Last week’s terrorist attacks on the World Trade Center in New York are likely to hit tenant demand in the UK, Merrill Lynch analysts claimed today.
In their latest Real View report, property analysts Alec Pelmore and Robert Fowlds said: “Decision making by tenants is likely to be adversely affected and we expect a sharp fall in take-up in Q3 and Q4.
“This is likely to have an adverse affect on developers who are in the process of letting space or who have speculative developments completing in the next few months.”
Further uncertainty would slow the economy and depress capital markets further, the report said. There was also a risk that tenants would cease to favour high-rise buildings, which could affect prospects for London office towers.
However, the analysts said the above factors could put a brake on speculative development in the City and Docklands, which would support rents and capital values.
EGi News 18/09/01
