Battle for Midtown: Businesses Turn from Covent Garden to KingΓÇÖs Cross
Are we about to see a battle for Midtown? New data has revealed that serviced office tenants are shifting away from Covent Garden and Holborn in favour of Euston and KingΓÇÖs Cross.
The resurgence of the N1 and NW1 postcode as key Midtown locations is reflected in the latest data from officebroker.com, which showed enquiry levels for serviced offices in an N1 and NW1 location rose by 45% and 23% respectively during Q1 14 when compared to Q1 13.
So why the change? Chris Meredith, CEO at officebroker.com, explains:
ΓÇ£Euston and KingΓÇÖs Cross were traditionally home to mid-range office space, meaning that businesses seeking a Grade A solution in these areas had little choice.
ΓÇ£The investment and regeneration that has taken place however has changed this. Businesses want to be located in these exciting hubs and they demand a certain type of product. This opportunity has been seized by multiple serviced office providers and they have set about creating design led, creative, Grade A solutions.
ΓÇ£While demand for space in Covent Garden and Holborn remains strong, it is likely that the focus, for some businesses, will increasingly shift north towards Euston and KingΓÇÖs Cross.ΓÇ¥
officebroker currently records thirteen business centres clustered around Euston station which serves as the main rail transport route into the capital from key northern major cities including Birmingham, Manchester, and Liverpool. With the launch of HS2, it will provide high-speed rail services to these cities.
Meanwhile in N1, KingΓÇÖs Cross has benefited from increased interest thanks to the forthcoming launch of GoogleΓÇÖs new UK HQ. The area is also home to N1C ΓÇô LondonΓÇÖs newest address ΓÇô created as part of extensive regeneration plans.
The relocation of the Eurostar terminus to St Pancras, the arrival of the 5* Renaissance Hotel and the creation of several boutique retail clusters, are just a few of the changes which have transformed the area into a premium destination for business and leisure.
Businesses looking for serviced office space in NW1 or N1 in the first quarter of 2014 could expect to pay an average ┬ú600-┬ú700 per desk per month. This compared to a range of ┬ú500-┬ú750 across the WC postcode.
In terms of price, there is little difference as yet; perhaps reflecting the fact that while KingΓÇÖs Cross and Euston are leading the way, the Midtown area as a whole remains a key Central London location for businesses.
Serviced Office Reviews are compiled from exclusive officebroker.com data. Download the full Serviced Office Reviews for Q1 2014 ΓÇô including more detailed information for Central London ΓÇô in the Knowledge Centre.