Derwent London has completed the pre-letting of 25 Baker Street in London’s West End, achieving an average rent of £104/sq ft – setting a new rental benchmark for the area.
In addition to previously announced tenants Pimco, which signed for 106,100 sq ft, Moelis (49,200 sq ft) and Cushman & Wakefield (17,100 sq ft), Derwent has completed pre-lettings at the 204,300 sq ft office scheme to two new investment management and financial services tenants.
With rents across the building ranging from £98/sq ft to £113/sq ft, Derwent said the £104/sq ft average represented a 16.5% premium to the appraisal ERV, setting a new benchmark for the area. The building’s rent roll is £21.1m and the weighted average lease term to break is 13.5 years.
Derwent said that two of the six F&B units in the building, which is due to complete in H1 2025, were under offer and that discussions were ongoing on other units.
Paul Williams, chief executive of Derwent London, said: “The strength of occupier demand reflects the quality of office space we are developing. The pre-letting and rental levels achieved further demonstrate positive structural market trends, with the shortage of supply of prime offices across London’s West End. The long leases and strong line-up of well-established financial and professional services firms support the attractive project return.
“Our recent acquisition of full ownership at the adjacent 50 Baker Street W1, where we will deliver circa 240,000 sq ft of amenity-rich and highly sustainable space, highlights our confidence in the prospects for the area. Our next phase of West End developments totals 5,00,000 sq ft across three projects.”
