained this to ensure continuity.

• T  he database covers just under one fifth of multi-let retail parks (as identified by Trevor Woods Associates) in the UK and includes 76 bulky goods parks, 102 retail parks and 60 shopping parks • Clear evidence of the effects of the economic environment on decisions of Landlords and their agents is identified in both 2008 service charges and 2009 service charge budgets with pressures to minimise any cost increases • The inclusion of income in services charges and service charge budgets has been seen to be increasing in this research as noted below • 2008 reconciled Service Charges • Are 7.2% below 2008 service charge Budgets and in the retail park class this decrease is over 14% • across the database are £1.07 per sq ft (£11.52 psm) rising 11.5% from £0.96 per sq ft (£10.33 psm) in 2007 well ahead of inflation • on a “like for like” database (using the same properties for 2008 and 2007) the annual increase is 5.2% • T  he average on Bulky Goods Parks is £0.88 per sq ft (£0.74 psf 2007), on Retail Parks is £0.99 per sq ft (£0.99 per sq ft 2007) and on Shopping Parks is £1.46 per sq ft (£1.25 psf 2007). • Key Trends - 2008 reconciled Service Charges (against 2007 reconciled Service Charges) • Whilst costs under the heading of Management have increased by 16.4% in total, within that Management fees have reduced while Administration covering site costs, audits and Health & Safety has increased by 39.2%.

• 2009 Service Charge Budgets • Are on average £1.07 per sq ft (£11.52 psm) down by 5.3% from £1.13 per sq ft (£12.16 psm) budgeted in 2008. • have reduced on 2008 Budgets for the first time since the start of the research and this is reflected in all classes of park. • o n Bulky Goods Parks are £0.83 per sq foot (£0.87 psf 2008), on Retail Parks is £1.04 per sq foot (£1.13 psf 2008) and on Shopping Parks is £1.38 per sq foot (£1.44 psf 2008). • are 4.6% higher than reconciled service charges 2008 for the same parks. It is likely that 2009 budgets were agreed before the full extent of the savings versus 2008 budgets were known.

• K  ey Trends - 2009 Service Charges Budgets (against 2008 Budgets) • Management fees have increased by 3.7% and Administration covering site costs, audits and Health & Safety has increased by 20.3%. • Utilities rise by 9% • Soft Services reduced by 3.7%, but under that heading Promotions have increased by 5.6% but off a small base. • Hard Services remains constant representing just over 18% of expenditure, • Income although small shows a 96.4% increase this year

• Utilities rose by 2.3% • Soft Services remains the largest element but reduced to 56.6% of costs and under that heading Promotions have increased by 70% but off a small base. • Hard Services remains a variable component representing just over 18% of expenditure. • Income although small shows a 562.5% increase this year. 




Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

The database

The overall number of Parks in the combined database is very similar to

The classification of the parks included in the research is:

Retail Park OSCAR 2008. The 2008 reconciled service charges database has increased by 10% although the 2009 service charge budget database

Reconciled Service Charges 2008

has marginally decreased.

Classification

The total of 239 Parks overall represents in excess of 19% of all multi-let Retail Parks (Trevor Woods Associates) in the UK and is a significant body of data to draw sound conclusions about service charges.

Total Spend

Number

Number

Area

of Parks

of Units

(Sq Ft)

Bulky Goods

£4,952,346

67

392

5,937,494

Retail

£11,478,071

97

890

12,436,696

Shopping

£13,613,866

52

755

8,629,172

This year some 30 parks have left the database and 19 parks been included for the first time. This level of variation can result in some of the headline comparisons between years producing inconsistent results. To allow for this an additional comparison has been made using the same parks year on year and this is presented as a more reliable yardstick where appropriate. Data is presented mainly in imperial units with conversions to metric where

Budgeted Service Charges 2009 Classification

Total Budget

Number

Number

Area

of Parks

of Units

(Sq Ft)

Bulky Goods

£4,881,609

68

400

5,984,056

Retail

£11,738,213

95

878

12,327,211

Shopping

£13,659,056

58

829

9,478,205

appropriate and this year’s analysis is based on: • Overall

Shopping Parks at the “top end” share many of the characteristics of

• a total floor area of 29.4 million sq ft (2.7 million sq m)

shopping centres although are recognisably different in location and layout.

• 2,229 units

A comparative study on this aspect remains an area for research in future

• Data from the 10 leading retail park owners

years.

• Reconciled Service Charges 2008 • 216 Retail Parks • A total spend of £30 million in 2008 • Service Charge Budgets 2009 • 221 Retail Parks • A total budgeted spend of over £30.3 million in 2009 • Approximately 85% of the Parks included within the database are managed by our contributors and their managing agents • Tenant user information for each Unit has been analysed for all Parks to provide a classification for each Park.






Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

Average service charge

The overall average reconciled service charge rate calculated from the total

Comment

Class

Numbers of Parks

Average Rate

Using data on 121 parks where the number of car spaces were provided

Bulky Goods Parks

50

£0.04 per sq ft

the costs of cleaning and landscaping were analysed to show rates per car

11.5% uplift on last year (Retail Park OSCAR 2008). This increase is in part a

Management

Retail Parks

71

£0.02 per sq ft

parking unit. No overall pattern was discernible, but as last year within the

reflection of the changes to the database this year and when the same Parks

Management Fees as a percentage have decreased in Retail Park OSCAR

Shopping Parks

44

£0.03 per sq ft

mid range some consistency is detectable. This rate is provided as a rough

in each year are compared on a “like for like” basis the uplift is 5.2%.

2009 and now on average are 8.3% (8.8% in Retail Park OSCAR 2008)

The lowest rate was £0.13 per sq ft, the highest £5.31 per sq ft and the mid

Administration costs as a percentage of expenditure have increased

range from £0.63 to £1.25 per sq ft.

markedly in Retail Park OSCAR 2009 to 12.1% (8.7% in Retail Park OSCAR

database was £1.07 per sq ft (£11.52 per sq metre) which represents an

Average service charge rates by Park Classification

Class

£13.73 to £141.83

£40.41 to £80.74

£66.03

Shopping (29)

£21.23 to £232.80

£47.68 to £87.05

£79.97

expenditure, but by less than previously and amounted to 2.3%.

