Helping empty offices to market themselves: Topaz Amoore reports on the new art of publicising vacant space in buildings

WHEN Cat Ledger, who runs the literary arm of the theatrical agents James Sharkey, decided to throw a party for 500 guests in central London she faced two main expenses. Alcohol was the first. The second was the substantial cost of hiring a large enough venue.

Alcohol ceased to be a problem after she persuaded Stolichnaya and Rolling Rock to donate barrow-loads of vodka and lager. Fixing the venue did not prove too much more difficult. Negotiations with Baker Lorenz, an estate agent that specialises in West End lettings, secured a prestigious, marbled, empty office block in Petty France, central London - 5,000 'very swish' square feet, free.

'I was allowed to set the party up the day before and I didn't have to clear up until the day after,' Ms Ledger said. 'It went very well. People stopped using ashtrays after a while and burned rather a lot of holes in the carpet. Rain also began coming through a hole in the roof. But it all added character.'

The losses sustained by London's property developers proved to be Ms Ledger's gain. There is a record 30 million square feet of empty office space in London, causing huge financial pain for the companies that constructed the buildings and the banks that financed them. But thanks to an imaginative marketing philosophy adopted by several developers and estate agents, empty buildings are increasingly being lent for events such as art exhibitions, concerts, plays and even laser clay pigeon- shooting.

The hope held out by the agents and developers is that one of the carefully selected, high-calibre guests at these events will turn out to be the new tenant. David Kahn, of Baker Lorenz, said the firm lent out offices 'only on the off- chance' that this would provide a tenant.

But he admitted the ploy had not been a great success. 'I don't think we have ever made a letting as a result of an event. They don't really produce anything; it didn't work for us. I remember one art exhibition - not one of the people who came through the door would have wanted to rent a part of that office building.'

This is borne out by Cat Ledger's memories of her own party. 'I had the ground floor but the rest of the building was open so guests were free to wander round and have a look. Unfortunately most were inspired to do this after drinking about two bottles of vodka. Their recollection may have been a bit hazy.'

Still, as Mr Kahn agreed, lending a building never does any real harm. 'Any PR is good. We don't regret any of the events we have held. They give a building a bit of individuality - better than, say, five empty and very bland floors. And it's space that a prospective tenant might just see.

'It's a way of getting people through the front door on the hope that it will produce something for the owner at nil cost.'

Iain Taylor of Hudson Sandler, a marketing agent for a number of property companies including Imry, Speyhawk and Lyntons, is more optimistic than Mr Kahn about lending buildings. He has been involved in such ploys as a production of The Merchant of Venice in Rose Court, an office block built over the remains of the Rose Theatre in Southwark where Shakespeare is said to have acted.

'That production cost pounds 20,000 but we had a 500-strong quality audience. We are trying to attract potential occupiers into buildings by offering something exciting and entertaining, whether artistic, musical or even sporting. You wouldn't buy a house without seeing it first and you wouldn't rent office space either.

'Someone who goes to a play might just be at the golf club the next weekend and mention the office to a colleague . . . it's all word- of-mouth really. It's a subtle and unoppressive way of letting the building market itself, especially when there are so many good buildings to choose from.'

He has had some success. A long unlet office in Mayfair was lent to the London Mozart Players for a concert. Bass, the brewer, is now the tenant. 'People from Bass attended that evening. It's a subjective view, and I can only argue it, but I would like to think that it made Bass more aware of the building,' Mr Taylor said.

'Our events are not rubbish. It's good art, it's not a token. Letting agents think these events are a bit fly-by-night but they do enjoy being able to make 200 follow-up telephone calls the next morning to members of the audience.'

But it's not all art, indoor tennis and parties. Increasingly, developers are being encouraged to look at converting empty office blocks into badly-needed residential accommodation.

'One of the few growth areas left in the property sector is the accommodation needed for people like nurses and students. Student numbers are increasing all the time as polytechnics become universities,' said Martin Winch, managing director of Lamp Development Services. The firm advises institutions such as banks and finance houses on managing their distressed property portfolios.

'Blocks built in the Sixties and Seventies are actually a better bet because they cost less to convert than the offices built in the Big Bang with their huge dealing floors.'

The Government is playing its part in the effort to convert office into home. Developers may be refused bids to renew planning permission for offices even though local councils fear losing business rates. But, as Martin Winch points out, offices no longer automatically command a greater rental value than residential developments. 'How can you put a value on an office block that no one wants?'

Meanwhile, office blocks deemed unsuitable for conversion continue to be used for 'temporary light leisure' purposes. In the renovated Spitalfields Market you can play indoor tennis or go roller- skating. In the converted Billingsgate market you may be attending a magazine launch.

And next Monday you may find yourself visiting the new Angel Square office development, built over Angel Underground station in north London, where an art exhibition is opening over five floors of previously empty space.