Fortunes for the best office real estate and the rest are quickly diverging. Once upon a time, that would have offered a tried-and-tested play for investors: Buy tired assets, bring them up to scratch and sell them on again. But today, it’s not so simple. The supply chain crisis coupled with the climate emergency are having an impact on the process of making offices fit for the future.

“Prime will still do well, but everything else will suffer,” Hines Senior Managing Director and Head of UK Ross Blair told attendees at Bisnow’s London State of the Market event, held at the Oval cricket ground in Vauxhall. “Build costs are really hard to control right now. If you want to refurbish or build better offices, that makes it very difficult.”
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RSK: Not only will the cost of construction goods and labor rise, so will interest rates.