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Recent research as to the demographic of the area of London now dubbed Midtown shows that it is experiencing a significant influx from companies that previously occupied the West End and the City.
Analysis of take-up figures shows that as much as 50% of Midtown space is being snapped up by companies new to the area – with only 43% of take-up allocated to current occupiers.
In the first three quarters of this year, Savills research shows that West End businesses made up 29% of the new influx, with City arrivals making up 22%.
The largest proportion of the West End group was the TMT sector, with 36% of the Midtown property take-up, and public services companies with another 23%. From the City, inevitably, the financial and insurance sectors were the prime takers, with 68% of the City-relocators coming from this sector.
Noted immigrants to Midtown include the publisher Hachette, which relocated from North Row in the West End, signing up for 133,978 square feet at Carmelite Riverside, at the end of 2013.
However, the figures show that of the businesses staying put in Midtown, the legal and professional sectors are conspicuous. The 55% of space remaining with current occupiers during the period of research is taken by law firms, barristers and other professional firms, particularly around Temple.
The influx will be likely to stimulate increases in rents and pressure on supply, as has occurred in other vicinities of the capital. As the date for the launch of Crossrail draws closer, firms and companies will already be keeping an eye on the property market. Many will be thinking in the short term about relocating to areas that will be well served by the new rail infrastructure, particularly those companies with lease renewals imminent in the next couple of years.
The Midtown area will benefit from the Farringdon Crossrail hub, an aspect that will not be going unnoticed by the current occupiers of Midtown as well as those considering following in the footsteps of the other West End and City businesses that have already taken the leap into the area. Other attractions of relocation are proving to be the wide selection of sites and choice of buildings to rent, combined with a higher proportion of green spaces than some more built-up areas of the city.
This news was brought to you by Morgan Pryce, 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.