Unsupported browser

For a better experience please update your browser to its latest version.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Vacant question

  • Comment

Chatting to property consultant Richard Main, Astragal became aware of an area of the office market that is rarely discussed: when empty property is not available. In normal surveys, the assumption is that unoccupied space is ready for letting, as indeed it often is. But there are many occasions when the owner or lessee is not anxious to find a tenant. It is known, for example, that there are large amounts of space vacant at Canary Wharf, but you cannot rent them because the bank occupiers think they might need the space in two years' time, or because there are questions of security or privacy that are more important than getting extra rental income. This 'grey market' is significant because it acts as a break or a fillip to the rental market, depending on conditions.

And, of course, it affects the question of the appropriate vacancy rate for a given market, said to be between 8 and 12 per cent. Grey space could have a big impact on that, but no one ever talks about it. Strange.

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.