Mailbox owners ‘excited’ to offer 120,000 sq ft space left behind by BBC

As the BBC announced it is to leave the Mailbox at the end of its lease in June 2026, the owners of the asset say they are excited to offer the market the 120,000 sq ft space the BBC will be leaving behind.

Stephen Barter, the non-executive chairman of Mailbox REIT said: “It will allow us to reposition the building by refurbishing their space, offering to the market a rare 120,000 sq ft office suite in the heart of the city.

“It will create a great opportunity for Mailbox REIT to drive the rental value and capture the reversionary potential of the space.

“With the BBC no longer in occupation, it will make our pathway to net zero more achievable.

“The current limited supply of grade A space within the City, and the constrained new development pipeline because of inflation and supply chain challenges, provides a very supportive leasing environment. These factors further underline our confidence.”

In addition, the Mailbox says its rent collection is back at pre-Covid levels with 95% collected for the upcoming quarter and 99.7% received for the previous quarter.

In May, the building opened its new flexible workspace operated by IWG’s Spaces brand.

50,000 sq ft of surplus retail space was converted and the facility is running at more than 30% occupancy already.

The property’s valuation improved for the fifth consecutive quarter since the IPO, rising to £192.3m at 30 June 2022.

This reflects a 2% improvement since 31 March 2022 (£188.5m). The valuation of the property was undertaken by Avison Young and takes into account the opening of the Spaces facility.

Barter said: “During the period the Company built on the momentum achieved in the first quarter and over the last year, with continued strong rent collection, further valuation increases and the implementation of our ESG initiatives in line with occupier demand.

“However, we are well aware of the emerging economic headwinds and inflationary environment, which has led to an increase in the cost of debt. The Board is currently exploring appropriate avenues to mitigate these challenges. Nevertheless, we have been able to hold the quarterly dividend at the target level”.