Shopping Parks

£1.46 per sq ft

£0.87 to £1.79 per sq ft

site services provided across the range of Parks from bulky goods parks to fully managed shopping parks that have many of the services of shopping £0.14. Looking at the different classes of parks the rates are as follows:

costs, although overlap does occur at the margins. RECONCILED SERVICE CHARGES BY COMPONENT PERCENTAGES The analysis on individual service lines at Parks is tabled below using the headings recommended in the RICS Code of Practice. Average service charge components by percentage across all Parks

2008

2009

Dif

Management

17.5%

20.4%

16.4%

Management Fee

8.8%

8.3%

-6.1%

Administration

8.7%

12.1%

39.2%

Utilities

6.2%

6.3%

2.3%

Soft Services

57.6%

56.6%

-1.6%

Landscape/Cleaning

28.4%

26.2%

-7.8%

Security

28.2%

28.8%

2.4%

Promotions

1.0%

1.7%

69.4%

Hard Services

19.0%

18.3%

-3.8%

Income

-0.2%

-1.6%

562.5%

£68.68

Retail (57)

Utilities costs have increased again this year as a percentage of

£0.63 to £1.17 per sq ft

£42.75 to £83.42

£63.97

totals run from £85 to £281,530. This range represents the different levels of

£0.99 per sq ft

£13.73 to £232.80

£41.18 to £80.24

Administration. Data has been provided separately for 149 parks and the

All

£16.36 to £153.57

Utilities

Retail Parks

Average

Bulky (35)

Site Management Costs are the most significant element of the

£0.54 to £0.84 per sq ft

Mid Range

OSCAR 2008.

Mid 50%

£0.88 per sq ft

Range per space

110 Parks spent in excess of £1,000, compared with 97 Parks in Retail Park

Charge Rate

Class

insurance and site managers’ costs, audit fees and Health & Safety.

Main Range

The classifications continue to retain clear differences in terms of running

Class

Numbers of Parks

Average Rate

Bulky Goods Parks

43

£0.10 per sq ft

Retail Parks

67

£0.12 per sq ft

Shopping Parks

39

£0.20 per sq ft

It is apparent that the large increase in Administration is related primarily to Site Management Costs, but this increase will have been distorted by the changes in the database this year. The site costs were not provided separately for a lot of Parks in previous years and while many more Parks are showing site costs separately this year meaningful detail comparisons are not possible at present. It is significant that Landlords are increasingly showing site costs as a specific heading rather than showing them as part of another category such as security or health & safety as has happened in the past. Audit Fees are recorded separately for over half the parks and range from £220 to £3,900. Health & Safety expenditure (which is included within Administration) is separately recorded on 165 Parks and in the majority of cases covers assessing and auditing. However, it is noticeable that for some Parks the expenditure may include some degree of implementation and 27 Parks (over 16% of the total) had expenditure in excess of £5,000. Costs range up to £0.29 per sq ft with an average of £0.03 per sq ft, the



OSCAR 2008) with the lowest £40 and the greatest £14,530.

Average Service

Bulky Goods Parks

The average spend was £2,157 per park (down from £2,842 in Retail park

2008). This heading includes site management costs covering rates,

centres. The average rate is £0.13 per sq ft and the mid range is £0.02 to

comparative on the landscaping and cleaning costs for parks as follows:

same as Retail Park OSCAR 2008.

Security – The range for those Parks with Security expenditure was less than £0.01 through to £1.98 per sq ft with the average £0.34 per sq ft. This average shows an increase from £0.30 per sq ft seen in Retail Park OSCAR 2008.

Class

Average Rate

Bulky Goods Parks

£0.04 per sq ft

Retail Parks

£0.05 per sq ft

Class

Mid Range

Average

Shopping Parks

£0.07 per sq ft

Bulky (40)

£0.04 to £0.22 per sq ft

£0.21 per sq ft

Retail (76)

£0.08 to £0.40 per sq ft

£0.31 per sq ft

Shopping (49)

£0.19 to £0.75 per sq ft

£0.50 per sq ft

Security costs increase from Bulky Goods Parks through to Shopping Parks.

Shopping Parks remain as the highest consumers of utilities.

Soft Services Landscape/Cleaning costs generally varied from £0.04 per sq ft to £1.55 per sq ft and overall show a percentage decrease on 2008 of 7.8%. The mid range is from £0.19 per sq ft to £0.38 per sq ft.

Security as a proportion of all costs has increased from Retail Park OSCAR 2008, and now amounts to nearly 30% of total costs. Previous research has shown that the level of Security is most likely to be a reaction to the local environment as well as quality of service to the Park.

Class

Mid Range

Average Rate

Bulky Goods Parks

£0.17 to £0.37 per sq ft

£0.30 per sq ft

Promotions costs have increased by nearly 70% in Retail Park OSCAR

Retail Parks

£0.19 to £0.36 per sq ft

£0.30 per sq ft

2009. 15 Parks recorded expenditure under this heading, with the

Shopping Parks

£0.22 to £0.40 per sq ft

£0.33 per sq ft

expenditure ranged from under £74 to £171,982. 5 Parks are classified as Shopping Parks, 9 as Retail Parks and 1 as a Bulky Goods Parks.

Previous research has shown that Landscape and Cleaning costs are mainly dependent upon the physical layout of a Park, the extent of the

Promotions remain rarely included within the service charge of Retail

external areas and qualitative influences related to the class of parks.

Parks due to occupiers adopting national promotions as opposed to local promotions. In many cases landlord’s contributions to this heading are also

Landscape/Cleaning Rate Per Car Space

prominent.

This relates the cleaning and landscape costs to a measure of the extent of the external areas of a park, in this case the number of car spaces on a park. 


Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

Hard Services

Class

Mid Range

Average

Bulky (13)

-£0.03 to -£0.004 per sq ft

-£0.004 per sq ft

Repairs ranged from zero to £0.72 per sq ft and decreased by 3.8% over

Retail (33)

-£0.02 to -£0.006 per sq ft

-£0.04 per sq ft

Retail Park OSCAR 2008.

Shopping (20)

-£0.05 to -£0.01 per sq ft

-£0.01 per sq ft

were between £0.50 and £0.40 per sq ft and of those only 3 showed the expenditure as being “Exceptional”. This research suggests that use of the exceptional category for repairs remains relatively limited.

