October 2014 will probably mark the month that office space in Kings Cross reached either crisis point due to lack of space or the resounding rubber stamp of approval as tenants knock on its door and ask to come in.
Kings Cross for many is still considered primarily as London’s most convenient international gateway. A fast Eurostar train allowing Londoners and those travelling to it the opportunity to explore Paris and beyond in under two and a half hours. So is a fast train the reason why so many people want Kings Cross Office Space? We don’t think so. Just look at Waterloo, it had the same fast link for years and did not transform itself into a serious office market. Our team believe the reason people want to be in Kings Cross is down to the visionary development team at Argent. They have literally painstakingly transformed acres of land around the stations, with buildings of such quality it’s attracted world class companies such as Louis Vuitton, Google and Havas.
So where does this leave more humble companies looking to find affordable office space? After all this area had feed off the budget restricted organisations looking to be in Central London but unable to afford prime locations. To put this in context average rents in Kings Cross were £25.00 per sq ft in 2000, they were £26.50 in 2005, £32.50 in 2010 and in 2015 are predicted to be £60.00 per sqft.
Why is this ?
Well our research department have been deep in discussion and have concluded that’s it’s down to building quality. Tenants just don’t have the choice of cheap buildings anymore. They simply don’t exist.
But demand remains off the charts. Up 37% this month alone, and a compound 130% in 2014 compared to 2013. We also have for the first time sublet space on the market at over £70.00 per sq ft per annum.
Kings Cross Office Space is a dedicated team of commercial property experts so we have to keep our finger on the pulse of the market. So if you have any questions about office rents or demand for offices in the area please get in contact.
sales@reesa.com
020 3434 3860