INDUSTRY NEWS

London offices suffering in economic troubled times

Office space in London us suffering more than its European counterparts in the global credit crisis.

That is the opinion of Moody’s Investors Service, which has said that a combination of rising vacancies, falling demand and a surplus of space has lead to the situation.

Canary Wharf is baring the brunt of the problems, it said, deteriorating faster than any other market in the first six months of 2008.

Despite the problems on the market, CB Richard Ellis has said that there is around 4.2 million square feet of space being added this year.

Moody’s creates a city index on a scale of 0-100, with London and Warsaw scoring zero for demand, supply and vacancy rates.

Paris remained the most robust market, Moody’s said, remaining unchanged year-on-year at 83.

According to CB Richard Ellis, only £17 billion worth of commercial property has been sold in London this year.

That is the same amount that was made in only the third quarter of 2007, showing the problems the market is facing.
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