SERVICE CHARGE COMPONENTS BY PARK CLASSIFICATION Service

Bulky Goods (67)

Management

Management fee

8.5% - £0.07

Retail (97)

Shopping (52)

9.0% - £0.08

7.6% - £0.11

Administration

12.3% - £0.11

10.4% - £0.11

13.5% - £0.20

Total

20.8% - £0.18

19.3% - £0.19

21.1% - £0.31

Utilities

6.3% - £0.05

5.9% - £0.05

6.6% - £0.10

Soft Services

Cleaning & Landscape 32.4% - £0.29

28.8% - £0.29

21.7% - £0.32

Security

17.5% - £0.15

28.5% - £0.28

33.1% - £0.48

Promotions

0.4% - £0.00

0.6% - £0.01

3.0% - £0.05

Total

50.3% - £0.45

57.9% - £0.58

57.8% - £0.84

Hard Services

23.1% - £0.20

19.2% - £0.19

15.8%- £0.23

indicated costs are influenced by Age of Park, previous lack of works, lease

Income

-0.6% - £0.00

-2.4% - £0.02

-1.3% - £0.02

responsibility and improvements.

Totals

100% - £0.88

100% - £0.99

100% - £1.46

Repair costs by Park Classification Class

Mid Range

Average

Bulky (67)

£0.12 to £0.28 per sq ft

£0.21 per sq ft

Retail (97)

£0.11 to £0.25 per sq ft

£0.21 per sq ft

Shopping (52)

£0.11 to £0.26 per sq ft

£0.25 per sq ft

Repair expenditure based on this research indicates that the class of Park is not the major determinate in the level of expenditure. Other research has

Income Income represents interest credited to service charges by some Landlords and income generated in common areas of some of the Parks. Both of these items have the effect of reducing service charges where they appear. This element has grown dramatically this year in excess of 500% and 66 Parks, some 30% of the database, are now recording income in some form. This ranges from £7 up to £214,000 and totals £477,390. Income specifically from commercialisation is shown for 23 Parks. While the headline increase may be distorted by the changes in the database this year and a small number of special situations where parks benefit from some particular feature such as a car park income, the underlying trend is for more parks’ service charges to include income.

Individual rates are affected by rounds to 2 decimal places

• Income although generally at a low level is starting to become significant • Insurance. Not included.

levels. Administration is a larger proportion than management fees.

• Exceptional expenditure included within hard services. • Utilities costs are similar shown in the rate per sq ft from Bulky Goods SERVICE CHARGE BUDGETS 2009

to Retail Parks, but then rise to Shopping Parks in line with increased service requirements.

The overall average service charge budget rate for Retail Park OSCAR 2009 calculated from the total database was £1.07 per sq ft (£11.52 per sq metre) [Retail Park OSCAR 2008 was £1.13 per sq ft]. The highest rate was £4.44 per sq ft and the lowest £0.03 per sq ft .

Security costs increase across the Park classifications both in terms of

Average Budget rates Class

Average Service Charge Rate

Main Range Mid 50%

Bulky Goods Parks

£0.83 per sq ft

£0.59 to £0.92

Retail Parks

£1.04 per sq ft

£0.67 to £1.16

Shopping Parks

£1.38 per sq ft

£0.79 to £1.82

Service

Bulky Goods (68)

Retail (95)

Shopping (58)

8.8% - £0.08

7.9% - £0.11

Administration

9.8% - £0.10

9.5% - £0.09

14.5% - £0.20

Total

18.7% - £0.16

18.3% - £0.19

22.4% - £0.31

Utilities

6.7% - £0.05

5.6% - £0.06

7.0% - £0.10

Soft Services

Cleaning &Landscaping 32.5% - £0.27

28.8% - £0.30

23.3% - £0.32

Security

17.1% - £0.14

27.3% - £0.29

33.8% - £0.47

spend falls across the range of Park classifications and the rate per sq

Promotions

0.3% - £0.00

0.4% - £0.00

1.7% - £0.02

ft/m increase between Retail Parks and Shopping Parks

Total

49.9% - £0.42

56.5% - £0.59

58.7% - £0.81

Hard Services

24.9% - £0.20

20.0% - £0.20

13.9%- £0.20

Income

-0.2% - £0.00

-0.3% - £0.00

-2.1%- £0.03

100% - £0.83

100% - £1.04

100%- £1.38

as would be anticipated • Soft Services. Cleaning & Landscape Maintenance as a percentage of

Security costs increase across the Park classifications both in terms of percentage of expenditure and rate per sq ft/m. Promotions are now shown for both Retail and Shopping Parks. Overall the Soft Services costs increase across the range of Park

percentage of expenditure and rate per sq ft/m. Promotions are concentrated in the Shopping Park classification with only a small amount in other classes • Hard Services costs reduce as a percentage of expenditure and the rate per sq ft/m from Bulky Goods Parks to Shopping Parks, but the rate per

Budget Components by Park Classification

classes (Bulky Goods to Shopping) as would be expected

Cleaning/Landscape expenditure increase in monetary terms across the range (Bulky to Shopping).

8.8% - £0.07

• Utilities costs rise in rate per sq ft/m for the Shopping Park classification

• Soft Services. Overall the costs increase across the range of Park Classes as both a percentage of expenditure and a rate per sq ft/m.

Management Fee

• Management costs as a rate per sq ft/m increase across the Park

• Management costs as a rate per sq ft/m rises from Bulky Goods Parks through Retail Parks to Shopping Parks with the increasing service

Management

Comment

Comment

Parks and then increases with Shopping Parks. with both Retail and Shopping Parks.

