Welcome to Q3, where we are pleased to share the latest and exclusive insights into the commercial property market updates in west London. Featured in this issue: Market Summary, Take-Up, At a Glance: Vacancy Rates & Rents. Q3 Headlines: Earls Court Planning, Largest ever Victora pre-let, What’s New and much more….

OVERVIEW Q3 – Commercial property market updates in West London

Dare we say it, there are some indicators of an improving market – a cautious optimism perhaps. The last quarter was undoubtedly a busy one for Frost Meadowcroft with over 160,000 sq ft transacted, however, overall market stats still portray a trend of below-normal levels of take-up in the office market. More anecdotally, we are reporting an increase in the number of requirements on leasing interest schedules both with ourselves and our joint agents. On the sales side, there is a greater appetite from developers and investors seeking opportunities.

In Notting Dale,  Spacemade signed 18,000 sq ft of office space on the campus and will launch a range of contemporary-designed fitted co-working/flex spaces for creative businesses. The campus is well known for its fashion occupiers, such as Stella McCartney, Phoebe Philo, Dune, Monsoon, Accessorize, and Penelope Chilvers.

HAMMERSMITH & FULHAM

In Hammersmith, the largest deal was at MediaWorks White City where Imperial College took 47,000 sq ft., relocating from South Kensington to facilitate development works on the campus there. At One Hammersmith Road, managed workspace operator Frameworks agreed on a 13,500 sq ft deal with Chevalier Group, the Hong Kong-listed landlord. Other deals at Berghem Mews W14 Olympia were with BMC Pilates at £35 per sq ft, a letting to the award-winning documentary filmmaker; Oxford Film & Television Ltd at £34 per sq ft for 6 years and Unit 19 1,436 sq ft let to Hobsons International Ltd (totalling 3,528 sq ft).

At Colet Court, Furukawa Electric Europe Ltd took 3,381 sqft for 10 years. Chivas House on Chancellors Road overlooking the Thames totalling 34,000 sq ft was sold for £384 per sq ft to the London-based real estate investor and developer PPR Estates 

KENSINGTON & CHELSEA

In Chelsea at One Twenty King’s Road, Crosstree secured a deal on 37,000 sq ft of office space to a single occupier Liberty Global on the 1st to 4th floors at c.£90 per sq ft for 15 years.

In Kensington at the Universal Building, Kensington Office Group, a serviced office company, took 25,741 sq ft from Frost Meadowcroft client London & Regional. APML let 5,567 sq ft to Onyx Capital Group at 114a Cromwell Road SW7 for a rent of £55 per sq ft. At 50 Hans Cresent SW1X Hill Dickenson LLP took 2,340 sq ft for £90 for 10 years. 10 Kensington Church Street, totalling 3,611 sq ft was sold by Allsop Commercial for just over £3 million to an undisclosed purchaser.

CHISWICK & ACTON

In Chiswick at Building 10, Chiswick Park, Pokémon signed a lease on an additional 60,000 sq ft on the 2nd & 3rd floors at £51.50 per sq ft for 10 years, with Frost Meadowcroft acting for Pokémon. At Building 7, Chiswick Park, Omoda & Jaecoo UK Ltd, a new car manufacturer, agreed on 4,425 sq ft at £65 per sq ft for fitted space. At Building 4, Mizkan Europe the Japanese food giant recently added Branstan Pickle to its portfolio, agreeing on 7,551 sq ft for £60 per sq ft.

At Chiswick Studios on Power Road, Dudgeon Sofas Ltd took a new lease on 4,370 sq ft at £25 per sq ft.

White City & Notting Hill

In Notting Hill, the leading source of science and medical images Science Photo Library agreed on 1,162 sq ft at 87 Lancaster Road for £45 per sq ft for 5 years.  At Broadcasting Centre BBC, Wood Lane, the luxury women’s designer Me + Em took 13,353 sq ft on the 3rd floor for 10 years at c.£60 per sq ft.

Putney & Wandsworth

In Putney at Oxford & Cambridge House Upper Richmond Road, the travel software specialist Dolphin Dynamics took 2,016 sq ft at £ 25 per sq ft for 5 years.

Richmond

In Richmond, Trigon Fire Safety Ltd agreed on a deal at Water Lane Building on George Street for 2,655 sq ft on the 1st floor at £30 per sq ft for 10 years.

