Derwent sees demand rise from office occupiers
Derwent London’s chief executive has welcomed rising demand from office occupiers across its portfolio.
The developer – which this week sealed a 17,100 sq ft prelet at 25 Baker Street, W1, with Cushman & Wakefield – said in a trading update that it had signed new leases totalling £5.4m since the start of the year, with a further £4.3m under offer.
That figure comprised £2.4m of lettings at an average 9.2% above December 2023 ERV during the first quarter, and £3m in Q2 to date, with Cushman’s 15-year lease coming to £1.8m.
Derwent London’s chief executive has welcomed rising demand from office occupiers across its portfolio.
The developer – which this week sealed a 17,100 sq ft prelet at 25 Baker Street, W1, with Cushman & Wakefield – said in a trading update that it had signed new leases totalling £5.4m since the start of the year, with a further £4.3m under offer.
That figure comprised £2.4m of lettings at an average 9.2% above December 2023 ERV during the first quarter, and £3m in Q2 to date, with Cushman’s 15-year lease coming to £1.8m.
Some 58% of space available to occupy as of December 2023 is now either leased or under offer, and Derwent said there was “good ongoing interest in the balance”.
Along with Cushman’s new deal, recent transactions have included PLP Architecture taking 22,300 sq ft at the White Chapel Building, E1, on a 10-year lease with no break at £50 per sq ft; software company incident.io signing for 6,900 sq ft at the Featherstone Building, EC1, for two years at £86.70 per sq ft; and Starbucks taking a 4,200 sq ft store at One Oxford Street, W1, on a 15-year lease at £98 per sq ft.
Chief executive Paul Williams said: “We are seeing further strengthening in occupational demand for our well-located, design-led buildings. Rental growth has increased as demonstrated by our leasing performance against ERV. As part of our strategy of capital recycling, we were pleased to agree the sale of Turnmill above book value, with proceeds to be reinvested into our higher-returning West End regeneration pipeline.”
