With office-to-resi developments putting the squeeze on commercial space, it has become increasingly difficult of late to find office space in the West End. However, that may be set to change, following the news that The Office Group has signed a lease on nine floors of space in the West End.
The serviced office specialist has leased 70,000 sq ft of space at Henry Wood House, the former BBC offices on Langham Place. The 1960s office tower, which encompasses a total of sixteen floors, is situated in Fitzrovia, an area of Central London which has become popular with media companies and organisations looking for a more affordable alternative to Soho.
Furthermore, at 70,000 sq ft, The Office Group’s new lease represents the largest letting on office space seen in the West End so far this year.
No plans have been revealed as yet to show how The Office Group will transform the building; however, given the company’s reputation for creating high-end, design-led business space the end result is likely to be a highly desirable new addition to the West End’s serviced office market.
Indeed, the company already operates four business centres across the West End, with two in Marylebone, one in Mayfair, and another off Oxford Street.
Due to the popularity of its premium serviced office model, the company has also undertaken a rapid expansion within Central London. Three new business centres in King’s Cross, plus a centre at Liverpool Street are among the new additions to launch this year.
While the West End remains a sought-after location for businesses within Central London, office-to-residential conversions have reduced the availability of space.
The redevelopments have also had an inevitable impact upon prices. W1, the area which includes Mayfair, Marylebone, Soho and Fitzrovia, recorded the highest average price for serviced offices across Central London for the first three months of 2014. The average rental price per desk per month rose to £802, an increase of 19% compared with the same period in 2013. This also represented the largest percentage price increase for Central London during this period.
Despite the rising prices, the West End is still a highly sought-after location among businesses. The prestige of the address, the accessibility of the central location and the convenience of having five-star restaurants and hotels nearby all enable companies to continue making the business case for situating their office in the West End.
Read more about serviced offices in Central London:
- Premium Serviced Offices: So Much More Than Swing Space
- Latest Listings: 3 Brand New Business Centres for Central London