Watford Office Market Making Comeback

The Watford office market is making a comeback, according to research by Savills.

The firm’s study has shown that in May 2016 take up in the town’s office market rose to 104,678 square feet, indicating a rise of 40% on the total take up of 74,683 square feet in 2015.

The statistics show the continuing commitment by corporations to the town, while Savills are predicting further take up increases after the completion of the Croxley Green Business Park office building, which is due to be finished by the end of 2017.

The 60,000 square foot Threadneedle construction is Watford’s first major development of its kind in over 10 years.

There is also another 39,990 square foot of Grade A stock available that has recently been refurbished at The Junction and 45 Clarendon Road, which will help to meet the demand.

Meanwhile, the rising need for office space is shown by various corporate deals that have taken place recently, none more so than TK Maxx last year buying a Clarendon Road site.

The company will be developing an office accommodation of 100,000 square foot, with Smith & Nephew developing 60,000 square foot of space at the Croxley Green Business Park this year which will be the biggest lease in the town for 15 years.

However, Watford has continued to be considerably undervalued in comparison to other towns on the M25.

Grade A office space that has been recently refurbished is £27 per square foot as things currently stand, in comparison to St Albans and Uxbridge which are £30 and £34 per square foot respectively.

However this could work in the town’s favour as it is seen as more affordable when compared to other office markets in the South East.

Savills expects rents to carry on increasing over the course of the next year, already evidenced by law firm Veale Wasborough Vizards taking 11,000 square feet at the Clarendon Road site.


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BDC 309 : Oct 2023