Friday, 28 May 2010

Jones Lang LaSalle: Lack of Commercial Property in London

The falling availability of premium commercial property for rent in London is likely to result in a variety of lower-specification sites being upgraded reports UK Business Property

This is according to Jones Lang LaSalle, which has predicted improvement work will be done on Grade B office space in order to fill the supply gap of Grade A sites.

James Morris, head of the project and development services team at the business property specialist - which has offices in 60 countries worldwide - said such a move is a "logical" one, given the current state of the office space market in the capital.

He explained the global economic downturn resulted in "the brakes being firmly applied to speculative development".

"As a result, there is now an imminent supply gap of Grade A office product in London," he continued, adding upgrading existing Grade B stock will help satisfy demand until new projects are completed.

Failing to take such action could result in a severe shortage developing by 2012, he warned.

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