Why Private Equity Firms Are Redesigning London Offices
Olivia Rudgard, Bloomberg | February 24, 2026
London’s commercial real estate market is getting a facelift. Glass facades are out and green features are in as private equity firms help to overhaul offices across the city.
Private equity cash has emerged as a rapidly growing force in reshaping the look of London’s offices, more than tripling its footprint over the past three years to 13% of the total, according to fresh data obtained by Bloomberg.
Among firms putting money into refurbishing offices in the UK capital are Blackstone and Brookfield Asset Management. Plans include ditching sheer glass facades, introducing green terraces and adding gyms. Money is also going into making sure buildings can withstand heavier rainfall and hotter summers, PE managers and consultants interviewed by Bloomberg said.
The deals mark a bright spot in an otherwise difficult time for the broader private-equity market, which in 2025 was sitting on $3.8 trillion of unsold assets, according to Bain & Co. But when it comes to London offices, “private equity are thinking this is a great moment in time to buy buildings that are cheaper and sell them in a few years’ time when they’re worth more again,” says Simon Glenn, head of London capital markets at Colliers.
Blackstone has been among active bidders for London office real estate in recent years, though it is yet to announce a deal. It’s now refurbishing Broadgate Quarter, near Liverpool Street station in the City of London that it originally bought in late 2015, with upgrades set to include fully electric heating and cooling as well as a fitness studio.
An aerial view of Brookfield’s Bishopsgate development. Source: Brookfield Properties/RSHP
James Rosenfeld, a managing director at Blackstone’s real estate group, says the goal is to attract “tenants who are willing to pay a premium in order to be in buildings with those characteristics.” PE firms spent £1.24 billion ($1.68 billion) on buying London offices last year, which is 13% of the total, according to Colliers. As recently as 2022, PE represented just 4% of all deals, equivalent to £540 million. At the same time, Knight Frank and the London Property Alliance estimate that the current stock of below-prime central London office buildings could be worth £262 billion if upgraded.