Where do core funds buy in London?

Trophy submarket — City of London — and the most defensible long-WAULT assets within it.

For institutional fund strategies, City of London carries the strongest investor flag in London, with prime yields around 4.5%.

Trophy submarket (City of London) carries the strongest investor flag.
Prime yield: 4.5%.
Core funds buy income; value-add buys repositioning of secondary stock.
Cap-rate spread between trophy and secondary has widened post-2022.

London office fund strategy and flag

For institutional fund strategies, City of London carries the strongest investor flag in London, with prime yields around 4.5%.

TL;DR

Trophy submarket (City of London) carries the strongest investor flag.
Prime yield: 4.5%.
Core funds buy income; value-add buys repositioning of secondary stock.
Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In London, that's City of London and assets like 22 Bishopsgate, 8 Bishopsgate.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

city	London
country	United Kingdom
region	EMEA
classARentLocal	95 GBP/sqft/yr
classARentUsd	$121/sqft/yr
vacancy	8.6%
typicalLeaseYears	10
typicalRentFreeMonths	24
submarkets	7
primeYieldPct	4.5%
primeYield	4.5%
trophyAnchor	City of London

Frequently asked questions

Where do core funds buy in London?: Trophy submarket — City of London — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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