Companies are setting out on their hunts for new offices earlier than ever before as London’s development pipeline lessens, says the chief executive of investor-developer Derwent London.
In a first-quarter trading update, Paul Williams said the central London office market has shown strong demand against ongoing low supply.
“Larger occupiers are planning further ahead than ever before as the medium-term pipeline is squeezed,” Williams said. “Investment volumes more than doubled to £2.4bn in Q1, compared to the prior year, driven by London’s global appeal and the positive rental growth outlook.”
The company has completed or put under offer £14.3m of leasing and asset management transactions since the start of the year, with talks ongoing at sites including Network W1 in Fitzrovia, due to complete at the end of this year.
The company said it is likely to make further disposals over the rest of this year, recycling the proceeds into developments and acquisitions.
Its development portfolio includes Network W1 as well as 25 Baker Street due to complete imminently and fully pre-let. The next phase comprises three West End projects totalling 500,000 sq ft.
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