Paddington & Knightsbridge

In Knightsbridge, private equity investors Alcuin Capital Partners LLP have taken 4,040 sq ft at £90 per sq ft at Knightsbridge Gate for 10 years. In Paddington,  a couple of decent deals with 27,261 sqft let on the 6th floor at 1 Kingdom Street (agent CBRE) and at 2 Kingdom Street, British Land let 9,083 sq ft on the 1st floor.

Urenco, a nuclear specialist signed a 10-year lease for 25,209 sq ft at Paddington Square on Praed Street, for £85.50 per sq ft.

 

 

Earls Court New Hybrid Planning – 7.5m sq ft in a £6bn redevelopment

The Earls Court Development Company submitted its Planning Proposals for the vacant 40-acre site that was previously the Earls Court Exhibition Centre in July for a combination of 4,000 new homes, retail, office, cultural, and community purposes, with potential additional uses such as education, leisure, storage and distribution and a hotel.

This was a hybrid application that contained a detailed proposal for part of the site and an outline proposal for the remainder of the site. The redevelopment scheme aims to provide 12,000 jobs, and three new world-class cultural venues all being supported by a zero-carbon energy network and a net zero operational carbon target for the project.

It is hoped for a decision in early 2025.

 

Evercore the investment bank has agreed to Victoria’s largest ever office pre-let, taking 135,000 sq ft at BGO’s 105 Victoria Street, SW1. Currently located at 15 Stanhope Gate, Mayfair they will move in the summer of 2026 to the former House of Fraser building, quadrupling the size of its office, which currently stands at 35,921 sq ft. When complete, 105 Victora Street will be the UK’s largest 100% electric, net zero-carbon office development spanning 445,000 sq ft.

Pokémon

Chiswick Park has enjoyed a successful 2024 with some significant take-up. One of the key transactions of the year has been the expansion of Pokémon who have increased their occupation in Building 10 to around 60,000 sq ft over 2 floors.

Frost Meadowcroft has acted on behalf of Pokémon since 2008 when they originally acquired 10,000 sq ft in Building 4.

The expansion of large organisations such as Pokémon is further encouragement for the office market in west London and supports the view that more staff are returning to the office and that companies are creating work environments to encourage workers back to the office.AMAZON INSIST STAFF RETURN TO THE OFFICE 5 DAYS A WEEK

Starting in January 2025, Amazon’s employees will be required to return to the office five days a week. This is a shift from the company’s post-pandemic flexible rule, where employees were only required to work in the office three days a week. CEO Andy Jassy has backed his decision emphasising that in-person work is crucial for improving working culture and productivity levels. This move by a corporate giant could have a positive impact on the office market, potentially seeing a shift in other companies’ policies and a reverse in current trends of downsizing or subletting existing stock.

FULHAM GAS WORKS

The Fulham Gas Works redevelopment site, an initiative from Berkeley St William, is a high-profile mixed-use development in the heart of Fulham, transforming a redundant gas works site into a new residential and commercial hub. The development, aiming to be completed in 2030, will deliver more than 1,800 new homes and 100,000 sq ft of commercial stock.

WHAT’S NEW

Westfield London to Launch New Office Building

Westfield London, already world famous for its shopping and leisure centre is launching a new office building at the Shepherd’s Bush entrance to the scheme. This new development marks the latest step in Westfield’s ongoing transformation into a multi-functional destination combining retail, workspaces, and leisure facilities.

The new best-in-class offices will offer circa 80,000 sq ft of office space, benefitting from over 3m floor-to-ceiling height, private members club quality end-of-journey provisions and a communal roof terrace. The office building, located next to Shepherd’s Bush tube and overground station will have the unique benefit of excellent public transport links, huge car parking provision, and competitive pricing, all with a greater amount of amenities than Regent Street.

Vernon Street – Olympia

New to the market for sale, 31 Vernon Street & 10 Southcombe Street mixes the old with the new in this distinctive 3 floor self–contained building. Designed by the noted architect, Terry Pawson, comprising a modern award-winning office linked to a listed former Edwardian magistrates court and with many original features including the original holding cells, this is a truly unique property of 15,750 sq ft at a guide price of £6.5m.