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News Release

Newcastle

Jones Lang LaSalle looks at the market one year on from the merger


Newcastle, 8 June 2012–It is one year since global commercial real estate firm Jones Lang LaSalle announced its merger with international property consultants King Sturge.  In June 2011 all 24 UK King Sturge offices, including Newcastle, became part of Jones Lang LaSalle.  The combined firm became a clear leader in the UK and continental Europe with greatly enhanced strength anddepth of service capabilities.

Since the merger Jones Lang LaSalle has reported record results, EMEA’s revenue in 2011 was $974 million, compared with $729 million in 2010.
According to Jonathan Sykes, Head of the Jones Lang LaSalle Newcastle office who established the city’s King Sturge offices in May 2001,the merger is opening up new opportunities regionally with corporate clients of the company such as UBS, Procter and Gamble and Doosan. It has created a new organisation with a clear market leadership position and compelling client offerings.
 
Jonathan commented: ‘The merger has expanded our reach globally, the Newcastle office now has access to colleagues and clients at a broader EMEA and also a global level, which is a platform we did not have before. It has strengthened our links with the Leeds office and allowed us to expand our services in specialist sectors such as student living, healthcare and data centres. As the leading agents in the region our aim is to promote the region to occupiers and inward investors, wherever in the world they come from. Developments like Amazon Park, Newton Aycliffegive the region in particular an international story to take to the rest of the world’.

Over the last year the North East property market has been tough, market conditions have made it much harder work to complete transactions with all parties needing to be increasingly flexible in order to secure new occupiers.  With falling values and a lack of funding available there has been little new development in the region.

However despite the economic doom and gloom Jones Lang LaSalle’s Newcastle office has found increased business in the Valuation sector which has gained new work from global companiesas a result of being part of a bigger organisation and have let or acquired in excess of 1.1 million sqft of accommodation since the merger.  The manufacturing and distribution sector has been strong with the industrial teamsecuring the largest pre-let in the North East at Wynyard Park in Teesside where Clipper Logistics have taken a 343,000sqft warehouse.  The office market has been difficult however there have been some notable deals, a good example of which is Jones Lang LaSalle’s letting of the former Garlands call centre in South Shields, a 40,400sqft office building that is now occupied by Utilitywise. 

Jones Lang LaSalle’s North East team won recognition as the region’s most active agent in the investment market in 2011 in a competition by online property magazine EGI.  Over the course of the last 12 months they havebought and sold £32 million of investment stock.  Key deals have included the sale of the Hotspur portfolio on behalf of The Northumberland Estates and the acquisition of two hotels, the Premier Inn on City Road and the Malmaison on the Quayside.  This is in addition to a number of land sales for development including residential.

Jonathan concluded: ‘Looking ahead our pipeline of work across the region is encouraging with schemes such as Turbine Business Park and DurhamGate and despite difficult market conditions we are confident Jones Lang LaSalle will continue to prove one of the most active agents at a regional and national level’.​