Good morning, this is your AM bulletin.
London office values will fall further, says Goldman Sachs. Not only are buyers thinner on the ground than frost in a heatwave, but 2023 is likely to see the biggest spike in new space since 2003.
Meanwhile, investors have spent £1.3bn on central London offices over the past 18 months, with plans to convert them into, well, anything else. Another £700m of deals is in the pipe, says CBRE.
But the best-in-class will still draw the right occupier, and there are still plenty out there. Not least £35bn AUM venture capitalist firm Andreessen Horowitz, which is looking for a London office for its £6bn crypto arm. The firm last year emerged as the key backer of Adam Neumann’s latest venture, Flow.
Talks have been taking place at No 10 with the UK’s biggest construction firms. The PM wants their help to build scores of new migrant detention centres.
But the UK appears to have won global real estate’s “race to the bottom”, according to M&G. The asset manager said rising rates and the “disastrous” mini-budget last autumn meant the UK had undergone a starker real estate repricing than anywhere else in the world. Now values “look to be finding a floor”.
A Regent’s Park mansion block has hit the market with a £70m price tag.
And the 8th Earl Cadogan, who was instrumental in reforming the eponymous Chelsea estate, has died, aged 86.
