JLL has predicted a 13m sq ft shortfall of office space in central London by 2018.
The firm estimated that 23m sq ft of space would be required by 2018 but only 10m sq ft was set to come to market.
JLL cited population growth and improved employment figures as two factors behind the shortfall, which was expected to fuel development in City fringe areas as Shoreditch, Clerkenwell and Hackney Wick.
Andrew Hawkins, director, City investment at JLL, said: “We expect non-core areas to become firmly institutionalised, attracting both UK and overseas capital, as investors realise these markets are here to stay.”
