The position of London’s South Bank as a prime business location is underlined by data showing that office take-up in the area is at its highest level since 2007. Approximately 872,000 sq ft was let between July and September bringing the total for the year to date to 1.3 million sq ft.
The improving economy is undoubtedly a factor in this, but the South Bank’s transformation into a thriving cultural and commercial hub ensures it can now compete with more established districts of the capital when it comes to attracting tenants.
The area between Waterloo and London Bridge is home to the South Bank Centre, Tate Modern and the Globe Theatre. Today the Shard towers over these cultural landmarks and, with more key developments in the pipeline, the South Bank is poised to enhance its growing credentials over the coming years.
Recently it was announced that international advertising agency Ogilvy & Mather will be taking office space in the area. The company will join News UK, the owner of the Times and Sun newspapers, which will occupy the ‘Baby Shard’ building alongside Sellar Property’s skyscraper.
The majority of investment in the South Bank is, along with the City and the West End, coming from overseas. Despite this, investment from the UK rose from £63 million in the second quarter to £153 million in the third quarter. Overall, investment levels are 50 per cent higher year on year.
Future developments include US asset management group Carlyle’s plans for a nine building commercial and residential scheme next to Blackfriars Bridge, which was approved by Southwark Council last week. Further office space will be provided by the Canary Wharf Group’s Shell Centre redevelopment, providing it overcomes the government’s recent decision to call-in the project.
Julian Hind, of commercial property advisors Farebrother, told the FT that the main attraction of the South Bank was its status as a mixed use location. Alongside culture and residential, there are also offices and shops, he said.
