(pictured above Maxar satellite) Maxar the space tech co, has safely landed at offices in The Chiswick Building

Welcome to the west London office news quarterly for Q1  2024, with an up-to-date view of the commercial property market in West London

Featured in this issue: Market Summary, Take-Up, Q1 Headlines: The Big Landlord Question, Sales & Investments,  and £800 million vision for Hammersmith and much more

OVERVIEW Q1

The highlight of Q1 in west London was Yoo Capital securing IWG, the global flex office operator, for 73,000 sq ft in the new One Olympia development which is due for completion next year. IWG operator brands include Regus, Spaces and HQ.

In Hammersmith and White City, transaction levels remain low. In White City at White City Place (Stanhope / Cadillac Fairview) saw virtually no take up over the last year with over 250,000 sq ft of vacant office space.  Around Hammersmith, there has also been limited activity, however, the Life Sciences sector is homing in on the area.

245 Hammersmith Road, the newest building in the centre completed in 2019 is rumoured to be re-positioning as a Life Sciences Lab Centre. The building is already home to Resolution Therapeutics, biopharma company Achilles Therapeutics, and gene and cell therapies developer, Orchard Therapeutics. The 242,000 sq ft building currently has around 45% vacancy.

Meanwhile ARC West London is due to complete their new 150,000 sq ft of lab space at Manbre Wharf on the riverside by the end of 2024. Rents for fitted lab space are estimated to be around £100 per sq ft. Imperial College and Stanhope also operate fitted lab spaces in White City.

In Kensington, Ashby Capital is expecting to sign a new occupier for 8,000 sq ft on the 4th floor of the new Kensington Building on the High Street. Quoting rents are c. £100 

FULHAM

In Fulham at 34 North End Road an office building of 2,056 sq ft was purchased by an owner-occupier at £880,000. 
Ocubis agreed a deal of 4,225 sq ft at Bedford House on Fulham High Street, to an undisclosed tenant for £47.50 per sq ft. 

CHISWICK

In Chiswick at 11 Power Road, the former PADI School of Diving was sold to an occupier purchaser for £1.35 million, totaling 5,392 sq ft. Space Tech company Maxar, completed 2,750 sq ft at The Chiswick Building at £42.50 per sq ft for 1 year.

NOTTING HILL

At The Studio Building, on the Notting Dale Campus, Louis Dreyfus the worldwide agricultural goods company took 2,001 sq ft part 5th floor for c £40 per sq ft for 3 years.

PADDINGTON

Shionogi & Company, the pharmaceutical company completed on 13,628 sq ft for an undisclosed rent at 50 Eastbourne Terrace in Paddington.

KENSTINGTON

In Kensington the new One Olympia completed on 73,152 sq ft to IWG the global serviced office operator, rent undisclosed. At  197 Kensington High Street, Nurecover the makers of portable home saunas completed on 1,294 sq ft for £90 per sq ft on 3 year term for fitted space.

HAMMERSMITH

At 3 Angel Walk in Hammersmith, a deal of 3,744 sq ft  was agreed for £35 per sq ft for 5 years to Women’s Pioneer Housing, the organisation set up in 1920 by suffragists, led by Etheldred Browning, to provide affordable housing for professional women. Thames Wharf Studios continues to perform well with a deal of 1,611 sq ft on the 1st floor for £59.50 per sq ft on a 3-year term to Alex Reynier Ltd.  Just off Fulham Palace Road at Farriers Yard, Thomas Murray, Global Risk Intelligence re-geared on 4,743 sq ft at £43 per sq ft for 3 years.

Columbia Threadneedle sold 27 Hammersmith Grove to Central & Provincial Properties (along with 63 Kew Road to Urbana Partners), for a  total of £27 million.  Frost Meadowcroft are marketing Hammersmith Grove.
Read more in Headlines…

 

CAT A+, CAT B, FITTED OR READY TO WORK

Whatever we call it, this is without doubt one of the biggest changes in the office market. Our research shows that nearly 30% of all the office requirements circulated in the central and west London office markets for up to 5,000 sq ft in the last 6 months were specifically looking for fitted space. Last year we reported that nearly 50% of Frost Meadowcroft’s leasing transactions were done on fitted space (this did include previous tenants’ fitout).

These occupiers are becoming more prevalent and don’t mind paying a higher rent for the space or being offered less rent-free in favour of a fitted office. The expectation is for a plug & play product with the ability to move quickly.

Promises from landlords with unfitted floors offering a fit-out if required are generally ignored in favour of the spaces that are done and ready to occupy.

The serviced/flex office market has  taken a larger and more important share of the office market and is definitely here to stay. It offers fantastic flexibility, and a good level of services and amenities to smaller businesses, however, it can become expensive when staff numbers reach a certain level or when business expansion is more stable. Traditional landlords are now successfully bridging the gap between the serviced office and the traditional lease by offering a more turnkey solution on larger spaces in order to secure occupiers in a challenging market.

THE ASSEMBLY LONDON, HAMMERSMITH SOLD

Knight Frank Investment Management completed the purchase of The Assembly London, 77 Fulham Palace Road in Hammersmith for a reported £52m equating to £225 per sq ft on behalf of Dubai investors. The 225,000 sq ft campus is made up of 3 main buildings, Farriers Yard, Smiths Square, and Foundry. Works are underway on the Foundry common areas to offer a new, best-in-class reception, atrium and roof terrace. Frost Meadowcroft is marketing the office space.

COLUMBIA THREADNEEDLE SELLS TWO WEST LONDON OFFICE BUILDINGS

Columbia Threadneedle has also sold 63 Kew Road, Richmond and 27 Hammersmith Grove, Hammersmith for a total of £24m. Urbana Partners purchased Kew Road and Central & Provincial bought the 63,000 sq ft office building at 27 Hammersmith Grove for a reported £16.5m.

Earlier this year, the council released a Supplementary Planning Document (SPD) setting out a vision for the regeneration of Hammersmith up to 2035. The key to this is the removal of the existing flyover to be replaced by a flyunder.
The scheme would remove the current barrier of the A4 between the north and south areas of Hammersmith linking these areas down to the River Thames. This would be a major transformation and a boost for Hammersmith, its residents and businesses. Needless to say, this is a long-term project and will require significant funding from development as well as other sources. The cost of constructing the flyunder is estimated to be £811m.
The council is eager to discuss plans with TfL and the GLA in order to develop a feasibility and implementation plan to progress the project to its next stage. The next steps will be a draft SPD for public consultation and engagement with landowners, developers, key stakeholders and businesses.