London property prices: The Shard skyscraper smashes record for office rents as Leonteq Securities takes entire 26th floor
A letting at The Shard skyscraper in London Bridge has smashed price records for the South Bank and the City, as the hunt for office space in the capital heats up.
German-listed IT company Leonteq Securities is understood to have struck a deal to take the entire 26th floor of the tower for over £90 per square feet.
The highest rent achieved so far has been for the penultimate floor of British Land and Oxford Properties’ Leadenhall Building – also known as the Cheesegrater – for £90 per sq ft to Affinity Shipping.
The deal means that office space in The Shard is close to 70 per cent let or under, with only five complete floors remaining, ranging from £60 to 85 per square feet in price. Other tenants include Duff & Phelps, Al Jazeera and Campari Group
Leonteq is also the latest company to move away from the West End, where around 45 per cent of The Shard’s tenants were previously based.
Although a record for the City, £90 per sq ft appears good value when compared to the the West End where rents are sky-high and office space in short supply.
Recent research from BNP Paribas Real Estate said vacancy rates in the West End stood at 3.9 per cent in the second quarter, while prime rents hit a record high of £125 per sq ft. That compares with 5.7 per cent in the City, where the average rent is £65 per sq ft.
Irvine Sellar, the property developer behind The Shard, said: “We pioneered the concept of the vertical city at The Shard and it is a huge endorsement of our vision that it continues to attract European industry leaders like Leonteq.
“Interest in the remaining space continues to be strong with potential occupiers not only attracted to The Shard’s growing community, but London Bridge’s strong transport infrastructure and exceptional social amenities that will only continue to evolve as businesses and their employees continue to move into the area,” he added.
JLL and Knight Frank are leasing agents on The Shard.