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According to Jones Lang LaSalle in latest Office Market Outlook
Latest figures from Jones Lang LaSalle show the investment market across Central London is still out performing in terms of demand from both UK and overseas money as it continues to remain the number one destination for placing global capital.
Investment The West End has seen a buoyant year with provisional figures year to date reaching £4.8 billion, compared with £3.7 billion at the equivalent period last year. Over the third quarter, Sovereign wealth and overseas institutions have been the most active transacting £425.4m, demonstrated by the purchase of such buildings as 23 Savile Row, W1 by Plaza Global Real Estate Partners and Kinnard House, SW1 by GLL. Looking to Q4 we expect to see continued transactional activity together with a healthier pipeline as positive sentiment continues for the next 3-6 months.
In the City, the market continues to remain strong for prime investments with no let up over the Olympics and the traditionally quiet summer period for the investment market. Year to date c. £6.5 billion has been transacted, over £1.84 billion up on the equivalent period last year. On this basis, year-end turnover could reach in excess of c.£8 billion, compared to the 10 year average of £5.9 billion. Overseas investment is expected to continue dominating this market with a number of large investments recently exchanged or placed under offer to parties from the Middle East and Far East.
Damian Corbett, Head of London Capital Markets at Jones Lang LaSalle commented: “The Investment market was busy over the summer as investors continued to target Central London as the first choice for placing Global money. As a result supply dipped significantly, particularly in the West End. There are a number of new sales coming to the market over the next few months but demand is still expected to outstrip supply. All investor sectors continue to be active although UK funds are largely maintaining a neutral stance.”
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