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Internet giants move into King’s Cross

30th January 2013

Internet giants move into King’s Cross

Due to the large regeneration of the King’s Cross and St Pancras stations the area has become an increasingly popular office destination. The area benefits from excellent underground connections on the Victoria, Northern, Piccadilly and Circle lines as well as improved connections from the newly renovated King’s Cross and St Pancras stations, including of course easy access into Europe via the Eurostar. Rent for high-end offices can now reach over £52 per square foot, close to much of the grade-A space within the West End.  

The international giant Google has seen the strengths that King’s Cross has to offer and has chosen to use it as the base for its UK headquarters. The company will spend £650 million on 2.4 acres within the King’s Cross Central development. Construction of the Google headquarters will begin towards the end of 2013 and is expected to complete within 2016. The space will total over 1 million square feet over up to 11 storeys and this vast development is estimated to be worth around £1.4 billion.

It is thought that Google will have a significant tax incentive to invest its money outside of the US: more money invested overseas may in turn prevent money and profits returning  to the US, leading to a lower level of income being vulnerable to the US tax system. As the London property market is considered one of the most stable globally, one can easily see this development as a long-term investment by Google just as much as an expansion within the United Kingdom and Europe.

Many other companies are signing up to offices in Kings Cross, including The Guardian Media Group, The Office Group and BUPA. It is unlikely that this trend will reverse, as companies will want to make the most of the excellent connections out of London and into Europe via Eurostar.

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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