London Update: Rents to 1991 Levels; Vacancy Expected to 19%

Bloomberg has an article out discussing expectations that rents shortly will be on par with 1991 levels, while vacancy numbers approach 20%. The city of London seems to differ somewhat from our local market in that they seem to be dealing with a fairly severe supply problem, whereas San Francisco and Silicon Valley have less of that to deal with. Still though, their is a correlation between what happens in one of the world’s major financial centers and the rest of the world.

The City already has enough empty offices to hold two- thirds of Canary Wharf, the docklands area developed 1 1/2-miles east in the 1980s to lure investment bankers. About 9 million square feet (855,000 square meters) are available in the City and that may climb to 12 million by the end of 2009, according to CB Richard Ellis Group Inc., the biggest commercial property broker. Almost 19 percent of all City offices may be vacant next year, analysts at CB Richard Ellis estimate.

The article can be viewed here.

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