A rare freehold investment opportunity in London’s prestigious Victoria submarket is being brought to the market, with a guide price of £14 million, subject to contract, by GVA.
This prominent office building at 85 Buckingham Gate offers 10,953 sq ft of accommodation over lower ground to 6th floor.
The office will benefit from full vacant possession in February 2018.
The Victoria office leasing market saw around 42% prime rental growth in the five years to Q2 2016 and take-up remained healthy to the end of 2016 and throughout the first half of 2017. The vacancy rate in Victoria currently sits at 4.7%, and this is expected to fall as more corporate occupiers continue to relocate from the core markets of Mayfair, St James’s and Marylebone, drawn by lower rents and business rates.
Importantly for 85 Buckingham Gate, the Victoria and Westminster submarkets continue to suffer from an undersupply of high quality smaller floor plates of sub-5,000 sq ft.
Christopher Strong, GVA, says: “85 Buckingham Gate represents a superb and increasingly rare investment opportunity in a thriving area of London. Victoria remains one of the West End’s most sought-after submarkets, with relative capital value and rental growth still achievable compared with other nearby opportunities. The area is dominated by large landlords who continue to strategically manage the development pipeline resulting in a continued supply of mixed use schemes featuring large open floor plates.
This has resulted in a lack of stock of sub 5,000 sq ft floor plates, like those seen in smaller properties such as 85 Buckingham Gate. A major trend in Victoria, during the last five years has been the conversion of office space to alternative uses, most notably residential. As a result, the availability of small commercial freehold opportunities, such as 85 Buckingham Gate, is rare.”