Commercial property research and viewpoints

Major portfolio deals drive activity

Investment in UK commercial property reached £36.0bn during the first half of 2015 – the second highest total on record - according to new figures from the latest edition of Lambert Smith Hampton's UK Investment Transactions report.


The Q2 UKIT report also finds that:

  • Large portfolio deals propelled activity in Q2, while the ten largest transactions accounted for almost a quarter of total volume. This pushed Q2’s average lot-size to £35m, the highest on record and 50% above the ten-year quarterly average.
  • The All Property transaction yield moved in by 23 basis points during Q2 to stand at 5.69%, its lowest level since Q4 2007. Of the core sectors, Offices saw the strongest downward yield movement over the quarter, while Retail yields moved up, albeit marginally.
  • H1 2015 was a record half year for the specialist sectors. Following Q1’s record volume, Q2 saw a further £2.1bn of specialist deals. Over 80% of this was invested through portfolio transactions, and included three major student accommodation deals.
  • Greater London accounted for 43% of Q2 volume, and was 33% above its five-year average. Regional single-let investment was down 32% from Q1’s strong total, but was nevertheless 7% above the five year average.
  • South East Offices saw the strongest rise in activity, quarter on quarter. Volumes were up almost 60% during Q2, driven by a several large deals including Legal & General’s £135.5m purchase of the Compass Portfolio.
  • Overseas were the largest buyers in Q2, accounting for over 50% of purchases, and largely dominated by North America. However, the Fast East was the largest in terms of net investment at £1.2bn in Q2.
For further information relating to this news article contact 

Contact us now

Oliver Du Sautoy
Head of Research

020 7198 2193

Register for updates

Sign up today to receive these benefits:

  • Receive new property notifications
  • Save your searches
  • Access to the latest market reports
Register now

How can we help?