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  1. December 2019

  2. Medical sector acquisition in Kentish Town

    11 December 2019
    Up in Kentish Town and just a couple of minutes’ walk from Hampstead Heath, we recently completed an acquisition for the medical innovator Second Skin on an industrial workspace on Gordon House Road, NW5.

    The recently refurbished Spectrum House is a large three-storey factory building with a broad façade of white render and black window frames that gives no indication of what lies beyond, where multiple self-contained units in various sizes are arranged around a rear courtyard. In all, the development extends to around 48,500ft2 with the capacity for over 300 employees.

     

    Mixing bright white décor with an industrial palette of hard edges – corrugated metal ceilings; black-painted steel columns; black doors and window frames – the aesthetic does a good job of capturing the essence of a warehouse workspace and is finished with rich oak parquet floors, suspended lighting and recessed kitchenettes in a modern grey with white metro tiles.

     

    The development’s design allows tenants to keep their brand identity and independence while benefitting from a well-managed environment that includes 24-hour access, cycle storage and car parking spaces.

     

    Second Skin has taken 1,236ft2 on the ground floor of Spectrum House. From here, the company will treat its clients in a variety of bespoke treatment rooms created from a tailored and DDA-compliant fit-out.

     

    A lease was agreed for 5 years at a rent of £48 per ft2, with the fit-out costs and works borne by the landlord and a five-month rent-free period negotiated. Completion took place in early November.

     

    Second Skin was founded in Perth, Western Australia in 1988 and is now the world leader in the design, manufacture and service delivery of custom made medical compression garments and dynamic splints for children and adults. The company has clinics in Australia, New Zealand, Ireland and the UK.

  3. November 2019

  4. Office acquisition at AHMM-designed landmark in Southwark

    29 November 2019
    On behalf of GTI Media Ltd, we have acquired 2,845ft2 on the first floor of 240 Blackfriars Road, an AHMM-designed building at the junction of Blackfriars Road and The Cut in London SE1.

    Constructed in 2014 by Great Portland Estates, 240 Blackfriars Road has completely redefined the immediate skyline and given new purpose to the busy intersection with Stamford Street and Southwark Street that connects Waterloo, London Bridge, Blackfriars and Southwark stations.

    The large parallelogram form includes 220,000ft2 of high performance office space and sits like a giant crystal on the street, extruded up to 90 meters with cut away sections at street level and higher up to add to the public realm and to protect the views across the river.

    The building’s glossy, glassy double height entrance façade gives way to voluminous lobby that recalls a contemporary art museum with lofty ceilings, subtle neutral tones and Jasper Morrison-designed Carrara marble benches scattered in seemingly random fashion in a modern interpretation of fallen columns at ancient archaeological sites

    GTI Media has offices in London, Dublin, Oxford and New York. Formed around 30 years ago, the company is now the UK and Ireland’s leading provider of graduate and school leaver recruitment services including the UK’s largest graduate jobs website, the most-read careers publications on campus and holding events to increase work-readiness among students and help employers recruit early talent.

    The company’s new offices on the first floor of 240 Blackfriars Road are at the southern end and look out over the street through full height full width angled windows that slope upwards and outwards from the building and into the air.

    With its excellent architectural pedigree, sharp lines and responsive design, 240 Blackfriars has cemented itself as a successful local landmark and a striking addition to SE1’s ever-growing accumulation of high-quality commercial and residential architecture.

    The postcode has undergone significant regeneration in recent years and has matured beyond its initial residential col-factor to become a destination office location with a distinctive local flavour including peerless London icons like Borough Market and Tate Modern, and with excellent connectivity to The City, West End, airports and beyond via Underground, Thameslink and National Rail

    Colliers achieved a very reasonable rent on behalf of GTI Media Limited with a term until March 2024.

  5. Sustainability requires collaboration

    14 November 2019
    The recent Extinction Rebellion protests and the debate around the sustainability of ‘fast fashion’ have put a growing numbers of retailers in the firing line for social activists.

    H&M has a long track record of integrating ethics into its business notably with its ‘Conscious Collection’ line of clothing and also through its sustainable supply chain strategy. But during London Fashion Week one of its stores in the capital was the venue for a ‘Boycott Fashion’ protest.

