Knight Frank is relocating its Hanover Square headquarters to 55 Baker Street, it was confirmed this morning.

The property services firm is set to take 80,000 sq ft (7 432 sq m) of the 560,000 sq ft (52,025 sq m) building on the site of the former Marks & Spencer head office from 2008.

Knight Frank has agreed to pay landlords London & Regional £52.50/sq ft (£565.11.sq m) on a 20-year lease with two years rent-free. The lease was signed yesterday afternoon and staff were advised of the move earlier today.

Nick Thomlinson, senior partner and chairman of Knight Frank, said: ‘We have achieved our goal which was to remain in W1, and be on no more than three floors of an impressive landmark building.’