Some £11.3bn was spent on London offices in 2021
(Picture: PA)Investor spend on central London offices returned to pre-pandemic levels in 2021, with buyers looking at tenant demand beyond work from home guidance, according to new research.
Preliminary figures from property agent CBRE show transactions of offices reached £11.3 billion.
That was 49% ahead of the £7.6 billion recorded in 2020, and matched what was seen the prior year.
Deals over the last 12 months came despite the office market experiencing challenges, from work from home guidance for part of the year, to some employers looking to slash space.
But there are buyers betting that firms will still be seeking environmentally-friendly and modern HQs to attract and retain staff. Many tenants are expected to embrace a mix of home and office hours post-pandemic.
The research pointed out that investors still splashed out much less than the 10-year annual average of £14.5 billion.
But James Beckham, head of London investment at CBRE, said: “Given the pent up demand for income producing assets, there will likely be a continuation of the momentum that has been building over the last couple of quarters into 2022.”
Purchases last year included Brookfield buying 30 Fenchurch Street for around £635 million.
