Next year will see a reset for office prices, Jefferies equity analyst Mike Prew has said, adding that “ERVs are becoming as relevant as a ‘do not tumble dry’ label”.
Office values are “next in line for the estate agents’ red pen”, Prew said in a note published this week. In September, the investment bank downgraded the shares of Landsec, British Land, Derwent London and GPE, arguing that the London occupier market was at a “tipping point”.
“REITs need discount mitigation strategies,” Prew said in this week’s note. “Turning vacant offices into labs or selling to Blackstone aren’t viable business models, in our view.
