British Land have issued a warning about London office space.
A commercial property company have raised concerns about the lack of prime commercial property in London as they released their first half results of the year.
The second largest real estate investment trust in Britain has stated that prime office space in London is struggling to cope with demand as it published its results from the first half of the year.
British Land have a third of its portfolio connected with London commercial property, with West End office space and commercial office spaces in the City being owned by the firm.
Their prime office space locations in London is one of the premier reasons as to why the company’s shares have increased over the past year, from 583p up to 591p.
The firm reported that prime office property space was growing in strength although there were concerns about the ‘secondary stock’ which has not been as vibrant as the class A commercial properties.
There is also uncertainty over the next three years about the London commercial property market as many office leases will expire between 2013 and 2015.
Chris Grigg, the chief executive of British Land said: “There’s a shortage of grade A supply and a lot of leases coming up for renewal, it’s hard to predict specific sectors [which may have trouble].
“What we like about the West End and the reason we’ve got more speculative space there is the breadth of employment. But the City has been remarkably resilient across the past decades,” he added.