Derwent London has signed £17.1m of new rental agreements across its portfolio in the first three months of 2023, at an average 6.6% above December 2022 ERVs.
Chief executive Paul Williams said: “London, particularly the West End, is busy and people are back in the office. Occupier demand continues to favour amenity-rich, well-designed and sustainable space, evidenced by a strong Q1 with £17.1m of new lettings across our portfolio on average 6.6% above ERV.”
New lettings agreed in the quarter include a 22,220 sq ft flagship store for Uniqlo at One Oxford Street, W1; a 106,100 sq ft prelet to Pimco at 25 Baker Street, W1, at an annual rent of £11m; and a 31,000 sq ft letting at the Featherstone Building (pictured), EC1, to Buro Happold at an annual rent of £2.3m.
A further £1.8m of rent is either already signed or under offer for Q2.
Derwent said the deals reflected the evolving nature of London’s office market and that it was “well placed to capture current and future demand as the way businesses use their office space changes in this dynamic environment”.
Vacancy rates across the portfolio have reduced over the period, from 6.4% at December 2022 to 4.9% at 31 March 2023.
Photo © Derwent London
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