The squeeze on supply in the West End office market shows no sign of easing as demand continues to rise.
HSBC has instructed Healey & Baker to find a 9,290m2 (100,000 sq ft) head office for its investment banking team. H&B won the search in the face of competition from Insignia Richard Ellis and Jones Lang LaSalle.
It comes at a time when occupiers are snapping up all available space.
Executive recruitment firm Heidrick & Struggles is thought to have taken Pearson’s former space – 3,716m2 (40,000 sq ft), at 3 Burlington Gardens, W1, at £538 per m2 (£50 per sq ft), with a £2m premium. H&B advised Equitable and Nelson Bakewell acted for Heidrich.
Meanwhile, the two available floors at Ericsson’s office at 1 St James Square, SW1, have been withdrawn from the market. Letting agent Jones Lang LaSalle was understood to have agreed terms with Victory Oil and management company Williams Holdings for the space.
However, a source said: “Ericsson has now decided to pull the plug entirely.”
Broadband company 360 networks, which has set a record £915 per m2 (£85 per sq ft) rent for around 1,486m2 (16,000 sq ft) at Burford’s Mayfair Place scheme, W1, is looking to sublet 697m2 (7,500 sq ft) at £969 per m2 (£90 per sq ft) through its agent Healey & Baker.
But a proposed deal with American Electric Power for the 1,950m2 (20,990 sq ft) sixth floor of the scheme has fallen through. Letting agents for the scheme are Edward Charles & Partners and JLL.
