Replacement office demand issues 'still relevant'

Office design news from Morgan Lovell

Published on 17-05-2010

Demand for new properties is falling in the UK at present, according to a report by Jones Lang LaSalle (JLL).

The firm's latest National Voice Office Market Conditions report stated that a large number of planned properties are expected to be completed in the second quarter of 2010.

However, while supply is likely to be adequate in the short term, over the course of the next few years, demand is likely to increase significantly.

James Finnis, head of JLL's national offices team, said: "There is a growing awareness from occupiers and developers about the potential shortages of Grade A space that will emerge from 2012."

Meanwhile, David Hackforth, president of the Planning Officers Society, recently claimed that the £6 billion cuts which the new government plans to implement over the coming months could have a detrimental impact on the commercial property sector.

He argued that it remains to be seen how badly the construction industry will be affected by these spending reductions.

Posted by Paul Kelly.