Derwent have received planning permission from London Mayor Boris Johnson to redevelop Saatchi & Saatchi’s London offices. The new refurbishment will cost around £125 million and is expected to dramatically change the offices. The project aims to build 367,000 square feet of office space. The scheme will also provide additional space for residential homes and retail outlets.
The plans were originally refused by the Camden Borough Council after a public campaign and worries of the effect the new offices would have on the local area. However, after calling in the proposal for review, Boris Johnson has overturned the decision and allowed the development to go ahead. The financial implications should be positive however as it will create several new streams of revenue for the area thanks to leasing of residential and quality office space as well as the creation of new shops and outlets.
Currently Saatchi & Saatchi leases 200,000 square feet of office space in the building with a rental contract that lasts until March 2013. The offices that currently stand there will be demolished in order to create a structure that features extra floors, updated modern fixtures and more amenities.
The new offices come at a tough time for London’s office space economy. A lack of new developments and high demand has resulted in many companies not being able to find high quality office space in the UK capital. Subsequently firms and businesses have been migrating to other cities and the London office economy has been suffering. However, developments such as this could improve the situation considerably.