Richmond is not a town of mega-deals. That said, its location, tube link and environment ensure a constant flow of inquiries. And, just as important, the council’s planning policy has prohibited any large oversupply of empty property.
Although there is about 100,000 sq ft of secondhand offices, there is little new space.
The largest vacancy is at a 8,131-sq ft self-contained office redevelopment by Morden College and Lloyds Bank at 22 The Quadrant. Lloyds has moved from 4-5 King Street to take the new ground-floor banking hall and 2,000 sq ft on the first floor. Joint agents Healey & Baker and Nelson Bakewell are quoting £25 per sq ft for the remainder.
Griffon Land & Estates’ 5,000sq ft Ibis House at 123-127 Sheen Road is available with 16 parking spaces – a prime concern for occupiers in Richmond. Joint agents Martin Campbell and Weatherall Green & Smith have had the building under offer, but it remains empty with a quoting rent of £22.84 per sq ft.
At nearby 85 Sheen Road, Berkeley Hambro is completing 2,200-sq ft Berkeley House where agent Bonsor Penningtons is quoting £20 per sq ft.
Chris Barbary of Martin Campbell does not expect many incentives to be given away in lettings. “If someone wants to be in Richmond, they will pay a reasonable figure. We have never given more than eight months’ rent-free away.”
He points to a deal at Bridge House, part of Haslemere’s Riverside scheme, to Jani-King last year at £26.32 per sq ft.
The most recent letting was on the Lower Richmond Road at Forsyths House where a subsidiary of United Artists took 5,000 sq ft on a full institutional lease for £16 per sq ft.
But as Weatheralls’ Nick Compton said: “Deals done are quite encouraging but there haven’t been reasonably sized standard letting to judge exactly where the market is.”
The last major letting was when Infopro took 10,300 sq ft at 18 Parkshot through Alexander Reece Thomson at a stepped rent rising to just over £20 per sq ft in the third year.
Barbary says that the number of inquiries has dropped off, but the quality of demand is infinitely greater. This could be good news for Octagon Developments which is looking for a prelet to get its 36,000-sq ft environmentally designed riverside scheme off the ground in Hampton Court.
Richmond’s retailing scene has always catered for the specialist end of the market. Its prime pitch of George Street and the Quadrant has few vacant units. Rents have historically been more than £120 per sq ft but, according to Barbary, “if a new unit was available it would probably go for £105”.
He does not believe that the opening of the Bentall centre has had a significant effect, and puts any reduction in trading more down to the economic climate than any competition.
Martin Burke of Martin Baker sold the freehold of a restaurant at 15 Sheen Road for £220,000 after three offers. “It’s been amazing, you would never have thought there was a recession going on.”
