Office builders in London are cutting the number of plans for new spaces by half, according to a report by Jones Lang LaSalle Inc.
Falling commercial property value and concerns that the slowing economy will have an adverse impact on office space tenant demand in the City are seen as the prime reasons for this cut.
Office space rents fell in the first quarter of this year for the first time in four years, according to CB Richard Ellis Group, the world’s largest commercial property and real estate service provider.
“One impact of the credit crunch has been to put a brake on a substantial amount of the development pipeline that was scheduled for the next five years… This should help stabilise London City rents in the medium term and support any subsequent rebound.” Says head of agency in London for Jones Lang, Neil Prime.
Tags: Jones Lang LaSalle Inc