GPE points to sustained demand for high-quality London offices
Developer has successful year and points to flight to quality in London office space
26 November 2025
Great Portland Estates (GPE) has reported continued leasing momentum across its central London portfolio, attributing the trend to a long-term structural shift in occupier demand toward premium, well-located office space.
In its half-year results for the period ending 30 September 2025, the developer and investor said it had already exceeded last year’s full-year leasing performance, completing 43 new leases and renewals worth £37.6 million in annual rent - 7.1% ahead of March 2025 estimated rental values (ERV). A further £10.3 million in lettings is currently under offer at an average premium of more than 30% to ERV.
GPE’s Chief Executive Toby Courtauld said that occupier preference for top-tier space in vibrant London districts has been evident for some time and continues to drive performance. The company reported a 76% customer retention rate and rising demand for both its headquarters and Fully Managed offerings.
"It has been clear to us for a number of years that customers are choosing the best spaces in vibrant central London locations over the rest," Courtauld said. "This structural theme is as relevant today as ever."
The company has three major schemes currently on site, which are already 71% pre-let, and reported significant interest in its future pipeline, which includes 1 million sq ft of development and refurbishment space. GPE said this pipeline is already attracting interest at premiums to current ERVs and is forecast to generate valuation surpluses of up to £520 million.
Rental growth guidance for the current financial year remains at 4% to 7%, with stronger projections of 6% to 10% for prime offices. The firm also highlighted internal promotions to its executive committee to increase strategic focus on flexible workspace and customer experience.
GPE has also made progress on the capital recycling front, completing two disposals for £292 million, including the sale of 1 Newman Street for £250 million. One acquisition was made during the period: The Gable in WC1 for £18 million, adding to its West End cluster.
The overall portfolio was valued at £3.1 billion as of 30 September, with office valuations up 1.8% and developments up 6.1% over the six months. GPE reported EPRA earnings per share up nearly 70% compared to the same period last year and maintained its interim dividend at 2.9 pence per share.
The company signed a new £525 million revolving credit facility in October and reported significant liquidity, with cash and undrawn facilities totalling £462 million.
