Transport for London no longer first tenant at skyscraper as Shard backs out of agreement

Owners of the Shard, the London skyscraper that is currently under development, have backed out of a previous agreement that would let approximately 30% of their office space with Transport for London (TfL).

TfL initially signed up to occupy 200,000 sq ft of the available 586,000 sq ft office space in 2006, however due to market fluctuations and an increase in demand, Shard believe they can get a much a higher rent for the space in the current market.

The rent at time of purchase in 2006 was £38.50 per sq ft; however with city rents reaching up to £50-£65, landlords believe there is far more potential in the city.

A spokesman said this morning, “The market has moved considerably and the Shard is going to begin a more aggressive lettings campaign, but they will help Transport for London find new accommodation.”

As part of the £2bn London Bridge Quarter Scheme, designed by Renzo Piano, the Shard seeks to be placed at the ‘top end’ of the London market.

A spokesman for London Bridge Quarter said, “Together, the Shard and London Bridge Place will deliver more than 1m sq ft of Grade A offices located on one of London’s busiest transport hubs in a landmark building of the highest quality.”

He added, “This agreement enables us to position the Shard at the very top end of the London office market.”

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