Global media giant Omnicom is gearing up to launch what could be one of central London’s largest requirements.
The company, advised by retained New York-based agent Lee Feld, and Cushman & Wakefield in London, is considering its options ahead of a raft of upcoming lease expiries, which could lead to a requirement of around 300,000 sq ft.
Omnicom has long talked of integrating some of its disparate agencies and has achieved some success with the strategy in New York. It previously looked at integration in London too, but decided against it.
However, the group has a raft of London lease expiries coming up in the next three years which could finally make a deal possible.
Omnicom is understood to have held initial discussions regarding Argent’s Kings Cross Central, N1, and Hammerson’s Bishopsgate Goodsyard, E1.
Both sites would allow the various agencies to use multiple entrances and addresses, helping avoid the problems associated with competing clients.
One agent said: “Omnicom has been exploring the market, sitting down with developers with a serious intent to capitalise on their lease breaks because the global strategy is to bring a number of different agencies together. They are considering a number of different permutations and it’s not set in stone as they may use it as leverage to re-gear current leases.
“I would expect them to do something in the next six-to-nine months.”
The group is thought to have a total London portfolio in excess of 600,000 sq ft. Not all agencies will be included in the integration. All parties declined to comment.
Upcoming lease expiries
Redwood – 30,000 sq ft at 7 St Martin’s Place, WC2 – July 2014
Abbott Mead Vickers – 50,000 sq ft at 151 Marylebone Road, NW1 – June 2015
Diversified Agency Services – 15,000 sq ft at 259 Old Marylebone Road, NW1 – January 2013
OMD – 25,000 sq ft at26-27 Seymour Mews, W1
BMP DDB – 66,000 sq ft at 12-14 Bishops Bridge Road, W2
jack.sidders@estatesgazette.com
