London Issue 74 February 2017
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Commercial Property Register

February - May 2017



In leasing office space for a

campus in the developing

Battersea Power Station, Apple

is sending s strong message

about the future of this large

scheme as well as the market

south of the River Thames.

Apple will be the largest

occupier with 46,450 sq.metres



.) over six floors in

the Boiler House in the company’s

new London campus and it will

account for 40% of the total office

space in the development. It will

pull together Apple’s 1,400 London


The deal underlines the changing

nature of business locations in

London and, in the case of the

area south of the Thames, the

pioneering impact of The Shard

at London Bridge (although the

Kuwaiti St Martins Property had

started the ball rolling with the

London Bridge City scheme).

Apple’s decision coincides

with The Shard reaching close to

100% occupancy five years after

its inauguration. This was

achieved when

increased the office space it

occupied by 40%.

The Shard has acted as a

catalyst for bringing new occupiers

to the area and stretching the

development area more widely,

such as into Bermondsey.

The latest scheme for Bermondsey

is the former Crosse & Blackwell

Branston Pickle factory which has

been bought by London Square

for £50 million with the deal

and planning issues sorted out

by the Thames Valley based

solicitors Owen White.

The project is for 408

apartments (35% affordable)

offices , shops and a gallery.






Tuckerman reports that:

“Victoria is still experiencing a lack of small to

medium sized suites, with the large majority of the current availability being

made up of 10,000


. plus floor plates. The average floor plates size has

risen again to 8,200


”. They also commented that: “Grade A space makes

up 74% of the total current availability and total take up during 2016

increased slightly to 627,800 sq. ft.”. Concluding, Tuckerman pointed out

that: “Total availability at the end of 2016 stood at just over 760,000



well up from the132,000


. at the end of 2015, and close to the long

term average of 800,000



The need to promote the UK more

vigorously overseas is behind UK

Government Ministries participating

for the first time in MIPIM.

There has always been a big

show of UK developers and property

professionals, but now the

Department of International Trade,

the Department of Communities and

Local Government and others have

come together in a pavilion in

Cannes in March.

On top of this, senior Government

Ministers are scheduled to deliver

the message of a multi faceted

investment promotional programme.

This will back up the increased

efforts by the UK regions, where

Manchester will have a large

pavilion, as will the Midlands.

The need for greater promotion

by the UK is illustrated by a report

from Property Works that the Brexit

referendum brought a 40% decline

in overseas interest in UK commer-

cial real estate.

Joe Cohen of Property Works

commented: “The data tells us that

Brexit had a severe negative impact

on searches from international

locations, as offshore businesses felt

less confident about expanding into

the UK. This year will demonstrate

whether this view persists or the

appetite and confidence revert to

pre-referendum levels”.





City Council is to lease 5,295 sq.metres (57,000


.) in

BlackRock’s 5 Strand, near Trafalgar Square, when the existing occupier,

Land Securities, moves out. The council has taken the space while its

civic headquarters in Victoria are refurbished.