Despite London often feeling at capacity both in terms of population and office space, a Chinese company has spotted potential for development with a very particular kind of occupier in mind: Chinese businesses and financial firms. The area earmarked by ABP (Advanced Business Park) for the 3.2-million-square-foot  complex is an unused plot  of 35 acres next to London City Airport.

The West End continues to thrive and demand the highest rents in terms of retail and office space in the capital. Set to take advantage – and add to – this is the combined investment of The Crown Estate – essentially the Queen’s property company – and a Canadian retirement fund, Oxford Properties. 

Lord Alan Sugar, the star of the apprentice has now sold his West end office block, situated in Oxford Circus which has been reported to have made approximately £50million profit. The property which is owned by Lord Sugar’s property company, Amsprop Estates has been offered almost £80 million from a Hong Kong investor. 

Morgan Pryce recently completed an acquisition of 1,250sq ft of office space in the heart of Moorgate of the city. The current tenant occupying the space was offering a sublet of 3 years to July 2016 for an extremely low rent. After a handful of negotiations Morgan Pryce managed to achieve £3 per square foot off the quoting terms along with 5 months’ rent free period, an extremely healthy rent free for such a short term certain. 

The most expensive area to lease an office in London is in the West End. This has caused many companies to up ship and set up an office further East. For Media Company’s the trend is to be in either Clerkenwell or Shoreditch in a converted warehouse with wood floors and exposed brickwork. Demand for the ‘quirky’ office space in these areas has gone through the roof and has seen rents double in the past couple of years with rents being commanded north of £40.00 per sq ft. 

The burgeoning TMT sector is no better demonstrated than by some of the actions by certain companies in London over 2012: LinkedIn, Skype, Warner Bros, all of whom have either taken new offices or renewed the leases on their current premises.  Internet-based businesses such as LinkedIn can, in the space of a typical 5-year lease, outgrow their office space astronomically. Five years is standard in lease terms, but can be a long time in terms of the technology and media sectors. 

Ayzenberg Group, which is one of the largest advertising agency providers on the US West Coast, is now expanding its services and acquiring offices in London, partnering with the brand design firm, Holmes & Marchant.

Thing are changing in the capital’s commercial property market. Whereas two or three years ago it was proving almost impossible to tempt tenants to sign up to a pre-let agreement before a building was complete (indeed, often for some time after the building was complete), news now is that in the first quarter of 2013 a third of space currently under construction is pre-let. And with some months to go before many of these building are finished, that percentage could increase.

Commercial development is up 8% over the last six months, with 9.7 million square feet of office space currently under construction. Researchers have observed figures in relation to pre-let space for office spaces that are under construction rising to 33%, which highlights the confidence investors and occupiers have in the London economy.

With the TMT sector booming in the current market the demand for ‘quirky’ media space has gone through the roof. So what do people mean when they are looking for a media style office? The stereotypical media office these days is a converted warehouse consisting of exposed brick work, wood floors and an exposed ceiling. The rawer the better! Therefore demand for this kind of space has drawn occupiers to where these converted warehouses are located which is generally in Clerkenwell or Shoreditch.