Discounted London Office Deals Show Split Between Best and Rest

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(Bloomberg) — The diverging fates of two London office blocks located less than a mile apart highlights how landlords with older properties and looming vacancies are facing the most pain.

The buildings, both acquired by Korean investors who splurged on European real estate in the years leading up to the pandemic, are currently under negotiation. While one has lost significant value as a result of rising rates, its imminent sale shows the prime office market is finding a floor. The other — which is facing potential vacancy and substantial upgrades — could indicate what lies ahead for all but the best buildings.