INDUSTRY NEWS

Anticipated Office Space Shortage Stimulates Development

The demand for London office space is predicted to outstrip supply soon. With many London office developments shelved or on hold due to the recession, the anticipated shortfall may occur as soon as 2012. As it stands, there are only 2 million square feet of London office space due for completion in 2010 and 2011.

Office space rents have already risen by 10 percent since the start of the year, and yields are up too. Thanks to these factors and the likely demand some developments, including the Shard Tower and the Walkie-Talkie, are under way. The Pinnacle Tower is also set to proceed.

The Hines office building (above London Cannon Street) and the Heron Tower are due for completion in 2011. Some projects, such as the Cheesegrater Tower, have been mothballed. However, there are still many companies seeking development opportunities, taking the gamble that the predicted future shortfall will lead to a demand for their office space.

 

Image: Flickr (brockvicky)

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