Tower crane index hints at good times in the property market

That periodic symbol of increasing property supply, the tower crane, is once again visible in growing numbers - especially in central London.

A new report from market researchers APR has identified 700,000sqm of floorspace under construction in 350 schemes. This is all being built speculatively, running counter to the general feeling that London is on the brink of a space shortage.

i-FM reported during the summer on plans for two major buildings in the City, both to incorporate large floorplates and provision for dealing areas. Given the rapid change underway in the financial world, where mergers and acquisitions typically create a more or less immediate demand for new space - and the City Corporation's policy of discouraging relocation to such alternatives as Docklands - developers can have some confidence in going ahead with the best schemes.

But it is becoming clear that other considerations are vying with the traditional emphasis on location. Occupiers are increasingly concerned with quality of services and with flexibility. Corporate change, whether driven by mergers, markets or technology, shapes property strategy - a fact that property developers generally seem slow to grasp. A new building is not always the first choice. BT Cellnet, for example, dropped its plans for additional premises in Slough following the success of a new flexible working scheme.

Elliott Chase