Michael Gwyther-Jones
Only a few office buildings in the British capital were sold for more than 100 million pounds ($130 million) in the first half of the year, according to CoStar, while there were none at all in the City of London. In the past, the City has seen transactions totaling more than £1 billion.
According to the publication, a number of significant owners, such as GPE and Derwent, have made unsuccessful attempts to sell pricey properties, and the sales have been quietly abandoned due to the underwhelming results.
The market for commercial real estate has experienced a dramatic revaluation as a result of the notable increase in interest rates over the last two years. This is particularly true for the office building sector, where demand is expected to decline due to the growing popularity of hybrid work arrangements.
According to MSCI, the cost of 64% of London offices has dropped to its lowest point since 2014.
source: ft.com
According to the publication, a number of significant owners, such as GPE and Derwent, have made unsuccessful attempts to sell pricey properties, and the sales have been quietly abandoned due to the underwhelming results.
The market for commercial real estate has experienced a dramatic revaluation as a result of the notable increase in interest rates over the last two years. This is particularly true for the office building sector, where demand is expected to decline due to the growing popularity of hybrid work arrangements.
According to MSCI, the cost of 64% of London offices has dropped to its lowest point since 2014.
source: ft.com
