CLS has become the latest landlord to record improved office market activity in the UK, with group leasing activity increasing substantially.
The company is most known for its portfolio of typically long-let offices in the UK, Germany and France. It said between July 1 and September 30 it signed 24 leasing deals securing £2.4 million of annual rent, over 50% higher than the same period last year, at 6.2% above ERV (estimated rental value).
Among significant transactions was a 10-year lease with Hays Recruitment at Apex Tower in New Malden, and a lease extension with the Borough of Hammersmith & Fulham at the Clockwork Building.
CLS said deal activity in the first three quarters of 2023 is “tracking significantly higher compared with last year and we expect this to continue throughout Q4 2023 with the UK performing particularly strongly since the summer”.
The update comes in the same week that property giants British Land and Landsec cheered good demand for high quality central London space.
Fredrik Widlund, chief executive of CLS, said the board remains confident the group will meet its earnings expectations for the full year.
Widlund added: “We are seeing an improving lettings market and some early signs that the economic headwinds impacting the office sector are moderating.”
The firm, which has a £2.2 billion asset portfolio, said its sale of Westminster Tower on the Albert Embankment, which exchanged in the first half, is expected to complete for £40.8 million, 1.2% ahead of valuation on November 30.
Total vacancy across the estate increased slightly between June and September 30, which CLS said came as some property refurbishments were completed.
