Savills has forecast investment volumes in Essex will hit £100m for 2016 – three times the £33m accounted for in 2015.
The firm says spending has been driven by strengthening office rents, which have now risen to an average of over £20 per sq ft, and reduced supply due to the continued popularity of permitted development rights.
With prices relatively low in comparison to the nearby central London office markets, investors are taking advantage of the potential to generate strong returns.
Notable deals include the sale of First Data’s 117,000 sq ft headquarters on Endeavour Drive in Basildon to Maya Capital for £20m, the £14m sale of Regent House to developers Quinata Global, and Boultbee Brooks’ purchase of Stone Cross in Brentwood town centre for £10.05 million.
Mike Storrs, associate director at Savills Chelmsford, said: “Essex remains a cost-effective alternative to London and the county benefits from good road and rail links, particularly with Crossrail extending to Shenfield in 2018.
“These conditions are unlikely to change as we head into 2017. Investors will continue to be attracted by the potential for rental growth, good levels of demand from office occupiers and their ability to trade stock if required.”
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