Less than a third of commercial real estate in Mayfair and St James’s is tradable on the open market, according to new research from Bilfinger GVA.
According to GVA, of the 251 buildings larger than 20,000 sq ft in the area, just 91 of these are potentially tradable investments.
The analysis shows that the freehold tenure for 48% of the core stock is owned by landed estates and is therefore unlikely to be sold.
Furthermore, GVA estimates that in total 71% will not see a sale of the freehold in the foreseeable future, instead being held as long-term assets.
Due to the dominance of the landed estates, 63% of the market is in theory owned by UK investors. The Middle East makes up the largest source of investment outside the UK with 15%; with European ownership a close third at 12%; North American investors make up 4%; and the Far East 3%.
The top five landlords are made up of The Crown Estate, Grosvenor, Berkeley Square Estate, Sateria Investments and The Pollen Estate, which are in possession of 57% of the freehold market.
