Office Principles has recently been informed that one of the biggest pre-let deals is expected to take place in the city since 2010. This is a situation where tenants agree terms before a building is finished.
Schroders, one of Britain’s oldest and biggest fund managers has plans to occupy a development by Brookfield Office Properties and Oxford Properties in partnership with the City of London Corporation, which owns the freehold.
Schroders is a 200 year old company who currently have their home in Gresham Street. Their new office at One London Wall Place has over 300,000 sq ft of workspace, and according to Michael Dobson, the Chief executive of Schroders, it will allow the bank to have its entire London staff under one roof. If Schroders sign today, it will allow the consortium to begin work as soon as the site is cleared. This will mean that two blocks should be ready by late 2016.
This expected deal proofs that confidence in the Square Mile is continuing to rise. Since last summer, several large companies in the capital, including Amazon, FTI Consulting, News Corporation and CMS Cameron McKenna, have agreed to move to new headquarters. Research by Cushman & Wakefield, the property consultancy, shows that the total office take-up last year was 11 million sq ft, up by 50% of 2012. Cushman said that 30 deals of more than 50,000 sq ft where signed last year, the most since 2007.