Market Update Q1 2019, welcome to the first update of 2019, giving you an up-to-date view of West London office news. Featured in this issue: the Market Summary, Take-Up, Planning Consent for London Olympia & Hammersmith Town Hall and the launch of One Ariel Way, White City
Market Update Q1 2019
In HAMMERSMITH & FULHAM
Office take-up in the Borough was 150,000 sq ft, a good start to the year despite the political uncertainty. 80,000 sq ft of this take up was for replacement Council offices. They are decanting from the old Town Hall extension in King Street before it is demolished to make way for the new Town Hall redevelopment that was consented this quarter. The Council took 25,000 sq ft at Frost Meadowcroft client, Westbrook & Stone Real Estate‘s The Clockwork Building in Ravenscourt Park (which is now fully let), 8,300 sq ft next door at 41 Beavor Lane and 46,000 sq ft at the Shortlands Building in Hammersmith Road.
Also in the Borough, fashion company, Ralph & Russo, leased 25,000 sq ft at Media Works, one of the redeveloped former BBC Buildings in White City and Navico, a marine technology company, took 10,600 sq ft at Axa IM’s Foundry Building in the Assembly in Fulham Palace Road. Frost Meadowcroft client Vacation Rentals leased 5,000 sq ft at The Triangle in Hammersmith Grove in Hammersmith town centre.
Starbucks leased 60,000 sq ft at Blackstone’s Building 7, Chiswick Park. Despite this letting Chiswick supply still increased from 8.4% to 8.9% as tenants such as Ericsson marketed substantial surplus space in Chiswick Park.
The 242,000 sq ft Brunel Building developed by Derwent, is now fully pre-let just prior to completion. Splunk Services, which is a US company that produces software for searching, monitoring and analysing machine-generated big data signed for 49,600 sq ft and Paymentsense took 33,000 sq ft. Paymentsense produces payment technology for businesses.
WEST LONDON OFFICE NEWS
This quarter Frost Meadowcroft client, Unibail Rodamco Westfield (URW) completed the construction of One Ariel Way, a new office building overlooking the new square that forms part of the extension to Westfield London on Wood Lane. The new mixed-use scheme features four floors of highly specified office space, two of which are being occupied by URW, having relocated from their HQ in Mid-City Place, Holborn. Frost Meadowcroft are marketing the top two floors, both of which have roof terraces with panoramic views of White City and London.
Also this quarter URW leased one of the 34,000 sq ft Dimco Buildings to Broadwicklive, a festival and venue company, who also run the Printworks in Canada Water. The hospitality venu ‘Exhibition London’, opening in late 2019, will hold corporate, fashion and music events. The Victorian structure was completed in 1899 and was originally built as an electricity generating station for the London Underground. It was also used as the Acme Factory in the 1988 film ‘Who Framed Roger Rabbit‘.
Planning News – West London Market Update Q1 2019
Consent for Hammersmith Town Hall Regeneration Scheme
The London Borough of Hammersmith & Fulham were granted planning consent this quarter for their transformational plans, which will see the creation of a civic hub at Hammersmith Town Hall together with the building of a new mixed-use scheme.
The proposal, which also incorporates the refurbishment and extension of the Grade II listed Town Hall, is a joint venture between A2 Dominion and the London Borough of Hammersmith and Fulham.
Four new buildings reaching eight-storeys in height will be made-up of 204 residential units (including 50% affordable), office space, affordable workspace, retail/restaurant units, cinema and a public plaza. They will sit on land that is currently occupied by the 1970s Town Hall Extension, the Quaker Meeting House (who will be relocating), Register Office, 181-187 King Street and the former Cineworld.
Planning Director, Victoria Bullock said:“The proposals will see the demolition of the ugly and locally derived 1970’s Town Hall Extension. In its place will be a new civic square which reinstates views of the Grade II Town Hall from King Street. The civic function of the Town Hall will be secured in the long-term through sensitive refurbishment of the existing building and a new roof extension that can accommodate the modern working requirements of the Council. Hammersmith’s new civic hub will be supported by a genuinely mixed-use development that will create a buzz of activity during the day and into the evening with the much sought-after cinema and footfall created by new residents”. LBH&F are to move out of their current offices in King Street for a number of years whilst the new mixed use scheme in King Street is developed.
Frost Meadowcroft have been advising the Borough on their office elements of the new town hall site. Frost Meadowcroft also assisted in the Borough’s decant to The Clockwork Building in Ravenscourt Park and to 3 Shortlands in Hammersmith Road whilst the development ensues. The Clockwork Building is owned by Frost Meadowcroft client’s Westbrook & Stone Real Estate. The 25,000 sq ft letting to London Borough of Hammersmith & Fulham completes the letting programme for this property and it is now fully let. LBH&F have also taken 46,000 sq ft at 3 Shortlands, owned by Romulus.
Consent for The New London Olympia Regeneration Scheme
West London Office News
Yoo Capital and Deutsche Finance were granted planning consent in January 2019 to redevelop the iconic 133-year-old Olympia London site into an arts, entertainment, events and creative business quarter. The 14-acre site will include:
- 1,500 seat theatre
- 1,000 seat performance arts venue
- A three-screen cinema
- Two hotels, restaurants and cafés
- 670,000 sq ft of creative office space
- 2.5 acres of new public space
The £1 billion project will commence Q1 2020 and is scheduled to complete in 2023.