In the last six months 580,000 sf of speculative construction started, compared to 1.7 million sf in the previous six month period. This slowdown in speculative development means that deliveries of speculative space will peak in 2003 before falling in 2004 and 2005.
In February 2003 there was 15.1 million sf of office space under construction in Central London, of which 6.4 million sf was available. This has now fallen to 12.5 million sf, of which 5.2 million sf is speculative.
John Forrester, Head of Central London at DTZ, said: "There is little doubt that the recent economic uncertainty has impacted on the development market. Moreover, the current level of oversupply generally and stuttering demand has held the tap firmly off on new development starts. Crucially, some early starts are required to ensure that the markets reaction does not create an undersupply in 2006/2007.
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