WeWork eyes Hammersmith move as week's leasing passes 300,000 sq ft

By Paul Norman - Thursday, November 09, 2017 15:00

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WeWork is set to take a further 45,000 sq ft of offices, this time in Hammersmith, West London at the Grade II listed former Ford Motors warehouse, CoStar News can reveal, in a notably busy week for the aggressively expanding co-working pioneer that has seen it take 322,212 sq ft in four deals in the capital.

WeWork will take the space on a sublease from customer science company dunnhumby, which CoStar News revealed in July of 2015 had signed for the entire 115,000 sq ft building.

It is understood that a contribution payment to WeWork has been agreed towards the completion of its fit out in return for taking on Dunnhumby’s lease. Dunnhumby is paying £39.50 per sq ft on a 15-year lease with no breaks.

CBRE is advising Dunnhumby while Cushman & Wakefield is advising WeWork.

It caps a remarkable week of leasing in London for WeWork, even by its own standards.

Earlier today WELPUT, the specialist central London real estate fund advised by Grafton Advisors, and managed by Schroder Real Estate, announced they have signed WeWork for all of the 42,000 sq ft North West House, 119-127 Marylebone Road, London NW1 on a 20-year lease.

WeWork will receive a contribution from WELPUT towards the completion of a Cat A refurbishment of North West House, and in return will take a lease over the entire 42,000 sq ft building.

On Monday it was confirmed that WeWork has leased the first to fifth floors at The Cursitor Building in London’s Chancery Lane WC2, which completes the letting of the 65,638 sq ft development by Aberdeen Standard and Endurance Land.

The international co-working provider has taken 49,212 sq ft on a 20-year lease at an overall rent of £63.50 per sq ft.

WeWork has completed a deal to take an 186,000 sq ft prelet at Cain International’s The Stage development in Shoreditch.

The deal will see WeWork occupy five floors in The Hewett building and 13 floors in The Bard building, both on a 25-year lease. This transaction sees all of the commercial office space with the scheme pre-leased. The remaining commercial space has been let to Equinox fitness club. The offices at The Stage are set to complete in 2020.

Westerland Real Estate, the property arm of the company that owns Access Self Storage, signed dunnhumby for all of the striking building in 2015 in a move that saw dunnhumby consolidate out of two offices in Ealing.

The deal came weeks after Hammersmith & Fulham council backed a ColladoCollins-designed scheme for the redevelopment of the landmark building at 184 Shepherds Bush Road.

The plans sought to retain the architecture of the building while creating an additional three floors of contemporary offices within a diagrid glazed structure. The building includes floor plates of up to 23,000 sq ft.

No. 184 Shepherd’s Bush Road comprises a three storey industrial building, formerly known as Citroen House.

The site was originally built as a motor garage service depot with showroom, constructed for the Ford Motor Company around 1916. Soon afterwards it was taken over by Citroen in 1926 and used as a car showroom.

Westerland Real Estate is part of a group of companies that include operating businesses Access Self Storage, Montcalm Hotels and Shaftesbury Hotels. The family owned group is a major owner, operator, developer and employer in the Central and Greater London area across several different sectors.

Chris Johns, real estate analyst, CoStar, said: “The surge in demand across London from serviced office and co-working providers such as WeWork has been supported by a growing number of creative, digital, and technology businesses that are moving towards more collaborative office space to meet their business needs.

"The office market around Hammersmith is popular with these TMT occupiers with many firms expanding within or moving to the area recently. WeWork are clearly looking to capatalise on this, signing their second deal in the submarket this year - following their 53,000 sq ft letting at 12 Hammersmith Grove in September.”

Click here to read the latest CoStar submarket report.

CBRE is advising Dunnhumby while Cushman & Wakefield is advising WeWork.

pnorman@costar.co.uk

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