West London Business with support from OPDC and analysis from CoStar Group take a helicopter view of the office and industrial markets across the seven north-west London boroughs spanning the West London Alliance group of local authorities in their new report launched at MIPIM 2018. This geography is the UK’s global gateway and the UK’s second largest economy after the London Central Activities Zone. Notably Brent has just been selected as London Borough of Culture 2020.
Borough overview – Hammersmith & Fulham is achieving the highest rent per square foot (£49.97) of the boroughs but has a relatively high vacancy level at present as significant new build and renovated offices have become available in White City. Harrow has the lowest office vacancy levels (1.4%). The availability of offices at different CoStar ratings varies significantly by borough. This might provide opportunities for investors seeking to upgrade existing sites or introduce 5 star new build to the market, particularly in boroughs with no top rated office premises presently available.
Office market analysis – Steady demand, a dearth of new office construction, and the loss of many office buildings to alternative uses in recent years have pulled vacancy rates down to low levels. North-west London has benefited from firms seeking options in lower cost parts of the capital. This saw the north-west London market become the capital’s strongest performer in terms of rent growth over the last 12 months.
Industrial market analysis – The north-west London industrial vacancy rate fell to its lowest level in more than 10 years (4.1%) in the opening months of 2018. Of the 55 industrial markets tracked by CoStar across the UK, London ranks in 6th place for annual rental growth, with the Heathrow submarket a particularly strong performer.
The full report is available to West London Business members in the Members’ Area of www.westlondon.com