The City of London will be the area that will revive the capital’s office space market. That’s the view of Helical Bar Plc CEO Mike Slade. He said he planned to start building again in two years and that the City would “rebound” the fastest.
The company has not focused on the area since the early 1990′s. The value of the offices in this area have fallen by half since the peak of mid 2007. However with prices so low, there is only one way they can go once the market has bottomed out. The company were the first to build a scheme after the last recession without a pre let agreement. With rents falling 33% from the 2007 peak, large commercial building projects may not start again for another 24 months, experts say.
With the West End beset by an exodus of private equity companies and Canary Wharf crippled by job losses in e Banks, the City appears to be the key office market that will recover first.
Two seminal office schemes, the â€œCheesegraterâ€ and “Walkie Talkieâ€ buildings have been postponed due to the sluggish market conditions.