London’s King’s Cross straddles the London Borough of Camden and the London Borough of Islington. The area used to have a reputation for being a red light district, and it was run-down and crime-ridden. However, the rapid regeneration that has taken place since the mid 1990s has done much to change both perceptions and the reality, and King’s Cross has lost all but the last remnants of this reputation. The area is expected to remain a major focus of redevelopment throughout the first two decades of the 21st century.
The London terminus of the Eurostar international rail service moved to King’s Cross St. Pancras station in November 2007. The station's redevelopment led to the demolition of several buildings, including the iconic Gasworks building which had dominated the area since the 1860s. Following the opening of the new high speed train line to the station, planning permission was granted for redevelopment of the land between the mainline and tube stations, as well as around the old King’s Cross Goods line. Works here are scheduled to start shortly. The new line, to be called King's Cross Central, is expected to be one of the largest construction projects in Greater London between now and 2025.
In terms of King’s Cross office space, King’s Cross offers a good cross section of serviced and conventional options. Due to the recent redevelopment of King’s Cross St. Pancras and the resultant establishment of project teams and construction companies in the area, demand for office space has experienced sharp growth. This, combined with the recent addition of international links and the existing robust national transport links, makes King’s Cross an increasingly popular choice for companies wishing to set up a London base, without paying the premium prices associated with central London.
This increase in demand has taken place against a background of a very competitively priced market, and there have been many supply shortages in the serviced office market over the last 12-24 months. In terms of workstation price, businesses can expect to pay between £350 and £500 per workstation (August, 2008). In terms of conventional space, an increase in availability is expected over the coming months primarily because a percentage of new constructions has been earmarked for office space.
Office space availability in the King’s Cross area has fluctuated considerably over the past 12 months. A number of new business centres have opened, and established operators have invested considerably in refurbishing and improving their existing premises in the area. However, due to operators’ constant drive to achieve high occupancy levels, and the competitive deals and packages that they put together as part of this drive, newly available space is always quickly snapped up, and demand generally outstrips supply.
There is a good cross-section of both independent and large-chain operators in the area. Major operators, such as Regus, Forsyth and MLS in particular, have a strong presence in King’s Cross and surrounding areas e.g. Euston and WC1. Operators in the area tend to accommodate project and construction teams involved in redevelopment plans for the area. Media companies also tend to choose King’s Cross as a location given its close proximity to Noho (where Virgin Media, for example, is located) as well as to the boutique agencies found in Camden.
In terms of the rest of the serviced office market, King’s Cross compares favourably to some of London’s other locations. With steady and high occupancy levels, office space in King’s Cross demands a fair price, especially when the redevelopment, transport links and its close proximity and access to Central London are taken into account. Prices are realistic for the types of businesses which wish to locate there and, given future plans for the area, it wouldn’t be surprising if King’s Cross established itself as one of London’s most desirable locations for businesses in the next two to three years.