Nathan Hetz on London office market
From Q1 2026 RESULTS VIDEO CONFERENCE ALONY HETZ - HEB -Subtitles · · Alony Hetz
“We are seeing a massive demand in London in the first quarter, 2.2 million square feet, which is a level of demand that is 6% above the long-term average. Prime rental prices rose 12.5% in 2025, and brokers now expect another 10% increase this year.”
On , Nathan Hetz, Founder President & CEO at Alony Hetz Properties & Investments, spoke about London office market during Q1 2026 RESULTS VIDEO CONFERENCE ALONY HETZ - HEB -Subtitles on Alony Hetz.
About Nathan Hetz
Nathan Hetz, founder, president and CEO of Alony Hetz Properties, discussed the company's first-quarter 2026 results during a video conference on May 20, 2026. Hetz noted that the US defense budget of $1.5 trillion is important for the company's operations in Washington and Northern Virginia, where he said billions from that budget flow. He also described a surge in London rental demand, with 2.2 million square feet leased in the first quarter, attributing this to a lack of new construction and rising rental prices. Hetz commented on UK political instability and the Bank of England's pause on interest rate cuts, with inflation expected at 3.3%. Hetz provided updates on specific projects, including a British Land development in London where a law firm, Arbat Smith, leased 280,000 square feet at £104 per square foot, up from £90 a year earlier. He said the company is refinancing a construction loan of £350-380 million at an estimated margin of 325-350 basis points over the five-year SONIA, resulting in an interest rate of 7.3-7.5%. Hetz also stated that the company has a $200 million venture fund framework, with $75 million already committed to three projects, and expects to deploy the remaining capital over the next year and a half. He concluded by noting uncertainty in Israel and the US political landscape.