Crossrail marks the spot: Office rents near upcoming Elizabeth Line surge in City fringes
Rents for City fringe office space situated near Crossrail sites have soared as property hawks prepare to cash in on the new railway line coming to London.
Grade A office rental values in Crossrail hotspots around the Square Mile have shot up far higher than neighbouring areas since 2010, according to new Savills research carried out exclusively for City PM
In Farringdon rental prices for prime offices have jumped 133 per cent over the last seven years, leaping from £27 per square foot (sq ft) to £65.21 per sq ft.
Meanwhile, in Whitechapel rents have climbed 96 per cent, rising from £28 to £54.95.
Both Farringdon and Whitechapel, which are key development zones along the new Crossrail line, have seen far stronger rental growth than Canada average, which has increased 48 per cent over the same period.
While the Crossrail project is unlikely to be the only driving force behind the standout rental differences, Savills director Josh Lamb told City PM that property developers have already been lured into the area ahead of the trainline’s opening.
"Crossrail is something that has been talked about for 30 years and we are now within a year of it being ready. While only those who have taken the time out to find out about it currently realise the potential, it will soon open to the mass market as people find out how much it will change their lives when living in London," according to Lamb.
He added: "Developers have already seen the value that you can associate with Crossrail, but occupiers have been slower to the party. There is still much more demand to come around these areas, as business and bosses start to see the professional benefit of being near a Crossrail site."
The news comes six weeks after Savills secured one of the highest ever rents for a low-rise office space in the Square Mile, after pre-letting 55,000 square feet in One Bartholomew to a digital advertising company.
Based in Farringdon near the new Crossrail Line, the building fetched north of £80 per sq ft for the leasing, standing higher than the City’s prime rental average of £78.43.