Too much supply, too little demand

Article Abstract:

The UK's real estate developers continue to face a bleak future. Commercial centers such as shopping complexes, office and business and industrial parks that were developed during the construction boom of the late 1980s remain unoccupied. Receiverships are rampant as a result of economic conditions brought about by inflation of land values and a global economic sluggishness. Potential tenants balk at the high price of leasing rates despite incentives being offered by landlords, including rent reductions, free rent for a certain period of time and payment of fitting-out expenses. Owners of these properties, on the other hand, refuse to cut their prices while waiting for the recession to end. However, this unrealistic pricing policy, plus dismal employment level, may prevent the re-invigoration of the industry.

United Kingdom, Industry Overview

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Staying put for now

Article Abstract:

London's depressed real property market is compelling businesses based in the city to rethink their plans of relocating. The recession has severely affected many developers' cash flow and capital repayment expectations, causing major problems for such real property firms as Heron International. Speyhawk, Randsworth, Mountleigh, and Olympia & York. There are currently over 20 million sq ft of unoccupied office space in the City, and another 14 million sq ft of available space in the West End. Such as situation is very advantageous for tenants, which makes the prospect of remaining in London for the time being worth considering.

Supply and demand, London, England, Buildings and facilities, England, Office buildings

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