Knight Frank: Investment turnover falls to lowest level in seven years

  Investment turnover across central London fell to £626m in the first quarter of 2009 – the lowest level for seven years, according to Knight Frank’s Q1 research.   Sentiment in the occupational market remained sluggish in Q1 with only 1.3 m sq ft of take-up across central London, according to the agent’s Central London Quarterly report – 70% below the long-term average level. New space and continued release of tenant space to the market has resulted in a 23% quarter-on-quarter increase in availability, which now totals 22.3 m sq ft.    This is the largest single-quarter increase since 2001. The report said: “Despite the muted level of activity, there are positive signs that market sentiment is beginning to change, with Central London representing a potential opportunity to foreign investors looking to exploit the weak pound.   “The outward shift of prime yields appears to have stabilised, with yields in the City remaining at 6.75%. In the West End, prime yields softened to 6.00% although further outward movement is considered unlikely.”   james.buckley@rbi.co.uk