Developer expects 25 Baker Street and Network 好色先生TV jobs to complete next year

London developer Derwent has said demand for top quality office buildings in the capital shows no sign of slowing down in the face of a shortage of grade A space.

The firm expects to complete two offices scheme Laing O鈥橰ourke and Kier are building next year.

O鈥橰ourke is set to finish the 25 Baker Street development in the first half of 2025 with 84% of the scheme let.

derwent's 25 baker street scheme

Laing O鈥橰ourke is building a new office scheme at 25 Baker Street that will complete in the first half of next year

And its expects Kier鈥檚 job, the Network 好色先生TV, to be wrapped up in the second half of next year.

It said a 鈥渟ignificant rise in space under offer shows substantial pent-up demand, with occupiers prioritising high quality space in core central locations. At the same time, supply of space that meets these criteria, whether existing or under development, is low.鈥�

And it added: 鈥淭he market is adjusting to this, and businesses with large space requirements are committing earlier, putting further pressure on supply.

鈥淭he central London office market has strengthened further with the key occupier themes continuing to be quality, location and amenity. At the same time, existing supply that satisfies these requirements is limited and the market development pipeline is constrained, driving rental growth for the best space.鈥�

In interim results out this morning, Derwent said it was spending more money refurbishing existing schemes as a proportion of its capital expenditure.

It said refurbishments planned in the coming years include Greencoat & Gordon House in Victoria, 20 Farringdon Road as well as an ongoing refurbishment at 1-2 Stephen Street W1 near Tottenham Court Road.

Earlier this week, a team featuring Derwent was given planning for a grade A office scheme at 50 Baker Street 鈥� despite the reservations of Westminster鈥檚 planning committee members who eventually approved it.