Private equity company Bain Capital has let around 37,000 sq ft of prime office space in Mayfair at Â£90 per sq ft at Devonshire House,. The building is in one of the most sought after parts of London as it overlooks Green Park and the Ritz. Deals this size are very rare in Mayfair, they are usually to a maximum of 10,000 sq ft, such is the cost of office space.
The only known deal which is bigger than this was when Warburg Pincus to over 40,000 sq ft at Â£110 per sq ft at Almack House in St Jamesâ€™s last April. The office market in the West End has seen rental rates fall some 40% since mid 2007, as banks and private equity companies shedded staff and requirement levels. But better news is on the horizon with central London office take up increasing in Q3 31% to 1.6 million sq ft.