Data from 11 Parks had repairs costing in excess of £0.50 per sq ft of which only 3 were recorded as “Exceptional”. On a further 13 Parks repair costs

• Hard Services the rate per sq ft/m reduces from Bulky Goods to Retail

sq ft is static across the range. • Income is generally at a low level for Bulky Goods Parks, increases for Retail Parks and is noticeably higher in Shopping Parks • Insurance. Not included. • Exceptional Expenditure is included within hard services

Classes as a rate per sq ft/m. in line with the increased provisions in the Retail and Shopping Parks 10

11


Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

SERVICE CHARGE 2008 COMPARISON WITH 2007 (OSCAR 2008)

2009 BUDGET SERVICE CHARGE COMPARISON TO 2008 BUDGET

COMPARISON OF RECONCILED SERVICE CHARGE 2008 TO

Comment

SERVICE CHARGE

BUDGETED SERVICE CHARGE 2009

This shows a saving between budgets and reconciled service charges particularly with Retail Parks as a class. This suggests that Landlords

Comparison of reconciled service charge 2008 with reconciled service Comparison between budgets for 2008 and 2009 for the entire database.

charge 2007 Database Park Class 2007

2008

Difference

Whole

Overall

£0.96 per sq ft

£1.07 per sq ft

£0.11 per sq ft 11.5%

Whole

Bulky

£0.74 per sq ft

£0.88 per sq ft

£0.14 per sq ft 18.9%

Whole

Retail

£0.99 per sq ft

£0.99 per sq ft

£0.00 per sq ft 0.00%

Whole

Shopping

£1.25 per sq ft

£1.46 per sq ft

£0.21 per sq ft 16.8%

This analysis shows rising costs much greater than inflation overall and steep cost increases for all park classes with the exception of the Retail Parks.

Database

Park Class

2008

2009

Difference

This section compares the Reconciled 2008 service charge figures with

for that class may have cut costs during 2008 and put off expenditure.

the Budgeted 2009 service charge figures to assess likely future variations

However, for Bulky Goods Parks and Shopping Parks the budgeting

in costs. This includes only those properties common to each database of

and actual are very close.

which there were 199.

Whole

Overall

£1.13 per sq ft

£1.07 per sq ft -£0.06 per sq ft -5.3%

Whole

Bulky

£0.87 per sq ft

£0.83 per sq ft -£0.04 per sq ft -4.6%

Database

Whole

Retail

£1.13 per sq ft

£1.04 per sq ft -£0.09 per sq ft -8.0% £1.38 per sq ft -£0.06 per sq ft -4.2%

Reconciled /Budget (59) Bulky

£0.79 per sq ft

Whole

Shopping

£1.44 per sq ft

The database varied in terms of numbers and types of Parks between the

RECONCILED

BUDGET

2008

2009

Reconciled/Budget (199) Overall

£1.03 per sq ft

£1.08 per sq ft £0.05 per sq ft 4.9%

Park Class

Reconciled /Budget (90) Retail

£0.98 per sq ft

This research shows a year on year decrease in budgets of 5.3%

across all classes, but with a higher decrease for Retail Parks this

Reconciled /Budget (50) Shopping

£1.41 per sq ft

year.

Database Park Class 2007 2008 Difference

Adjusted

Overall (157)

two years. In the database there are 157 Parks that are common to the two years and a comparison including only those Parks (adjusted database) is shown

Adjusted

Bulky (54)

Adjusted

Retail (72)

Adjusted

Shopping (31)

£0.96 per sq ft £0.74 per sq ft £1.01 per sq ft £1.24 per sq ft

£1.06 per sq ft £0.08 per sq ft 8.2% £1.40 per sq ft -£0.01 per sq ft -0.7%

Using only the same Parks in each year, analysis on this adjusted database

This analysis shows an overall increase of 4.9% across all Park

£0.05 per sq ft per sq ft 5.2%

is as follows:

Classes, which is less than previous years and is a reflection of the

£0.80 per sq ft

£0.06 per sq ft per sq ft 8.1%

Database

Park Class

2008

2009

Difference

£1.00 per sq ft

-£0.01 per sq ft per sq ft -1.0%

Budget Adjusted

Overall (196)

£1.13 per sq ft

£1.07 per sq ft

-£0.06 per sq ft -5.3%

Budget Adjusted

£1.40 per sq ft

£0.16 per sq ft per sq ft 12.9%

Bulky Goods (62) £0.83 per sq ft

£0.82 per sq ft

-£0.01 per sq ft -1.2%

Budget Adjusted

Retail (84)

£1.15 per sq ft

£1.04 per sq ft

-£0.11 per sq ft -9.6%

£1.46 per sq ft

£1.42 per sq ft

-£0.04 per sq ft -2.7%

half the comparison of the full database. The increase is highest for Shopping Parks, less for Bulky Goods Parks, but with a reduction for

12

£0.84 per sq ft £0.05 per sq ft 6.3%

£1.01 per sq ft

Analysis shows a year on year increase of 5.2% overall, a figure under

Retail Parks.

Difference

recessionary influences and low inflation.

Budget Adjusted

Shopping (50)

Comparison between Budgets 2008 with the Reconciled Service Charges for 2008 for the same Parks Database

BUDGET 2008

ACTUAL 2008

Budget Adjusted Overall (187)

£1.11 per sq ft

£1.03 per sq ft -£0.08 per sq ft -7.2%

Park Class

Budget Adjusted Bulky Goods (59) £0.79 per sq ft

£0.78 per sq ft

Comment

Budget Adjusted Retail (84)

£1.16 per sq ft

£0.99 per sq ft

There are year on year decreases for each class individually and overall

reflecting the market recessionary influences. Retail Parks show the most

Budget Adjusted Shopping (44)

£1.41 per sq ft

£1.43 per sq ft

marked decreases.

Difference

-£0.01 per sq ft -1.3% -£0.17 per sq ft -14.7% £0.02 per sq ft 1.4%

13


Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

Location and size

RECONCILED SERVICE CHARGE BY SIZE AND PARK CLASS

Retail Park OSCAR - Headline Rates 1.2 Budgets

Reconciled SC

1.0

Rates Per Sq Foot

0.8

0.6

South

North

Classification

(No of Parks)

(No of Parks) Average

Consistently research in previous years has shown that overall the “Size”

of individual Parks is seen to be an influence on costs, lowering costs

£0.71 per sq ft (13)

£1.02 per £0.81 per sq ft (6) sq ft (19)

per sq ft or sq m with increasing area. However, this is masked in some

Management

£0.13

£0.21

£0.16

classifications by issues of quality, of service and local surroundings. We

Man. Fees

£0.06

£0.08

£0.06

have not repeated this analysis for OSCAR 2009.

