Bankside:
Market Synopsis

South Bank saw a 15% drop in take up on the last quarter with 41,000 sq ft let.  The majority of those lettings were second hand stock where 36,800 sq ft has been occupied now, up from nearly 47% on the last quarter.  South Bank’s availability rate continues to remain historically low at only 6%, when taking into account 18.7 million sq ft of stock.  Asking rents typically for new stock has reduced to £35 per sq ft from £42.50 per sq ft in the last quarter.  The average rents for good quality second hand stock reduced again but only marginally from £24.50 per sq ft to £23 per sq ft. 

The location is increasingly popular for businesses and there is very limited development at this time because a number of vacant sites have been sold for alternative residential or hotel uses, which attracts higher values. 

The 1,000 ft “Shard of Glass” is receiving much publicity at this time; this new icon skyline development in London’s landscape will include 600,000 sq ft of offices, 70,000 sq ft of retail, 200,000 sq ft Shangri-La hotel, 65,000 sq ft of residential and 14,000 sq ft of entertainment space.  The development will undoubtedly attract a number of blue chip tenants and only add to the attraction of this established office location, which has become increasingly developed in the last decade.  We feel South Bank will now become the new “Manhatten of London” and geographically is very well situated to serve both the City, West End and Docklands.