Accountancy and business advisory firm BDO has signed a long-term lease for a 220,000-square-foot UK headquarters at The M Building, the makeover of the former Debenhams on Oxford Street in London's West End.
BDO, which has been headquartered in the West End for over a century and at 55 Baker Street since 2007, has taken a long-term lease for its 5,000 London-based employees, representing more than half of its UK footprint. BDO said it plans to relocate in Autumn 2027.
The former Debenhams building is owned and being fully developed by Ramsbury, the ownership vehicle controlled by Swedish entrepreneur Stefan Persson, in partnership with development adviser Capital Real Estate Partners. In total, the building will provide 280,000 square feet of workspace, with over 13,000 square feet of landscaped terracing.
A further 58,000 square feet of of offices is available on the top three floors of the building, with 9,000 square feet of private terraces. The building is due to reach practical completion in late 2025.
The building includes changing rooms, showers and bike storage. It is targeting BREEAM Outstanding, Nabers 5*, and an EPC A rating.
BDO is the first major office occupier to take space in one of the former department stores on the famous London street thoroughfare that are being repurposed, and the letting is the largest in the West End this year.
According to CBRE, there is 9.1 million square feet of UK office development under construction which could complete this year, 60% of which is in Central London. It says 40% of the UK under construction pipeline to 2028 is already prelet or under offer.
BDO had been in talks with Facebook parent Meta to sublease around 250,000 square feet that the technology giant had prelet but did not occupy at 1 Triton Square in Euston. Last year British Land instead secured an £149 million surrender premium from Meta, or the equivalent of seven years' rent, as it decided to press on instead with a life sciences and offices makeover that it believes will secure higher rents.
The accountancy firm is also thought to have looked at the space Meta is exiting at German landlord Deka's Rathbone Square off Oxford Street.
Ramsbury's Persson is the owner of fashion brand H&M and one of the world's richest individuals.
The former Debenhams department store has been been partially flattened and CBRE's London headquarters at Henrietta House looks directly down on to the site as work progresses.
The project is the most visible example of the change in London's famous shopping address, as it lies on the brink of what Savills has termed a "generational change", with 1.32 million square feet of new office schemes proposed for delivery in the next five years.
Debenhams vacated its purpose-built department store home at 334-338 Oxford Street in February 2021 after falling into administration the previous year. Online fashion retailer Boohoo bought the group out of administration but did not retain the real estate. In October 2019, Debenhams had already gained consent for a change of use of the fourth and part of the fifth floor from retail to office.
Paul Eagland, BDO’s managing partner, said in a statement: “It’s exciting to have secured such a great building, which helps us meet many of our commitments: to our people, to our clients, the West End of London, and to our planet.
“Working together is what powers our business, and we remain committed to offering flexible, modern spaces where we can learn together, share ideas and collectively deliver work to our clients. We have a strong attachment to the West End and our new UK headquarters will provide a modern, flexible working space in the beating heart of the regenerated Oxford Street area.
“It marks the start of a new chapter in BDO’s history and gives us a new home from which to grow our UK business in a responsible and sustainable way.”
Lars Drangel and Ola Nilsson from Ramsbury, added: “It is very exciting to be able to welcome BDO to The M Building and we are looking forward to building a long-term relationship with the team there as we work together to develop a new headquarters they can be justifiably very proud of and that helps them achieve their own ambitions as a business. We are honoured that BDO has placed its trust in Ramsbury to deliver one of the most prestigious and sustainable buildings in London.”
CBRE and Capital Real Estate Partners advised on the transaction. CBRE advised BDO.
BDO’s investment in London forms a key part of its national property portfolio across 17 UK locations, which are home to its 8,000-strong workforce.
In the last two years, BDO has moved into new premises in Glasgow, Nottingham and Ipswich, and has invested in major refits in Edinburgh, Bristol, and Southampton. It is shortly moving in Guildford and, next month, will move into its new Manchester office, Eden.
Mark Stansfield, head of UK analytics at CoStar, said: “The bumper BDO deal provides a shot in the arm to a West End leasing market that has been quiet of late, especially at the larger end. There were only two new lettings for spaces over 20,000 square feet in the first half of 2024, down from 15 in the second half of last year and 12 in the first half. It is the West End’s largest letting since Blackstone preleased 225,000 square feet on Berkeley Square two years ago and becomes one of only 10 West End lettings above 200,000 square feet this century.
"The completion of this deal should usher in a busier period in the leasing market as the economy picks up momentum and the political fog has lifted, with other big deals like Evercore’s in Victoria waiting in the wings. The best-quality, sustainable space in London’s most appealing locations should continue to attract strong demand as firms press the button on leasing decisions, as has been the pattern throughout the past three years.”