London skyscrapers could be a big risk for the city.
Lowest ever interest numbers for London office space could leave large developments without tenants.
The recent influx of London skyscraper developments could actually be met with low tenant interest due to the current economic climate. A series of developments including The Pinnacle, the Walkie Talkie, the Shard and the Cheesegrater could see low tenant numbers and percentages due to companies taking cheaper office space in lower priced areas.
As an example of the current state of London office space skyscrapers Heron Tower, completed in March this year, has only leased five of its 36 office floors. Once all of the developments are complete there will be around 3.7 million square feet of unoccupied in these London skyscraper developments. The estimated finish date for all of the large London office developments is 2015.
Commenting on the state of the London office economy and the skyscraper developments Evolution Securities property analyst Alan Carter said: “These developers are rolling very big dice. You’d have to be a very brave company to commit to several thousand square feet right now. Building these towers now doesn’t intuitively feel right.”
Recent figures also showed that new companies signed for 1.73 million square feet of new offices in the first half of 2011. This is a substantial 26 percent below the standard average for the last ten years. The figures were put together by property specialists CB Richard Ellis.