The Department of Social Security is slashing its rent bill by swapping suites at the Adelphi building on John Adam Street, WC2.
DSS is leaving its space on the top floors and taking 12,077 sq m (130,000 sq ft) on the first four storeys of the building. The move frees the more attractive space which will be put on the market by letting agent Knight Frank.
Even if KF achieves the quoting rent of (£27.50 per sq ft), the DSS will pay substantially less than the rent it agreed in 1989 for the upper floors of the building. Its present bill is £5.9m pa, which equates to £50 per sq ft.
A spokesperson at the DSS confirmed negotiations were underway but heads-of-terms had not yet been reached. The deal will be for “broadly the equivalent amount of space” as the 13,382 sq m (144,000 sq ft) that the DSS occupies now.
Chesterton advised the DSS.
EGi News 30/01/97
