JLL’s latest research reveals £1.2bn transacted in Q3 2023 within Central London office market

JLL has revealed that investment volumes in the Central London office market for the third quarter of 2023 reached £1.2 billion, bringing the year-to-date transactions to £4.98 billion. The provisional figures highlight that £738 million was invested in the City of London and £426 million in the West End within the quarter.

JLL cited that this represents a 64% decrease compared to the corresponding quarter of 2022, where £3.2bn was transacted across Central London.

Research highlighted that there is currently £1.50 billion of space under offer in Central London, with £1.15 billion of this in the West End and £348.5 million in the City.

During Q3 2023, notable transactions in the City of London included the sale of the Bloom, which serves as the Snapchat headquarters above Farringdon Crossrail Station, to a private Swiss client of UBS for an estimated £217 million. A private Vietnamese buyer acquired Lion Plaza in the City for £207.5 million.

In the West End, ENI House at 10 Ebury Bridge Road was sold to an European institution for £55 million. Additionally, the Soho Estate, which is a prime development scheme between Oxford Street and Soho Square, was acquired by GPE for £70 million.

 Julian Sandbach, Head of Central London Capital Markets at JLL, said, "The level of capital invested in Central London offices at the end of September is at profoundly low levels, however 2023 is still likely to exceed the historically low levels of investment in 2008/9 just pre and post the GFC. The twin impacts of rapidly rising interest rates, coupled with structural challenges regarding the nature of office working have combined to deliver uncertainty to the marketplace. However, we are optimistic that London has seen the majority of value reduction, and encouragingly we are seeing levels of transactions under offer to buyers increasing. Institutional activity is muted, as private investors fill the void, enjoying higher rates of return on prime assets in the current climate."