Amazon has agreed to take a further 80,000 sq ft at Brookfield’s Principal Place, EC2.
The online retail giant signed a 430,000 sq ft prelet in 2014 at a rent of around £50 per sq ft with an option to take the remaining space in the 16-storey tower.
Now it has agreed to take around half of the remaining offices in the 700,000 sq ft building, which is due to be completed in Q1 2017.
It is possible Amazon will further expand its presence in the building at a later date. Cushman & Wakefield and Allsop have been instructed to market 43,000 sq ft across the third and fourth floors.
The deal will be seen as a positive sign for the City occupier market amid uncertainty in the wake of the EU referendum.
City occupier demand was subdued in the short term, with Q2 take-up dropping by 52% on last year, according to EGi data.
However, low vacancy rates and an increasingly diverse occupier base should prevent a dramatic fall in rents compared with previous market corrections, according to JLL.
ENPAM, a £13.6bn pension fund for -Italian doctors and dentists, completed a deal in May to buy a 50% stake in Principal Place for around £400m.
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