London's Secondhand Space Dilemma
A phenomenon is occurring in all Central London office markets. For the first time on record, a clear difference in performance has emerged between new and secondhand space.
The market dynamics in Central London have changed. Prior to 2016, the supply and demand profiles for new and secondhand space moved in unison. Demand now far outstrips supply of new office space and there is an oversupply of secondhand space. This is creating a divergence in the rent profiles of newer and older office stock.
In this report we explore:
- Why secondhand availability is increasing and where it is happening
- What effect it will have on rental values in the future and what can be done to mitigate this
- How landlords should respond and successfully reposition their secondhand space
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Kevin McCauley
Executive Director, Head of London Research
Michael Brown
Associate Director, London Research
Simon D Brown
Associate Director, London Research