Office development down in London - 25-03-2008 - 14:31

Forecasts for the amount of office development in London have nearly halved over the past year, it has emerged.

Reports suggest that the developers are going to review their building plans due to the poor financial conditions and a decreasing occupier market.

Neil Prime, head of Jones Lang LaSalle's City office, said: "The combination of impossible-to-get speculative funding, rising construction costs and uncertainty in the occupier market has meant that there are few willing to put a shovel in the ground right now."

Although no developers have revealed that they are cancelling their building plans, it is thought that some will be delaying projects.

Signs that the occupier market is deteriorating are beginning to emerge, as agents say they are now taking offers less than stated rents on some buildings.

Kevin McCauley, director of CB Richard Ellis, said that ironically this time last year construction was picking up.

CB Richard Ellis provides real estate services.

Further news by category:
Aerospace Automotive Building Services Civil Engineering Construction Electronics Energy and Utilities Engineering Environmental Food and Drink Geotechnical Graduate Manufacturing Medical and pharma Mining and Quarrying Oil and petrochemical Technical services Telecomms Transportation Water