Despite the Brexit uncertainty, 2018 was another strong year for the London office market both in terms of investment and leasing activity.
Overall office investment reached just under £20 billion which was similar to 2017 levels and higher than 2016 activity.
UK buyers represented 24% of the market compared to 18% the year before. But Far East investors accounted for c 40% of the market including the 3 biggest deals, which were the mid town acquisition of Goldman Sachs London HQ for 1.2 billion to South Korea's NPS ; Swiss Banks UBS HQ by CK Asset Holdings for 1 billion and Ho Bee Land's purchase of Ropemaker Place for £650 million.
Leasing activity in London was led by the tech and media sector at 27%. The biggest deals were the Facebook letting at Kings Cross and China's new embassy at Royal Mint Court .
Flexible workspace providers accounted for 14% of total London office take up.
Around 3.5 million sq ft of office space is currently under offer indicating a strong start for 2019.
UK investors have been tempted back to the London office investment market in 2018 during a relatively stable year for commercial property, despite Brexit uncertainty.