City lettings gold mine
Many law firms, investment companies and banks are relocating their offices to Mayfair and the Square Mile.
Many financial corporations and law firms are making the most of great office space deals in the City of London and other areas of the capital.
Law firm Stephenson Harwood have agreed to 128,000 sq ft of space at 1 Finsbury Circus, owned by Hermes Real Estate. They will be leasing almost the whole property with the exception of the seventh floor on a 15-year let. They are reported to be paying £35 per square foot with 4 years rent free, with a fixed minimum uplift upon the first review in the fifth year of the lease.
Hermes Real Estate were advised by King Sturge and CB Richard Ellis during the deal.
Australian bank Macquarie have also agreed terms with British Land on 217,000 sq ft at the Ropemaker scheme near City Point, Ropemaker St.
Blackrock Investment Management recently confirmed that they have taken the whole of Drapers Gardens, a total of 292,418 sq ft owned by the Canary Wharf Group and Exemplar Developments. They are reported to be paying £49 per square foot, with 36 months rent free on a 25-year lease. It was this deal which is thought to have encouraged Macquarie to consider the move to Ropemaker.
A scheme launched last week at 14 George St in Mayfair, by H2SO, DTZ and Jones Lang LaSalle may also have been agreed to be let by Kleinwort Benson Private Banking. The rent is quoted to be £80 per square foot and Kleinwort Benson are reported to be signing on a 10-year term. They will be relocating to 14 George St from their offices in 30 Gresham Street.
Knight Frank have also been appointed by US law firm Greenberg Traurig, a current tenant at 30 St Mary Axe run by Swiss Re. They are looking relocated to more “quirky” offices and require 20,000 to 40,000 sq ft of office space.
These recent transactions show that office space in the City and West End are in incredibly high demand, and competition is fierce. Commercial property in London is becoming highly sought after once more and proves that the capital is recovering strongly after the recession.