High Demand for Haringey
In the March North by Northeast newsletter, we cover the demand for Haringey property in light of the regeneration of the area and comparative cost, particularly in other frequently sought office locations. You can view the full newsletter here.
Strettons has been progressively active in North and Northeast London over several decades and, based on this experience and knowledge of the area; we have confidence in the future potential of this diverse, up and coming area. In light of the uncertainty felt throughout the UK, a good level of demand remains for commercial space throughout London, and this presents opportunities for the boroughs in North and Northeast London.
This month our focus is the borough of Haringey, which occupies a total area of 11 square miles with a population of c254,900. It provides many opportunities through its robust development planning, support in encouraging new commercial tenants and the demand from office occupiers which all continue to add value to the area.
We receive requirements from a range of occupiers with interest in Haringey. The profile of the area continues to improve as substantial mixed-used developments such as the White Hart Lane Stadium and Hale Wharf act as a catalyst for future regeneration and development. Furthermore, the arrival of Crossrail 2 at Northumberland Park and a new tube, rail and bus station at Tottenham Hale all help to encourage demand from commercial tenants.
As rents have increased around the City Fringe, we have seen occupiers migrate to less established locations within Haringey. This is particularly evident in the creative sector where occupiers may be unable to keep pace with rising rents in more concentrated locations. Demand for office space in Haringey, therefore, continues to grow and landlords are becoming increasingly innovative to meet this demand and the requirements of occupiers.
Also, the local council are also offering incentives to those considering the area and the Greater London Authority have invested £3.65 million to help find workspace and employment opportunities.
Tottenham, for example, offers to support newly occupied offices in the area and caters to the increased interest in office space in Haringey. For instance, a 30% discount on business rates for a 3-year fixed term is offered to occupiers of new build offices or offices repurposed from refurbished industrial premises as they come onto the market for sale or to let the first time.
Strettons has seen and advised on office developments in Tottenham that appeal to the tech or creative sector, which is traditionally drawn to the City Fringe. As rents become cost-prohibitive and incentives from new developments draw attention, occupiers look to areas that are in the process of regeneration. As an example, some pre-let opportunities may be designed to the incoming tenant’s specifications if a lease is agreed at an early stage.
Developing unique office space in Tottenham and across Haringey will attract tenants and push the rents to a new level for the borough. Rents for second-hand offices are at approximately £15psf now, but we expect a new level of approximately £25psf may be established shortly with the right offering. The combination of unique, high specification office space with excellent transport links is sure to be popular.
Increased numbers of developments within the borough will continue to create a diverse profile of businesses and ensure a prosperous future for Haringey. They will appeal to those already located in Haringey but also attract businesses from more established areas of London that are keen to relocate to the borough for better quality office space at a more competitive price.
The wide range of commercial properties in Haringey, high-profile development opportunities, incentives from the public sector and improved transport links are all reasons why we think we’ll continue to see high demand in Haringey for offices and other commercial use types.