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PETERBOROUGH COURT & DANIEL HOUSE
133-140 FLEET STREET LONDON EC4
APPENDIX II
LONDON’S MIDTOWN –
A CASE FOR GROWTH
Overview
London’s Midtown is bounded by the City to the East, the West End to the
West, Kings Cross to the North and the River Thames to the South. The
Midtown market comprises three sub markets namely Bloomsbury, Covent
Garden and City/Midtown totalling c. 32.8m sq ft (3m sq m) of office stock.
Midtown’s occupier diversity means that it appeals to a variety of both occupiers
and alternative users. It is therefore less susceptible to the reliance on a particular
sector as is witnessed in other parts of the City Market and in the last downturn
witnessed lower vacancy rates than both the City and West End.
Over the previous cycle, rents in the Midtown sector outperformed all
of the other City market sectors achieving highs of over £70.00 per sq ft
(£753 per sq m).
Take – Up
Take-up in Q3 2010 hit a 3 year high, rising 48% over the quarter to
546,000 sq ft. This is 8% higher than the long-term Midtown average of
506,000 sq ft. Performance was driven by lettings of new Grade A and
refurbished accommodation.
Demand
There is considerable forthcoming structural demand in the area. Jones Lang
LaSalle have identified approximately 6m sq ft (557,413 sq m) of such events
between now and 2015. The diverse occupier base has triggered a number of
different requirements being identified.