INDUSTRY NEWS

London office space to halve this year

New and refurbished London office space is expected to halve in 2011, which will see a rise in rental values as businesses fight to secure buildings, according to The Telegraph newspaper.

Research conducted by DTZ suggests that there will only be 1.3m sq ft of office space available for businesses in 2011, compared with the 2.5m sq ft which was available last year.

This year’s new office space will come from a total of five buildings, which include Rothschild’s new headquarters, Hines’s Cannon Place and Heron Tower which has over 440,000 sq ft of office space.

In 2009 there was 3.71m sq ft of new or refurbished office space available and 3.74 m sq ft in 2008. Office space is set reduce further in 2012 and 2013, as no new projects are scheduled with over 250,000 sq ft of office space other than the Shard, which is located on the edge of the Square Mile.

Alistair Brown, director in the office agency team at DTZ, said:” Pre-letting will be crucial not only because there will be a shortage of grade A space, but also because large units suitable for major occupiers are going to be in especially short supply.”

Commercial office space news brought to you direct from DeVono Cresa, experts on London office space.