J Peiser Wainwright set new record rent in the City at £90psf

Affinity, which is based in London but also operates in Singapore, Sydney, Melbourne, Perth, Seoul and Houston, is relocating from its current HQ in Tower 42.The company has signed a ten year lease on the 6,584 sq ft floor with a five year break option.

The building, which at 224 metres is the tallest in the City of London and was designed by Rogers Stirk Harbour + Partners. Prime office rents in the Square Mile are higher now than at their peak level in 2007 at the onset of the financial crisis. City office rents at the end of Q1 stood at £65 per sq ft, compared to £63.50 per sq ft in Q3 2007, around the time queues were forming outside branches of Northern Rock Bank.

Demand for offices reached 9.3m sq ft in the 12 months to the end of March, compared to a 10-year average of 6.8 m sq ft. The demand figure for 2007 was 8.4m sq ft. However, there was just 6.8m sq ft of available office space on the market at the end of the quarter, down from 10m sq ft a year ago.

Richard Fulford-Smith, managing partner of Affinity said: “This iconic, contemporary, well-positioned and efficient building provides us with a special environment in the heart of the City . Our new office will provide inspiration to our teams, clients and friends. We are very fortunate, as a new shipping company, to find a space so perfectly matching our requirements, with the bonus of a special view of the London skyline.”

Tim Roberts, head of offices at British Land, said: “Affinity is a dynamic, international business with ambitious growth plans, and we are very pleased it has selected The Leadenhall Building for their global headquarters.”

J Peiser Wainwright acted for Affinity whilst DTZ and JLL advised British Land and Oxford Properties. 

Simon Wainwright, Managing Director J Peiser Wainwright said “The City Office market has made a dramatic turnaround since 2009 and rents have surpassed previous highs. Competition for available space is coming from outside the traditional city occupier base, at a time of falling supply and limited availability in certain size categories. There is a particular shortage of high-end space in the 6,000 sq ft – 7,000 sq ft size category at present and £90psf headline rent is competitive on a cost per desk basis for the Leadenhall Building given its efficient design, high BREEAM rating and low running costs; there were no competitors”.