Deloitte’s annual ‘Crane Survey’ was released earlier this month and makes for very interesting reading. Breakdowns of construction in London’s regional centres, from the West End to the City, across to the Docklands and Southbank are explained in detail via the report. The survey results show that office construction is “down by 17% over the past 6 months to 7.7 million sq. ft.”, whilst “41% of space under construction” is already let; the availability of space under construction is limited, and will invariably be at the highest end of the market. There is approximately 12 months of supply currently being built and Deloitte speculate that 2015 could deliver a 20 year low in terms of volume of space being delivered into the London market. 

So, what does this mean for businesses looking for space in the New Year?  Teresa Beatty, Surveyor at tenant representation specialist Morgan Pryce, believes 2015 will still see the London market at its tightest, 

“This is potentially one of the tightest markets that London has seen in the last 20 years.  With such limited space available at the moment, the crane survey would really have had to show a massive increase on the 12 months’ supply and 41% of space under construction to have an impact on the supply-demand imbalance. I believe 2015 will still be a tight market, which will obviously benefit landlords who can dictate terms!”

Whilst the report suggests 2015 is limited in supply, there are developments under construction that will push through in the next 18-24 months. Areas such as the Docklands are seeing little to no developments; however the City and West End are seeing some improvement in supply in the long term. 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.