Pre-letting office space will become more commonplace in the City of London this year, it has been claimed.
According to King Sturge, the trend for high-profile companies to make advance arrangements will be driven by a contraction in supply following a surge in take-up of available space over the first three months of 2010.
Figures from the property adviser revealed that over the course of the first quarter supply of offices fell by 14.2 per cent. Meanwhile, take up rose by 22.2 per cent during the same period.
King Sturge stated: “Consequently, 2010 could prove to be the year of the pre-let for a number of high-profile corporates.
“Such limited levels of development will restrict options for tenants with active requirements.”
Among the companies deemed likely to pre-let are a number of global investment banking institutions, including Deutsche Bank and Lloyds Banking Group and CMS Cameron McKenna.