Derwent: London property investment trust credits ‘busy’ West-End and return to the office for uptake in leases
Derwent, the London property investment trust, has told investors that London and the West-End is “busy” as a return to offices and shopping signal better times for the capital.
In its first quarter trading update, the FTSE 250 real estate firm revealed a 6.6 per cent uptake in the number of leases secured which totalled £17.1m.
The group was bolstered by a flagship letting to fashion brand Uniqlo on Oxford Street and a new office space for consultant company Buro Happold.
As demand in the capital heated up, Derwent said vacancy rates on its properties shrunk to 4.9 per cent during the quarter compared to 6.4 per cent in December 2022.
“London, particularly the West End, is busy and people are back in the office,”Paul Williams, chief executive of Derwent London, said.
He continued: “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 per cent above ERV.”
It comes as companies are encouraging workers to return to working in the office more frequently as the pandemic created a trend of hybrid and remote working for professionals.