One of the West End’s biggest speculative office schemes is almost fully let – more than a year before completion.
London & Regional’s redevelopment of 55 Baker Street, W1, is close to securing insurance giant Marsh & McLennan as its third tenant.
It is expected to take 96,000 sq ft at the 560,000 sq ft scheme for a subsidiary at a rent in the high £50s per sq ft.
The Livingstone brothers’ L&R is planning to take the top floor for its own occupation, leaving only around 20,000 sq ft if Marsh signs. Based on Knight Frank’s figures, this would leave the vacancy rate for new and refurbished space north of Mayfair at just 3.9% in Q2.
Accountant BDO Stoy Hayward and KF have already signed prelets at 55 Baker Street. “It’s unusual for a scheme of that size to be entirely let pre-completion, particularly as it is not just to one tenant,” said a West End agent.
KF has become joint agent with Edward Charles Jones Lang LaSalle is advising Marsh. None of them would comment.
Two years ago, Marsh’s human resources subsidiary, Mercer, dropped plans to occupy the 170,000 sq ft K2 in St Katharine’s Way, E1, because of job cuts.
l Availability in London’s Soho is also dwindling. Computer giant Microsoft, which is moving to Cardinal Place in Victoria, is about to sublet 10 Great Pulteney Street, W1, to mobile phone firm Nokia.
There are 15 years left on the lease, and Nokia will pay more than Microsoft’s £52.50 per sq ft rent. Nokia is advised by Cushman & Wakefield Microsoft by Jones Lang LaSalle and landlord Coronation Land by DTZ.
Baker Street: third tenant lined up
