Welcome to the Q4 update of 2022, with an up-to-date view of the commercial property market news in West London
Featured in this issue: Market Summary, Take-Up, At a Glance Supply & Rents, Q4 Headlines, The Hoxton Hotel Shepherd’s Bush, Life Sciences CAMPUS On Hammersmith Riverside and our West London 2022 Highlights and more…
OVERVIEW – Commercial Property Market News
On reflection 2022 was a year of turmoil in many areas. The economy took a bashing from inflation, cost of living and rising interest rates. Political chaos with Trussonomics dealt a big blow to business confidence all of which led to a year of indecision from occupiers and investors alike. Despite this, the Life Sciences sector continued to sign up on spaces like 245 Hammersmith Road and Arc Group’s new Life Sciences Campus, The Refinery on Hammermith’s Riverside. In the hope of less turmoil for 2023 we are expecting more decisions to be made and some greater activity in the market. Early signs show some green shoots, stabilising interest rates, an uplift in enquiries and an increasing return to the office workplace – so here’s hoping for a busier 2023!
Last year showed great strength in the Paddington office market with the pre-let of 350,000 sq ft in Paddington Square, Sellar’s new build designed by The Shard architects Renzo Piano Building Workshop (RPBW). A total of 14 floors were taken by investment manager Capital Group, sustainable packaging brand DS Smith and international home improvement company Kingfisher Plc. These deals illustrate demand for quality and best in class workspace. 1 Paddington Square has been billed as London’s new quarter for work, retail and dining at the heart of Paddington’s regeneration.
HAMMERSMTH & FULHAM
At Island Studios in Hammermith, also home to Frost Meadowcroft, the year ended with a 5yr lease agreed on 3,046 sq ft to Fujax a metals and minerals commodities company.
At 245 Hammersmith Grove, probably Hammersmith’s best in class building, a letting of 13,379 sq ft to CF Partners was secured at £58 per sq ft on a 10 yr lease and a further 6,271 sq ft to Resolution Therapeutics Ltd as fitted lab space at a premium rent of £90 per sq ft on a 7 yr lease.
Meanwhile, Nomad Foods took 20,000 sq ft from Dunhumby on a sublease basis at 184 Shepherd’s Bush Road.
KENSINGTON & CHELSEA
Relsa Properties received permission for a massive £120m overhaul of the Barkers Building in Kensington High Street. The Art Deco ex-department store will see a new grand staircase added to the interior of the building along with new escalators and suspended walkways hanging from exposed ceiling trusses. The new scheme will provide over 50,000 sq ft of offices plus retail under plans by Emrys Architects.
Chiswick Tower completed on two deals before the year ended, We Pharma took 5,000 sq ft and Air China re-geared 2,800 sq ft both at £47.50 per sq ft.
Plans to build a landmark building at Chiswick Roundabout passed planning after four previous schemes in the past 25 years failed.
Holly House the 400,000 sq ft project designed by architect Simpson Haugh will providing 252 homes (approx. 35% affordable), and 50,000 sq ft of office and shop space on its lower three levels.
The Hoxton Hotel opened in Shepherd’s Bush in December.
This is the fourth hotel in London and the twelfth in The Hoxton series. Comprising 237 guest bedrooms, a large open lobby, a central wraparound bar, a terrace serving coffees and cocktails, a stand-alone retail store and The Apartment, a meeting and events space.
The Hoxton Shepherd’s Bush will also be home to Thai-Americana restaurant Chet’s, a new concept which was first seen at The Hoxton Holborn (an incubator space which the group uses to trial new F&B concept).
THE REFINERY, MANBRE WHARF W6
Work has started on the new life science campus on Hammersmith’s embankment, along with a new public riverside park. The Waterfront will be fully redeveloped to create flexible laboratories, together with working spaces including a business lounge, design-led offices, co-working spaces, meeting rooms, restaurant and café, event studio, presentation suite and cycle facilities for 200 bicycles.
Arc Group says the project will include the extension and full reconfiguration of the building. Its façade and roof will be replaced, two new storeys added, along with a green roof to finish the look. The Refinery will be part of the booming West London life science ecosystem, with neighbours including Charing Cross Hospital, a short walk away, Hammersmith Hospital and Imperial College’s White City Campus.
PLANNING – ELMS HOUSE HAMMERSMITH W6
Neo Capital are to turn the empty 1930s building in west London into new office space. Hammersmith & Fulham council approved plans for the scheme at 43 Brook Road, a former base for Halcrow, which will increase office space by half to 120,000 sq ft.
PLANS – STAMFORD BRIDGE STADIUM FULHAM SW6
Chelsea’s new owners announce plans that Stamford Bridge is set to finally get a makeover.
New owner Todd Boehly is committed to build a new stadium as part of his £4.25 billion takeover in 2022. Chelsea are investigating plans and a temporary move to Wembley could be on the cards. The Blues may have to commit to a project spanning 10 years if they opt to rebuild the stadium from the ground up.
LEASE – LANCER SQUARE KENSINGTON W8
LVMH, the luxury goods group that owns Louis Vuitton & Dior, leased 23,000 sq ft of newly delivered space at the newly developed Lancer Square in June 2022.
SALE – CANAL BUILDING LADBROKE GROVE W10
The Canal Building in Ladbroke Grove (currently occupied by Inoccent Drinks) sold for £43.5 million (£827 per sq ft), a 4.9% yield, despite rising market volatility in September 2022. Brockton Everlast has sold the freehold interest to Naxos Capital Partners.
SALE – 103-115 HAMMERSMITH ROAD
In May Picton Capital purchased from Zurich Assurance the recently remodelled 103-115 Hammersmith Road for £13.7 million with a net yeild of 3.30%. The property is a 33,000 sq ft mixed use building providing retail & office accommodation built behind a Grade II listed façade. Frost Meadowcroft are marketing the building for the new owners, who are providing fully refurbished and fitted boutique office space.
SALE – 45 NOTTING HILL GATE W11
A key deal in early 2022 saw Angelo Gordon & Beltane Asset Management pay £90 million for a tired office and retail block on Notting Hill Gate with the intention of redeveloping the site into a significant residential-led scheme.
SALE – 229-243 SHEPHERD’S BUSH ROAD
A £50 million development of Premier Inn hotel with 189 bedrooms is now open in Hammmersmith centre. Formerly an office building known as Brook House the deal was funded by LaSalle Investment Management on behalf of a separate account client.