A focal point for investment and growing in desirability, King’s Cross has begun to welcome a new wave of premium tenants – but what will this shift mean for the King’s Cross office space market in 2015?
Just a few years ago, the availability and quality of office space in King’s Cross was limited – often resulting in businesses looking for office space in the King’s Cross area having to refocus their search south toward Midtown.
Today, the area around this key transport hub is much changed, with grade A office space developments springing up. This activity is spurred on by the imminent arrival of the £1bn Google headquarters development, a project which has already begun to usher in a new wave of tech-focused firms to the area and with it an increased demand for King’s Cross office space.
The impact of this shifting demographic has seen workstation costs in the area spike, rising from £550 to £850 per workstation per month in some business centres. While such an increase may seem steep, it is a clear indicator to the growing demand from businesses wanting to secure office space the area.
In real terms, King’s Cross office space has moved from being an economical to a premium business location.
Alternatives to King’s Cross
As the redevelopment of King’s Cross gathers pace, it is inevitable that businesses unwilling or unable to pay the premium rental rates will be displaced. Looking at our own client base, this has already become a reality and we have begun to assist clients with their relocation.
Once again Midtown office space is acting as a natural overspill market, offering lower rental rates but still just a short journey from King’s Cross.
Somewhat surprisingly, another area drawing in ex-King’s Cross tenants is The City. While geographically The City is further away, the large volume of serviced office space available there offers competitive rental rates, choice and benefits from excellent transport links.
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