INDUSTRY NEWS

TFL Agrees to Pull Out of Shard Lease Agreement

Transport for London have received a sum of money to retract their agreement to lease prime London office space at the Shard Tower in Southwark. The Shard Tower is a prestigious 310-metre-high skyscraper designed by prominent architect Renzo Piano, designer of the Pompidou Centre in Paris.

The tower has 72 floors and an additional 15 radiator floors in the roof. In 2006, TFL signed up to lease the lower seven floors of office space, nearly 20,000 square feet of the 60,000 square feet available in the tower.

They agreed to pay £38.50 per square foot, but with rents for Grade A office space reaching £70 per square foot, it was in the interests of the investors – Irvine Stellar and a Qatari consortium – to curtail the TFL contract in an attempt to realize the higher rent level. The Shard developers will now work with TFL to find them alternative space.

 

Image: Southwark Towers, to be replaced by the Shard (Flickr: Lars Ploughman)