Market update – Fitzrovia

Fitzrovia – or Noho as it’s known by local commercial property agents – is the square north of Oxford Street, south of Euston Road, between Portland Place and Tottenham Court Road. It has grown in popularity with the TMT sector over the last three years, partly due to its status as a lower-cost alternative to traditional tech hub, Soho, as well as improvements in the quality and style of office stock, the local amenities, and upcoming Crossrail station at Tottenham Court Road – set to be completed in Q4 2018.

Occupier demand in the area reached its peak in Q1/Q2 2016, which saw the highest average rents ever achieved. This was down to basic economics of supply and demand, with some large demolitions removing stock from the market. However, demand has since softened as a result of the weaker global economy and concerns related to the Brexit vote, and this has led to more secondhand space from tenants, coupled with the introduction of new schemes such as 80 Charlotte Street and Rathbone Square, increasing vacancy rates and reducing rents across the submarket.

That being said, Noho has outperformed the West End, and this is expected to continue. Large pre-lets, from Facebook taking up 242,800 sq ft in Rathbone Square and McKinsey & Co taking up 133,600 sq ft in 80 Charlotte Street, are evidence of sustained TMT demand.

Eugene O’Sullivan, Surveyor and Director at Morgan Pryce, believes; “Noho will continue to perform well. Morgan Pryce has seen huge demand from TMT clients looking to make some financial savings by moving from Soho to north of Oxford Street.”