Derwent London has let 34,000 sq ft of space at 2 Stephen Street, W1, to The Office Group.
The flexible office space provider has signed a 20-year lease for the first to third floors, paying £65 per sq ft.
There are five-year reviews with minimum CPI-linked uplifts capped and floored at 4% to 2% pa. Derwent will receive a share of The Office Group’s profits on the space above a threshold level in return for a capital contribution of £1.8m.
The property is part of 1+2 Stephen Street, Derwent’s 267,000 sq ft office and retail building fronting Tottenham Court Road.
John Burns, chief executive of Derwent, said: “This letting continues to show the strong attraction of Fitzrovia and the significant improvements to the eastern end of Oxford Street.”
Lloyd Dorfman, chairman of The Office Group, added: “It’s exciting to partner with leading developers across London to meet the growing demand for flexible office space in the capital’s flagship developments.”
