Derwent London Lowers Rental Expectations In Wake Of Brexit
Though Derwent London reported the first half of 2016 had been the strongest ever in terms of square footage leased, the company reduced its estimates for rental growth for the rest of the year as the London office market is still finding its equilibrium after the Brexit referendum. The company sliced its growth projections from 5.8% to 1.5%.
CEO John Burns noted Derwent’s exposure to financial services—which is likely to be hit by Brexit—is minimal, and notes that Derwent has no projects in the City. Derwent’s four development projects in the pipeline are near Crossrail stations.
Overall, Derwent London’s portfolio is 98% occupied.