    The irony - and perhaps inappropriateness - of this was further emphasised shortly afterwards when H&M announced the launch of a new clothing rental service aimed at making premium items available at an affordable price and extending the use and lifecycle of garments.

    H&M isn’t the first retailer to announce this sort of initiative - Banana Republic, Urban Outfitters, Scotch and Soda and Ann Taylor Loft have all launched subscription rental services this year -  but the negativity that the company is facing from the anti-fashion lobby has left its CEO, Karl-Johan Persson, exasperated. In an interview with Bloomberg, he warned that curtailing fashion retailing “may lead to a small environmental impact, but it will have terrible social consequences”. Perhaps not surprisingly, this only enraged his opponents further.

    Britons buy more clothing than any other European country, and its estimated that £2.7bn is spent fashion that they only wear once so it’s not surprising that retailing is increasingly under scrutiny. And, of course, property has a similar challenge: the built environment is responsible for almost half of all carbon emissions in the UK.

    So where property and retailing come together in the form shops it’s clear that we can make a difference in terms of how those spaces are created and operated. In London, major landlords such as Grosvenor, Shaftesbury and The Crown Estate are leading the way in this respect and retailers are responding to their lead.

    In this context, it’s perhaps not surprising that streetwear brand Napapijri felt that Shaftesbury’s Carnaby Street was the right setting for its first London store. The brand recently launched ‘Infinity’: a 100% recyclable jacket that’s been made using recycled fishing nets and which you can ‘trade in’ after two years of use.

    Given changing attitudes in society there is tremendous opportunities for retail and property to collaborate on sustainable responses to what shoppers demand. Hopefully, this week’s MAPIC retail property exhibition will generate many ideas which can support this process.


    The Author
    Paul Souber - Colliers London
    Paul Souber
    Head of Retail Agency - London

    020 7344 6870

    paul.souber@colliers.com

  6. Colliers Retail Agency Central London

    Trying something new

    5 November 2019
    Josh Leon looks at whether big groups with under-performing sites should think about partnerships to unlock profits.

    I went to a seminar organised by investment bank, Citi, recently that looked at investment trends in the F&B sector and inevitably in that environment and in the current climate, the conversation came up about big chains versus innovative independents - the latter increasingly outperforming the former.

    In this context, it was great to have Billy Hookway from JKS and White Rabbit founder, Chris Miller, on the panel as, while very different, they share the same aim of achieving scale through repeated diversification rather than the more familiar tactic of simple replication. Both have finance or private equity expertise as a core part of the business but both are operators. Imbiba is another London-based investor/operator with multiple small brands under its banner. Perhaps this model could act as inspiration for some of the big chains which have the sites and the resources but seem to have run out of ideas - and customers.

    It's undoubtedly more difficult to consistently come up with new ideas than it is to oversee a brand ‘roll-out’. However, if a business opens its door to new creative talent and sets itself up as investor as well as operator there is potentially an unlimited pool of ideas from which to choose.

    It's certainly more in line with what customers want. Although restaurant groups have traditionally grown through faithful replication, the trend for some time has been for unique experiences.  And that’s ultimately why we’ve seen so many of the big brands fail recently.

    Of course, there will always be room for a limited number of brands that can sustain ubiquity and be controlled at board level with a competent operational management firmly in place. But we’ve now seen that - outside the fast food and coffee sectors - that approach is increasingly unsustainable.

    The independent sector, as ever, is where the innovation is, and that is what the customer wants.   The recent explosion of street food halls and similar formats are clear evidence of this- a response to demands for choice, quality and an experience- a reaction against boringness. 

    So how can big institutional money tackle this challenge? While a board of accountants may be able to oversee a process of faithful replication,  growing a group while continuing to innovate is a completely different game and one you only get to play if you have the operational and creative expertise generally only found in the independent sector.

    In London, for example, there are still numerous sites held by the big restaurant and pub groups that are considered ‘prime’ yet massively underperform in relative terms. This is to the detriment of customers, landlords and to the institutional owners of these businesses. Maybe it’s time for those groups to switch from ‘Operator Mode’ to ‘Investor Mode’ in certain cases. Instead of coasting along or selling the asset at a loss, perhaps they should first try partnering with an independent operator with proven success, who may hold the key to big profits but doesn’t have the funds for a big premium or the required capex.

