This follows two new recent leasing deals which take the office rent roll to £21.2m. Ahead of completion later in H1 2025, these lettings highlight the strength of demand for high quality, design-led and amenity-rich spaces in the right location with class-leading sustainability credentials.
With rents across the building ranging from £98 to £113 psf, the £104 psf average is a 16.5% premium to the appraisal ERV, setting a new benchmark for the area. The weighted average lease term (to break) is 13.5 years, with over 70% on 15-year terms certain.
In addition to the office lettings, we are encouraged by the level of interest for the retail and F&B units which form an integral part of the scheme’s amenity offering. Two of the six units are under offer, with discussions ongoing on further units.
Paul Williams, Chief Executive of Derwent London, said:
The strength of occupier demand reflects the quality of office space we are developing. The pre-letting and rental levels achieved further demonstrate positive structural market trends, with the shortage of supply of prime offices across London’s West End. The long leases and strong line-up of well-established financial and professional services firms support the attractive project return.
“Our recent acquisition of full ownership at the adjacent 50 Baker Street W1, where we will deliver c.240,000 sq ft of amenity-rich and highly sustainable space, highlights our confidence in the prospects for the area. Our next phase of West End developments totals 0.5m sq ft across three projects.”