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According to the report made during the Jones Lang LaSalle presentation, the areas hardest hit by the rental decline and excess of vacant office space will be Thames Valley and West London. In the Western Corridor the developments of Maidenhead, Bracknell and Slough are going to experience the highest vacancies, expected to be more than 13 million square feet by the end of this year.

This glut of empty office space will result in part from new construction; over 700,000 square feet of office space is scheduled for completion by December 2009. Companies downsizing or merging into shared office space in an effort to cut costs will vacate even more space. By the end of 2010, the amount of second-hand and tenant owned space sitting vacant will probably be close to 4 million square feet.

The average rental growth over the next five years in predicted to be in the negative, with a dramatic fall of 11.2% in 2009. The downward trend will start to turn around in 2011,

averaging out to about 1.1% by the year 2014.

Jones Lang LaSalle says they expect actual rental income to decline due to the impact of the global recession and its negative effect on the activities of occupying tenants.

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