Croydon is less than 10 miles from Central London, with excellent transport links, but for many years it may as well have been a hundred miles away for most corporate occupiers. However, as Central London rents have crept upwards and the town has seen a swathe of eye-catching regeneration and development projects come forward, Croydon has shaken off its rather staid image and is now a serious contender for businesses looking to relocate.

With rents at Grade A schemes such as Renaissance and Interchange up to 78 per cent cheaper than their West End counterparts, in pure monetary terms how could you not consider Croydon? In fact, at £34.83 per sq ft, costs are currently the lowest within the main suburban London markets and almost half the cost of the Docklands, which is the next cheapest area at £69.24 per sq ft.

This hasn’t gone unnoticed. In 2015 take-up exceeded 160,000 sq ft, up from an average of around 108,000 sq ft per year in the past decade. This is due to both churn in the local market and companies such as JT Global moving from the City to Interchange to snap up premium office accommodation at low rents. Others are set to follow, with Croydon’s wider appeal cemented by the recent announcement that Boxpark has chosen its second location, due to open next year, on the site of Schroders & Stanhope’s future Ruskin Square development next to East Croydon station. 

Unsurprisingly, the increase in demand has already meant significant rental growth. By the time that Boxpark moves out and Ruskin Square opens its doors, we predict that the first deal in the high £30s will have been struck, with prices pushing beyond the £40 per sq ft point within the next three years. Nonetheless, even at these levels Croydon will still present a bargain within the context of the wider London market.

Excellent value for occupiers and a burgeoning food and leisure scene, combined with the arrival of a new Westfield Shopping Centre in 2020 and the delivery of more high quality residential accommodation will see Croydon’s appeal go from strength to strength over the next few years. If you haven’t already, now is the time to reconsider what you think you know about Croydon – it may well surprise you.  

Further information

Contact Savills Commercial or view investment sales and acquisitions