Expedia opts for staycation over flight to new HQ

Expedia is close to agreeing a deal to expand at Derwent London’s Angel Building in Clerkenwell, EC1, cancelling a larger search for a new headquarters of up to 400,000 sq ft. The world’s largest online travel company, which already occupies 81,260 sq ft in the building, is in advanced talks to take on Cancer Research’s 115,000 sq ft lease on a surrender and re-grant basis. Expedia launched a requirement for up to 400,000 sq ft last summer, considering options that included Battersea Power Station, SW11, and King’s Cross, N1. However, the company has since decided to stay put in a deal that will bring Expedia’s total occupation to around 300,000 sq ft across the Angel Building and Angel Square, a 126,000 sq ft office block across the road acquired by Derwent in 2014. The deal has triggered a 100,000 sq ft requirement for Cancer Research, which is understood to be looking for new premises in Stratford, E20, advised by Gryphon Property Partners. The charity’s present lease expires in 2030. The deal follows a trend of large corporates choosing to stay put rather than commit to a relocation. Danish toymaker Lego has pulled out of talks with Argent to take 100,000 sq ft of offices at King’s Cross. The move would have represented a significant expansion on its existing 55,000 sq ft take-up across Kirkbi’s New Fetter Place, EC4, and 33 Bath Road in Slough, Berkshire. ITV has also decided to stay on at its London Television Centre headquarters on the South Bank, SE1, cancelling its search for a new London base of up to 300,000 sq ft. Advised by Knight Frank, the media company is now looking for a 10-year lease with a five-year break for 100,000 sq ft that it can use to accommodate staff while it redevelops its headquarters. Cautious occupiers have prompted some landlords to take a more aggressive approach to retaining them. Ben Burston, head of UK offices at JLL, said rent-free periods for prime West End offices last year moved out from 14 months to 18 months for a 10-year term. City incentives were pushed out from 20 to 24 months. However, he said the last quarter of 2016 saw a surge in deal activity. “I’m sure there is some evidence of occupiers sitting on their hands, but given the surge in deals that we saw in Q4, I think there’s a sense of cautious optimism that we will continue to see a solid level of activity, notwithstanding all the uncertainty.” An ITV spokesman said: “We continue to look at all property options in central London for our headquarters.” Occupiers that chose to stay put ● Expedia Requirement: up to 400,000 sq ft Launch: summer 2016 Decision: stay at Angel Building and increase occupation to 295,000 sq ft across two buildings ● Lego Requirement: 100,000 sq ft Launch: February 2016 Decision: on hold ● ITV Requirement: 250,000-300,000 sq ft Launch: 2014 first launched, relaunched in spring 2016 Decision: stay at the Television Centre and redevelop • To send feedback, e-mail Louisa.Clarence-Smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette