We recently caught up with Sam Peters, based in our London office who’s a key player in our investment team. We explored what London’s ever-changing skyline means for investors and what the future holds for him amidst all these exciting changes.
Sam has been keeping a close eye on the evolving landscape of Central London. Despite all the headlines about tower delays and muted investment, he sees the current conditions as more of a strategic pause rather than a downturn. According to Sam, investor confidence is starting to bounce back, with early signs suggesting that the market is gearing up for renewed momentum and opportunity.
Despite the noise around scheme delays, muted investment volumes and questions over the future of the office, plus a layer of uncertainty following the Budget and what means for tax, rates and growth, I wouldn’t describe the market as being in decline. Office values are down roughly 20 - 22% through this cycle, but rents in the best space have moved sharply the other way. That mix of lower entry pricing and rising income is unusual, and it’s exactly what’s drawing more opportunistic and long-term capital back into the City.”
This period is particularly enticing for investors. The combination of reduced capital values and increasing rental income creates a unique window for investment. Investors are becoming more meticulous in their approach, prioritising assets that can deliver strong ESG performance, secure income, and exit liquidity. Delays in major projects are tightening supply, potentially driving prime rents higher and fuelling yield compression in top-tier assets.
The investment landscape is becoming more selective and quality focused. ESG-compliant, prime assets are attracting significant demand and competitive bidding, while secondary, non-compliant buildings are facing mounting pressure. This scenario is creating opportunities for value-add strategies such as refurbishment, repositioning, or conversion to alternative uses.
Looking across London as a whole, from an investor’s viewpoint, you’ve got two high-quality markets, but with different return profiles. The West End is defensive, ultra-prime, and driven by rarity - it’s where you pay up for security, global brand value and long-term wealth preservation. The City, by contrast, feels more like a growth market at this point in the cycle: larger floorplates, deeper take-up from financial and tech occupiers, and yields that still allow for upside as rents rise and the supply pipeline thins out post-2026.
And that comparison matters for London as a whole. The West End’s extreme rental tone is already pushing some occupiers, especially those needing scale, to look harder at the City and Midtown, where they can secure equivalent ESG-led space at a materially lower occupational cost. At the same time, the City’s wave of new Grade A delivery is lifting the benchmark for all of Central London, particularly around amenities, wellness and sustainability. You can almost see the markets feeding off each other: West End scarcity supports demand spill-over; City value supports broader capital re-engagement.
A two-speed office market is emerging. ESG-compliant, prime assets are in high demand, while secondary, non-compliant buildings face challenges. Over half of City office space sits below EPC B, with tightening regulation ahead of 2027 and 2030. This is resulting in a distinctly two-speed market in the tower cluster: prime, compliant, and highly amenitised buildings are outperforming in terms of both rental growth and liquidity, whereas secondary, non-compliant buildings are facing extended incentives, increased capital expenditure and, in some instances, the need for complete repositioning or conversion.
Looking ahead, I’m actually very optimistic about London as a capital market as a whole. It remains a deep, global market with a diverse occupier base, world-class infrastructure and a track record of reinventing itself after every shock. The current pause in sentiment in this cycle feels temporary. What isn’t temporary is London’s resilience to adapt, reprice and come back stronger.
The current reset is forcing both investors and advisors to be more selective and more thoughtful. Being part of that, at this stage in my career, is exciting: I’m building the skills to help clients navigate short-term uncertainty while positioning for long-term growth in a City that continues to adapt, attract capital and evolve its skyline.
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