Administration

£0.07

£0.13

£0.10

Utilties

£0.04

£0.07

£0.05

Soft Services

£0.38

£0.51

£0.42

2005

2006

2007

2008

2009

OSCAR Year

Comparison of Service Charge Budgets and Reconciled

This clearly shows the year on year increases for the reconciled service

Service Charge Year On Year

charges. In the first 3 years this is distorted by changes in database and in reality we would expect the increase to be more gradual. Budget rates have

A graph has been prepared to show the headline rates per sq ft over the last

been shown since first collected and these highlight the fall recorded for 2009.

6 years. On the basis of this evidence we expect budgets for 2010 and reconciled service charges for 2009 to be generally stable showing little if any increase. 14

Landscape Maint £0.23

£0.30

£0.25

Security

£0.15

£0.21

£0.17

Analysis in earlier OSCARs has demonstrated that there is a regional

Promotions

-

-

-

influence on costs within Parks with costs tending to be less in the North.

Hard Services

£0.17

£0.23

£0.19

This is less strong than “size” influence and can be masked by issues of

Income

-£0.01

-

-

quality and a reaction to the local environment to the park. In this OSCAR

>200,000

we have not carried out further analysis on this aspect.

£0.77 per sq ft (2)

£0.88 per £0.81 per sq ft (1) sq ft (3)

Retail

<100,000

£1.08 per sq ft (30)

£1.00 per sq ft (12)

£1.06 per sq ft (42)

Management

£0.29

£0.21

£0.27

Man. Fees

£0.10

£0.08

£0.09

Administration

£0.19

£0.13

£0,18

(No of Parks) (No of Parks) Average

Utilties

£0.04

£0.05

£0.04

£1.00 per £0.62 per sq ft (35) sq ft (10)

Soft Services

£0.56

£0.58

£0.57

Landscape Maint £0.36

£0.36

£0.36

Security

£0.21

£0.20

Size

Service

Classification

2004

100,000 to 200,000

National

Bulky Goods <100,000

0

Service

Park

0.2

Size

RECONCILED SERVICE CHARGE BY LOCATION AND SERVICE COST

SERVICE CHARGES BY LOCATION, SIZE AND PARK CLASSIFICATION 0.4

Park

South

North

National

£0.91 per per sq ft (45)

Management

£0.24

£0.14

£0.20

Man. Fees

£0.08

£0.07

£0.08

Administration

£0.16

£0.07

£0.12

Utilties

£0.06

£0.03

£0.05

Soft Services

£0.46

£0.31

£0.42

Landscape Maint £0.35

£0.25

£0.32

Security

£0.11

£0.06

£0.10

Promotions

-

-

-

Hard Services

£0.24

£0.14

��0.23

Income

-

-£0.01

-

£0.18

Promotions

£0.01

-

£0.01

Hard Services

£0.29

£0.17

£0.25

Income

-£0.12

-£0.01

-£0.08

100,000 to 200,000

£1.06 per sq ft (24)

£0.89 per sq ft (11)

£1.01 per sq ft (35)

Management

£0.19

£0.17

£0.18

Man. Fees

£0.09

£0.08

£0.09

Administration

£0.10

£0.09

£0.09

Utilties

£0.06

£0.04

£0.06

Soft Services

£0.61

£0.46

£0.57

Landscape Maint £0.25

£0.25

£0.25

Security

£0.21

£0.31

£0.31

Promotions

-

-

-

Hard Services

£0.20

£0.23

£0.21

Income

-

-£0.01

-

15


Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

Park

Size

Service

South

North

National

Park

Size

Service

South

North

National

with Management administration, Landscape maintenance, Security

Classification

(No of Parks) (No of Parks) Average

Classification

(No of Parks) (No of Parks) Average

>200,000

>200,000

£2.40 per sq ft (8)

£1.59 per sq ft (7)

£2.03 per sq ft (15)

a qualitative difference. The number of large Bulky Goods Parks

£0.83 per sq ft (20)

£0.85 per sq ft (7)

£0.82 per sq ft (13)

Management

£0.14

£0.13

£0.14

Management

£0.53

£0.37

£0.46

rates are shown.

Man. Fees

£0.07

£0.07

£0.07

Man. Fees

£0.18

£0.11

£0.14

Administration

£0.07

£0.06

£0.07

Administration

£0.35

£0.26

£0.32

Utilties

£0.06

£0.07

£0.06

Utilties

£0.15

£0.14

£0.15

location and classification, although the differential for medium sized

Soft Services

£0.51

£0.52

£0.50

Soft Services

£1.32

£0.96

£1.16

parks between South and North is greater than might be expected

Landscape Maint £0.23

£0.27

£0.24

Landscape Maint £0.46

£0.32

£0.40

with Security being the principal variant. Across the large parks the

Security

£0.27

£0.23

£0.26

Security

£0.59

£0.67

North becomes marginally more costly than the South.

£0.70

Promotions

£0.01

£0.02

£0.01

Promotions

£0.16

£0.04

£0.09

Hard Services

£0.12

£0.14

£0.13

Hard Services

£0.41

£0.16

£0.28

Income

-

-£0.01

-

Income

-£0.01

-£0.05

-£0.03

Shopping <100,000

£1.56 per sq ft (11)

£0.91 per sq ft (4)

£1.39 per sq ft (15)

Management

£0.34

£0.16

£0.30

Man. Fees

£0.12

£0.09

£0.11

Administration

£0.22

£0.07

£0.19

to service charge cost expenditure within the different classifications of

Utilties

£0.09

£0.06

£0.08

Parks to provide a simple benchmark. The usefulness of these results

Soft Services

£0.83

£0.51

£0.73

is very dependent upon the size of the individual database in each

Landscape Maint £0.36

£0.28

£0.34

classification and the number of Parks included is shown in the table in

Security

£0.23

£0.39

brackets alongside the appropriate rate.

