Battersea Power Station switches space for office use

Battersea Power Station Development Company has converted 40,000 sq ft of space earmarked for hotel use into offices as it continues to reap the benefits of its enormous prelet to Apple. The space in the Boiler House in phase two of the development is being marketed to a range of occupiers, including a private members’ club. Andrew Hilston, head of office leasing at BPSDC, said it “lends itself to co-working or serviced offices”. The 42-acre Battersea Power Station development will include 1.3m sq ft of offices, alongside its 4,239 homes and 1m sq ft of retail and leisure. The commercial element received an enormous boost last year when Apple signed a 500,000 sq ft prelet on six floors in the Boiler House. This essentially took all of the available commercial space in the earlier phases, with the remaining 750,000 sq ft not available until its later phases. Hilston said: “We never necessarily planned to let all of the office space in one go four years out from completion. In my role in the office business, I wish we had more space to bring to the market sooner.” Since the scheme was granted outline planning consent in 2011, the Vauxhall commercial property market has grown in popularity. According to JLL, office rents in Vauxhall are now £50 per sq ft in both Battersea and Vauxhall. A more immediate boost than the Apple prelet is to be the opening of the US embassy later this year. Hilston said he would like to see more office development as part of the overall Battersea Power Station mix. “I would love to add more to that 750,000 sq ft because there has been a good response post-Apple,” he said. The power station is not the only scheme in Vauxhall trying to tempt occupiers out of central London. CLS changed the use of a hotel for a further 105,586 sq ft of offices in its Nine Elms Square site. It subsequently sold the scheme for £157.8m to R&F Properties. “What is successful now in new destinations is the sheer variety of amenities you are able to offer,” said Hilston. “The answer is not doing single-use. What occupiers and staff want is a variety of things on their doorstep.” Apple and the new 40,000 sq ft being marketed are set to complete and be occupied around 2021. The remaining 750,000 sq ft will not be completed until 2021/22. “The opportunity is on the 20 acres on the future phases. I think there is the opportunity to increase that 750,000 sq ft, and I think, given the quality of the offer and the quality of the neighbours, there will be a really good demand,” added Hilston. To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette