Outer London offices
in Chiswick, Slough, Staines, Hammersmith and Windsor are providing a boost to the Western Corridor commercial property market.
Prime rents in Hammersmith rallied by seven per cent in 2011, while an 18 per cent surge was noted by Jones Lang LaSalle (JLL) in Chiswick.
The manufacturing and service sectors were big drivers in demand for outer London offices
across the Western Corridor, with manufacturing representing 35 per cent of total requirements and the service sector accounting for 48 per cent.
Manufacturing demand spanned a variety of subsectors, including computer hardware, pharmaceuticals, engineering and food.
Some of the key deals that took place last year included BP renting 70,000 sq ft of space and Astellas taking up 100,150 sq ft.
The vacancy rate for Grade A outer London offices
along the Western Corridor declined from six per cent at the end of 2010 to 5.6 per cent during the same period in 2011, the study discovered.
More than 450,000 sq ft of Western Corridor space is expected to be completed this year, with 639,600 sq ft of speculative outer London offices
under construction by the end of the fourth quarter of 2011.
Construction started on the 107,000 sq ft Hammersmith Grove South development last month, with the offices here set to be delivered during the early part of 2013.
Schemes are also underway in Richmond, Uxbridge, Weybridge and Chiswick, the JLL report explained.
One of the more recent deals in Chiswick involved 17,000 sq ft of space being taken up at Chiswick Park by Swarovski, CoStar UK recently reported.
The jewellery giant will move into the 164,200 sq ft Building 4, which is located five miles from central London.
Other tenants at Chiswick Park include Singapore Airlines, CBS News, the Discovery Channel and Tullow Oil, which previously agreed to a 15-year lease for 134,000 sq ft of space in Building 9.
Posted by Emma Davies
News provided by Adfero in collaboration with Mellersh & Harding. Please note that all copy belongs to (c)Adfero Ltd and does not reflect the views or opinions of Mellersh & Harding unless explicitly stated.