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Accommodation Schedules
The above accommodation schedule provides the space uses within the existing and new build for redevelopment. The existing building which is currently a derelict Apart-hotel will be converted into residential apartments, with retail on the ground floor and frontages onto the main street of Strasse Der Pariser Kommune where footfall is likely to increase drastically due to the planned nearby developments.
The left wing of the new building will be used for office space and the right wing will be a mixture of retail; including a small supermarket on the ground floor, as well as bars and restaurants on the upper floors for local residents, building employees and tourists to use.
Residential Accommodation Schedule
The UK National Housing Space Standards (2015) have been used to determine the gross internal floor area of each apartment as standard minimum sizes could not be found for Germany or Berlin. The sizes used would allow 2 people to live in a one bed property, 4 people to reside in a two bed, and up to 5 people in one of the three bedroom apartments which would be suitable for the development’s target market of young families.
Ideally apartment sizes would have been slightly bigger to offer residents a more comfortable and long-term home, however as we restored the existing building rather than demolishing, we were limited when considering how many apartments would fit in the space while keeping the overall sale costs affordable.
Effort has been made to ensure the apartments are modestly priced per square metre in comparison to other new developments in the area. (Please see Comparable Properties Tab). Although the apartments are still on the expensive side when compared to existing properties, they offer the chance to buy at a reduced rate which is less than market value for a new build development helping to balance concerns of gentrification within the area.
Commercial Accommodation Schedule
Using comparables from the local area, the office space has been priced at £432 per Sq. m per annum, while retail has been priced at €480 per Sq. m per annum. Many office spaces in the nearby vicinity included additional costs per month of between €4-5 for service charge costs. It is assumed that this price has been included within the overall office price proposed.
As the development will include a variety of retail including shops, restaurants and bars, a mixture of these types of use were used to obtain comparables rents.
Please see the Comparable Properties tab for further information.
Commercial Yields
JLL reported a yield of 3.45 based on Class A office space within the CBD in Quarter 1 of 2023. The yield has been adjusted upwards to 5% to reflect the location of the development site and current market conditions.
In January 2023, Savills suggested that retail yields for prime high-street properties are approximately 4%. This has been adjusted upwards to 5.5% to represent the higher risk of the location in comparison to the City Centre.
In the current market and condition of the site location as it currently stands, both these yields may still be on the lower side and could potentially rise up to around 7%.
Amelia O'Hara (RE)
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