Business Advice for all UK firms from starting a business to flotation

Demand for London office space falls

New property developments in London have dropped considerably in the last year, but the capital is still facing a rise in empty office space.

According to a report by property consultancy Drivers Jonas, the number of new developments in the capital has fallen from 46 this time last year to just 17 in the last six months.

Despite the slow down in production more than 12m square feet of office space is currently under construction, leading to fears that London will experience a signifigant number of empty office spaces in the coming years.

"The short-term outlook is one of oversupply with a considerable volume of speculative space being delivered into the market over the next 15 to 18 months at a time of week demand," said Anthony Duggan, a partner at Drivers Jonas.

The report added that rent for commercial property in London has fallen to an average of £57 per square foot, down from a high of £65 per square foot last summer.

Share |

Printer friendly version

Post Date: November 6th, 2008