The Crown Estate has completed the letting of 20 Air Street, the West End headquarters building that social media giant X had been looking to vacate after a public spat with its landlord.
CoStar News revealed in May that billionaire Elon Musk's then-Twitter had appointed JLL to advise on options for a relocation of its London offices after a high-profile fall-out with the Crown Estate, the real estate company representing the reigning monarch, over unpaid rent as it scaled back its global office occupancy.
The social media giant had been marketing 84,000 square feet on floors one, three and six at 20 Air Street for potential sublease. At the same time the Crown was marketing floors two and four at the building via Bluebook and Knight Frank.
All of the space has now been leased by the Crown in completed transactions, with X staying put in a third of its prior space.
The company until recently known as Twitter handed back its lease on two floors to ensure US law firm Paul Weiss could move there for its London headquarters.
CoStar News reported earlier this month that Paul Weiss would take floors three (31,000 square feet), four (27,000 square feet) and six (25,000 square feet), 83,000 square feet in total. The third and sixth floors were in X's hands, while the Crown Estate has been marketing the fourth floor.
The deal has been structured via a direct lease from the Crown Estate on the fourth floor, combined with assignments and regears of the third and sixth floors that X vacated.
The Crown said X now intends to remain in occupation of the 27,333-square-foot first floor.
The 28,053-square-foot second floor, which is the Crown Estate's, was recently leased to HarbourVest at a rent understood to be around £100 per square foot.
Charles Owen, head of asset management, Regent Street at The Crown Estate, said in a statement: “The final lettings at 20 Air Street demonstrate not only the strength of the asset, but also of the wider West End office market. The area’s vibrancy and abundance of quality amenities is extremely attractive for firms of all sizes, giving their teams unique experiences on their doorstep. With over 1.8 million square feet of prime office space on Regent Street alone, we’re looking forward to welcoming more businesses to the West End in the coming years.”
Paul Weiss launched a major expansion in the UK in the summer, hiring Neel Sachdev and Roger Johnson from rival Kirkland & Ellis to co-head its London operation.
JLL advised X; Knight Frank and Bluebook advised the Crown. BH2 Newmark advised Paul Weiss.