Derwent London lands its best leasing year on record

London landlord, Derwent London, is on track for one of its best leasing years on record, having struck £39.8m of deals so far in 2026, with another £1.7m of rent under offer. Vacancy across the portfolio has dropped to 3.4%, down from 4.4% at the half year. Here’s the full rundown…

Flex is right in the middle of it. NewFlex has taken 18,800 sq ft at One Oliver’s Yard at £73/sq ft, the biggest letting Derwent has signed in the second half of the year, with Beauty Seen taking a further 7,300 sq ft in the same City Road building at £72.50/sq ft.

Over in the West End, 1-2 Stephen Street has signed Grayling for 11,000 sq ft at £92.50/sq ft and Econic UK for 8,100 sq ft at £125/sq ft, the top rent of the batch by a clear margin. Of the £39.8m, £28.6m is brand new lettings, signed 6.1% above where the buildings were valued at the end of last year.

Jonathan Murphy, Chief Executive of Derwent London, who took the job in September, credits the leasing teams: “Since joining Derwent London, I have been encouraged to see our teams achieve higher rents and occupancy rates across our quality portfolio. This strong leasing activity has further reduced EPRA vacancy and, with additional lettings under offer, 2026 is on track to be one of our best years on record.”

Behind the lettings, the landlord has been busy reshaping the portfolio, selling £290m worth of buildings this year with another £135m under offer, closing in on the £400m it set out to sell in 2026.

And the money is going back into the West End. Four major schemes totalling 527,300 sq ft are under development contract, with Derwent targeting returns of 10% to 15% on each.

Murphy is clear on what they mean: “Our four committed major West End developments are expected to make a meaningful contribution to future rental and earnings growth.”

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