22 November 2017
Croydon: Ruskin Square is a gamechanger but office supply issues need addressing.
The Ruskin Square development is a game-changer for Croydon. A new skyline now greets the thousands of passengers who travel through East Croydon Station daily, immediately improving perceptions of the quality and scale of regeneration being delivered in the town. HMRC taking the entirety of the 184,000 sq ft development at 1 Ruskin Square – the first of the government’s 13 new state-of-the-art regional centres around the country – was a huge moment for the town.
The first 600 members of staff, who were previously based in Southern House, have made the short move to the new offices and the new building will become home to 2,700 HMRC employees by 2021.
Having cut the ribbon to officially open the development, HMRC says its new office will enable it to be become one of the most digitally-advanced tax authorities in the world and executive chair Edward Troup said: “This building is a great place to work.
“Ultimately, bringing teams together gives us the opportunity to work differently and more effectively, and that is part of making HMRC a tax authority fit for the future.”
That was the single biggest factor in a bumper year 2016 for office take-up, beating most years in Croydon’s history.
In addition, Superdrug took 52,000 sq ft of newly refurbished space at 8 Bedford Park, which includes a striking new entrance onto Sydenham Road. In further progress, Renaissance has recently attracted cloud software company Solium which took 10,414 sq ft. With quoting rents now at £34.50 psf this demonstrates a positive uplift for the asset manager M&G from the £22.50 psf the Grade A development attracted when Abstract Securities shrewdly developed it speculatively and, brought it to the market four years ago.
An increase in rents across the board reflects a striking fact that, behind the headlines, office availability reduced to an all-time low during 2017. A major contributor to the reduction is the lingering effects of permitted development with 27 buildings formerly classed as B1 (used for business), poised for, or, in the process of being converted to residential.
While a host of new developments are also bringing thousands of new homes to the market, there is little in the pipeline to suggest there are sufficient offices being built which will meet Croydon Council’s stated aim of providing jobs for residents living in the borough.
Within the consented pipeline the second major office phase being brought forward by Stanhope and Schroders will bring more office space – and more prestige – again being suitable for a government department or as a corporate Headquarters but it will take time before the new buildings evolve naturally to offer additional space for companies seeking say a floor.
Guildhouse Rosepride’s new consent at One Lansdowne allows for a further 317,000 sq ft of Grade A offices, while Freshwater is at a pre-application stage for a seven-storey 120,000 sq ft headquarters building in George Street.
Added to this, Menta has plans for an office component within their next phase of residential /mixed use towers delivery and on adjoining land. The occupier market will continue to be led by structural demand such as lease breaks and expiries. The same structural events may provide a much-needed source of space returning to the market.
Take up and therefore demand, has dipped this year compared to last year but, when it returns to its normal level, it would be comforting to see more stock coming to the market to offer existing occupiers some churn. It would be disheartening to see occupiers forced out of the town because of a lack of supply.
Vanessa Clark of Sinclair Clark consultant surveyors is an expert on Croydon’s commercial market.
For further press information, please contact: Vanessa Clark Sinclair Clark Email: firstname.lastname@example.org Tel: 020 7494 9399
04 September 2017
The sale of Voyager House, Croydon by Lasalle Investment Management to key local developer/investors Guildhouse/Rosepride has now completed. The office building located prominently at 30-32 Wellesley Road adjoining the 1 Lansdowne Road development, comprises 29,135 sq ft over ground and five upper floors and is let in its entirety to Mott MacDonald. The investment sold for £10.25m.
01 September 2017
Lasalle investment Management have let their final office suite in Sunley House Croydon having upgraded the common parts and all vacant space. The last office suite on ground floor west has been taken by local tech company Connected space and compress 4,116 sq ft. The rent achieved was £25 psf. This leaves only the lower ground floor of 5,801 sq ft which has been upgraded and has a D1 use suitable for a range of uses including a gym. Sinclair Clark advised Lasalle together with local joint agents SHW. Please click here for the brochure.
25 August 2017
Sinclair Clark have acquired 8,900 sq ft of ground floor offices in Uxbridge for a school on behalf of clients Orchard Hill College and Academy Trust. The College will convert the space to fulfil a contract to provide adult learning facilities to the Hillingdon Borough which will open after a swift revamp of the space. The College have taken a 5 year sublease at a rental of £20 psf. This is the first of a number of acquisitions for the College. Sinclair Clark are retained to advise on additional acquisitions and also recently let offices in Sutton to the College to enable them to relocate from older offices in the town.
23 August 2017
Works have just completed to upgrade the common parts of Quadrant House in Sutton by RELX. The building has 66,800 sq ft available on floors of 6,200 sq ft. Sinclair Clark are advising on the letting programme.
03 May 2017
As the final part of the refurbishment works at Sunley House, Lasalle have refreshed the lower ground floor and obtained a D1 consent allowing gym use. The lower ground floor of the building now has new showers/lockers, a secure bike room and 5,800 sq ft of shell and core space with feature lighting and a light bright feel. Click here for more details.
01 May 2017
It is hard to miss Quadrant House which nestles close to Sutton station and provides 200,000 sq ft of offices in two tower blocks. The entirety of the 8th floor comprising 6,280 sq ft has been let to Orchard Hill College and Academy who are head quartered in the town. Quoting rents for the building are £22psf. Click here for more information or download the brochure.
30 April 2017
Copthall House which is scheduled for residential conversion in around 18 months has two vacant floors available short term for up to 18 months at a rent of £9psf. Click here for more information.
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