Big development opportunities in the West End are few and far between, partly because of multi-ownership and partly because so much of it is a conservation area in which development is restricted. A recent report by Colliers CRE notes that in Q4 of 2004 "the amount of speculative office space fell for the ninth quarter in succession, although the fall was the smallest quarterly reduction over that period." The report adds that the same period recorded a 25% fall in take-up.

Despite this, another report by DTZ found the West End remains the most expensive location globally with accommodation costs of US$19,330--a 9% year-on-year increase.

"London remained extremely strong as a global business center," says Elspeth Lochhead, Director, DTZ Pieda Consulting. "Occupancy costs have risen, reflecting London's continuing popularity, despite fears that emerging office markets like India might undermine future growth. However, much of this year's rise in costs in the UK reflects the strengthening of the pound."

L&R, run by brothers Ian and Richard Livingstone, beat off competition from a large number of bidders including Herald International, Stanhope, Development Securities and British Land. The Livingstone brothers have a reputation in the property world for swift completions, something thought to have appealed to M&S.