Over £5bn of Central London offices currently in play
Latest research indicates that £2.5bn of investment stock is now available across central London, a marked fall from this period last year
The latest research from JLL has highlighted that vendors are currently seeking investors for around £2.5bn of assets across central London’s office market, with a further £2.7bn of stock under offer.
JLL’s research found that the City of London has the highest proportion of investment opportunities across Central London, with £1.7bn of offices openly marketed for sale, whilst the West End market has only £819m. With regards to assets under offer this is split between £1.4bn in the City and £1.3bn in London’s West End.
At the same point in 2018 JLL cited that there was £4bn of stock available with a further £4bn under offer, highlighting the significant fall in openly marketed investment sales. Julian Sandbach, head of Central London capital markets at JLL, said: “Whilst these figures underline a continued appetite for investment property in central London, volume is measurably down on last year. Whilst its easy to blame all things on Brexit, the figures arguably belie the number of off-market sales that are common-place in both the City and West End. Vendors are taking a different approach to marketing property at the current time, being much more targeted in identifying buyers whom they believe draw confidence in and engage with off market processes.
“So far in 2019 around £7bn of office transactions have closed across central London and if the stock that is currently in play is transacted by year end, investment volumes for the year could reach in excess of £12bn. There are currently a significant number of transactions being either marketed off-market or under contract which could potentially push the final numbers further, however it is clear at this stage that overall volumes will fall from 2018. This is, to a large part, a consequence of a fall in overseas capital investing in London offices.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.