Investment into the office sector in the Eastern M25 market remained subdued over 2025, with total activity of £265m of transactions completing. The first three months of 2026 has seen this trend continued, with only £25m of deals completing, as large scale institutional and international investors have remained out of the market. The majority of activity completing over the past 15 months has been focused on private investor market, with the largest deals completing being in the £7-15m size band. The largest purchase was the £14.75m paid by a confidential investor for Cannon Wharf in SE8, although this was part of a larger portfolio deal, where three London office properties changed hands for £41.7m.
Prime yields in the Eastern M25 office sector remained stable in the early part of 2026, standing at 8.69% on average, with yields in Docklands at 6.00%. The sharpest yield across the Glenny sub markets is in East London, where yields are at 7.50%. All other regions have prime yields at 9.00% of above, with the South East London & Kent market, standing at 9.25%. Occupational demand has begun to show signs of improvement and following a strong year in 2025 in both the East London and Docklands market, there may be early signs of improvement in the office sector.
Buckenham & Faviell House, Chelmsford – a private investor has purchased Buckenham and Faivell House at Coval Wells Chelmsford for £8.7m from Canada Life. The asset comprises two adjoining office properties totalling 76,800 sq ft, with Buckenham House (44,850 sq ft) being vacant at the time of the sale and Faviell House (31,950 sq ft) fully let.
99-113 Cranbrook Road, Ilford – a private investor purchased the 36,900 sq ft office and retail building at 99-113 Cranbrook Road, Ilford for £7.165m from Workhive Ilford Limited. At the time of the sale the offices were vacant, with the ground floor retail properties income producing. The purchase price reflects a net initial yield of 3.31%.
Elstree Tower, Borehamwood – a private family office purchased the 81,760 sq ft Elstree Tower and adjoining 346 space multi storey car park from Aroundtown SA for £9.35m. The property was fully vacant at the time of the purchase.
Cannon Wharf, London SE8 – a confidential investor purchased the 33,000 sq ft Cannon Wharf in Surry Quays SE8 from Workspace Group as part of a three property office portfolio for £41.7m. Cannon Wharf operates as a serviced office and the purchase price is estimated to be £14.75m. The purchase price of the portfolio reflects a net initial yield of 7.90%.
Our trusted team of experts are ready to help…
Explore our website to see our full range of services or call us on 020 3141 3500
