Confidence rises in the south east office market
Recent letting activity in west London has brought some much needed confidence to the south east office market where take up levels were down 50% in Q1 2012 compared to the same period in the previous year.
The region’s biggest boost has come from engineering company Aker, which has agreed a letting prior to completion on 220,000 sq ft at Chiswick Park. This is possibly the largest deal of its kind in this region for five years, and is also significant for the fact that it also leaves no notable space on the popular west London park. Aker are believed to have signed a 20 year lease with a 15 year break, paying a rent of £ 47.00sq ft.
And at nearby Chiswick Green, data security company ViaSat has placed under offer nearly 60,000 sq ft.
The company is understood to have agreed a deal at the Bam Properties’ building at the quoting rent of £38.50 per sq ft.
This is in addition to Winton Capital recently taking 60,000 sq ft in Hammersmith.
Despite modest take up levels, the shortage of new development over the past four years is leading to a shortage of grade A offices and creating upward pressure on rents in some key locations, a factor not lost on some occupiers. “The lack of available grade A offices in the south east is encouraging occupiers to bring forward their relocation plans,” says Rob Bray of Bray Fox Smith.
“Furthermore, if more than 400,000 sq ft of office requirements for Huawei, IMG, Cameron Oil, Viasat and NEC are satisfied in the coming weeks then this will exacerbate this phenomenon, particularly in the more popular locations.”
“Those developments that we are currently working on, such as Huntercombe Park, near Slough and Tor in Maidenhead, are incredibly well placed to reap the rewards while we are actively seeking similar situations for other well funded clients”.
