The quantity of London office space being built has reached a 10-year high.
According to Deloitte Real Estate, a massive 4m square ft of office space was finalised in the six months preceding September, and the number of new developments that have begun has doubled in comparison to the same period last year.
The survey by Deloitte Real Estate also revealed that office construction in London has almost increased to the level it was at before the recession hit.
Both the “Cheesgrater” and the “Walkie Talkie” have been completed in the last period of construction, adding new points of interest to the Square Mile skyline.
However, the increase in office construction does not correlate with the amount of space available in the coming years.
Steve Johns, Deloitte’s head of City leasing, stated: “We are seeing occupiers with 2019 leasing expiries who are already looking for space because they can see how tight the supply is going to be.”
Johns added, “The proportion of space being let out whilst still under construction is around the highest percentage we’ve seen.”
Currently, the financial sector has overtaken the media, technology and telecoms sectors as the overriding source of demand.
Peter Bennett, surveyor of the City of London Corporation, has said that the amount of London office space in the Square Mile “is reaching dangerously low levels”.
The City will now decide on three new developments to increase office space in the capital.
By: Kirsty MacGregor
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