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LONDON-Industrial specialist Brixton has agreed a deal which sees Morgan Stanley take an assignment on the largest building at the HeathrowCorporate Park, near Heathrow. As a condition of taking over the lease from Tyco Networks, Morgan Stanley agreed arental increase from £11.77 ($18.70) to £12.50 ($20) per sf.

Morgan Stanley plans to use the building for telecommunications co-location and equipment housing. The existing 30 year lease on the 246,000-sf warehouse building runs from September 2000 and had a passing rent of £2.9 million ($4.6 million) per annum, which at the time was a record for this type of accommodation in the area.

The new rental of just over £3.07 million ($4.9 million) per annum shows that there has been rental growth in the Heathrow industrial sector at a time when office rents in the area have been plummeting, according to Brixton.

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