X, the company until recently known as Twitter, has made up with its landlord the Crown Estate as the two look to hook a major occupier at the London headquarters the social media giant wants to exit.
CoStar News revealed in May that billionaire Elon Musk's then Twitter had appointed JLL to advise on options for a relocation of its London offices after a high-profile spat with the Crown Estate over unpaid rent, as the group scaled back its global office occupancy.
The social media giant has been marketing 84,000 square feet on floors one, three and six at 20 Air Street for potential sublease. At the same time the Crown has been marketing 28,000 square feet across floors two and four at the building via Bluebook and Knight Frank.
The space is understood to have drawn strong interest from a variety of occupiers, and could open the door to a single company if X and the Crown resolved their differences.
CoStar News understands that one unnamed party is now in exclusive talks to take floors three (31,000 square foot), four (27,000 square feet) and six (25,000 square feet) or 83,000 square feet in total. The third and sixth floors are in X's hands, while the Crown Estate is marketing the fourth floor.
CoStar News also understands the second floor, which is the Crown Estate's, has gone under offer to a separate party.
Earlier this year it emerged the Crown Estate, King Charles III's property company, had filed a claim against Twitter over alleged unpaid rent at the building. The matter has now been settled.
CoStar News first reported on the potential dispute between the independent property company of the reigning British monarch and the world's then richest man over unpaid office rent last year.
The news on the fierce interest in the space underlines a pick up in West End offices requirements and activity after a quiet year so far.
According to Savills's West End office market watch, total take-up during August reached 186,420 square feet across 25 transactions, marking the second weakest month it had recorded in 2023, with leasing activity largely characterised by a number of smaller deals. This took the overall year to date figure to 1.93 million square feet, down 28% on the 10-year average.
But there has been a pick-up in activity.
Market sources said US fashion retailer Ralph Lauren, advised by Cushman & Wakefield, is preparing to launch a 30,000-square-foot requirement in the West End, while US ecommerce giant eBay, advised by JLL, is preparing to launch a similar-sized requirement taking in the West End and in particular Victoria, and other areas of central London.
Ralph Lauren is based in around 20,000 square feet at 50 New Bond Street in Mayfair while eBay occupies around 30,000 square feet at Hotham House, 1 Heron Square in Richmond in Greater London.
Cushman & Wakefield and JLL declined to comment.
Recently menswear brand Ink committed to a 10-year lease at Westbrook Partners' Arthur Stanley House, taking 12,889 square feet over ground, lower penthouse one and lower penthouse two. It understood to be paying around £104 per square feet at the 50,747-square-foot building, a near record for the Fitzrovia area. Newmark BH2 and Knight Frank acted for Westbrook.
CoStar News revealed recently NBCUniversal, which is being advised by Savills, is searching for around 150,000 square feet of offices. It is based at Google's Central St Giles offices in Covent Garden. Market sources described the live search as a "stay or go" requirement with Google keen to keep the group.
Elsewhere, Visa, advised by CBRE, is preparing to launch a London-wide search for between 150,000 square feet and 200,000 square feet in a search ahead of a lease event in 2028. The finance and insurance company is based in its Innovation Centre in Paddington at 1 Sheldon Square, occupying around 195,000 square feet.
Elsewhere market sources said retailer Next has an overflow requirement for 10,000 to 15,000 square feet close to Tottenham Court Road, while publisher Bonnier Books, which is based in Bloomsbury Square, has a requirement for 12 to 17,000 square feet in Midtown. Other requirements are retailer Mountain Warehouse, looking for 22,000 to 27,000 square feet focused on Victoria, while law firm Paul Weiss, currently at 10 Noble Street in the City, is understood to be looking for up to 50,000 square feet in Mayfair and Soho.