Worried scheme owners tell letting agents to perform or be sacked
Adam Coffer
Intense pressure from landlords to fill new schemes has led agents to lose some of central London’s best instructions this week.
Pressure to secure lettings has heightened to such an extent that owners and developers have insisted their agents perform or be sacked.
Bee Bee Developments chief Alfred Buller has removed Atis Real Weatheralls from two of his Midtown schemes.
Weatheralls was joint letting agent with Farebrother on Buller’s flagship High Holborn, WC1, scheme – the Eye – but discovered this week that it was to be replaced by Insignia Richard Ellis. In September, IRE abandoned plans to take the 80,000 sq ft (7,430m2) scheme as its own headquarters.
Buller has also appointed IRE to take over Weatheralls’ remit to let the 23,315 sq ft (2,155m2) Connection in Dragon Lane, WC1. EA Shaw is still joint letting agent on the scheme.
But Weatheralls has been retained to jointly let Bee Bee’s 23,000 sq ft (2,137m2) Holborn Town Hall redevelopment in High Holborn, WC1, with Shaw. Buller said: “I am happy with my relationship with Weatheralls but need to spread my coverage of agents to ensure proactivity.
“In the past two or three years, many agents have been reactive rather than proactive. We have a lot of money invested in speculative developments and I owe it to my investors that occupiers are being made aware of the benefits of the area.”
The knife also fell on Jones Lang LaSalle this week, which lost its potentially lucrative fees from Centre Point, New Oxford Street, WC1. It had been jointly marketing, with IRE, four floors totalling 20,000 sq ft at the 180,000 sq ft (16,700m2) tower. But this week freeholder Portfolio Holdings’ frustration at the lack of activity at the flagship building led it to replace JLL with West End specialist Hodnett Martin Smith.
The CBI is looking to vacate its 40,000 sq ft at Centre Point, and CB Hillier Parker is searching for 30,000-40,000 sq ft for the confederation.
Healey & Baker was feeling the pressure on its instruction to let the 50,000 sq ft (4,645m2) GTS House in Shaftesbury Avenue, WC2, for telecoms company Ebone. It was informed this week that IRE was to be the second agent.
The City has witnessed an intensified drive for agents to deliver swift results. Thorstone Land has dropped Knight Frank from its high-profile Lion Plaza scheme in Old Broad Street, EC2.
Knight Frank and Weatheralls were jointly marketing the 163,000 sq ft (15,100m2) office element, but City specialist BH2 has been brought in to add local expertise.
