BGO seals largest ever Victoria office prelet

Investment bank Evercore has agreed Victoria’s largest ever office prelet, taking 135,000 sq ft at investment manager BGO’s 105 Victoria Street, SW1.  The company will move from its current Mayfair office at 15 Stanhope Gate, W1, after BGO’s 445,000 sq ft office conversion of the former House of Fraser building completes in summer 2026.  In doing so, it will almost quadruple the size of its office, which currently stands at 35,921 sq ft and is leased until early 2027 for £81 per sq ft, according to EG data.  The company’s search, which started over a year ago, represents a growing trend among occupiers to start their searches earlier as competition for prime office space increases.  Average rents so far this year in Victoria have totalled £79.08 per sq ft, according to EG Analytics. According to research by JLL, which co-advised the landlord alongside CBRE, active demand across central London is at its highest for more than 20 years.  More than 25% of deals in the last two years were for prelet space, a number which is expected to rise due to constricted development pipelines and limited best-in-class space.  Chris Valentine, head of central London office leasing at JLL, said: “We’ve seen a marked increase in prelets over the past two years and we expect this to continue to grow as occupiers seek space that delivers a first-rate experience for their team and clients, aligned with their ESG targets. “This major prelet two years ahead of completion is evidence of this growing demand, and with 310,000 sq ft remaining at 105 Victoria Street in a highly constrained market for supply, we are highly confident of further prelets.”  The 100% electric, net-zero carbon 105 Victoria Street is targeting top sustainability credentials, while giving occupiers access to 25,000 sq ft of green space and terracing – the most of any commercial building in the West End.  Alexander Morris, managing director at BGO, said: “We are looking forward to welcoming our first occupier to 105 Victoria Street in 2026 to continue the work we have carried out in the Victoria community over the past five years of development.”  Colliers represented Evercore on the deal.  See lettings in the London, Victoria area >> Image © DBOX