The Knight Frank M25 report on office accomodation take-up by occupiers says West London is performing very well indeed.
Knight Frank say that overall activity within the M25 is up, with the most deals in the first quarter since late 2008.
In particular, the M4 corridor showed robust acceleration, with over 425,000 sq ft taken up in Q1, 46% up on the final quarter of 2012. This included the largest deal in the quarter – as BP took 135,000 sq ft at 2 New Square, Bedfont Lakes. Virgin Media’s leasing of 44,000 sq ft at Griffin House in Hammersmith was also a significant deal. While Middle Eastern investor Peninvest’s purchase of 5 Longwalk, Stockley Park for £42.45m was part of a trend of overseas buyers picking up London assets, and the commencement of construction on the speculative Building 7 at Chiswick Park by Blackstone was the largest such development in over 20 years.
The M4 performance was much stronger than, for example, the M3 corridor which put in a below average performance. The M4 corridor vacancy rate is now 9.8%, down from a peak of 12% two years ago, but still above the M25 average of 7.7%.
Emma Goodford, head of South East offices, said: “The West London markets of Hammersmith …. and Chiswick, are performing fantastically.
She went on: “Evidence suggests that concrete rental growth will spread to other key markets, such as Staines, Maidenhead and Uxbridge in 2013”.