    In this scenario, everybody can win including landlords who retain the covenant strength of the ultimate owner of the asset.  In due course, these owners may find themselves with a stable of small, agile and innovative partners to invest in and work with, providing sites, staff, and capex and taking a share of the upside.  Deciding who to partner with is clearly the main consideration but if in doubt advice can be sought from people who know the sector intimately and have a firm grasp of the market.

    Ultimately, as the trend increasingly veers towards independent talent, maybe that’s how the big money invested in the sector can ultimately get in on the action.


    The Author
    Central London Restaurants
    Josh Leon
    Head of London Restaurants

    020 7487 1967

    07951 023 263

    josh.leon@colliers.com

  7. October 2019

  8. Right here, right now: plug’n’play space for immediate rental in Hatton Garden

    28 October 2019
    This third floor office space comprises 535ft2 and is a complete plug’n’play solution, supplied with a stylish contingent of complementing furniture and fittings including 8 fully cabled workstations, black mesh chairs, metal-framed room divider glass shelves, sleek LED lightboxes and comfort cooling units in anthracite. A sleek minimalist kitchen in gloss white with plenty of cupboard space blends into the white décor and a parquet wooden floor runs throughout the workspace.
    The building has a striking and classically-influenced exterior stone façade along with refurbished common parts featuring a beautifully restored original mosaic floor, which combine to create a sense of occasion and arrival. Additional facilities include refurbished WCs and a passenger lift.

    Two units at 6-7 Hatton Garden are occupied by the meeting room provider Breather who chose the building as one its London locations offering workspace and meeting room facilities at hourly and daily rates – perfect for an onsite solution if you’d like the facility to host larger meetings or events without a long-term commitment to more space.

    Hatton Garden has deep roots as a jewellery district and still retains a number of high end showrooms that keep its heritage alive. More recently an influx of design and media occupiers has given new energy to the street scene, creating a lively creative corridor between Holborn and Clerkenwell Road and home to the place-making Johnson Building by Derwent London.

    The location is just moments from the daily street food market on Leather Lane, the next street over to the west, and a firm favourite on the local lunchtime scene, while the rest of the immediate vicinity is packed with places from breakfast to bedtime and beyond.

    With the entrance to Chancery Lane Underground station (Central Line) at it’s southern tip, Hatton Garden is also just a few minutes walk from Farringdon station where Thameslink and three Underground lines are set to be joined by the new Elizabeth Line. This will create a pivotal Central London interchange and the only place where Thameslink and Crossrail intersect, as well as and the only station in the capital with direct trains to both Gatwick and Heathrow Airports.


  9. Highly bright: 5-metre ceilings and wraparound glass at street level office

    25 October 2019
    Connecting Old Street roundabout to Angel, City Road has undergone a monumental transformation in the last few years, from a simple gateway to the City into an architectural corridor of residential and commercial towers.
    One of the most eye-catching is the 24-storey Canaletto building at number 259, designed by the renowned architectural practice UN Studio and a confident break from the norm with its curved cladding snaking around the exterior to create an arresting sight.

    The ground and lower ground floors are home to 6,850ft2 of B1 office office space in a single, self-contained unit that includes an extensive street frontage of full height windows that wrap around the entire external elevation and offer remarkable and highly visible prospects for branding. Inside, ground floor ceiling heights up to 5.3 metres allow the floor area to be increased and further dramatised with the installation of one or multiple mezzanines, while even the lower ground floor has a height of 3 metres.

    Sold in shell and core condition, the space features chunky concrete pillars around its perimeter allowing for an almost uninterrupted open plan floor plate, giving an ingoing business the freedom to create at will the space that fits its operation.

    259 City Road sits at the corner of Wharf Road, home to the Shoreditch location of Victoria Miro gallery and the approach road to the nearby Wenlock Basin and Regent’s Canal. The presence of so many galleries in the adjacent streets adds an artistic tone to the pervading creative buzz from the Tech City scene and proximity to Silicon Roundabout.