£0.45

Comments • Analysis has taken the variants of size and location and applied these

Promotions

£0.01

-

-

Hard Services

£0.29

£0.18

£0.27

Income

-

-

-

100,000 to 200,000

£1.02 per sq ft (14)

£1.30 per sq ft (8)

£1.12 per sq ft (22)

Management

£0.17

£0.23

£0.19

Man. Fees

£0.09

£0.11

£0.10

Administration

£0.08

£0.12

£0.09

to decrease with size, and be lower in the North. A qualitative effect can

Utilties

£0.06

£0.03

£0.05

be anticipated and for Shopping Parks to be the most expensive and

Soft Services

£0.61

£0.82

£0.68

Bulky Goods the lowest.

Landscape Maint £0.28

£0.26

£0.27

Security

£0.56

£0.40

-

-

there is a wide divergence between South and North with Management

£0.21

administration, Utilities, Landscape maintenance and Hard Services

Income

-£0.01

-£0.02

-£0.01

being much more expensive in the South. These services seem to

16

• With Bulky Goods Parks the results are very variable. On the small parks

£0.24

• Earlier analysis of size and location shows that the rate per sq ft will tend

-

difference.

Parks in the North under 100,000 sq ft.

£0.19

increase with size where Management administration, Landscape

over 200,000 sq ft, while the lowest was £0.62 per sq ft in Bulky Goods

Promotions

quality with the result that for Parks in the North the costs increase

• The highest rate was £2.40 per sq ft for Shopping Parks in the South,

Hard Services

• Results for the Shopping Parks are more influenced by issues of

This year we have included the national average to assist with comparison

• Results for Retail Parks follow the expected influences of size,

maintenance, Security and Hard services are the main areas of

included in the database is limited and therefore only the headline

with size. In the South medium sized Parks are the exception to this

£0.33

and Hard Services as the main differences. This again seems to be

indicate that there is a strong qualitative difference. The medium Parks in the North are substantially more expensive than those in the South

17


Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

Benchmark - budgets by location, size and park classification Park Classification

Size

South (No of Parks)

North (No of Parks)

Bulky Goods

<100,000

Management

£0.86 per sq ft (37)

£0.74 per sq ft (11)

£0.83 per sq ft (48)

100,000 to

£0.20

£0.13

£0.18

200,000

Man. Fees

£0.07

£0.07

£0.07

Administration

£0.13

£0.06

£0.11

Utilties

£0.05

£0.04

£0.05

Soft Services

£0.37

£0.34

£0.36

Landscape Maint

£0.29

£0.28

£0.29

Security

£0.08

£0.06

£0.07

Promotions

-

-

-

Security

Hard Services

£0.23

£0.23

£0.23

Promotions

Income

-

-

-

Hard Services

100,000 to

Income

200,000

£0.76 per sq ft (11)

£0.95 per sq ft (6)

£0.83 per sq ft (17)

>200,000

£0.86 per sq ft (13)

£0.75 per sq ft (8)

£0.82 per sq ft (21)

Management

£0.13

£0.16

£0.14

Management

£0.14

£0.11

£0.13

Man. Fees

£0.06

£0.09

£0.07

Man. Fees

£0.08

£0.07

£0.07

Administration

£0.07

£0.07

£0.07

Administration

£0.06

£0.04

£0.06

Utilties

£0.03

£0.11

£0.06

Utilties

£0.05

£0.06

£0.05

Soft Services

£0.40

£0.47

£0.43

Soft Services

£0.54

£0.43

£0.51

Landscape Maint

£0.23

£0.28

£0.25

Landscape Maint

£0.23

£0.27

£0.25

Security

£0.17

£0.20

£0.18

Security

£0.31

£0.15

£0.25

Promotions

-

-

-

Promotions

-

£0.01

£0.01

Hard Services

£0.20

£0.21

£0.20

Hard Services

£0.14

£0.15

£0.14

Income

-

-

-

Income

-

-

-

>200,000

£0.85 per sq ft

£0.91 per sq ft

£0.87 per sq ft

Shopping

<100,000

£1.48 per sq ft (13)

£0.78 per sq ft (5)

(2)

(1)

(3)

Management

£0.30

£0.38

£0.32

Retail

<100,000

£1.20 per sq ft (30)

£1.02 per sq ft (12)

£1.15 per sq ft (42)

Man. Fees

£0.11

£0.12

£0.11

Management

£0.30

£0.21

£0.27

Administration

£0.19

£0.26

£0.21

Man. Fees

£0.11

£0.10

£0.10

Utilties

£0.07

£0.07

£0.07

Administration

£0.19

£0.11

£0.17

Soft Services

£0.83

£0.64

£0.78

Utilties

£0.05

£0.06

£0.05

Landscape Maint

£0.40

£0.34

£0.38

Soft Services

£0.58

£0.58

£0.58

Security

£0.43

£0.30

£0.40

Landscape Maint

£0.37

£0.34

£0.36

Promotions

-

-

-

Security

£0.21

£0.24

£0.22

Hard Services

£0.27

£0.18

£0.25

Promotions

-

-

-

Income

-

-£0.50

-£0.13

Hard Services

£0.26

£0.16

£0.24

Income

-

-

-

18

Service

National Average

Park Classification

Size

South (No of Parks)

North (No of Parks)

National Average

£1.07 per sq ft (23)

£1.01 per sq ft (9)

£1.05 per sq ft (32)

Management

£0.18

£0.19

£0.18

Man. Fees

£0.09

£0.09

£0.09

Administration

£0.09

£0.10

£0.09

Utilties

£0.05

£0.06

£0.05

Soft Services

£0.61

£0.52

£0.59

Landscape Maint

£0.27

£0.29

£0.27

£0.34

£0.23

£0.32

-

-

-

£0.22

£0.25

£0.23

-

-

-

Service

£1.29 per sq ft (18)

19


Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

Looking to the future

Park Classification

Size

Service

100,000

to 200,000

Management

Management - Site Management Resources

Soft Services - Security

While there were substantial increases under this heading in 2008 our

Security costs will generally remain constant for the third successive

£0.24

assessment of the market predicts that Site Management Resources will

year. Wage increases will be restricted to those sites where recruitment

remain fairly constant in terms of cost, with most companies adopting a

or retention of staff is becoming problematic. Concerns about job security

no or low annual salary increase. The range of skills now expected from

which accompanied the onset of the recession had led to reduced churn

facilities and building management personnel, with management of tight

levels but a third year of wage freezes may now make relatively minor

budgets and supplier liaison coming increasingly to the fore, require a higher

variations in wage rates a compelling reason to move.

