City rents hit record high

Rents across London are continuing to increase, from super high prices in prime Mayfair locations to increased values in Midtown. Now, offices in the City have seen a record prime rent in one of London’s newest and most iconic buildings, 122 Leadenhall Street – AKA the Cheesegrater. 

American insurance company FM Global have agreed a deal to take space on the 41st floor, 7,700 sq. ft., at around £85/ sq. ft., a full £5 more psf than the previous record set earlier this year. With average prices for prime rents in the city floating around the £60 mark, the letting of the 41st floor at the Cheesegrater shows the progression of the market across all areas of London. However, the iconic status of the Cheesegrater must be considered a major factor in attracting such a high rent.

Teresa Beatty, Surveyor at Morgan Pryce, notes how London is seeing an increase in rents across the board, 

“Compared with the amount of space available in Central London, the City is a fairly open market in terms of there being available space across the majority of sizes. The recent letting in the Cheesegrater however, shows that for the right space companies will be charged a premium – it is very much a Landlord’s market at present.”

The record high suggests that City prices are starting to increase and close the gap on rent levels in the West End, they may not necessarily catch those levels of rent, but could increase at a similar rate. 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.