    Teeming with start-ups, fashion brands, architect firms, media and advertising companies, 
    Hoxton and Shoreditch are now home to some of the globe’s most recognisable brands. As well as a local abundance of Victorian warehouses and workhouses, the neighbourhood has entered a new era through an influx of world-class architecture, offering some of the best contemporary workspace in London, such as 259 City Road.

    The office space is available as a virtual freehold and we are quoting offers in excess of £4,250,000, equating to £620 per ft2. 






  10. Rising above it

    1 October 2019
    On the face of it, the London office occupier market seems to be relatively unphased by the political chaos that prevails in Westminster.

    Demand appears stable, evidenced by above average take-up levels and reinforced by a summer of deal brokering, which saw more than 2m sq ft leased in July and August.

    Given that London is experiencing a major shortage of quality new office stock, naysayers might conclude that vacancy is only falling because of constraints on new supply. So is there any hard evidence to show that demand is not only holding up, but going from strength to strength?

    Financial services demand appears to surging but off a lower base than other sectors. The sector has accounted for 33% of demand in the year-to-date, compared to just 13% in the equivalent period in 2018. Much of this demand is like-for-like churn, with occupiers at best mirroring future space takes with current real estate obligations. Nevertheless, space is still being absorbed and not all of it is Grade A product.

    But the real dynamo in the London economy remains the Media & Tech sector. During the past 12 months, the sector has seen its strongest net growth in the past 15 years.  

    The trendiest locations for tech occupiers - Shoreditch, Farringdon and Clerkenwell - are now at record pricing levels for City Fringe submarket. And even where tech occupiers have gone further afield, big lettings to BT, Sony, Google and Facebook have further taken up any potential slack.

    London Media & Tech occupation grew 8% year-on-year, and we’re seeing new tech clusters emerge within large-scale developments such as Battersea Power Station (Apple) and White City (Publicis).

    The message is clear, London’s occupier market remains in rude health, despite the continuing structural, political and technological changes that are ongoing. Even the Square Mile is benefitting from the positive vibes. Media & Tech occupation in the Square Mile has raced ahead of the City Fringe markets this year - surging to more than 5m sq ft for the first time.

    The Author
    Guy Grantham
    Director | Offices research

    +44 20 7344 6793

    +44 779 596 3710

    Guy.Grantham@colliers.com

  11. September 2019

  12. Selling cinema

    19 September 2019
    Last week’s news that Selfridges is planning to open a cinema in its Oxford Street store is a further sign of the renaissance of London’s silver screens.

    Nationally, cinema attendance levels have hit a 40-year high while in the capital one of its iconic cinemas – the Odeon Leicester Square – has recently re-opened after a multi-million pound refurbishment. Confidence in the sector is high and there’s good reasons why.

    Many decades ago cinema was credited as having ‘killed off the music hall’, and its own slow demise was predicted in the face of first, television, and then digital downloads. Ironically, it is TV which is now arguably being more impacted by online entertainment although Netflix – which is supposed to bring the cinema into your front room - continues to haemorrhage money while the cinema chains count the takings.

    The ability to ‘deliver an experience’ is the key to cinema’s resilience as a leisure pursuit. What the new Selfridges screen and the refitted Odeon have in common is that they want to offer an enhanced customer experience.

    The Selfridges project is a joint venture with the people behind The Olympic cinema in Barnes. A quick perusal of its description of how the former recording studios were turned into a cinema (‘We went to Norway to find the comfiest reclining seats and then wrapped them in snuggly wool felt’) tells you about their approach.

    And there’s a symmetry about a retailer branching out into cinema as both sectors know they have to provide an experience-led offer if they are to thrive. In this respect they are both complementary and aligned.

    This ‘premium-isation’ of cinemas has started in the boutique end of the sector but it will inevitably spread to the multiplexes. Operators are striving to make sure that the cinema experience continues to beat watching a film in your living room.

    After all, no matter how big your TV is, it’s no match for the silver screen.


