Over 18,000 sq. ft. has been taken in Lothbury Investment Management’s Clarendon House in Oxford, the largest take up in space in the area in over 2 years. The letting is great news for the area, and shows the demand for regional office space, especially south of London. The deal is expected to achieve around £19 per sq. ft., significantly lower than the prime rents of £30 per sq. ft. that are expected if continued development hits the city centre. 

It has been reported via an interview with Paul Brundage of Oxford Properties, in Property Week, that the company is considering taking space in its own property, the Leadenhall Building, also known as the Cheesegrater. 

Every week there seems to be another property company announcing its plans to refinance – what’s the reason behind this and is it the best time?

On April 1st 2017,across the UK all B1 use properties are being revalued and the new rates that will be payable are likely to fill the occupiers with dread. Once revalued, the rates are expected to jump to just under two thirds of rents – so on top of high rents they can expect to pay an extra 60% on rates and for many this might not be possible. In London’s City market, this could amount to an additional £20 per square foot and £23 per square foot in the West End. 

In a market as tight as the current market in London, assignment and subleases are important for many reasons; it gives tenants comfort that they will have an exit strategy if they grow as in the current market break clauses are far and few between. Additionally the options for sublet and assignment put many spaces back on the market which is in high demand. 

South of the river Thames has made massive progress as a desirable location over the years. It was once seen as a good option when looking for lower rents, in 2010 there was about £40 ps. ft. difference on a new build price in South Bank and the West end new builds. This gap has now closed drastically and is less than £5 ps. ft. There are many reason for this change, it can be put down to improved transport links in south bank and a change in the market with warehouse and industrial style building becoming increasingly popular.

Tesco and British Land have come to an agreement whereby each will swap its share in a portfolio, leading to benefits for both companies.  Tesco has gained British Land’s 50% share of the Aqua portfolio in return for Tesco’s 50% share in two portfolios. A balancing payment from British Land will also be made to the supermarket giant, reflecting the difference in value and amount of liabilities of the assets being swapped. 

Over the last 12-18 months, there is undoubtedly been a shortage of office space throughout the Capital. An increase in rents across London’s markets has been testament to this fact, with top rents being achieved in the West End, Midtown and City locations, whilst SE1 remains one of the tightest and most competitive markets out of them all. However, the lack of office supply is now spreading to UK regional markets.

London office rents have reached new highs after it was confirmed that the family office of Helly Nahmad, a prominent Art dealer – specifically with regards to Picasso, has agreed to take 3,000 sq. ft. of space in 8 St James’ Square for more than £185 per square foot. This represents an increase of around £45 per square foot on the previous rental set in 2007 by Permal Investment Management who secured 12 St James’s Square at £140 psf.