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Read this on the commute to work this morning, doesn't really say much we don't know but interesting nothertheless:

Construction and property

The Times May 04, 2006

Speculative building triggers fear of London office glut
By Jenny Davey

CONSTRUCTION of speculative office space in London has soared by 57 per cent over the past six months, triggering fears that the market will become oversupplied.

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Some 9.82 million sq ft of office space is being developed across Central London, of which 6.3 million sq ft is speculative, without any tenants lined up, according to the latest Crane Survey produced by Drivers Jonas, seen by The Times.

Speculative construction in the City of London office market has nearly trebled, from just 972,000 sq ft in November to 2.9 million sq ft in the first quarter, equivalent to three Canary Wharf towers. This represents its highest level for three years, but is well below the 3.6 million sq ft of speculative space under construction in the City in the first quarter of 2003.

Matthew Elliott, head of London agency for Drivers Jonas, said that there was a danger that developers may get carried away, leading to a glut of empty space in 2009, if development continued to escalate at its present rate.

“Nothing lasts for ever and the market must be careful not to overdo it or it could go horribly wrong,” he said. “This is a critical time for the market, a time for careful decisions.”

Mr Elliott said that he felt confident that many developers were scarred by the memory of previous property crashes and would make the right decisions. He added that most developers were much better capitalised than the smaller property companies that collapsed in the 1990s.

The biggest schemes are being developed by British Land and Land Securities, both FTSE 100 groups big enough to bear the risks if there is delay in finding tenants. The two companies have also been the most successful at attracting blue-chip tenants because they develop high-quality buildings in the best locations.
 
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