Microsoft has settled on a new head office at British Land’s 2 Kingdom Street, W2.
West End sources said the US software giant had gone under offer for three floors at the Paddington block, totalling close to 80,000 sq ft.
It is taking the floors currently occupied by Rio Tinto and Astra Zeneca at a rent of close to £60 per sq ft. The leases expire in 2026, it is understood.
Microsoft’s letting follows its £4.5bn buyout of Nokia’s mobile phone business in April.
Nokia leases around 60,000 sq ft on the part ground, fourth and fifth floors in the building.
The software giant will now move its Victoria-based staff in to the three floors above Nokia’s existing office.
Microsoft currently occupies 92,808 sq ft at 80 Victoria Street, SW1. The firm took the space in June 2006 on a lease that expires in May 2021. Microsoft also occupies 2,900 sq ft at 29 Great Pulteney Street, W1, where it has been since August 2012.
It launched a requirement for 150,000 sq ft this year through Cushman & Wakefield and eyed Pembroke Real Estate’s 10 Finsbury Square, EC2, before deciding upon the West End option.
Cushman & Wakefield is advising Rio Tinto; JLL is representing Astra Zeneca. All declined to comment.
