Winter 2006-2007, Vol 31 No 3

Abstract: The UK commercial property market has emerged from the safe world of pre-let construction into the heady atmosphere of speculative development. Of the £152 billion lent to property backed securities in 2005, about £5 billion is to property developments where no tenant has been identified or signed up before beginning construction. Though there remains a seemingly large volume of space unlet, the fact is that the past two years have seen dramatic increases in rental levels—up by about 26 percent in London’s West End alone.