House of Fraser is preparing to launch a search for a new headquarters as Derwent London works up plans to redevelop the retailer’s Baker Street home, W1.
Long-term adviser Edward Charles & Partners – which declined to comment – has been instructed to source a new HQ for the retailer ahead of its 2018 lease expiry at 27 Baker Street.
House of Fraser is the main tenant in the 60,000 sq ft building. The new requirement is expected to be for at least 50,000 sq ft as new owner Sanpower seeks to expand the business.
House of Fraser pays around £47.50 per sq ft for the sublet space from Marks & Spencer but the average Baker Street rent is now £70 per sq ft, according to JLL, meaning the company is expected to cast a wide net for its search. Various London submarkets will be considered, as well as options outside the capital.
Derwent and joint venture partner the Portman Estate have drawn up plans for a 250,000 sq ft office-led redevelopment of 27 Baker Street and neighbouring properties.
The scheme for 19-35 Baker Street will also include substantial retail elements. Construction could start as early as 2018, subject to planning.
