JLL: London CRE investment volumes down 12% in 2015
In its Global Market Perspective for 1Q16, Jones Lang LaSalle noted that commercial real estate investment volumes in London fell by 12% in 2015. Capital values for prime offices rose by 11.8%. Rental yields for prime offices were 3.5%, or 154 basis points above the yield on the relevant long-dated government bond. Rents for prime office space rose by 4.3%. Net absorption during 2015 was equal to 2.3% of existing stock. At the end of the year, the office vacancy rate was 3.4% and the supply pipeline for 2016-17 equated to 5.8% of existing stock.
Source : JLL/ January 2016/London/OFF