Farringdon keeps on track
19 April 2018
Last week’s news about two more substantial office occupier deals in the area are a further boost for the location which continues to power forward in anticipation of the Elizabeth (Crossrail) Line opening at the end of the year.
Confirmation that global creative agency, IDEO, is taking space over two floors at Aerium’s redeveloped Herbal House and the news that LinkedIn is close to signing on the dotted line with Viridis for 56,000 sq ft at The Ray – the ambitious new building on the old Guardian newspaper site on Farringdon Road - are further fillips for the location.
These lettings are good news but reflect that much of the occupier demand in Farringdon – replicated across London - is focused on high quality space in new and refurbished schemes. Top Farringdon rents are now mid to high £70s per sq ft but there is a gulf between this and the levels commanded by second-hand space.
Major occupiers like IDEO and LinkedIn seek prime accommodation which aligns with their brands helping their staff attraction/retention strategies, but there is still value in the market for businesses who are happy to take lower specified space.
We’re letting a range of space, east and west of Farringdon, on behalf of occupiers and landlords, secondhand in nature, some short term but still in the heart of this vibrant market ranging from £42.50 to £57.50 per sq ft.
So there’s still good value in the market for occupiers and particularly in the 5,000-10,000 sq ft requirement bracket. How long the scale of that rental gap between prime and secondary will be maintained – especially once the Elizabeth Line opens and the reality of the startling improvement in cross-London travel takes effect – something to watch.