FPDSavills Director Keith Mackie said: 'Despite strong demand among investors, owners have been reluctant to sell as they feel values have dipped. In the last two years, office tenants expanded rapidly and took leases on record amounts of office space. Now that they are more cost conscious much of this space is coming back to the market and depressing rents.'
Mackie said investor demand was strongest for buildings let on long leases and the one investment hotspot was the luxury retail pitch on Bond Street. In the last year stores let to DKNY, Chanel, Gucci, Cartier, Daks and Dolce & Gabanna have all changed hands. Mackie said most of the buyers have been Irish investors attracted by the 'prestige and security of the location and rapidly rising rents, particularly at the bottom of the street towards Piccadilly'.
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