London’s office market is in a “rental recession”, according to financial services firm Jeffries, which reported that the number of empty properties in the capital’s business center had risen to a 30-year high.
According to the company, the number of vacant offices has reached a tipping point where rents typically begin to decline, except for buildings focused on sustainability.
Big-name companies have been leaving London office space en masse lately. Most recently, Meta paid £149m to vacate one of its Regent’s Place offices early, British Land reported on Tuesday. Britain’s HSBC Bank announced in June that it is leaving its 45-story tower in Canary Wharf for a smaller property in central London.
Morgan Stanley, on the other hand, decided on Tuesday to upgrade shares of Great Portland Estates, saying that the British property investment funds “offer a compelling investment opportunity”.
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