Recent demand from third sector companies such as Charities and Associations looking to upgrade to better offices has trebled in recent months.
Age UK, a new organisation formed by Help the Aged and Age Concern, recently took 57,500 square feet of office space in Tavistock Square.
The charity works to ensure older citizens are treated with respect and have access to health and social care, as well as helping them with money matters.
This was the largest deal in Q2, the third sectors overall share of take up in 2009 was only 9 percent. Whereas in the second quarter of 2010, 26 percent of all midtown offices were taken up by this sector.
“Now is the time in the current cycle for charities to release themselves from the unnecessary burden of high, historic rents and upgrade their HQs to better grade midtown space and actually reduce running costs,” said Mark Anstey, acquisitions partner property company Farebrother.
Other charities that have taken advantage of the low running costs of midtown offices include Absolute Return for Kids, the World Society for the protection of Animals and Action for Children. Together they lease around 35,000 square feet in midtown.
In other office space news, Price Waterhouse Coopers is planning an £80 million renovation of their midtown offices.The development will double its size to 412,000 square foot and span 10 storeys. The new building will feature lower level trading floors in a bid to attract banking tenants.
This is the the only major midtown planning application that has been submitted since the recession; if the development succeeds it could help to sustain midtown’s economy.