Fall in investment points to pre-Brexit slowdown
A slowdown in central London’s leasing and investment markets is expected in the lead up to March and D-Day for Brexit, according to JLL.
It follows a 6% fall in investment volumes to £12.2bn across the first three quarters of 2018 compared to the same period in 2017.
Currently a further £4bn of assets have been identified as under offer and a further £4bn of stock is on the market, JLL reported.
A slowdown in central London’s leasing and investment markets is expected in the lead up to March and D-Day for Brexit, according to JLL.
It follows a 6% fall in investment volumes to £12.2bn across the first three quarters of 2018 compared to the same period in 2017.
Currently a further £4bn of assets have been identified as under offer and a further £4bn of stock is on the market, JLL reported.
See also: London Offices Market Analysis Q2 2018
The main sellers so far this year have been Aberdeen Standard and Great Portland Estates, with each selling six assets to date.
However, Blackstone and Goldman Sachs, which have sold four and two assets respectively, are ahead in terms of the value of assets traded.
In addition, the profile of investors acquiring central London offices has changed, with Hong Kong investors only accounting for 15% of acquisitions in 2018 to date, compared with 37% in 2017.
Take-up of office space in central London hit 8.3m sq ft by the end of the third quarter this year, with 3.1m sq ft leased in the West End and 4.5m sq ft in the City.
Active demand remains above the 10-year average, with more than 9m sq ft of active requirements and a 4.6% vacancy rate.
More than 46% of this demand is being driven by lease events, said JLL.
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