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Are London offices heading for a 'rental recession'?

Analysts are at odds over whether the London office market is close to the bottom or whether there's more pain to come
October 3, 2023
  • One-fifth of Canary Wharf offices empty
  • London too dependent on flexible space, say analysts

Shares in the UK's four biggest London office real estate investment trusts (Reits) – Landsec (LAND), British Land (BLND), Derwent London (DLN), and Great Portland Estates (GPE) – sank last week after analysts at Jefferies warned that the market faced a “rental recession” due to a three-decade low in London office occupancy. 

Not everyone is so downbeat, however. Other market experts argue that the quartet will be rewarded for investing in their London buildings with higher rents and valuations in the long run. Office owners have largely seen rents remain stable even while valuations have fallen.

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