High rental price in Savile Row suits office tenant

Posted on by John Cronin

A rental deal has been secured for prime office space in Mayfair at a rental price approaching £100 / sq ft.

23 Savile RowHedge fund York Capital Management has agreed to lease office space at the prestigious office building at 23 Savile Row, Mayfair (pictured – website) at an agreed rental price of £97.50 / sq ft.

A 12-month rent-free period has been agreed as part of the 10-year lease agreement. Having taken an office suite of 7,610 sq ft floor space on the 4th floor, York Capital will be paying an annual rent of £741,917.00 to landlords D2 Private.

23 Savile Row is a landmark building of 7-stories, offering a total Grade A floor space of 100,000 sq ft. The largest floors can accommodate up to 200 people and unrestricted floor plates are up to a maximum of 16,500 sq ft. Market reports indicate that D2 Private are aiming to achieve rental prices in excess of £100 / sq ft for the remaining 25,000 sq ft of vacant floor space in the building.

In recent research commercial agents CBRE reported that in the 1st quarter of 2011 West End office prime rents rose 2.2% to £92.50 / sq ft. This compares to unchanged City office rental prices of £55 / sq ft and Canary Wharf office rental prices of £37.50 / sq ft.

In 2007, D2 Private claimed to achieve the highest rental prices for office space worldwide when it let 7,289 sq ft of floor space at its 12 St James’s Square development for £140 / sq ft.

Other commercial buildings in the D2 Private portfolio include Waterside, Paddington Basin and Woolgate Exchange in the City. Waterside is entirely occupied by Marks & Spencers as their corporate headquarters. Woolgate Exchange, a 350,000 sq ft office development is occupied by West LB Bank.

Agents GVA advised York Capital.

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