South (No of Parks)

North (No of Parks)

National Average

£1.25 per sq ft (14)

£1.23 per sq ft (10)

£1.24 per sq ft (24)

£0.20

£0.29

Man. Fees

£0.09

£0.11

£0.10

Administration

£0.11

£0.18

£0.14

Utilties

£0.05

£0.07

£0.06

Soft Services

£0.75

£0.64

£0.71

Landscape Maint

£0.32

£0.28

£0.30

Security

£0.43

£0.36

£0.41

Promotions

-

-

-

Hard Services

£0.25

£0.23

£0.24

Income

-

-

-

>200,000

£2.01 per sq ft (7)

£1.45 per sq ft (9)

£1.69 per sq ft (16)

Management

£0.53

£0.31

£0.39

Man. Fees

£0.17

£0.10

£0.13

Administration

£0.36

£0.21

£0.26

than ever level of training which may increase non-wage costs. Increased support from central teams and the subsequent re-allocation of on site

Re-visiting specifications and greater use of technology, especially the use

resource may lessen these effects overall. Pressure on a limited pool of

of remote monitoring, can still lead to overall cost reductions even when

suitably qualified staff, with corresponding increases in market wage rates,

wage rates are threatening to push costs up.

may not become an issue as good candidates offering transferable skills could be identified from a wider range of backgrounds than those common

Soft services - Cleaning and Environmental

amongst current site management personnel. The economic environment will lead to a third year of minimal cost increases Utilities - Energy

for cleaning. Wages account for the majority of total cleaning costs and as cleaning is a generally low paid industry minimum wage levels become a

Utilties

£0.18

£0.12

£0.14

Wholesale prices have fallen from the peak of 2008 but have returned to

significant driver. Increases to minimum wage have put pressure on costs

Soft Services

£1.07

£0.91

£1.00

a general upward trend with occasional volatile variance from day to day.

but changes to specifications and the use of machinery can mitigate this and

Landscape Maint

£0.37

£0.33

£0.36

Network charges are increasing across the UK to pay for the modernisation

allow overall cleaning charges to be maintained at constant levels.

Security

£0.63

£0.55

£0.59

Promotions

£0.07

£0.03

£0.05

Hard Services

£0.25

£0.12

£0.17

Income

-£0.01

-£0.02

-£0.02

of utility infrastructure. The introduction of feed-in tariffs provides opportunities for some but the cost of this subsidy is borne by all users.

Waste disposal costs continue to rise with year on year above inflation increases in landfill tax being the most significant element. This has

The carbon reduction commitment (CRC) has proved to be a costly

encouraged greater efforts to recycle but the economic environment has led

administrative burden in the registration phase and will continue to be so for

to the reduction in the market for many recycled products which could offset

the evidence packs. However, the provision of clear information on energy

some collection charges. Active efforts to reduce waste going to both landfill

Comments

and for Shopping Parks to be the most expensive and Bulky Goods the

consumption is fundamental to energy management and potential cost

and recycling will therefore be the best way of keeping cost increases as low

• Analysis of this data has included the size, location and classification of

cheapest.

reductions to the occupiers and landlords advantage.

as possible.

The roll out of automatic meter readers on gas and smaller electricity

Hard Services - M&E Services

Parks and applied these to budgeted service costs to provide a simple benchmark. The number of Parks in each category is shown in the table in brackets alongside the appropriate rate. • The highest rate was £2.01 per sq ft for Shopping Parks in the South

• Running counter to this are Bulky Goods Parks in the middle size range of 100,000 to 200,000 sq feet in the North which are more expensive and

supplies will have a direct advantage for the landlords on CRC and

the low number of units in the larger size range makes any conclusions

occupiers for energy and cost management. The current under capacity of

Annual maintenance costs have remained flat as a direct result of the

unsound.

installation teams to meet the CRC early adoption metrics will ease as the

financial climate with tenants looking to minimise their expenditure and

year progresses.

landlords being affected by void spaces. In some cases, the scope of

over 200,000 sq ft, while the lowest was £0.74 per sq ft for Bulky Goods Parks in the North under 100,000 sq ft.

• The other exceptions to the expected pattern are the Shopping Parks where the large parks in the South are more expensive mainly due

• As with Reconciled service charges the previous research on size and

20

maintenance servicing has been reduced in either the level, or frequency of Utilities - Water

to increases in Soft Services and Management Administration and in

maintenance, to reduce costs from the previous year. Engineer salary levels have broadly remained static, although this is expected to increase in the

location shows that the rate per sq ft will generally decrease with size,

the North costs increase with size through the range again due to Soft

The industry regulator has agreed to above inflation rises to finance

short/ medium term as the amount of quality skilled engineers remains in

and be lower in the North while a qualitative effect can be anticipated

Services and Management Administration.

investment in aging infrastructure.

short supply.

21


Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

Definition of terms

By the end of 2010 all AC systems should have been inspected by and

not be tolerated. Wages will generally remain static with limited increases in

Accredited Energy Assessor to meet legislative requirements. The reports

certain areas and cost savings can still be achieved by careful consideration

should provide another useful tool in which the information can be collated

of specifications, increased use of technology and diligent management of

and reviewed against the whole building services and fabric to realise

suppliers.

potential energy savings and reduction in CO2 levels The key conclusions to be drawn from this research indicate that the Hard Services - Fabric Repairs and Maintenance

economic environment has exerted a major influence on the Retail Park service charges through the responses of Landlords and their

Tenants continue to increase emphasis on their buildings being presented in

agents

excellent order as there is a move to maintain and enhance existing space

• The increase of service charges from 2007 to 2008 on “like for like”

rather than re-locate. Planned maintenance programmes are now well established and these should have the effect of smoothing year-on-year costs and reducing unplanned expenditure

parks was 5.2% against the budgeted increase of 6.4% • The 2008 reconciled service charges overall were 7.2% lower than budgeted • The service charge budgets overall for 2009 are 5.3% lower than the

Conclusion

service charge budgets overall for 2008

• Types of Retail Parks: The research in earlier years has shown that “planning user” which is exhibited in the use of each retail unit, is the major determinate in the generation of footfall on Retail Parks and thereby the principle influence on running costs. Hence at one end of the scale a DIY unit will have a different level of footfall and require a different level of servicing than a fashion outlet. Analysis of the unit user information (tenant analysed as trading in “bulky goods”, “fashion” or “retail”) on each Park has determined the dominant classification of that Park.

and the supplier markets understand that widespread cost increases will

• B  ulky Goods Parks (65%+ of unit users are in “bulky goods”) and 76 Parks are in this classification.

