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What’s your connection to the City of London’s real estate market?
REInvest Asset Management oversees a pan-European office portfolio on behalf of a major German insurance group, with its largest exposure in the City of London. Over the past decade, I have been actively involved in transactions, leasing strategies, and the repositioning of assets across the City market.
What are the main changes in the real estate market that you have noticed over the last few years?
Over the past few years, the London office market has undergone a shift from “real estate as a product” to “real estate as a service.”
Occupiers are increasingly unwilling to commit to rigid, long-term leases for static space. Instead, they demand flexibility across three dimensions: term, configuration, and service level. The market has moved decisively toward shorter agreements and rolling licences, reflecting the need for agility in an uncertain environment.
This trend is no longer limited to startups or SMEs. Large corporates are actively reshaping their portfolios – often maintaining a stable longterm headquarters while supplementing it with flexible space for growth, project teams, or overflow.
For landlords, this has required a structural mindset shift. Passive rent collection is no longer sufficient; they must operate buildings, curate experience, and deliver service. The power dynamic has moved away from “take it or leave it” toward occupier-driven deal structures centred on agility and employee experience.
How is REInvest responding to these?
REInvest is proactively responding to the market’s evolution by shifting from ‘single-use products’ to dynamic occupier environments. We curate diversified ecosystems within our buildings, blending core corporate tenancies with flexible workspace and service-led concepts to enhance both the occupier experience and our income stability. Our deliberate focus on core-and-flex strategies allows us to accommodate a wide spectrum of lease requirements while maintaining institutional standards. By synchronizing our building operations and ESG initiatives with modern tenant expectations, we future-proof our assets and ensure robust downside protection in a changing City landscape.
What improvements do you think could be made to attract occupiers to the square mile?
I believe sustainable long-term occupancy will benefit from a thoughtful mix of uses and the continued move toward a real 24/7 ecosystem. As the City gradually evolves beyond its traditional role as a mainly financial district, there’s a genuine opportunity to create a more balanced environment where work, living, leisure, hospitality, and culture sit naturally alongside each other. Building this kind of vibrancy can help drive footfall, attract and retain talent, and ultimately support steady demand for high-quality space.
In that context, actively promoting mixed-use concepts and enabling greater flexibility around change of use within buildings would meaningfully support this transition and allow assets to adapt to shifting occupier and market needs over time.
Thomas Merkes, REInvest Asset Management
