West End landlord Great Portland reports robust leasing amid growth in tenant demand

Fresh signs of strength in London’s leasing market emerged today, as listed property giant Great Portland Estates (GPE) posted rising rental values and low vacancy levels amid continued demand for office space in the capital.

The West End landlord signed 16 new lettings totalling than 50,000 square feet in the quarter to the end of December last year, trumping estimated rental values made in March by more than five per cent and generating an income of £4.3m.

New rental agreements with five current GPE tenants were also nearly 20 per cent above the previous passing rent in the quarter.

Meanwhile, the vacancy rate remained low at 3.7 per cent, falling from 4.8 per cent in September.

Much of GPE’s portfolio, which largely lies in the West End, has avoided the slump facing commercial landlords elsewhere across the UK as its retail tenants have continued to see high levels of footfall in spite of wider struggles on Britain's high streets.

“Whilst we are planning for ongoing political and economic uncertainty, GPE is in great shape: we continue to attract occupiers for our brand of high quality, sensibly priced space,” said chief executive Toby Courtauld.