The City (EC1- EC4) Q3 2007 London office market report
Take up in the third quarter was dominated by the legal profession. Law firm Reed Smith Richards Butler has ended its long search for a new headquarters by taking 155,000 sq. ft. at British Land's, Broadgate Tower. The firm, which was formed in January following a merger between US firm Reed Smith and the UK's Richards Butler, has been operating from Beaufort House in the City and Minerva House near London Bridge. The building is due to be completed by next summer, with the firm looking to move in by the second quarter of 2009. Knight Frank and Jones Lang LaSalle advised British Land. Knight Frank acted for Reed Smith Richards Butler.
Availability in the City stands at just less than 5 million sq. ft. at the end of the third quarter. This is the lowest outturn for five years.
FOCUS identifies some 8.5 million sq. ft. under construction including Hermes 300,000 sq. ft. at 20 Gresham Street; Minerva's giant 445,000 sq. ft. Walbrook scheme opposite Cannon Street station; and British Land's 385,000 sq. ft. Broadgate Tower. Land Securities New Change scheme is on site and demolition is proceeding slowly both at the "Cheesegrater" site in Leadenhall Street and the "Walkie Talkie" site in Fenchurch Street.
Prime rents stand at £67 per sq. ft. while average rents for new or refurbished space stand at £38.00 per sq. ft., £25.00 per sq. ft. for secondhand space.