Microsoft is set to give London’s office leasing market a significant boost as it draws up plans to leave its UK headquarters in Reading for a new base in the capital, EG can reveal.
The computing giant is understood to be hunting for 500,000 sq ft of office space in central London – a move which would see it join the likes of Apple, Google and Facebook with offices in the city.
It has appointed Cushman & Wakefield to handle the requirement as it prepares for a lease expiry in five years at its Thames Valley Park campus in Reading.
That site contains a combined 246,138 sq ft of office space across three buildings and was sold for £100m to London-based real estate investment manager Valesco Group and Korean AIP Asset Management in 2018.
Microsoft also leases about 80,000 sq ft at 2 Kingdom Street, W2, part of the 11-acre Paddington Central campus. That lease expires in 2026.
EG understands it is looking to consolidate the two sites into one London office. Sources say it is weighing up options across the central London submarkets and that it would not constrain itself to staying in the West End.
It would be a welcome move for London’s leasing market, with the capital having endured several years of Brexit uncertainty and a crash in office activity during the pandemic.
Apple is preparing to move into its new base at Battersea Power Station, SW8, while Google is finalising its new HQ in King’s Cross, N1.
Facebook signed a lease last year to move into British Land’s 1 Triton Square, NW1, a 310,000 sq ft building close to Regent’s Park and a stone’s throw from its other premises on Brock Street.
A spokesman for Microsoft said: “We are committed to the UK and have facilities across the country. We regularly review our portfolio to make sure it meets the needs of our people and our long-term business.”
EG has contacted Cushman & Wakefield for comment.
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