5 Things We Learnt About the UK Office Market This Week

Metropolis looks back over the last seven days in the office market and picks out five stories which could produce significant future business for market players.

1. A big 108,000 sq ft office building in the West End of London is about to be redeveloped and dozens of companies will need to relocate. The location of this building is only available to Metropolis subscribers, however the proposed redevelopment, which has been planned for many years, is at last going to happen. Tenants of all sizes have been told that they need to relocate by summer 2017.

2. Glasgow office take-up reached nearly ‘stellar’ 300,000 sq ft in the first quarter of 2016, boosted by Morgan Stanley’s pre-let of 155,000 sq ft at Bothwell Exchange, as well as sizeable deals to ACCA and Registers of Scotland. Looking ahead Metropolis is tracking 40 future requirements in the city.

3. A report this week from Savills highlighted strong demand in Bristol for space, particularly from the TMT sector, which has driven office rents for both new and refurbished space to new heights and made some office space more valuable than residential space in the city centre. Metropolis has reported on 30 Bristol office searches since January 2016.

4. Although tenants have leases with up to three years to run, consent for the conversion of Millbank Tower, London, SW1 into 207 flats and 150 bed hotel, mean that Metropolis has spoken to nearly 40 tenants that will now need to relocate.

5. Royal Dutch Shell is planning to close three offices in the UK in Reading, Manchester and Aberdeen. It plans to relocate some staff to other Shell offices, while also reducing headcount. The process will take up to 18 months as leases expire.

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