Derwent London is on track to record one of its best ever leasing years, according to chief executive Jonathan Murphy.
In a Q3 2026 trading update, the company said it had signed £11.2m of new rent since the start of H2, bringing the year-to-date total to £39.8m.
This comprises £28.6m of new leases, with open-market lettings 6.1% above December 2025 ERV, and £11.2m of renewals and regears, with new rents 5.2% above previous levels. A further £1.7m of rent is under offer.
Derwent’s EPRA vacancy reduced to 3.4% at the end of Q3 and the company has completed or exchanged on disposals totalling £290m so far this year with an additional circa £135m under offer.
Murphy (pictured) said: “Since joining Derwent London, I have been encouraged to see our teams achieve higher rents and occupancy rates across our quality portfolio. This strong leasing activity has further reduced EPRA vacancy and, with additional lettings under offer, 2026 is on track to be one of our best years on record.
“I have also been impressed by the talent and experience across the business and the strength of our operational platform. Our focus is on translating these strengths into attractive medium-term returns and earnings growth by further aligning the portfolio with evolving occupier requirements, capturing rental reversion and maintaining rigorous capital discipline. While the near-term outlook for property yields remains uncertain, this reinforces the importance of focusing on the factors within our control.
“We are making good progress on capital recycling, with £290m of disposals completed or exchanged year to date, alongside completion of our £50m share buyback in September. Our four committed major West End developments are expected to make a meaningful contribution to future rental and earnings growth. I look forward to providing a broader update on 30 November.”
