‘Scarcity of high-quality space’ drives activity for West End London landlord GPE
One of central London’s biggest listed landlords said a “scarcity of high quality space” helped drive leasing activity in the year to the end of March.
Great Portland Estate signed 66 new leases and renewals during the year generating annual rent of £22.5m, with market lettings on average 9.1 per cent ahead of last year’s estimated rent value (ERV).
The deals included 26 new retail leases securing £7m of rent including a new London flagship store for TK Maxx.
At Minerva House, the firm said it committed to the “extensive refurbishment” of 143,100 sq ft of new Grade A offices.
It comes as demand continues to increase for the group’s office spaces as workers return to central London following an upward trend in home working after the pandemic.
Moreover, the London office market has become more competitive due to a shortfall in office space because so many older buildings do not meet carbon neutral targets.
Tenants are also becoming increasingly picky and tend to favour buildings which are best in class, and with less space due to work from home practices.
Toby Courtauld, chief executive, said: “We are delighted to report another strong quarter’s leasing, bringing our total transactions for the year to £22.5m, 9.1 per cent ahead of ERV.
“Our Fitted and Fully Managed spaces have performed particularly well; our spaces are full and our ability to provide a market-leading, hassle-free experience for our customers is driving returns and reinforces our ambition to grow our Flex activities to 1 million sq ft.”
He added: “Given the strength of occupational demand, and the increasing scarcity of high quality space to let, we have started two new developments this quarter.
“Our latest scheme, Minerva House, will take full advantage of its impressive river frontage, creating an enviable South Bank HQ destination with new public realm and gardens whilst delivering outstanding sustainability and re-use credentials.”