Signs of spring in a tough City office market emerged today as insurance broker Jardine Lloyd Thompson prepares to sign the biggest leasing deal in the Square Mile for at least two years.
The firm, which has been on the hunt for 250,000 sq ft of space in the recent months, has settled on the St Botolph building in London’s insurance district as its new base and is close to making a formal offer for the space, it is understood.
The City leasing market has been in the doldrums since Europe’s debt crisis intensified in the summer.
Big tenants which had previously been considering a move, such as Schroders, have been sitting on their hands.
Law firm CMS Cameron McKenna also pulled out of Hammerson’s Principal Place scheme, which set back the developer’s plans for the tower on the fringes on the City of London.
But JLT’s move to St Botolph, now owned by Jamie Ritblat’s Delancey after it took over original developer Minerva last year, is a sign of more buoyant demand among insurance clients.
Broker Aon signed a major pre-let for British Land’s Cheesegrater skyscraper last year while insurers currently on the hunt for more space include RSA, which is looking for 100,000 sq ft.
Barring pre-let deals for buildings in the pipeline, industry sources said the JLT deal was the biggest let of existing space since 2010.
JLT was previously considering a move to nearby Beaufort House, owned by Libya’s sovereign investment fund.
