Pricey West End space up for grabs as tenants downsize

Financial occupiers want to dispose of some of the most expensive West End space acquired during the past two years as the credit crisis halts their expansion. 

Icelandic investment company FL Group, UK financial services firm Court Square Capital Partners and US-owned asset manager Resource Europe Management are all trying to sublet space that is costing them around £100 per sq ft. 

FL Group is disposing of the 6,000 sq ft top floor at 77 Grosvenor Street, W1, which it took last year at a record £120 per sq ft. It will keep one floor. 

Court Square is disposing of 2,600 sq ft at 10 Bruton Street, and Resource Europe plans to assign its 2,500 sq ft office at 10 Brook Street, both W1. They are seeking £97.50 per sq ft and £100 per sq ft, respectively. 

In Knightsbridge, New Star Asset Management has been trying to offload 28,000 sq ft at 8 Lancelot Place, SW7.  

It took the building last June at £85 per sq ft, and hopes to achieve £95 per sq ft. New Star will retain its HQ at 1 Knightsbridge Green. 

West End agents said that disposals by financial occupiers were likely to have only a “minimal” effect on West End headline rents, as they do not dominate the market.  

Last year, they accounted for less than 20% of West End take-up. 

“So far, any tenant releases have tended to be absorbed quickly,” he said.