London Commercial Property News - London Midtown Commercial Property Demand Growing

Rarely will all the London sub markets perform well together in a recovery but this is the case now with Midtown, for example, having only a small amount of vacancies after a strong letting performance. Two quick deals on space in UK & European’s 9 Kingsway, WC2 are, said Charlie Thompson of Farebrother: “Further evidence that Midtown’s development pipeline is drying up. To date there has been only one office start in 2010, despite take up in the first half year of 34,373 sq.metres (370,000 sq.ft.).” That means rents have to rise in the next couple of years as supply tightens further. UK & European’s Joe Lewis commented: “Available space in the area , whether new or refurbished, amounts to only 2.1% of total stock, the best in any of London’s sub business districts. The prospects of a return to normal levels of construction in this cycle are remote and we believe that Midtown is resilient and continues to provide good returns on refurbished schemes and has further potential.”

The two companies that took space in 9 Kingsway were the tv channel “At the Races” and Global ethics. Once the two major schemes at 100 Fetter Lane and St Martins Courtyard are finished there is nothing to be completed until UK & European’s scheme at 1 Kingsway in mid 2011. But at least developers are now going for new schemes, as witness Premier Property Group (PPG) putting in planning for 38,275 sq.metres (412,000 sq.ft.) at Plumtree Court, EC4, currently occupied by PricewaterhouseCooper in half that amount, who will move out at the end of 2011. PPG will provide large trading floors and hopes to have planning permission by December so it can go for a pre let. Mark Lethbridge of Drivers Jonas Deloitte said: “This is clearly a sign of increased confidence among developers. The market will breathe a sigh of relief to see the first major office planning application in the City/Midtown in many months.”

The London Commercial Property Register

The London Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space in London, Serviced Offices in London and commercial property in London. You can also find the latest commercial property news for the London region.