The new tenants they have signed will help Threadneedle obtain an increase in rental income by £258,000.

Marketing information service provider Warc agreed on the lower and ground floor offices, a total of 4,408 sq ft, for five years. They will pay an annual rent of £83,695. Phil McIntyre Entertainments took a ten year least on 1,924 sq ft on the third floor, reportedly paying£83,695. Pleasurerealm will take the fifth floor for £64,047 on a ten year year for 1,924 sq ft.

Threadneedle were represented by Savills and DTZ during the lease signings. Associate director of Savills, Mark Gilbart-Smith said, “These three lettings highlight the strong level of demand for good quality, well located office space in central London.”

The building is currently owned by an offshore investor, but Legal & General have registered their interest in the building with a £52 million offer, offering a 8.2% yield on the property.

26 Red Lion Square is currently leased to Cable and Wireless, which expires in January 2023. They in turn sub-lease most of the 107,000 office space development to The Economist Group. The current rent is £28 per sq ft, with a break in contract in 2013. This earns a net income of 34.9 million per annum. Part of the ground floor and the entire fourth to sixth floors are sub-let by Cable and Wireless to TSL Education.

Threadneedle, the fund managing firm, were rumoured to have put an offer in for 26 Red Lion Square previously yet a deal was never completed. The building was originally developed by Stanhope Kajima Developments. It sits an a convenient location in Camden borough near to Holborn tube station, close to a large array of restaurants, hotels and conference facilities, making an excellent base where businesses can both entertain their clients and have access to an array of amenities.

London is full of similar news, although many of these transactions are focused on the City or Canary Wharf areas. 26 Red Lion Square is based in the Midtown area where leasing deals are often plentiful but sales do seem to perform a little slower. However with the recovery of the market creating excitement and competition, we’re sure this will soon change.

Abbey Business Centres announced that Sky News had joined their clients at 30 St Mary Axe, better known as the Gherkin, in the City of London. Sky News’ Chief Business Editor Jeff Randall’s team will be presenting live from the building on the 15th floor.

The Gherkin is an ideal move for Sky News, the location is in the heart of the financial district of London and their floor offers panoramic views of St Paul’s Cathedral, Tower 42 and Westminster. The views will be a breathtaking backdrop to the broadcasts which will also be done live from the studios there.

In a press release for Abbey Business Centres, Chris Birkett, Executive Editor for Sky News commented, “The recession has undoubtedly been the most dominant and recurring news story of the last 18 months and it made sense for us to seek a base in the City of London to enable us to stay on the pulse of the latest crucial business stories. The very nature of The Gherkin, and the views that come with it, meant this was the only logical location for us.”

Julie Calder, MD for Abbey Business Centres commented on the logistics of moving both offices and studios for the broadcaster, “Though accommodating a studio, lighting equipment and a substantial production team was more of a challenge compared to more traditional office move-ins, the fact that we were even able to configure the space for Sky’s requirements just goes to show how much a serviced office can be of value to businesses – however large or small they may be. It’s great to welcome yet another strong brand into London’s most iconic building.”

The addition of Sky News to the business centre is another major move into serviced offices for a well-known brand in London. Business centres and office space are becoming scarce in London, and competition is becoming fierce as less new developments were built during the recession. However the more pick-up in existing developments the more money can be pumped into new buildings, as iconic as the Gherkin.

However, money will not be changing hands during this deal. The partners at Drivers Jonas will simply be incorporated into the Deloitte partnership, meaning a possible rise in earnings.

Deloitte has grown to triple its size in just over ten years since John Connolly’s take over as chief executive. John Connolly  is incidentally set to end his term as chief executive in the next year, and this is his second merger this month after Deloitte acquired information provider ReportSource.

The decision to move into the commercial property market was taken when John Connolly reviewed the firms strategy options and saw commercial property as a possible goldmine for investment for the accounting firm.

The reputation and profitability of Drivers Jonas made it an ideal target for acquisition in the market, according to john Connolly.

The recent boom in demand for commercial property and office space in London after the recession proves to be lucrative for many investors who play their cards right, and continued investment means a bright future for the capital and the rest of the UK.