Commercial Property Register
February - May 2017www.compropregister.com
In leasing office space for a
campus in the developing
Battersea Power Station, Apple
is sending s strong message
about the future of this large
scheme as well as the market
south of the River Thames.
Apple will be the largest
occupier with 46,450 sq.metres
.) over six floors in
the Boiler House in the company’s
new London campus and it will
account for 40% of the total office
space in the development. It will
pull together Apple’s 1,400 London
The deal underlines the changing
nature of business locations in
London and, in the case of the
area south of the Thames, the
pioneering impact of The Shard
at London Bridge (although the
Kuwaiti St Martins Property had
started the ball rolling with the
London Bridge City scheme).
Apple’s decision coincides
with The Shard reaching close to
100% occupancy five years after
its inauguration. This was
increased the office space it
occupied by 40%.
The Shard has acted as a
catalyst for bringing new occupiers
to the area and stretching the
development area more widely,
such as into Bermondsey.
The latest scheme for Bermondsey
is the former Crosse & Blackwell
Branston Pickle factory which has
been bought by London Square
for £50 million with the deal
and planning issues sorted out
by the Thames Valley based
solicitors Owen White.
The project is for 408
apartments (35% affordable)
offices , shops and a gallery.
Tuckerman reports that:
“Victoria is still experiencing a lack of small to
medium sized suites, with the large majority of the current availability being
made up of 10,000sq.ft
. plus floor plates. The average floor plates size has
risen again to 8,200sq.ft
”. They also commented that: “Grade A space makes
up 74% of the total current availability and total take up during 2016
increased slightly to 627,800 sq. ft.”. Concluding, Tuckerman pointed out
that: “Total availability at the end of 2016 stood at just over 760,000sq.ft.
well up from the132,000sq.ft
. at the end of 2015, and close to the long
term average of 800,000sq.ft
The need to promote the UK more
vigorously overseas is behind UK
Government Ministries participating
for the first time in MIPIM.
There has always been a big
show of UK developers and property
professionals, but now the
Department of International Trade,
the Department of Communities and
Local Government and others have
come together in a pavilion in
Cannes in March.
On top of this, senior Government
Ministers are scheduled to deliver
the message of a multi faceted
investment promotional programme.
This will back up the increased
efforts by the UK regions, where
Manchester will have a large
pavilion, as will the Midlands.
The need for greater promotion
by the UK is illustrated by a report
from Property Works that the Brexit
referendum brought a 40% decline
in overseas interest in UK commer-
cial real estate.
Joe Cohen of Property Works
commented: “The data tells us that
Brexit had a severe negative impact
on searches from international
locations, as offshore businesses felt
less confident about expanding into
the UK. This year will demonstrate
whether this view persists or the
appetite and confidence revert to
City Council is to lease 5,295 sq.metres (57,000sq.ft
BlackRock’s 5 Strand, near Trafalgar Square, when the existing occupier,
Land Securities, moves out. The council has taken the space while its
civic headquarters in Victoria are refurbished.