MORNING NEWS: Next year to be ‘a landlord’s office market’

Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of real estate-relevant headlines from the national papers. “With limited new stock available and very little coming through, I expect 2025 to increasingly become a landlord’s office market.” That’s Martin Towns, deputy global head of real estate at M&G, on the outlook for offices next year. Investors, developers and agents are optimistic of an upturn, with many predicting value-add investments will present the greatest opportunity amid the ongoing supply shortfall. Investment has been slow in 2024, but John Knowles, head of national capital markets at Colliers, predicts sentiment will improve in 2025, with capital markets activity forecast to strengthen as interest rates and gilt yields stabilise. But “the days of relying solely on standing investments are over,” adds Knowles. “In 2025, the focus will be on uncovering value through refurbishment, sustainable upgrades and alternative assets with strong income potential.” With leasing in rude health in many markets, Brookfield Properties has secured fresh lettings across its London office portfolio to close the year with more than 800,000 sq ft of leasing transactions – and occupancy across the 5m sq ft portfolio of nearly 98%. Martin Wallace, head of leasing at Brookfield Properties UK, said: “From these deals it’s clear that there remains strong appetite for high-quality buildings in the right locations.” And Oaktree Capital Management, Greycoat Real Estate and Homes England have formed a £250m master developer joint venture. The partnership will target large or complex sites with the potential to deliver more than 1,000 homes each.  Peter Denton, chief executive of Homes England, said:  “Bringing forward more large-scale developments is key to delivering the homes the country needs – and this requires ambitious master developers with clear visions and long-term commitment.   “This partnership has the funding, ambition and expertise needed. It will help to unlock thousands of homes, offering ready-to-build sites to housebuilders while ensuring a cohesive approach, creating brilliant places that people want to live in.” There’s also news on the new drive-thrus pulling into Yorkshire’s largest regeneration project; Conygar’s go-ahead for the next phase of its Island Quarter scheme in Nottingham; and the latest letting at Soho Estates’ Ilona Rose House.  All of the news from EG, plus a selection of headlines from the nationals: ‘A landlord’s office market’: the outlook for 2025Fidelity signs Total Oil & Gas at Surrey campusFuel distributor signs at Soho Estates’ Ilona Rose HouseMaslow provides £74m loan for Essex BTR schemeBrookfield announces flurry of lettings to end 2024Oaktree, Greycoat and Homes England form £250m master developer jvFirethorn secures £30m for 230-bed Edinburgh PBSAWest End office take-up leapsConygar adds 394 more student beds to Notts schemeTwo drive-thrus pull into Yorkshire’s Unity developmentWMCA makes in-principle agreement for Digbeth resi schemeSoho House revives talks to quit the stock market in £1.4bn deal (£)Khan’s London housing fund may need bailout, auditors warn (£)LVMH spends €50m on villa in Cannes to showcase its brands (£)‘You should be ashamed’: Councillors heckled as they sign off Mike Ashley’s green belt mega-HQ (£)