Global built asset consultancy EC Harris has released a new report based on a snapshot analysis of commercial office development projects currently being planned for delivery in Central London through to 2020.
The report warns that many of the developments are in a precarious position with projects struggling to attract pre-let tenants and external funding which could see 50% never even reaching the construction site.
There are currently over 150 projects lined up which could deliver a potential 53 million square foot of gross office floor area by 2016.
Richard Taylor, Head of Commercial Development at EC Harris and author of the report said: “On paper, the development pipeline for London offices shows massive potential and investment. However, in reality the market is very different, with a large number of these projects unlikely to be delivered as they struggle to find pre-lets and external funding. To stand a chance for success, projects need to differentiate and create a significant market advantage if they are to maximise their chances of completion.”