    The Author
    Ross Kirton
    Head of UK Leisure Agency

    +44 20 7487 1615

    Ross.Kirton@colliers.com

  13. Muted tones throw art deco shade at a revamped 1920s icon

    13 September 2019
    Despite its prominent position at a busy Clerkenwell intersection, it’s perfectly possible to miss the art deco glory of 91-93 Farringdon Road that sits above the street level showroom space. But look up and you’ll find a strong façade of grey stone under a tiled mansard wrapping around the junction of Clerkenwell Road and Farringdon Road, showing clear similarities with the Faraday Building telephone exchange on Queen Victoria Street in the City, and even the former home of the BBC World Service at Bush House on Aldwych.
    Known as The Corner Building, this striking slice of 1920s London is in a process of refurbishment including the main lobby, communal areas and a selection of offices. Currently available are three units between 2,200 ft2 and 2,600ft2 on the 1st, 3rd and 6th floors.

    Inside, the offices feature huge multi-pane sash windows that fill the spaces with natural light and act as a constant reminder of the building’s heritage, while the new specification brings things thoroughly up-to-date with exposed overhead services and air conditioning in galvanised channels; powder- coated LED lightboxes; raised metal tile floors and a décor palette of bright white walls and anthracite woodwork.

    The communal areas are also undergoing a refurbishment that uses a classic art deco pallet of colours and materials given a contemporary application. The main lobby features open tread steel staircases with glazed mezzanines; dual glazed doors to elevators; a reception desktop and building directory in grey marble, and suspended pendant lighting and wall motifs in brass. The confluence of styles and their treatment continues to the WC facilities where white fittings with black taps and accessories are met with green tea coloured ceramic tiles below pale pink paintwork. 

    Further amenities within the building include fibre optic cabling, secure cycle storage, WC and shower facilities and an onsite commissionaire.

    With a location at one of Clerkenwell’s most vital junctions, the building straddles the Farringdon/Clerkenwell border and is surrounded by the very best of both with Hatton Garden, Cowcross Street, the daily street food market at Leather Lane and the pedestrian café and bar scene of Exmouth Market all within a few minutes walk.

    Almost directly across the the street is Farringdon station, already well connected with its Thameslink and Underground services and soon to become a major London interchange with the arrival on the Elizabeth Line. 

    We are quoting an initial rent of £72.50 per ft2 for each office with occupation set for mid-September.

  14. Media-style office in Clerkenwell’s showroom district

    11 September 2019
    Having undergone a refurbishment and now available for occupation, this 4th-floor office sits at the top of a former industrial building in a prime Clerkenwell position.
    Measuring 1464ft2, the top floor space has high ceilings that reach up into the roof apex with exposed timber and steel joists that radiate plenty of loft character. It’s an authentic warehouse feel that continues with the beautiful original factory windows to the front, offset with double-glazed matching replacements to the rest of the space. Other renovation works include refurbishing the kitchenette and demised WC, along with repainting the original floorboards.

    The office has a partial fit-out that includes suspended lighting, grit-blasted brickwork, exposed air-conditioning units, galvanized conduit running overhead, super-fast fibre connectivity and a sleek glass-walled meeting room. 

    Set in Clerkenwell’s showroom district among occupiers including Vitra, Boss and Ocee, Great Sutton Street has amassed a comprehensive collection of art galleries and design stores that deliver a laidback and creative vibe. Running parallel to – and just north of – Clerkenwell Road, the street is also home to one of the neighbourhood’s best pubs, The Slaughtered Lamb.

    In fact, Clerkenwell is somewhat legendary for its vast offering of places to eat and drink, from an early morning coffee to late night cocktails and everything in between: it’s part of what makes it so easy for businesses to attract the very best talent in London. Within walking distance of Great Sutton Street are two particular local favourites: the daily street food market at Whitecross Street, and the recently created gastro-boulevard at The Bower.

    Nearby Old Street Roundabout is currently undergoing a major transformation and, in 2020, will open as a contemporary public piazza by closing off the north-west entrance to City Road. This latest piece of public realm will include new pedestrian crossings, dedicated cycle lanes and lots of seating.

    Transport connections are excellent with Farringdon, Barbican and Old Street stations all within a short walk and offering between them Underground, National Rail and Thameslink services. Old Street station is being refurbishment as part of the improvements to the roundabout above and, when the first phase of Crossrail completes, Farringdon will become a major Central London interchange with fast trains to Canary Wharf, Heathrow Airport and deeper into Kent, Essex and Berkshire. 

    The office is being marketed at a rent of £49.50 per ft2. If you would like to see whether this could be the next home for your business, please do get in touch.

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