Two London property giants have pointed to good demand for prime central London offices as they revealed pre-let deals, including one for space behind the world famous Piccadilly Lights.
FTSE 100 company Landsec and West End landlord Grosvenor gave the updates on lettings at their respective developments: Lucent by Piccadilly station and 65 Davies Street above the Bond Street Elizabeth Line station.
A St James’s based hedge fund is upsizing its UK headquarters and has signed for 50,000 square feet across two floors at Lucent.
Once construction is complete later this Summer, the Fletcher Priest-designed scheme will comprise 121,000 square feet of offices and 20,000 square feet of shops and leisure space.
Landsec said the latest letting, which was brokered by property agents CBRE, Cushman & Wakefield and Knight Frank, means 77% of the office space has now been pre-let.
The Duke of Westminster’s property company Grosvenor said SPX Capital will pre-let the 12,000 square feet third floor of its new 65,000 square feet Mayfair development, with a separate financial services firm taking 19,000 square feet.
A number of companies are looking to downsize offices as they focus on hybrid working pre-pandemic. It emerged this week that HSBC will leave its Canary Wharf HQ for a smaller London site.
However, several landlords behind new offices with strong green credentials have reported solid demand from employers looking to upgrade to more modern space, even if staff are only in for part of the week.
Landsec’s head of workplace Oliver Knight said: “The occupier market for prime offices in central London is proving to be resilient despite macro headwinds.”
He added: “With a large amount of space at our committed development schemes now either pre-let or in solicitors’ hands, we’re confident that the demand for best-in-class offices will continue.”
Anna Bond, executive director of development at Grosvenor Property UK said: “To be so close to full occupancy months ahead of completion is a testament to our ability to deliver the high-quality amenities and leading environmental credentials that occupiers demand.”
