As the UK Government reduces its office space in a bid to cut costs, a number of important buildings offering high grade office space could become available on the London market.
The latest move is the Department for Communities and Local Government (DCLG), which has almost halved its number of employees since 2010 and is now to move into the Home Office, vacating the office space in Eland House.
Located on Bressenden Place in the heart of Victoria, the modern, glass-fronted building was built for Land Securities and has been the home of several government departments since 1996. EPR Architects who designed the building are also behind a number of other important London buildings, including 33 Old Broad Street, BBC Centre, and Athene Place.
In the run up to the move, DCLG has already sublet several floors of the building to non-government organisations in order to recoup costs.
DCLG might be moving out, but Tishman Speyer, who bought Eland House from Land Securities in January last year, are positive about the future of the building. Speaking shortly after the acquisition Julian Stocks, Managing Director of their UK division, said; “Eland House is a Grade A office building in a great location which will improve further as Land Securities develop their Victoria Circle Scheme”.
In 2011 Victoria was designated as an Opportunity Area on the London Plan, and there are now a number of major developments in place for the area, including Land Securities’ Victoria Circle Scheme which will redevelop 5.5 acres of land around Victoria Station. After appointing a contractor last month, the development is expected to be completed by 2018 at the latest.
According to the latest data from LondonOffices.com, average rents in SW1 were £737 per workstation for Jan-Feb 2013, a 10% increase on the same period in 2012. The area also saw an increase in the number and size of businesses moving in, indicating that prices are likely to rise further as developments progress.
With a total of 253,000 sq. ft. of Grade A office space to offer, Eland House is well positioned to take advantage of a surge in interest in the area.
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(Image by Hogweard via Wikimedia Commons.)