Cluttons has released its London Office Market Outlook report for Summer 2018.
Headline rents across Central London have remained largely steady. However, as has been the case since the Brexit referendum, net effective rents have continued to decline as landlords ratchet up incentives to encourage activity. Overall, Brexit driven anxiety is undoubtedly underpinning the market’s somewhat static conditions, with the complex EU divorce proceedings driving nervousness amongst occupiers
In the Central London office investment market, deal volumes have recovered substantially from Q1, with overseas investors dominating activity. Buoyed by sterling’s weakness and the perception of Brexit as being a domestic political issue, it appears that overseas investors are unphased by the EU negotiations, with the appeal of a trophy asset in London outweighing any Brexit linked concerns.
Further detail is presented in the report, along with our outlook for the Central London office market.