Savills : The bright lights of Battersea Power Station are igniting change

The imminent opening of Battersea Power Station in October is a significant moment for London. After 40 years of closure, the transformation of what had become a derelict industrial area in south west London into a major destination for business, leisure and residential demonstrates the ability of the capital to continually reinvent itself.

A strong sense of place has already been created around the power station: with a rich mix of shops, bars, restaurants and leisure venues, alongside residential, the redevelopment will provide a new UK headquarters building for Apple, with further office accommodation also being built.

Battersea Power Station encapsulates everything we know office occupiers want from the space where they work today, by offering far more than just good quality design. As we have seen at the likes of King's Cross and Chiswick Park, the most effective way to breathe new life into an area is through amenity provision and strong connectivity and transport links. The two new stations at Nine Elms and Battersea Power Station are the first new stations on the Northern Tube line in 80 years.

But for a redevelopment to be truly effective it needs to knit itself into the fabric of the local area and the reopening of the Power Station and improved infrastructure is already being seen to spark activity here.

This is an exciting moment for Vauxhall, Nine Elms and Battersea to really gather pace as truly credible office locations. Not only will businesses that locate here enjoy a vibrant mix of retail and leisure, as well as easy access to Battersea Park, they will also benefit from being south of the river and, by virtue of this, close to the fastest growing working population in London. Since Covid-19 we're all a lot more aware of the length and sometimes hassle of commuting. Offices in locations with a strong residential offering, which could house a ready-made workforce with excellent transport links for others, are in high demand.

There has been huge investment in the surrounding Vauxhall, Nine Elms and Battersea area in the last five years, with Grade A office developments/refurbishments delivered, or soon to be delivered, at OSMO, Miles Yard and Story Box. In total, over 500,000 sq ft of new Grade A space has, or will be, created, which has allowed new occupiers to move in - including Penguin and Perrigo - with a diverse sector mix.

These occupiers are in part perhaps attracted to the lower rents, with the area offering all-in office costs at a 20-25 per cent discount to Victoria across the river. With lots to do, and loads of green space to enjoy, the area is ever more talked about as a rising office sub-market.

What leasing activity in the last 18 months tells us is that occupiers are prepared to pay more for the best office space, or space with a point of difference. We expect interest to continue growing across Vauxhall, Nine Elms and Battersea as they allow businesses to locate close to one of London's best-loved landmarks. Is there a better USP?

Further information

Contact Hunter Booth

Sea change at Canada Water - soon to be London's newest urban campus