Grosvenor’s London office occupancy increased to 99% in the first half of 2024, driven by the success of its new flexible office offerings.
Vacancy in the company’s portfolio is now just 0.9%, down from 3.8% at the end of 2023. This figure is below the West End average of 7.4% as of June, according to Savills.
Over the past six months, Grosvenor secured 64 leases across various sectors in its Mayfair and Belgravia portfolio, covering 127,000 sq ft and generating £8.52m in rent, 11% above the estimated rental values.
Retail and leisure also saw strong demand, representing nearly 60% of the deals made due to rooftop restaurant Cornus’ recent deal to open at Grosvenor’s Ice Factory.
There are a further 12 retail and leisure leases and renewals currently under offer, at 14% above ERV, accounting for £1.44m of rent.
Overall, occupancy across the portfolio, excluding strategic voids, reached a post-Covid high of more than 97%.
Grosvenor’s strong leasing performance is driven by its proactive asset management, in addition to its plans to invest £1.4 bn in London over the next decade and provide digital leases to tenants.
The business also offers funding to aid tenant expansion and has dedicated £90m to retrofitting properties, enhancing their sustainability and operational cost-efficiency.
Amelia Bright, executive director of the London estate, said: “The results across our London portfolio demonstrate the benefit of continual investment in our properties, places and partnerships with occupiers.
“We’re seeing ongoing strength in demand for our high-quality, sustainable places. With a substantial investment pipeline including South Molton – the largest mixed-use development on site in the West End – and further flex openings, we’re confident about future performance.”
Image from Grosvenor
Send feedback to Shifali Gorka
Follow Estates Gazette
