Olympic Effect on London Office Space
With the Olympic Delivery Authority advising “developers to reschedule construction” throughout the games, how will the Olympics effect the future availability of office space across Central London?
Property agents, such as Knight Frank have already predicted that “the availability of new space will be inadequate to satisfy demand” across the capital and that the rising costs of office space were “being driven by a lack of supply”.
Back in February we reflected on this subject in our blog, discussing the rise in workstation prices and uptake also recorded in the serviced office sector ΓÇô which have seen average prices rise from ┬ú513 in 2010 to a ┬ú544 in 2011. Perhaps, along with the recovery from recession, this is also being influenced by a lack of available grade A office space?
This growing demand is expected to continue in both the commercial property and serviced office market ΓÇô both driven by the economic recovery.
Yet in order to provide a helping hand to those travelling to the games, large areas across Central London are due to become part of an exclusion zone limiting the movement of heavy machinery. This is aimed at reducing the time athletes or officials may be delayed, but could potentially have a huge impact on property development.
Propertyweek.com reported that there will be “road closures from June to October next year” whilst “restrictions will be toughest from July to September.”
Potentially this could have a huge impact on developments within the cityΓÇ¥ explains Neil Toner, from law firm Lewis Silkin ΓÇô whose clients have been told “they wonΓÇÖt be able to move around heavy machinery at all in that period” pointing toward a delay in office developments and further pressure on the already limited supply.