GLA to leave City Hall for Docklands
The Greater London Authority is consulting on plans to exit its headquarters at City Hall, SE1, and move operations to the Royal Docks, E16.
It anticipates a move to The Crystal building next year, in a bid to cut costs during unprecedented financial pressure as a result of Covid-19.
City Hall is owned by Kuwaiti-owned St Martin’s Properties. The GLA signed a 25-year lease in 2001, with a break in the contract in December 2021.
The Greater London Authority is consulting on plans to exit its headquarters at City Hall, SE1, and move operations to the Royal Docks, E16.
It anticipates a move to The Crystal building next year, in a bid to cut costs during unprecedented financial pressure as a result of Covid-19.
City Hall is owned by Kuwaiti-owned St Martin’s Properties. The GLA signed a 25-year lease in 2001, with a break in the contract in December 2021.
The GLA agreed a pre-let at City Hall for 122,800 sq ft at £36.50 per sq ft in 1999. It occupies the entire building, with some 400 staff.
It said the relocation will save it £11.1m a year in rent, service charges and rates. Mayor Sadiq Khan said the current charges are above market rent, with costs also set to rise to £12.6m per year after 2021.
Khan has initiated a formal consultation with the London Assembly, UNISON, PCS, the GLA and the Mayor’s Office for Policing and Crime ahead of formal notice required by September.
He said: “In normal times, it would be standard practice for any mayor to consider utilising the lease ‘break’ clause on the City Hall building that becomes possible this year, and to view it as an opportunity to ensure Londoners were getting the best value for money.
“In the current financial context, and with the looming black hole in London’s public finances, it would be negligent not to do so.”
GLA Land and Property acquired the 240,000 sq ft Crystal Building on Royal Victoria Dock in 2016. It is currently home to the mayor’s Royal Docks team, but has been almost empty since Siemens vacated the building last year. It has been dubbed one of the most environmentally friendly offices in the world.
With plans to extend the Docklands Light Railway and the arrival of Crossrail, the Royal Docks has become a hub of development. There is around 650,000 sq ft of commercial space currently under construction, attracting occupiers including venture capital fund Pontaq, the English National Ballet and the London Film School.
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