Great Portland to see growth accelerate; vacancy tighten on new developments

Great Portland Estates PLC (LSE: GPE) enters FY2027 with momentum building across both its traditional office portfolio and fast-growing flexible workspace business, as demand for high-quality central London office space continues to outpace supply. The company began the financial year by securing 12 new fully managed workspace agreements, adding £8 million of annualized rent.

Visible Alpha consensus forecasts show gross rental income is expected to jump 50.6% year-on-year to £109 million in FY2027, marking a sharp acceleration from growth of 6.8% in FY2026 and following a 6.6% decline in FY2025. The anticipated uplift reflects both improving market conditions and the contribution from a significant development pipeline scheduled for delivery over the next two years.

Key projects expected to drive earnings growth include The Courtyard, The Howlett, and the recently consented headquarters scheme at Whittington House, all located in central London. These developments come at a time when companies increasingly favor newer, high-quality office buildings that offer modern amenities and stronger environmental credentials, helping landlords with premium properties attract tenants and command higher rents.

Analysts also expect operating metrics to improve alongside rental growth. Consensus forecasts show vacancy rates to fall to 6.8% in FY2027 from 8.5% in FY2026, reflecting stronger leasing activity and the company's ability to attract tenants to newly completed space. The combination of rising occupancy, higher rents and development completions positions Great Portland Estates to benefit from a recovering London office market after several years of subdued growth.

 This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.