• Retail Parks (under 30% unit users in “fashion” and clothing and not above 65% of unit users in “bulky goods”) and 102 are included.

• Shopping Parks (30%+ of unit users are in “fashion” and clothing or usually found in high street locations, but not more than 65% in “bulky goods”) with information from 60 included.

Expenditure Definitions

• Management Fee charged for the management of the Park • Administration - Site supervision, Health & Safety compliance, auditing accounts and costs of any site staff. Data for this heading is provided in various headings from different contributors. The use of this summary heading while not referred to in the Code of Practice enables results to be shown in a consistent manner for comparison

• Size Bands – These have been selected as follows

• Utilities – Costs of electricity, gas and water paid for by the Landlord

• Soft Services • Landscape/Cleaning – Cleaning and Landscaping.These two headings have been combined as they often overlap and some Operators will put spend under one heading and some in the other. We have sought to avoid this confusion by pulling the figures together.

• Under 100,000 sq ft (9,290 sq m) covering 116 Parks. • Over 100,000 sq ft (9,290 sq m) but less than 200,000 sq ft (18,580 sq m) includes 81 Parks. • Over 200,000 sq ft (18,580 sq m) covering 41 Parks. • This generally represents a fairly even distribution between the first two categories while the latter one probably reflects the lesser numbers of larger Parks in existence.

OSCAR – is an acronym for Office Service Charge Analysis Research. This analysis was commenced by Jones Lang LaSalle nearly 30 years ago dealing initially only with office service charges. This was joined by Retail OSCAR after a few years dealing with shopping centre service charges. The OSCAR name has been retained for Retail Parks OSCAR.

22

Cost-Rates - The cost-rates have been calculated by dividing the total Service Charge costs by the gross internal floor area of the retail units within the Park.

• Management

There is a general understanding that the effects of the economic environment are more persistent than had been imagined two years ago

Service Charge Budgets - The data for “Budget” analysis comes from budgets issued to tenants for the year mainly falling within the 2009 calendar year. All costs are net of VAT

• Security – Cost of security cover and security equipment

• Promotion – Any promotional costs recovered via the service charges

• Hard Services – Fabric, Drainage and M&E repairs and maintenance. This also includes exceptional expenditure

Data - The data on which Retail Park OSCAR is compiled is from the service charge costs paid by Occupiers to Owners of Retail Parks. The costs do not include direct costs borne by Occupiers in relation to the maintenance, repair and use of their own demised unit. Information has been provided on both “reconciled” service charges and service charge Budgets

• Income – Any income credited to the service charge from lettings or interest

Reconciled Service Charges - The data for the “reconciled Service Charge” analysis is in the main drawn from audited or certified Service Charge accounts mainly falling within the 2008 calendar year. All costs are net of VAT.

• Exceptional Expenditure – Data included within hard services.

• Insurance – Insurance premiums have been excluded from this analysis as in a lot of Parks insurance costs are not included in service charges

These cost headings have been prepared to follow the RICS Code Of Practice – Service Charges in Commercial Property. 23


Retail Park OSCAR 2009 – Service Charge Analysis for Retail Parks

Geographical areas

Location – The geographical areas have been chosen as follows; Region 1 – London and South East, South, South West, Wales, Midlands and East Anglia with 163 Parks Region 2 – North (area north of Cheshire, Derbyshire, Nottinghamshire and Lincolnshire) Scotland and Northern Ireland with 75 Parks This selection was adopted because of the lack of a major influence on “cost of services” for Retail Park OSCAR, of London and the South East, which is contrary to both Retail OSCAR and Office OSCAR service charge analysis. A straight North South divide has therefore been adopted as below

Management Property and Services Asset Management

Management Services Contacts Contacts

Nigel Wheeler

Richard Angliss Chairman of Management

Richard Angliss

Nigel Wheeler Lead Director

Catherine Lambert

DavidCentre Griffin Head of Shopping

Lucy Oldham

Peter Barber

Gavin Blackwell Out of Town Retail Lead Director Chairman of Director of Associate Director of Services Management Management Shopping Centre Management Management Services Property and Asset Management Property and Asset Management Property and Asset Management Property and Asset Management Contacts nigel.wheeler@eu.jll.com richard.angliss@eu.jll.com catherine.lambert@eu.jll.com lucy.oldham@eu.jll.com peter.barber@eu.jll.com +44 (0)20 7399 5168 +44 (0)20 3147 1395 +44 (0)20 3147 1394 +44 (0)20 3147 1401 Trichard.angliss@eu.jll.com +44 (0) 20 3147 1395 T +44 nigel.wheeler@eu.jll.com (0) 20 3147 5168 T +44 (0) 20david.griffin@eu.jll.com 3147 1263 T +44 (0) 20 3147 7878 T +44 (0) 1603 646948 gavin.blackwell@eu.jll.com Richard Angliss Nigel Wheeler David Griffin Gavin Blackwell Lead Director Chairman of Director of Associate Director of Management Services Management Services Management Services Management Services +44 (0)20 7399 5168 +44 (0)20 3147 1395 +44 (0)20 3147 1394 +44 (0)20 3147 1401 richard.angliss@eu.jll.com nigel.wheeler@eu.jll.com david.griffin@eu.jll.com gavin.blackwell@eu.jll.com Jones Lang LaSalle, 40 Bank Street, Canary Wharf, London E14 5EG +44 (0)20 3147 6040

Director

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COPYRIGHT © JONES LANG LASALLE, IP, INC. 2009. All Rights Reserved. While every effort has been made to ensure accuracy and completeness, we cannot offer any warranty that factual errors may have occurred. Jones Lang LaSalle cannot accept any legal responsibility for any damage or loss suffered by reason of any inaccuracy or incorrectness concerning information and material in this report.

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Oscar 2009 - Retail Parks