London Office Rent Record Smashed

The previous record rent level for London office space has been broken – and by some margin – it is reported.

The Evening Standard says that hedge fund Steadview has agreed to pay a rent of £250 per sq ft for space at 30 Berkeley Square in Mayfair. This exceeds the previous record London office rent of £190 per sq ft.

According to the letting agents CBRE, the space extends to 2,703 sq ft, overlooks Berkeley Square and offers views to Hyde Park along Mount Street. Phillips auction house operate on the lower ground, ground and first floors and their art exhibition extends into the reception area of the building. In addition to the record rent there are service charges of approximately £12.50 per sq ft and business rates of approximately £50 per sq ft.

Steadview Capital Management  is an investment fund focused on Asia, investing in both public and private equity and is headed by founder and CIO Ravi Mehta. The firm represents institutional investors including leading family offices, endowments, foundations, sovereign wealth funds and pension funds.

Mayfair is, of course, an ultra-desirable but very niche market both for homes and commercial space. So this record rent is unlikely to be representative of the wider market. Despite the ability of hedge funds to splash the cash there was most likely just nowhere better or cheaper here for the money.

Source Evening Standard
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