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News Release

London

Western Corridor office market on course for record levels of investment and accelerating occupier take-up


JLL today predicted a strong outlook for the South East office market at its annual West London and Thames Valley offices seminar, stating 2015 is on track to be a record year for office investment, while leasing activity is set to accelerate rapidly in the second half of the year, as a number of major tenant requirements come to fruition and new demand arrives in the form of tenants decentralising from Central London locations.

JLL is predicting Western Corridor office investment will hit a record £3billion, setting a new record for the region and more than doubling 2014’s full-year volumes of £1.07billion.

Angus Minford, Director, South East Office Investment at JLL said: “The first half of 2015 has already surpassed 2014’s full-year volumes and as a result we are on track for a record year for the region, with focused yield improvement in prime and core plus areas.

“UK investors have been the most prominent buyers so far this year, accounting for almost 80% of purchases, however we are expecting higher levels of global investment for the remainder of the year, particularly on larger lot sizes.”

James Finnis, Head of South East Office Agency at JLL: “The leasing market looks set to benefit from further infrastructure investment with Crossrail and the electrification of the main Bristol to Paddington line.

“Demand for space in the Western Corridor has been boosted by the concept of strategic dispersal, which sees tenants decentralising from Central London, and it’s a trend we expect to gather further momentum as costs in Central London continue to rise. Western Corridor locations provide amenity rich town centres with a surrounding employee base and connectivity to Central London, which is hugely attractive to occupiers.

“This demand, combined with a lack of existing Grade A supply, further reduction in stock levels due to ongoing office to resi conversions and a limited development pipeline is driving rents upwards across the region.”