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Amazon on the up?

12th February 2013

Amazon on the up?

Typical London … we wait for big real estate players; and then two businesses come along at once …

No one in the sector is unaware of Google’s recent commitment to the significant development – 1,000,000 square feet – at King’s Cross, and the latest contender in both the size-of-development and news stakes is Amazon. Recent reports indicate that the company is in search of an 80,000-square-foot office space – which might not sound like much: it isn’t, but that’s because it’s only a short-term requirement. The company will be considering all its options in respect of a long-term London office campus. It is anticipated that a space in the region of 750,000 square feet would be needed and if true, this would be one of the largest spaces and important deals that London has seen in the last two years. 

While King’s Cross could be suitable in terms of new developments and redevelopments, and have the square-footage to offer, it is likely that Amazon will not want follow in Google’s shoes.

Eugene O’Sullivan, of Morgan Pryce, surmises, “Property location is often linked with the identity of a particular company – even its brand. Having two major international Internet-based companies in close proximity might not do either of them any favours.”

It waits to be seen whether Amazon will choose a well-established area, an up-and-coming one, or one on which it can put its stamp and lead the way in terms of location. Eugene continues, “Certainly the new rail links within the capital may have an effect on where Amazon chooses to be based. Somewhere which may not be suitable right now may be ideal in 18 months or two years.”

Morgan Pryce is a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.


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