Derwent London has reported a rise in lettings activity and occupier demand to return to the office.
The developer has achieved £1.3m in new lettings this year, with a further £4.3m under offer.
Vacancy at the end of the quarter sat at 2.3%, against 1.8% in December. It has collected 95% of office rents, with 4% expected this quarter.
Chief executive Paul Williams said: “We are seeing a marked increase in activity across our portfolio as London is emerging from lockdown.
“Our occupiers are telling us that they are keen to return to their offices as the economy bounces back.”
Derwent is progressing major developments including 130,000 sq ft at the Network Building in Fitzrovia, W1 (pictured). It expects a planning decision next month and will either bring the scheme forward as an office or life sciences lab.
It is 87% prelet at the 285,000 sq ft Soho Place, W1, and currently procuring the main contractor for 19-35 Baker Street, W1, for a 279,000 sq ft scheme, with demolition to start in H2 2021.
At the end of Q1 Derwent had a loan-to-value ratio of 16% with undrawn facilities and cash of £621m.
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