Ownership, occupation and risk: A view of the City of London office market

Office returns in the City of London are more volatile than in other UK mar kets. This volatility may reflect fluctuations in capital flows associated with changing patterns of ownership and the growing linkage between real es tate and financial markets in the City. Using current and historical data, patterns of ownership in the City are investigated. They reveal that overse as ownership has grown markedly since 1985, that owners are predominantly F IRE-sector firms and that there are strong links between ownership and occu pation. This raises concerns about future volatility and systemic risk in a market strongly influenced by the cyclical behaviour and shocks of the int ernational financial system.