Home Commercial Property Heron Tower offices less than a quarter full

Heron Tower offices less than a quarter full

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19th Sep 11 1:03 pm

Less than a quarter of the office space in London’s Heron Tower has been taken up since the building was finished six months ago.

Just eight and a half of the 36 floors of office space have been let since March, showing how difficult it has been for property developers to attract major tenants during the turbulent global market conditions.

However, four new lettings have been confirmed by Heron International. Forex broker City Credit Capital, Lithuanian bank Snoras and investment manager Partners Group are among the companies to take space in Heron Tower.

Heron International also revealed that a number of other floors are under offer in the skyscraper. Around one third of the tower is now under offer or let, including two restaurants and both offices, said the company, which was set up by property developer Gerald Ronson.

The company’s managing director of property development Peter Ferrari said: “Interest in the development remains strong and we look forward to announcing further lettings in due course.”

Last month property insiders said companies were reluctant to sign leases for new offices due to slow global economic growth, the US credit rating downgrade and concerns over the eurozone sovereign debt.

Taking the number of properties under offer into consideration and excluding pre-let deals, CB Richard Ellis head of central London research Kevin McCauley said it was unlikely a move of over 100,000 sq ft would take place in the City during 2011.

McCauley told Reuters: “That would be unprecedented.”

Located on Bishopgate in the heart of the City of London, Heron Tower is some 230 metres tall. It has a total of 40,836 sq m of commercial office space, along with a restaurant and sky bar.

Much work went into making Heron Tower a high quality facility prior to its completion. It features fully-glazed double decker lifts and its reception has an aquarium which could hold up to 1,200 fish of 67 difference species.

Businesses have plenty of choice for office towers in the capital. The Pinnacle, The Shard, The Walkie Talkie and The Cheesegrater are all at various stages of build.

British Land is developing The Cheesegrater in partnership with a Canadian pension fund, while Land Securities is one of the major developers of The Walkie Talkie.

Evolution Securities property analyst Alan Carter said: “These developers are rolling very big dice.”

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