Welcome to the Q4 update of 2021, giving you an up-to-date view of the commercial property market in West London. Featured in this issue: Market Summary, Take-Up, The Flexi Comeback, Kensington Developments and our 2021 Highlights in West London Commercial Office News.

MARKET SUMMARY West London Commercial Office News

SUPPLY & TAKE UP

Unsurprisingly 2021 was not a record breaking year for office take up. In Hammersmith & Fulham, lettings were down to less than a quarter of 2018 and 2019 levels with just over 150,000 sq ft transacted last year compared with 195,000 sq ft in 2020, fairly predictable given that working from home has been the norm during the last 18 months. The tide is turning though; the ‘WFH Honeymoon’ is waning, employers are telling us that they want their staff back, and to be fair, the majority of staff want to be back too, though maybe not every day of the week.

THE FLEXI COMEBACK

In commercial office news the flex market has been the quickest to capture the return to work.

IN KENSINGTON, in anticipation of the come back, IWG (Regus) took 30,000 sq ft from our client Columbia Threadneedle at Avon House, Kensington Village W14.

IN WHITE CITY & NOTTING HILL we also secured Venture X for Westfield London’s 22,000 sq ft at One Ariel Way in White City. The Office Group who took Frogmore’s United House in Notting Hill from us are now reporting near 100% occupancy of their 40,000 sq ft.

So, from little acorns, we see these smaller more agile businesses taking space in the flex market as a clear signal of the green shoots of the general office market recovery. For certain, there will be lasting changes to working practices for some, but for many the office is not dead – Long live the office!

Ariel Way, White City

HAMMERSMITH & FULHAM

In Hammersmith at 245 Hammersmith Road,Orchard Therapeuticstook 17,000 sq ft at £54 per sq ft and Imperial Tobaccotook a further 13,750 sq ft at £57.50 per sq ft.

 

245 Hammersmith Road W6

At TheTriangle, Hammersmith Grove,Ingeus UK Ltd took 7,600 sq ft for £35 per sq ft and Visithealth Ltd signed up for 8,000 sq ft from Elton John’s management company at 1 Blythe Road on a 25 year lease.  Thames Wharf Studiosperformed well signing an additional 5,600 sq ft to an existing occupier at a healthy £62 per sq ft.

CHISWICK

Building 12, Chiswick Park, CGI of University interior left, right Chiswick Park

2021 saw the largest deal agreed for some time at Chiswick Park Campus or more accurately Building 12 Chiswick Park. This is the new residence to The American International University who are taking approximately  35,000 sq ft at an average rent of circa £52 per sq ft. 

Q4 HEADLINES

 

KENSINGTON – DAILY MAIL GROUP & NEW SCHEMES West London Commercial Market News

  After many years of very little new stock in the Kensington market there are now a few notable schemes that have completed delivering around 150,000 sq ft for 2022. Initial signs are encouraging and feedback indicates a better demand for the higher quality stock, an echo of trends we have seen in other central London markets where prime office space has outperformed poorer quality space.   Lancer Square, Kensington Church Street, launched late last year has recently secured interest from a single tenant on all the upper floors 24,000 sq ft at a rent rumoured to be in excess of £80 per sq ft.  

Northcliffe House, Daily Mail letting

The Kensington Building, Ashby Capital’s 95,000 sq ft scheme on the corner of Kensington High Street and Wrights Lane, have high aspirations of c.£100 per sq ft for the top floors and high £80’s per sq ft for the lower floors. Due to launch and with practical completion in March 2022, we understand that the specification is exceptional with features including 4m ceiling heights.   The Daily Mail Group, who are in Northcliffe House, Derry Street just off the High Street, have agreed with their landlord to take a new lease on 103,000 sq ft of refurbished space from 2024 in the same building. They will be moving out of their existing offices this year and then moving back in when completed. The deal is for 15 years and is a significant endorsement for Kensington as an office location for this long standing occupier.  

2021 HIGHLIGHTS… West London Commercial Market News

 

Q1- INTERNATIONAL SOS, CHISWICK PARK

International SOS took 48,500 sq ft  at Building 4, Chiswick Park on a 10 year lease. The Department of Work and Pensionssigned for a total of 50,000 sq ft in West London, taking  30,000 sq ft in the ex Coca ColaHQ at 1 Hammersmith Broadway, alongside another 20,000 sq ft at 2-5 Lakeside Drive.   Universal Building, Kensington the 70,000 sq ft was purchased by London Regional Properties and is currently undergoing extensive refurbishment, marketed by Frost Meadowcroft our first letting of 5,500 sq ft to Superstruct.  

Q2 – ITV WOOD LANE, WHITE CITY

ITV Broadcasting House, White City

ITVsigned a 13 year lease for 120,000 sq ft at Broadcast House, White City.  The aim is both a cost saving operation whilst at the same time bringing employees to a single location that can accommodate the new hybrid way of working.  

Q3 – ASPREY LONDON, HAMMERSMITH

Asprey in Hammersmith & Flitflop move to The Foundry

Hammersmith finds itself the new home to the iconic jewellers Asprey London. In Q3 the jewellers to the royal family & favourite of Duchess of Cambridge, signed 8,000 sq ft, Vencourt Place in Hammersmith.

FITFLOP  THE FOUNDRY, HAMMERSMITH

The Foundry, Hammersmith found a new tenant in FitFlop who took 10,750 sq ft, at £56 per sq ft on a 5 year lease.

Q4 – LONDON & REGIONAL COLET COURT, Hammersmith

The Livingstone Brothers’ London & Regional purchased Colet Court at 100 Hammersmith Road from Columbia Threadneedle.

The 45,362 sq ft multi-let office has been bought for £20 million, which represented a 4.79% net initial yield.

The building comprises modern offices behind a Grade II-listed facade.