Investors inject £3bn into central London offices in third quarter
Investor interest in central London office buildings has returned with a vengeance, with spend surpassing pre-pandemic levels.
Around £1.5bn was spent on City office buildings in the three months to September 30, according to preliminary data from real estate advisors JLL, compiled for the Evening Standard.
It comes as office workers have made their return to the City in droves over recent weeks.
Some £1.4bn was also spent on office space in the West End.
Last year, some £1bn was spent, with spend subdued thanks to travel restrictions and Covid lockdowns, as well as apprehensions about the permanence of working from home.
Post-lockdown investors have also spent more compared to the £2.6bn spent in the third quarter of 2019, when buyers were nervous about Brexit and rumours of a general election.
Year-to-date total spend on central London offices has hit £7.5bn, an increase from £4.1bn last year.
Notable purchases in the quarter include the acquisition of 250 Euston Road by Derwent London in a £190m deal.
Julian Sandbach, head of central London office markets at JLL, told the Standard: “Investors are increasingly optimistic about London’s economic prospects in a post-Brexit environment and are encouraged by enhanced occupier activity and the positive return-to-work messaging.”
Sandbach added: “The final quarter is always the busiest and with more deals in traction than at any other point in 2021 we expect a strong finish to the year.”