- What Investment in the South East office market was down 18% in Q1 but the market is picking up
- Why There is £687m under offer and a number of new sales were launched this month
- What next Gerald Eve predicts that prime rents will grow this year
Investment in the South East office market has got off to a solid start this year and the number of deals under way bodes well for the rest of 2022.
Data from Gerald Eve, shared exclusively with React News, shows that transaction volumes totalled £468m in the first quarter across 29 deals.
Although this was down 18% on the same period last year, Gerald Eve said the market was busy with £687m currently under offer. This, combined with the number of sales launched in March, point to growing momentum for the rest of the year, the agent added.
Guy Freeman, partner at Gerald Eve, said: “With a staggering £687m currently under offer and market sentiment improving amid the removal of Covid restrictions, we expect transactional volumes in the south east offices market to progressively increase throughout the year.”
The trend of buying office space to repurpose to alternative uses dominated in Q1 2022. About £264m of office space was purchased for alternative uses such as data centres, industrial, life sciences and residential.
This included Bridge Industrial’s £55m purchase of Weybridge Business Park, which will be repurposed to industrial, and Keppel DC REIT’s purchase of Waterside House, Bracknell, which Vodafone currently uses as a data centre, for £57m, reflecting a yield of sub 4%.
As for higher quality office stock, Gerald Eve predicted that the prime office stock would see rental growth this year as occupiers look to move into better space and the development pipeline is curtailed by cost inflation.
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Property & Address | Last Sale | NUTS3 Green Street assigned grade for specified area and sector of the property | Buyer | Seller |
---|---|---|---|---|
Thomas R. Malthusstraat 5 Thomas R. Malthusstraat 5, 1066 JR Amsterdam, Netherlands |
01-09-23 | B+ | SCPI Corum Origin | Anbang Insurance Group |
Citigroup Centre 33 Canada Square, London E14 5LB, United Kingdom |
17-02-19 | A | Citigroup | AGC Equity Partners |
Sancroft Christchurch Court, Paternoster Square/15 Newgate Stree, London EC1A 7AZ, United Kingdom |
20-04-23 | A | Greycoat Real Estate LLP; Mitsui Fudosan | Hui Wing Mau; Shimao Group Holdings Ltd |
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