American bank and asset manager State Street Bank has launched a search for a major London office move, as the London market expects a number of imminent lettings to hit the dwindling supply of prime space.
Market sources this week said the global banking giant, advised by JLL, is looking at options in central London alongside remaining at its home at Canary Wharf.
There is speculation that it is the party that has entered talks to prelet Helical and Orion Capital Management's 194,000-square-foot 100 New Bridge Street development in the City of London, which is scheduled for completion next year. It is also thought State Street could buy the building for its own occupation.
100 New Bridge Street is a carbon-friendly office development, next to City Thameslink and Blackfriars Station and a short walk from Farringdon Station. It comprises 194,000 square feet of offices, with terraces, including a 7,000-square-foot terrace with views of St Paul’s.
The existing 167,026-square-foot building is a virtual freehold, held on a 999-year long at a peppercorn rent from Network Rail Infrastructure. Two new floors are being added to the building. The main construction contract and development financing were signed in the second quarter of 2024 with practical completion scheduled for the first quarter of 2026.
Helical entered into a joint venture arrangement for the redevelopment selling a 50% interest for £55 million on a preferred equity basis to a vehicle led by Orion Capital Managers last year.
In London, State Street Bank is in around 345,000 square feet at 20 Churchill Place in Canary Wharf.
CoStar's senior director of market analytics, Patrick Scanlon, recently reported that prime City of London offices have experienced some of the strongest demand gains on record over the last 12 months, fuelling rental growth in a market with rising overall vacancies. Net absorption, which represents the change in occupied stock, has reached some of its highest recorded levels over the last year.
Scanlon said: “The City Core has attracted more tenant demand than any other London market over the last 12 months, as measured by net absorption, or the change in occupied stock. There have been no new development starts in the City Core since Q1 2024, and the volume of space under construction has fallen by 30% over the last 12 months. Although the vacancy rate remains high at more than 11%, large occupiers are fully aware that the dwindling development pipeline means their options for a large-scale move in the coming years will be limited. This is likely to generate more demand for pre-lets in core locations in 2025."
Knight Frank and Ingleby Trice advise Helical. JLL advises State Street Bank.
In a statement State Street Bank said: “Our current lease in Canary Wharf continues through 2028. As we do with our entire real estate portfolio, we will continue to evaluate our needs globally.”
All other parties declined to comment.