Demand for office space remains high
According to the latest figures, the demand for office space in the UK has remained high, with almost half of office space currently under construction already being let.
The survey looked at the six months from April to September 2019, highlighting a consistent demand for offices.
There were 92 new schemes during the six-month period in the UK, while the City of London had the highest level of construction activity.
The number of office developments has increased significantly in the past three years, with 49 per cent of schemes under construction currently already being let.
However, there was some concern over the future of occupier’s demand, with just 18 per cent of respondents indicating that they expect demand for pre-lets to improve.
Experts believe that there will be an increase in new starts, with several areas around the UK earmarked for demolition ahead of construction and three million square feet of proposed office space in London alone.
The total volume of office space decreased by 10 per cent to 11.9 million square feet, but this figure still remains higher than the long-term average of 10.6 million square feet.
There has been a significant increase in the number of pre-lets, with some experts believing that developers and investors are leaning towards pre-letting, rather than speculative building, before beginning construction.
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