Research Letter – November 2025

We are pleased to share the latest edition of the Castleforge Research Letter, offering our latest thoughts across key topics in real estate.

This letter begins with the London office market, where we investigate the future of the “best or nothing” narrative behind office leasing as availability declines and occupiers face constrained supply. Our first piece examines the growing relevance of Grade A buildings in transit‑dense locations as demand deepens beyond the most highly amenitised assets.
From there, we turn to life sciences real estate. A few years ago, we considered joining the trend of converting underutilised offices into labs, but we ultimately decided against it after questioning whether demand for lab space could ever rival the scale of the office market. With hindsight, that caution seems justified: oversupply and rising vacancy rates now hinder growth in key UK markets.

Finally, we shift to data centres and AI. While hyperscale projects dominate headlines, we argue that “urban‑edge” facilities offer a more resilient investment case. These sites combine proximity advantages with exposure to the growing inference economy, where AI’s long‑term value is realised.
We hope that you enjoy these thoughts, and please do not hesitate to reach out if you would like to discuss any of these ideas further.