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London offices post a strong 2018

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.

Tags

offices, commercial property, roger thornton