INDUSTRY NEWS

Land Sec chief: ‘Demand drop for offices in London due to Eurozone’

The chief executive of property developer Land Securities has claimed that the Eurozone debt crisis has affected the demand for offices in London, according to an article published by the Telegraph.

Land Securities is currently in the process of developing 20 Fenchurch Street – which has already been dubbed as the Walkie Talkie building – with Canary Wharf Group.

Its chief executive, Robert Noel, claimed that the state of uncertainty had “weighed heavily” on businesses confidence to commit to office space.

He said: “In London, uncertainty in the Eurozone weighed heavily on business confidence, leading to lower demand than expected for office space.

Noel did however forecast that things would improve.

He said: “However, particularly low levels of development, coupled with the high number of lease expires due from 2013 and evolving occupier needs mean the market will see supply constrained conditions.

“Due to subdued business confidence, these conditions are taking longer to appear than first through, but once here they should continue for longer.”

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