Gherkin subtenant paying highest rent in City: Wallace

Financial investor Sutherland Group has signed a tenancy agreement as a subtenant at the Gherkin for what has ended up being the highest rent in the City of London this year, according to adviser Wallace.

Sutherland Group has taken 3,000 square feet (279 m2) from the landlord, Superderivatives, at IVG's 'Gherkin' tower at 30 St Mary Axe, EC3. Superderivatives itself is a tenant of the building, and has sublet part of its premises to Sutherland Group, which is paying £59.50 per square foot on a five-year lease. Wallace’s Property Practice acted for Superderivatives, while Sutherland group was advised by Bates Wells & Braithwaite.

Wallance said this and other large leases point to new market momentum and indicates that the amount of space under offer in central London continues to rise, reaching 3.4 million square feet at the end of November, a 21% rise on October and more than double that recorded at the start of the year.

Martin Otvos, lead partner on the deal, commented: 'We are certainly seeing the first signs of recovery. Business leases are a good indicator of market activity, both in terms of the business rental market itself and the wider business landscape. If businesses are taking out more office space, they are clearly either experiencing growth or anticipating growth. So overall this is a positive indication of improving corporate activity in the City.'

In recent months Wallace has handled a large number of business leases for companies such as Bottega Veneta (part of the Gucci group), Chez Gerard Restaurants, Caffe Uno Brasseries, Hays Recruitment and Penna. On the landlord side, the firm has advised on business leases for Bourne Group, the Freshwater Group, Follett Property Holdings, Flodrive Group and Logical Properties.