London office demand rising?

DeVono Property recently said it had seen a rise of almost 40% in London businesses requesting an increase in office space in the 12 months to July compared with a year earlier

Docklands Debate

News that the London Borough of Newham is willing to move out of its 22,297 sq m (240,000 sq ft) Building 1000 at the Royals Business Park, Royal Albert Way, Docklands, London, E16, which it only occupied in 2008, is surely a sign of the times.

The council says it cannot find tenants for the 24 buildings it vacated back in 2008 and to save money it would rather give up its shiny new HQ, than keep maintaining a lot of empty town hall space.

Development Securities’ and Standard Life’s building  was completed in early 2004 and took over 3 years to find Newham as its tenant.

Currently Metropolis is tracking only a small number of office requirements in East London big enough to fill the building so a deal doesn’t look likely in the short term.

London office lettings surge

After 3m sq ft was let in Q2 2013 in central London, followed by over one million sq ft of deals in July 2013, a further 1.2m sq ft of office relocations were registered in the traditionally quiet month of August, according to new research by Metropolis.

The largest deals involved Ogilvy & Mather, KPMG and Field Fisher Waterhouse.

At the same time Metropolis unearthed a further one million sq ft of new office requirements in the City, West End and Midtown during the month, so it is likely that momentum will be maintained.

Mayfair scheme underway

Terrace Hill is underway with the redevelopment of 49-51 Conduit Street and 24-24A Savile Row, Mayfair, London, W1.  McLaren Construction is main contractor. The designer is EPR Architects and the scheme consists of a 3,943 sq m (42,437 sq ft) building including 3,096 sq m (33,320 sq ft) of offices, plus retail space.

(C) CityOffices.net 2013, www.cityoffices.net

City Scheme Start

Oxford Properties and Brookfield have begun work on London Wall Place (St Alphage House), at 2 Fore Street, London, EC2. There is consent for two office blocks: 121 London Wall is planned as 28,865 sq m (310,700 sq ft) and 123 London Wall as a 17,407 sq m (187,374 sq ft) block. The buildings are up to 16 storeys. The £350m scheme has been designed by Make Architects.  GM Real Estate and Jones Lang LaSalle are letting agents.

(C) CityOffices.net 2013, www.cityoffices.net

Covent Garden Refurb

Axa Real Estate Investment Management has begun the refurbishment of 4 floors of offices at the 1,207 sq m (13,000 sq ft) 20 Garrick Street office building in London, WC2. Purcell is the architect and planning adviser.  CBRE and Hanover Green are the letting agents.

(C) CityOffices.net 2013, www.cityoffices.net

Lease renewals falling

Recent research from Metropolis conducted over the last 3 months indicates that the number of companies planning to renew their lease in 2014 has dropped from 60% in spring 2013 to 55% in summer 2013. In time, this should lead to more office searches.