(Entertainment-NewsWire.com, March 28, 2013 ) London, UK -- Corporates like Skype, Linkedin and Warner Bros. relocating, renewing or expanding in London’s Midtown office market is continuing but it is Corporates’ Take-up of Secondhand and Refurbished space that is fuelling Investors’ bids. There were 22 leasing transactions in Midtown in Q4 over 10,000 sq ft. None were on New space. The largest deal on New space was The Really Useful Group’s Acquisition of 9,852 sq ft on Slingsby Place - the only New Scheme to attract occupiers.
Recent Corporate Inward Investment in Midtown includes Skype’s Acquisition of 88,000 sq ft at Waterhouse Square, the 46,000 sq ft taken by Linkedin at Castlewood House, New Oxford Street and WH Smith’s Acquisition of 13,500 sq ft at Victoria House, Southampton Row, all transactions on Secondhand or newly-refurbished space. Warner Bros. has renewed its 133,000 sq ft head lease at WELPUT’s 98 Theobald’s Road and Westfield has regeared, albeit on slightly less space than it occupied, at MidCity Place.
Those that have expanded include Stewarts Law’s growth into a further 23,191 sq ft at 5 New Street Square, again newly-refurbished space and Grey London’s Acquisition of 11,162 sq ft more space at The Johnson Building on Hatton Garden. Other large occupiers are in active, ongoing negotiations with their Landlords.
Investment turnover in Midtown exceeded 2011’s total by 7% at £2.5 bn in 2012. The sale of Facebook’s UK headquarters at Seven Dials Warehouse, 42-56 Earlham Street for £62m by Draco to Spanish-based Aguirre Newman, was the largest Investment transaction in Q4 12. Investor interest in Midtown assets remains strong at the start of 2013.
Alastair Hilton, Head of Investment at Farebrother commented, “Vanilla isn’t Midtown’s favourite flavour. Institutional spec space is less attractive to occupiers and investors at the moment. Midtown’s low 4.7% Availability Rate, restricted 648,000 sq ft Development Pipeline, diverse occupier base, particularly its TMT occupiers and easy accessibility are well-known but it is the market’s ability to churn Secondhand and Refurbished space to international brands that Investors find compelling.”
Farebrother is an established, multidisciplinary practice of property advisers and surveyors whose core business is to provide office and retail brokerage, investment, lease advisory, valuation and management services to occupiers, investors and developers.
Based in Central London, Farebrother specialise in London Midtown and Southbank markets. A private practice since 1799, three partners have become Lord Mayor of London. The Practice acts for funds, estates, property companies, occupiers and private individuals, including PRUPIM, the CBI and City of London. For more information, click here or visit http://www.farebrother.com
