US healthcare company Cerner has walked away from a 100,000 sq ft relocation to Stanhope’s Chiswick Park in west London.
The group had been in talks to expand out of its 46,100 sq ft HQ at The Point – which it sublet from Orange at £40 per sq ft – in Paddington, W2.
It is understood to have cut its requirement following difficulties expanding its Cerner Millennium software across the NHS estate as part of the government’s £12bn hospitals IT programme.
The firm had been planning to take most of Building 4 at the 1.8m sq ft Chiswick Park, where rents are around £35 per sq ft.
Cerner will, instead, stay at The Point and take a further 25,000 sq ft at Development Securities’ and Morley Fund Management’s nearby 3 Sheldon Square, Paddington Central, where quoting rents are £50 per sq ft.
A source said: “The move was one of a handful of large Western Corridor lettings that the market was counting on, so there will be disappointment.”
Cerner’s decision will be a setback for Chiswick Park owner the Chiswick Park Unit Trust – which comprises Schroder Property Managers, API and Stanhope.
The letting would have almost doubled the 110,000 sq ft of space that has already been let at the park this year.
Cushman & Wakefield acted for Cerner; Savills and Jones Lang LaSalle advised the Chiswick Park Unit Trust; CB Richard Ellis and Savills act for DevSec/Morley at Paddington Central.
