Offices

Offices account for 14.1% of the portfolio by capital value of £719.6m. By income, offices represent 21.6% of the total and gross rents increased by 16.0% over the year, primarily due to inflation-linked increases and a number of new lettings.

The office portfolio has continued to be virtually fully let through 2022, with a year end vacancy rate of 1.1%. Office occupiers on the Estate typically highly value the vibrant local environment and lifestyle. Our observation is that they also tend to favour physical collaboration and presence in the office and this contributes to our wider estate management by introducing an influx of workers to the area, stimulating physical and economic activity locally.

Activity across London has continued to increase through a combination of more workers returning to the office and a rise in tourists. London remains one of very few world capitals that offers a magnetic mix of access to talent, finance, culture and services which makes it a highly attractive location in which to live and to work.

Left Chelsea’s lifestyle appeals to many as a head office location

Opposite Louis Vuitton on Sloane Street, who have extended to offices above ground floor retail

Below 224-226 King’s Road development, including new office space