Central London based property investment and development company, Great Portland Estates, have estimated a continuation in the rise of rent in office space in London as they recently secured 17 new tenants.
New leases acquired in the first half of this year will contribute £2.4m to the companies current income, with an annual sum of£800,000 secured through rent reviews – a rise of just under 50% when compared to previous rent.
With demand for space in the capital still outgrowing supply, rent costs have continued to rise, with offices in the West End now being let for more than £150 per sq. ft.
Great Portland Estates are said to have 2.5m sq. ft worth of space currently in planning.
Great Portland Estates, chief executive, Toby Courtauld, said, “We can expect healthy tenant interest to generate both pre-lettings and higher rates of rental growth compared to last year, our expanded development programme will continue to deliver attractive returns for shareholders, and our balance sheet strength will allow us to exploit our many portfolio opportunities to the full.”
Shares recently rose from 1p to 789.5p, as Great Portland Estates sold their stake in their joint venture at Wigmore Street – totalling £222.4m in income.
By: Kirsty MacGregor
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