The travails of tracking London office investment

EG’s Diary recently highlighted just how different the big agencies’ tallies for total London office investment had proved during the second quarter of the year. Here, Guy Grantham, director in the research and economics team at Colliers, offers his take on why the differences should be expected – and respected. Property research and data analysis has arguably never been more important at any time during previous economic cycles. Availability of almost up-to-the-minute datasets and hunger for market-facing information means that research teams in property services companies now have access to a wealth of analytical tools. Unlike the US, where datasets tend to be universal and seldom challenged, the UK stands apart, with individual advisers offering personal but highly objective views on the current commercial property environment. Long may that continue. Within the free market it is inevitable that some agencies will have varying strengths and weaknesses. This will follow through to property research specialisms.  In terms of occupational data for central London, there is healthy and positive cooperation between peer companies. This not only benefits the key service providers in the market, but far more importantly, the clients which they serve. It is then remarkable how closely the top 10 firms arrive at similar occupational numbers on a regular basis.  In contrast, capital markets data collection operates in a more opaque environment. The incidence of off-market deals and tighter control of information means that, inevitably, some research functions may not be able to reflect the ‘true’ picture of market dynamics as they would ideally like.  With this in mind, a press release on data shouldn’t be taken on face value, and journalists should consider what parameters or data sets are important to them. At Colliers we are blessed with a strong, knowledgeable and experienced London capital markets team, and I know that other top 10 firms operating in the capital have similar strength in depth. However, collection parameters, be they geographical, numerical (minimum lot size), deal type (portfolio, funding), date of exchange or completion will vary from team to team. Of course, numbers are important and act as a valuable benchmark for market health, but nothing trumps detailed, focused and bespoke advice.  I say long live independent market interpretation. Vive la différence! Guy Grantham is director in the research and economics team at Colliers Image © London From The Rooftops/Shutterstock