FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
The latest research from independent property consultancy, BPS London, has revealed that just 18.2 per cent of commercial property opportunities currently listed for sale across London have secured a buyer, highlighting a highly selective investment landscape across the capital.
BPS London analysed current commercial property listings across London, assessing the proportion of available opportunities that have already attracted investor interest, alongside how demand varies across each commercial asset class.
The analysis shows that, overall, just 18.2 per cent of commercial property opportunities across London are currently under offer or sold subject to contract, demonstrating that while investor appetite remains present, it is being deployed far more selectively across the market.
However, this level of demand varies considerably by sector. Leisure assets are currently seeing the strongest investor appetite, with 75.0 per cent of available opportunities having secured a buyer, followed by specialist assets at 54.2 per cent. Build-to-rent opportunities have also seen relatively strong demand at 30.0 per cent, while hospitality assets stand at 23.1 per cent.
More traditional commercial sectors are seeing more measured levels of demand. Retail assets, which account for the largest proportion of available stock at 44.5 per cent, have seen 19.7 per cent of opportunities attract investor interest, while industrial assets stand at 16.0 per cent.
In contrast, office space is currently seeing lower levels of investor demand, with just 14.7 per cent of available opportunities under offer, despite accounting for 33.6 per cent of all commercial stock currently listed for sale across the capital.
According to BPS London, this imbalance reflects a shift in how commercial space is being utilised, rather than any fundamental lack of long-term confidence in the office sector itself.
The office sector is a prime example of this shift in preferences as, while demand for physical workspace continues to return, occupier expectations have evolved significantly, with greater emphasis placed on flexibility, design, amenities and overall workplace experience.
As a result, a large proportion of existing office stock no longer aligns with modern requirements, creating a disconnect between supply and investor demand and presenting a clear opportunity for developers capable of repositioning well-located assets.
Commenting on the findings, Mahir Vachani, Director at BPS London Developments, said: “What this data highlights is just how selective the market has become. Investors are no longer taking a broad approach across commercial property, they are targeting specific sectors and assets that align with long-term demand.
“At the same time, the office sector is undergoing a period of transition. It’s not a question of whether offices are needed, but whether the existing stock meets the expectations of today’s workforce, which have shifted significantly in recent years.”
FMJ and Watco Webinar: Meeting compliance in a new culture of accountability
From January 2026, the Building Safety Regulator (BSR) formally separated from the Health and Safety Executive (HSE). Created under the Building Safety Act 2022 in response to the Grenfell Tower tragedy, the BSR is designed to raise safety standards across the built environment and introduce a stronger culture of accountability, transparency, and proactive risk management.
This shift places facilities managers in a more strategic safety assurance role – far beyond routine maintenance.
FMJ and Watco are hosting a webinar on 22 April at 11:00am to explore what this new regulatory landscape means for FMs. To register for the webinar click here.
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