In the ongoing battle to determine which financial center sucks less, London has some things going for it (except for the quality of Bolivian Marching Powder, of course). Well, when I say “London” I suppose Bloomberg means “Canary Wharf,” which is a completely different thing altogether.
The City already has enough empty offices to hold two- thirds of Canary Wharf, the docklands area developed 1 1/2-miles east in the 1980s to lure investment bankers. About 9 million square feet (855,000 square meters) are available in the City and that may climb to 12 million by the end of 2009, according to CB Richard Ellis Group Inc., the biggest commercial property broker. Almost 19 percent of all City offices may be vacant next year, analysts at CB Richard Ellis estimate.
“We’re in the eye of the storm,” said Bryan Higgins, chief investment officer of Irish homebuilder Menolly Group, which bought 107 Cheapside in the City three years ago for 150 million pounds ($227 million). The building has no tenants. “Supply way exceeds demand,” he said.
Rents will drop to 40 pounds per square foot by the end of this year, the same as 1991 when Canary Wharf got its first tenants, analysts at London-based King Sturge International LLP estimate. Prices declined to 46.50 pounds per square foot in the City during the first quarter from a high of 65 pounds in mid- 2007. Rents fell to as low as 30 pounds two years after Canary Wharf opened.
Rents Crashing in London to 1991 Prices Le Gavroche Shows Gone [Bloomberg]
once, my boss took me on a working vacation to london. he had some affairs to attend to with some rothschilds or something.
after a night of heavy drinking the prior evening, my boss wanted to bang me in the ass while he looked over some reports.
well, i let him have his way, but unfortunately, i had diarrhea from all the drinking.
his weiner was covered in poo juice and i was subsequently fired.
The Gal From Delaware
Debbie Downer, try this:
http://www.sadtrombone.com
Why don’t they just pull a New York and convert all office space to residential? Oh, what? What’s that? That’s not sustainable over a long period of time? You need a healthy, diversified ratio? What do you mean everyone can’t be a RE broker?
-2006
@3 – Well played.
Another thing that they did not mention in the article is that Canary wharf is way the F in BFE. Nobody likes that commute.
@low- Nice. I picked up the paper today and saw a ton of adds for real estate in the docklands area. The places look nice but really who wants to live in the suburbs when they empty out Friday evening.
In the early 90′s I used to work in Harbour Exchange Square, several blocks from Canary Wharf. It sucked back then, it must suck even more now.
Besides, in the movie, “28 weeks later”, I could have sworn the place was overrun by blood sucking zombies. I have unique talents for dealing with issues like that.
l8r
– Snake Plissken
The English Suck
I saw a werewolf with a Chinese menu in his hand
walkin through the streets of Soho in the rain.
He was lookin for the place called Lee Ho Fooks, gonna get a big dish of beef chow mein.
Chorus:
Aaahoo, werewolves of London
Aaahoo(2x)
Ya hear him howlin around your kitchen door, ya better not let him in.
Little old lady got mutilated late last night, werewolves of London again.
Chorus 2x
He’s the hairy, hairy gent, who ran amok in Kent.
Lately he’s been overheard in Mayfair.
You better stay away from him, he’ll rip your lungs out Jim.
Huh, I’d like to meet his tailor.
Chorus 2x
Well, I saw Lon Chaney walkin with the queen, doing the werewolves of London.
I saw Lon Chaney Jr. walkin with the queen, doin the werewolves of London
I saw a werewolf drinkin a pina colada at Trader Vic’s
And his hair was perfect.
ahhhooooo, werewolves of London
Draw blood
Funny, though, with all the office conversions everything (commercial and resi) is still vastly overpriced
Anal,
Ex. – Hanover Sq. (really, most FiDi buildings) is an absolute shit-hole, and they’re still charging absurd prices (although, admittedly down ~10% in the last year).
I don’t want to beat-up too badly on the converters, because there was (and maybe still is?) a market for Europeans and Westchester/Fairfield/NJ-folk to have an apartment/condo in the city.
Then again, I really have zero sympathy for most people that have taken it on the chin since 2005. You know there’s a problem in RE when Bushwich, BK condos are selling for +750k. Hilarity, sheer form.
Canary Wharf has only made a profit one year since its inception. The guys were idiots back in the boom, it’s not just the economy. One of the worst real estate developments in London’s history. Hell, RMC has better offices and a better location than CW.
@11 wtf is rmc
12 Was wondering myself, so I googled it. This cant be right:
“Rubber Man’s Club (RMC) is a club for gay and bi-sexual men who have an interest in … Rubber Man’s Club is the only London based international rubber and latex…”
Or maybe it is. This is the kind of play that did in the late Edouard Stern, from Lazard, a few years ago.
@13, that is EXACTLY what I meant. RMC is Royal Mint Court. I stopped by a Barclays WM office there once. Near Tower Hill, better offices if you ask me, just not a sky crapper.
Canary Wharf, the canary in the coal mine.
Canary Wharf has *no* good bars. Not one.
The City has Ye Olde Cheshire Cheese