Jane Street is set to double its London office space after outgrowing its existing premises near Liverpool Street during a period of rapid growth for the specialist trading firm.
The company has agreed to take 465,000 sq ft at One Spitalfields in a so-called pre-let deal, under which a tenant commits to a lease before a building is completed. The site is currently occupied by law firm A&O Shearman, which plans to leave in 2027. Jane Street is expected to move into the redeveloped building after 2029, once JPMorgan Asset Management has completed the project.
Jane Street employs more than 3,000 people globally and has established itself as a major trading firm, with revenues exceeding those of the Wall Street banks that previously dominated market making. In London, it currently occupies just over 200,000 sq ft at 2½ Devonshire Square near Liverpool Street. A person familiar with the matter said the firm does not expect to occupy its new premises until four years from now.
The agreement comes as companies are committing to office space earlier amid tight supply in London’s City district. Large businesses have increasingly been searching for offices well before they are completed and are willing to pay high prices for space, according to the source. Unlet space in buildings under construction represents only 1.3 years of demand, according to real estate group CBRE.
Companies are also remaining in their existing offices for longer. CBRE data show that vacancy rates in the City fell below 8 per cent at the end of the second quarter, compared with 10 per cent a year earlier and below the long-term average.
Jane Street had previously considered taking space at Deutsche Bank’s former headquarters at 75 London Wall and at the Dovetail building, both of which are under construction. Its agreement at One Spitalfields places the firm among companies securing substantial office commitments well ahead of completion.
Another major City development is also attracting a pre-let. Fifty Fenchurch, which is currently under construction, has agreed to let 145,000 sq ft to data provider S&P Global, according to people familiar with the matter.
The City is also facing a dispute over the amount of new office space that can be developed. It has warned that a proposal to protect views of the Tower of London could result in as much as 1mn fewer square feet of office space being built, in a dispute between developers and conservationists.
Michael Ramm, head of real estate for Europe at JPMorgan Asset Management, described Jane Street’s agreement as “the largest off-plan pre-let in the City in more than a decade, underscoring demand for best-in-class space”. He added: “We’re proud to partner with Jane Street and look forward to delivering a world-class office for their long-term occupancy.”
CBRE advised Jane Street on the deal.
