Growing in all directions

One of the significant trends in London in the past decade has been the expansion of the business area to encompass districts that were never considered important locations. The development of Paddington Basin is a case in point and now we have Kings Cross and the South Bank.

An example of the change is that Publicis, the owner of Saatchi & Saatchi, is seeking 18,580 sq.metres (200,000 sq.ft.) in the West End with the likelihood the requirement will be met in Kings Cross or Paddington, allowing it to move from a number of offices in the West End. Craig Norton of DTZ extols the virtues of Kings Cross which has “lots of tourists and plenty of viewings for offices. We are talking to major companies about taking space there.”

The latest organisation to consider taking offices in Kings Cross is the Diocese of London which wants 5,574 sq.metres (60,000 sq.ft.). Also in the frame for the emerging area is the Aga Khan Foundation that wants to build a 27,870 sq.metres (300,000 sq.ft.) educational and cultural centre.Norton points to the success of Paddington “which is now a maturing market that has moved into a second tier phase.” That has been helped by Marks & Spencer taking space there. As far as the core West End market is concerned, Norton notes the growing shortage of prime space. This view is echoed by Jonathan Stern of Mellersh & Harding who said: “There is a shortage of good quality offices in the rental range of £538 to £645.60 a sq metre (£50-£60 a sq.ft.).”.He suggests that developers are now “looking at new schemes.” British Land’s success with Regent’s Place, where Norton is acting, illustrates how once fringe locations have come into the mainstream.

There have been a series of lettings with the latest being Bovis Lend Lease with 7,432 sq.metres (80,000 sq.ft.), a third of the space in 20 Triton Street, NW1 where energy group GazProm has also taken space. Norton said that a further 3,716 sq.metres (40,000 sq.ft.) is under offer, leaving only 1,394 sq.metres (15,000 sq.ft. in the current phase). Debenhams is another potential tenant, this time for British Land’s final phase at Regent’s Place on Hampstead Road which could accommodate its requirement of up to 13,935 sq.metres (150,000 sq.ft.)

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.