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LAND - Land Securities News Story

995.8p 24.8  2.6%

Last Trade - 14/02/20

Sector
Financials
Size
Large Cap
Market Cap £7.38bn
Enterprise Value £11.19bn
Revenue £748.0m
Position in Universe 126th / 1833

As Brexit nears, new London office construction slows - survey

Tue 28th November, 2017 12:00am
By Esha Vaish 
    Nov 28 (Reuters) - The number of new office developments in 
London is falling as higher construction costs and uncertainty 
over Brexit lead builders to delay new schemes, a 
closely-watched industry survey showed on Tuesday. 
    Construction began on 25 new central London office schemes 
in the six months ended Sept. 30, less than the 28 new 
construction projects started in the preceding six months, the 
London Office Crane Survey by Deloitte Real Estate showed. 
    The projects started over the surveyed period would add 1.8 
million square feet into the development pipeline, the lowest 
new amount in more than three years, the survey added. 
    Although demand for office space has held up fairly well 
since Britain voted in June 2016 to leave the European Union, 
vacancy rates have begun creeping up, property prices have 
fallen and business have grown more cautious on investment. 
 urn:newsml:reuters.com:*:nL4N1II4AY  urn:newsml:reuters.com:*:nL8N1NQ2YG  urn:newsml:reuters.com:*:nL8N1NT263 
    "Developers in central London continue to take stock of the 
current market dynamics, recognising a number of disrupting 
factors such as costs, Brexit uncertainty and the pace of 
workplace change," Shaun Dawson, head of insight at Deloitte 
Real Estate, said. 
    He said developers were showing "some caution on where and 
when to deliver" London office projects. 
    Land Securities  LAND.L , the developer of a large chunk of 
London's offices over the past decade including the famed Walkie 
Talkie tower, said this month the slow pace of Brexit talks and 
uncertainty over the eventual outcome were leading to caution in 
the market.  urn:newsml:reuters.com:*:nASM000FZJ 
    The potential exodus of finance companies, major users of 
London offices, could further hurt market prospects. 
    A Reuters survey found that around 10,000 finance jobs will 
be shifted out of Britain or created overseas in the next few 
years. The Deloitte survey showed that of the space under 
construction, 45 percent had been pre-leased by finance firms 
and 2 percent by insurers.  urn:newsml:reuters.com:*:nL8N1NQ30L 
    The survey also said construction costs were likely to rise 
over the coming year, as it forecast a slower pace of workload 
and an increase in the price of building materials. 
 
 (Reporting by Esha Vaish in Bengaluru; Editing by Mark Potter) 
 ((esha.vaish@thomsonreuters.com; +44 20 7542 1810; Reuters 
Messaging: esha.vaish.thomsonreuters.com@reuters.net; LinkedIn: 
http://in.linkedin.com/in/esha-vaish-9690b630)) 
 
Keywords: BRITAIN PROPERTY/
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