"The office sector has been one of the standout performers over the last year, but what's particularly notable is that this recovery is being driven almost entirely by Central London"
- Mahir Vachani - BPS London
Central London office investment jumped 45% last year, and for landlords and investors paying attention, the data points to a clear window of opportunity in prime capital assets.
Research by BPS London shows total office sector investment rose from £7.46bn in 2024 to £8.86bn in 2025, an 18.8% increase that outpaced industrial growth (16.6%) and left retail and leisure firmly behind, where investment fell 25.1%. Only the living and mixed-use sector grew faster, at 32.1%.
The standout figure, however, is the Central London number. Investment in the capital's offices climbed from £4.79bn to £6.95bn, a 45.1% year-on-year rise. Office investment across the rest of the UK fell 28.5% over the same period, making clear that London is carrying the sector's recovery almost entirely on its own.
BPS London attributes this divergence to the capital's stronger and more consistent return-to-workplace trend, which has given investors greater confidence in long-term occupational demand than regional markets can currently offer.
The transaction data adds another layer for investors to consider. Deal volumes across the office sector fell 6.9% even as total investment climbed, suggesting investors are concentrating larger sums into fewer, better buildings rather than spreading capital across secondary stock. For landlords, the implication is straightforward: assets that meet modern occupier expectations are attracting serious money, while those that don't are being passed over.
"The office sector has been one of the standout performers over the last year, but what's particularly notable is that this recovery is being driven almost entirely by Central London," said Mahir Vachani, director at BPS London Developments.
"What we're seeing is a clear link between the return to the workplace and renewed investor confidence in the capital, with London leading the recovery in physical office attendance, which has given investors greater confidence in the long-term fundamentals of its commercial property market.
"At the same time, investors are becoming far more selective. There is a growing focus on acquiring and upgrading buildings that can genuinely meet the expectations of today's workforce, rather than simply acquiring space for the sake of it.
"Our recent acquisition on Tottenham Court Road reflects this approach and we see significant opportunity in repositioning well-located buildings to deliver the type of high-quality workspace that businesses now require."
BPS London and Purestone Capital have moved on that opportunity directly, completing the acquisition of a West End office building on Tottenham Court Road in Fitzrovia. The joint venture is the first deal for their value-add investment platform, with plans to reposition the building for modern occupiers. It also forms part of a broader strategy to identify and upgrade well-located London office assets as demand for quality workspace continues to build.
