Bedford Estates eyes burgeoning educational demand with change of use bid

Bedford Estates has submitted a change of use application to enable it to use its Grade I listed office asset on Bedford Square for educational uses, following an unsuccessful marketing campaign which has left the office vacant since July 2022. Owned by the Russell family, which holds the title Duke of Bedford, Bedford Estates is a major landowner in central London and particularly in Bloomsbury, where the 5,001 sq ft office asset at 21 Bedford Square, WC1, is located. According to the planning application submitted to Camden council, the asset was likely built for the Bedford Estate in the late 18th century, originally as a terraced house for residential purposes. The mid-terraced building was later converted into offices spread across the building’s five floors, including the ground and lower ground. The asset has been formally vacant since July 2022 and has been actively marketed by its joint agents Compton and Edward Charles & Partners for nearly three years since. According to a marketing report by Compton submitted as part of the application, in that time the property has been viewed 23 times by potential occupiers. There has, however, “been no significant interest for the building, indicating that [sic] the lack of interest from office occupiers for for [sic] this style of building and size of building within the Bloomsbury district.” As a result, Bedford Estates have submitted a change of use application, seeking to tap into growing demand from educational occupiers in London. It points to Compton’s marketing report as supporting evidence to the benefits of changing use, highlighting the quote: “given the limited demand and challenges in securing a suitable tenant, we believe that allowing dual office and educational use will enhance the property’s appeal and provide a greater opportunity for its productive use.” Planning permission was previously granted for a similar dual office/education use at 19 Bedford Square in March this year, as well as at numbers 32, 33, 38 and 39. Savills is advising Bedford Estates on planning. The move comes against the backdrop of increased demand from educational occupiers, as universities look to establish satellite campuses to attract international students willing to pay lucrative fees.