Future tense Four agents fast-forward to the end of 2010 and take a punt on how west London might look by then. Nadia Elghamry hears their predictions
Shaun Wolfe, Frost Meadowcroft
Forecast: Imperial College was granted planning consent for its 7.7-acre scheme at the former BBC site at Wood Lane by the new Liberal Democrat/Labour national government.
Secretary of state Vince Cable is asked to look into a controversial application for a 100,000-capacity, all-seater stadium for newly promoted Premiership side Queens Park Rangers on the 10-acre former Dairy Crest site opposite TV Centre.
Demand for space and take-up continues to increase through the year, with large reductions in rent-free incentives. Rental growth is anticipated in 2011. Notable lettings include several floors at the Ark and further substantial lettings at Chiswick Park. Quoting rents for both are expected to rise next year. With rents around £30 per sq ft and business rates for grade-A space around £12.50 per sq ft, Hammersmith continues to draw companies away from the West End.
Development Securities’ 1.5-acre, mixed-use Hammersmith Grove scheme, which was due to start this year, is further delayed until mid-2011 – to the delight of local protest group Armadillo Action. The group has campaigned vociferously against other local schemes, such as the King Street Cinema site and London & Newcastle’s residential scheme at the Goldhawk Industrial Estate.
David Cuthbert, Hanover Green
Forecast: There is a lot more confidence in the property market and the wider economy, and we are starting to see tenants making plans for the future. Available grade-A accommodation in Hammersmith, Chiswick, Ealing and Richmond is now becoming limited.
There is a severe lack of buildings that can offer more than 50,000 sq ft (68 Hammersmith Road, Ealing Gateway, Chiswick Park, Westgate, First Central). Companies with big requirements will have to look at sites with planning consent that are ready to go – Chiswick Green in Chiswick is a good example. But starting speculative schemes at the moment will be difficult due to funding issues.
Headline rents for the first six months on existing buildings remained stagnant. We have started to see incentives reduce and rents rise, although from a very low base, and only as demand increases.
James Finnis, Jones Lang LaSalle
Forecast: 2010 has seen a steady return to a more normal office leasing market in west London following the aberration that was 2009. The lease regear phenomenon has abated, and requirements being circulated are now genuine, rather than serving to wind up landlords to offer bargain deals to keep tenants in place.
The general election delayed occupiers’ decisions in the first half of the year, and new prime minister David Cameron is still finding his feet on the economy.
As predicted, rents for the best space in west London are increasing – we will see increased rental growth in 2011 as the economy gains speed.
We have seen a number of major prelets, which have demonstrated real rental growth. The speculative development pipeline is still blocked, but the plumbers are at work and we could see some cranes in 2011 in locations such as Hammersmith, which has a real grade-A shortage.
Martin Crossley, King Sturge
Forecast: Retail in west London has continued to recover from the initial impact of Westfield. The White City megalith has had mixed fortunes, and the service charge disputes and delays to the cinema opening are still fresh in tenants’ memories.
Far from being flattened by Westfield, Ealing has bounced back. The Broadway Centre is now home to H&M, New Look and River Island stores. The Crossrail redevelopment of Ealing Broadway station is still due for 2017, but the Glenkerrin Tower on the former Arcadia Centre shows no progress.
Kensington has been unusually resilient, with stores of 3,000 sq ft-plus still highly desirable. After lettings in 2009 to Barclays Bank set a new high for the north side of the street at £265 per sq ft zone A, as well as to Cos and Butlers, other key lettings are forecast shortly.
In Shepherd’s Bush, Land Securities has further developed the W12 scheme as a value, community and convenience centre. Footfall is up, a hotel development is planned and talks are being held to erect its Piccadilly-style neon displays on the Shepherd’s Bush Green frontage. With a captive audience of queueing commuters, ad rates would be huge.
