Investor opportunities: Prime offices, repricing plays and structural growth sectors

Prime office to offer selective conviction

Survey responses suggest that return-to-office trends and tenant demand for Grade A space are driving renewed interest in prime CBD offices, particularly in London and other global gateway cities. Investors highlight re-gears, rent reviews and selective development for 2028/2029 delivery. as key value drivers. This is likely not a wholesale return however, it is focused conviction where pricing clarity and income resilience intersect.

Repricing and dislocation to create tactical entry points

Core/Core Plus repricing and distressed situations also form survey respondent free-text responses. Opportunities include sale and leasebacks, bottom-of-cycle acquisitions and assets trading below construction cost. Scarcity of core capital in Central London is also cited as allowing higher cost-of-capital buyers to compete, while motivated sellers in secondary markets offer opportunistic upside. However, as our survey finds, this scarcity of core capital is set to abate in 2026.

Structural growth sectors are driving capital rotation

Investors are also set to target sectors aligned with demographic and technological tailwinds:

1. Logistics: Supported by e-commerce and supply chain resilience, with Europe and the US as key destinations.

2. Living strategies: Multifamily and co/flex-living dominate allocations, alongside single-family rental. Affordable housing was also flagged as an area of interest.

3. Operational real estate: From data centres to infrastructure, investor responses indicate these are moving from niche to necessity, further supported by free-text responses, offering thematic upside and inflation-hedging potential. AI-linked real estate appears as an emerging theme, signalling the convergence of technology and property.

Strategic priorities for converting opportunity into performance

1. Speed and selectivity to define success: Countercyclical tactical plays in prime offices and retail require rapid execution and conviction.

2. Partnerships will be critical for complexity: The right joint ventures and co-investment structures will be essential to access operational sectors and scale.

3. Thematic diversification firmly on the agenda: Investor responses indicate that logistics, living and operational real estate are structural growth engines, demanding specialist expertise and long-term positioning.