Applied Property Research - General - London

Date: 08 Sep 1998

London - Applied Property Research - the UK's leading independent online office property consultancy and research service has just published its latest London office market quarterly survey, highlighting some important emerging market trends.

Now:
As boom turns to gloom over the immediate future of the London office market, the infamous market lag produces office construction activity at a highpoint with nearly 500,000 sqm underway in London.

New construction starts however dipped by 20%, partly as a result of fewer huge pre-lets coming through and partly due to renewed caution in the market.

New office demand is falling, signified by a 40% fall in the number new requirements for office space in the second quarter.

But:
The number of new planning applications for office schemes rose nearly 30% over the quarter, while the number of permissions granted rose 8%.

A revival in the number of office to residential conversions points to a return to health for a niche sector that was weakening in the first three months of 1998.

The growth phase of the market is over. However, although activity will fall back over the next year, low availability and a continuing healthy level of demand are likely to sustain a subdued yet relatively balanced London office market over the next 12 months.

Paul Ives - Head of Research - APR.

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