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News Release

London

Go-Ahead for Third Runway at Heathrow

Jones Lang LaSalle's response to today's annoucement by the government


London, 15th January 2009 – Today’s announcement by the Government giving the go-ahead for a third runway at Heathrow is excellent news for the property market in the Western Corridor; particularly given the current troubled global economic backdrop.  It signals the Governments willingness to back a major infrastructure project in a key economic area of the UK.  The decision ends a period of uncertainty at Heathrow and demonstrates the importance that the Government attaches to the West London and the Thames Valley area.

James Finnis, Head of the South East Office Disposals team at Jones Lang LaSalle said: "The Heathrow area has a good supply of well specified office space. This office accommodation is well priced in the context of the UK market; with the added advantage of excellent and now improving transportation links.  The news on the third runway will assist the area to weather the current economic storm and will help growth in the area when the UK and world economy returns to a more healthy state."

Guy Parkes, Head of Jones Lang LaSalle’s Stockley Park Office added: “As founder members of the West London business Jones Lang LaSalle has been a supporter of this initiative for many years. This project will serve to reinforce the region as the natural gateway to Europe for businesses and will accelerate the regions’ growth to the next phase of development. We continue to support the Heathrow Rail hub which will complement the airport as an important transport exchange.”

Today’s news about the runway is coupled to the commitment that the public transport infrastructure serving this new runway will also be improved.  The high speed rail link into Central London which may also connect to the North will further reinforce the National and International Communications which the Western Corridor enjoys.
 
This will further the case for multi-national occupiers to focus their activities at and around Heathrow and reinforce the areas credentials to attract and keep the world class corporates who chose to locate here. 
 
The Western Corridor has seen good activity in the office sector in 2008.  Jones Lang LaSalle research shows that 2008 has seen the best take-up in the region for over seven years at over 3 million sq ft.  This demonstrates a level of robustness in the area as economic uncertainty which was prevalent for the last six months of the year did not eliminate occupier confidence.  There will be a slowing in 2009 but the news will help to bolster the region.