Southbank stokes demand

A recent office market report by Union Street Partners (Farebrother and Tuckerman) featured the rising popularity of London’s Southbank (SE1 postcode), as an office location for companies looking for good quality offices in central London. On a number of schemes, rents have reached £50 psf as a number of major office tenants compete for newly completed space.

Analysts point to demand rising in parallel with recent infrastucture improvements on the Southbank, including the newly SE1 expanded Blackfriars Station including the imminent Thameslink upgrade, as well as improvements at London Bridge in the wake of the completion of the Shard.

The local agents recorded take-up in 2013 of 1.7m sq ft including the 430,000 sq ft letting of The Gem to News International. Figures from Metropolis reveal that there has been deals totaling in excess of 800,000 sq ft for the first 6 months of 2014, including Omnicom’s 340,000 sq ft potential deal at Bankside 2 & 3 in SE1. Other large recent deals in the area have included lettings to General Healthcare (HCA), Charles Tyrwhitt and Ramboll.

A raft of companies have also recently completed deals on the just-completed 240 Blackfriars Road scheme. Cushman & Wakefield have analysed recent office locations between London districts and concluded that Southbank is now the second most popular area to relocate to, after City core. Media and tech companies are the most likely to move office districts.

Metropolis is currently monitoring 50 companies which include Southbank in their search area, including: Intelligent Environments, Eurostaff Group and NSC Global Solutions among many others. If all searches are seen through to successful conclusion this will lead to over 500,000 sq ft of future lettings.

Looking ahead, there are a number of new office developments either underway or planned, such as the 37,160 sq m (400,000 sq ft) King’s Reach Tower, Stamford Street, 100 Union Street and 3 Albert Embankment, which will see a new influx of tenants moving to London Southbank.

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