January 2012 Archives

Thanks to everyone who attended EGi's quarterly London Offices Breakfast Briefing on Thursday.  I am pleased to report that despite the excellent turn out, there were enough sandwiches and coffee for all! Thanks must also go to Olswang for letting us use their beautiful offices at 90 High Holborn, and to everyone who submitted their deals, without which such extensive market coverage would not be possible.

The main conclusion of the morning was, perhaps unsurprisingly, that  2011 had been a tough year. Take-up was greatly reduced across central London. West End and Midtown fared better, but every market fell short of its five-year average. A note of optimism however, was Aon's 192,000 sq ft Cheesegrater prelet;  which made for unusual and encouraging situation of an American company moving its headquarters to the UK.

In terms of agents, the two biggest players remained CBRE and Jones Lang LaSalle, with Jones Lang topping the central London letting agents' league table for the second consecutive year, although both agents' total market shares had in fact fallen. Cushman & Wakefield was the only agent in the top six to increase its share of the market in 2011.

Things became a little more interesting when looking at the smaller sub-markets, for example in the City fringe the smaller agents really came into their own in Q4, with Hatton Real Estate securing a 17% market share, ahead of CBRE's 14%, and Allsop taking third place.

For the full report click here. 

One of London's most recognisable office buildings could soon be converted into residential units. New owner, Almacantar, is set to open talks with Camden Council about the conversion of the 34-storey Centre Point tower that sits on the edge of four districts in the West End.

The modernist icon was the first skyscraper built in the West End and was a very controversial addition to the low rise London skyline. But over the years it has slowly become more and more loved, probably helped by the fact that the general public can now appreciate the views from the Paramount bar and restaurant on the top 3 floors.

If the refurb is done well the tower could become as popular as Trellick Tower, another 1960's tower that was unloved until it was refurbished. The developer is due to unveil its proposals next month.

Occupy London protesters took control of an empty building at Roman House over the weekend. In their continuing quest for economic justice, protesters reportedly planned to stay in the building until the City of London Corporation published details of its accounts. However, things fizzled out almost as quickly as they started after protesters engaged in talks with contractors working on the redevelopment, and were persuaded to leave to safeguard jobs on the site. The more cynical amongst us may argue that a more pressing concern was that the building is apparently full of asbestos, and is probably not the best place to set up camp.

The EGi 2011 year-end London Offices breakfast briefing will be held on Thursday 26^th January at 90 High Holborn, WC1.

Please follow this link to find out more and register to attend this event, which is free to EGi subscribers and includes a free breakfast! As with previous events, there will be registration and breakfast at 8am, followed by a summary presentation from the EGi research team at 8:30am, including the much anticipated agency league tables.

It has been a very volatile year for the London office market and the contrast with 2010 is stark. Back then there was confidence in the air and, after two years of caution, companies were ready to commit to new leases. But by the summer of 2011 the mood was sombre. As our Q3 report detailed, letting volumes were low, demand remained modest, deals progressed at leisurely pace, construction was sparse and rents were stable. Our Q4 report will reveal whether the market improved or not towards the end of the year.

For those who have made New Year's resolutions about getting fit and healthy, why not start by taking the stairs to the office intead of the lift? Too easy, you say? Ok, why not take the 888 steps to the top of the Heron Tower. Before you start applying for a job with Bank Snoras or Partners Group to save on gym membership, consider signing up to The CBRE Property Peak Challenge on the 23rd Feb, a run/walk to the top of the tower in aid of The Chartered Surveyors Charitable Trust and LandAid.

The registration fee is £20 per person and £150 per team, with a minimum sponsorship of £250 required from each runner. When reaching the top you will be rewarded with a glass of Champagne and the chance to enjoy the spectacular views from the 37th floor. Well, that is if you have the energy left to enjoy anything.