An overview of the commercial property market in Victoria
Set within the City of Westminster, Victoria is a district of Central London, based around the busy Victoria train station, one London's most active transport hubs. The area of Victoria is made up of commercial and retail property, private and social housing and several theatres. The majority of main streets heading out of the station have retail shop fronts with a huge range of private and high street stores, including a large House of Fraser. The district is also home to several head offices including John Lewis, NHS, the Metropolitan police and Pret.
Although the inhabitants of commercial property in Victoria are varied, its location within London and its popularity for tourists, and therefore increased shopping expenditure, has ensured that commercial property in the area has maintained a high value. A few decades ago, Victoria, just outside of the St James and Mayfair areas, was a cheaper option for businesses that wanted to be close to prestigious addresses but benefit from lower overheads. However, as property prices across the whole of London city have risen, Victoria's location naturally attracted higher values. Commercial rent prices in Victoria work out on average to £84 per square foot, comprising of £55 average direct rent costs, an average service charge per square foot of £9 and business rates average of £20 per square foot. With prices at this level, Victoria is the fourth most expensive parts of London for commercial property, behind Mayfair, St James and Knightsbridge and Belgravia.
With such a prime location, rent in Victoria is in high demand and as such, landlords are not as open to negotiation, especially for unknown entities. Lease periods in the district are usually 2-4 years for office space and 1-2 years for retail units, with smaller units being easier to secure shorter term leases. For large companies wishing to have some security for a new office in Victoria, longer leases, 5 plus years, are available with incremental rent increases per annum, usually based on RPI increase with a fixed a minimum & maximum percentage.
There are several options for smaller businesses or companies that want a London address for the client base, by way of serviced and virtual offices in Victoria. Serviced offices are ready to go office space where either a desk, or a whole pod can be rented monthly, with all businesses facilities already set up and in place. Often meeting rooms and reception areas are available and many office spaces attract similar industries which can create a good working environment. Virtual offices are also available in Victoria. A virtual office is ideal for businesses that want to either have a London base or branch to expand their image. With a virtual office, a London telephone number and address can be used and a receptionist will answer calls in the specific company's name. Messages will be taken and sent on via email. Post can also be received and forwarded appropriately.
About Victoria History
Mainly a residential area, the first large building to be constructed in Victoria was The Stag Brewery. Starting off in the early 1600's as a small brewery supplying nearby pubs. As the company grew, lodgings for staff were built up around it and the area surrounding the brewery grew and grew. Having been demolished in 1959, the site is now where Cardinal Place stands. The areas around Victoria Street were mainly slums with some of the poorest residents of London living there. These slums were demolished when Victoria Street was constructed in the 1850's leading down to the station which was built in 1861 and now acts as a main transport hub for the city and the south of England.
Most notable areas and buildings
Victoria Street - Running from Westminster Abbey all the way down to Victoria Station, Victoria Street is the major street in the district with a wide selection of shops, including Marks and Spencer and House of Fraser, restaurants and major buildings including Westminster city hall, Transport for London's headquarters and New Scotland Yard, the headquarters of Metropolitan police.
Cardinal Place - Sitting opposite Westminster cathedral, Cardinal House is at the end of Victoria Street and is a modern development designed for retail and office space. Microsoft UK currently has one floor of the building as do EDF and Experian.
House of Fraser - The now House of Fraser occupies one of the first main buildings in Victoria Street, which for over 2 centuries was known as the Army and Navy. Opening in 1872, the store supplied groceries clothing and guns to high ranking army and navy officers until 1922 when it opened to the public. The Army and Navy name stuck until 2005 when House of Fraser took over and rebranded it.
