The average deal size in London’s West End hit a new quarterly record of £86m in the first quarter of 2017, exceeding the previous Q1 high by 45%, according to Savills.

Transactions in the market totalled £1.89bn in the first three months of the year, boosted by volumes of £558m across 10 deals last month.

This was the second largest Q1 turnover figure ever and 30% above the five-year average, Savills said.

In total, there were 22 transactions in Q1, with key deals including AXA Investment Managers acquiring the Warwick Building in Kensington for £56.6m, reflecting a net initial yield of 5.19%. This former Victorian warehouse totals 79,506 sq ft of office space, let to PG Media Services Limited until 2021 at £39.90 per sq ft.

Paul Cockburn, head of the West End investment team at Savills, said: “Such strong quarterly data clearly reflects how robust investors see the West End market dynamics. One of the biggest challenges our market faces is supply and persuading owners to part with their prized assets.”

According to Savills, prime yields in London’s West End market remain at 3.25% for the fourth month in a row.