Great Portland Estates (GPE) has secured three leases at its newly launched flexible office building in Farringdon, achieving an average rent of more than £200 per square foot. The 48,000-square-foot building on St Andrew Street — part of GPE’s fully managed flexible office portfolio — has seen strong demand since its launch in November: 11,300 square feet have been leased so far.
In fact, the leasing activity at 6 St Andrew Street is surpassing expectations with occupancy rates ahead of GPE’s underwriting and 13% above the estimated rental values. GPE currently manages 525,000 square feet of flexible office space and plans to double that amount in the coming years, reflecting its growing commitment to this sector.
As of the end of September, the average rent across GPE’s flexible office portfolio was £203 per square foot, with rents in the West End reaching £237 per square foot. The lease terms averaged 2.8 years, and the typical unit size was around 2,550 square feet.
GPE reported a net operating income margin of 50% with a gross operating income of £20 million and total costs of £10 million.
At 6 St Andrew Street, new tenants include Clavium, a software development company that has agreed to 4,650 square feet on the seventh floor for a four-year term with an option to break at two years. Additionally, Treatwell, a beauty booking website, has leased approximately 5,490 square feet on the first floor for two years. Finally, The Green Finance Institute, a non-profit advising firm, has taken a two-year lease on the ground floor with a break option at 18 months.
