Real estate is increasingly seen as a competitive tool by many occupiers

As real estate is increasingly seen as a competitive tool by many occupiers, pre-letting is a way of securing that advantage. Many occupiers reaching the end of their lease in older premises want to pre-let and lock in the right space, because real estate is now a major factor in attracting talent. Across Central London, 44 percent of the office space under offer is as yet unfinished, with a busy pipeline of developments running through to 2021. Therefore a large proportion of that supply will not make it to market and coupled with political uncertainty, many developers don’t have the risk appetite to start new buildings as they don’t know what the market will be like in three years. This constrained supply, coupled with the consistent demand for office space is likely to create a stable market with steady rents.

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