The London commercial office market is beginning to turn the corner after a three-year slump, two influential reports revealed this week
The surveys, by consultant Drivers Jonas and the RICS for the third quarter of 2003, found that although the market remains tough prospects are improving.

Drivers Jonas found that demand from major occupiers such as Reuters, BP and lawyers Norton Rose and SJ Berwin was beginning to re-emerge.

Matthew Elliott, a partner at Drivers Jonas, said: "There are signs of life in the office market with more businesses thinking about taking space. The survey indicates a consequent undersupply of offices on the way."

Elliott said that although developers were planning for the next cycle, most schemes were for 2008/09, rather than 2006/07.

He said: "This is clearly an opportunity for the bold and, probably, the wise."

The RICS survey found that the capital's office market stabilised in the three-month period after large falls in activity in the past two-and-a-half years.

The survey indicates an undersupply of offices

Matthew Elliot, Drivers Jonas

It also claimed there would be a modest rise in commercial demand in the last quarter of this year 鈥� the first positive prediction since the end of 2000.

The survey said: "Enquiries for space levelled out in the third quarter, adding to evidence that the market is, or close to, reaching a bottom in terms of activity."

好色先生TV revealed confidence was emerging among developers, consultants and contractors in the commercial market earlier this month (10 October, pages 22-26). Most reckoned the market would pick up in late 2004.

The RICS survey also found a modest rise in the period for the retail market. It claimed that surveyors' expectations for the coming months were the highest for more than five years.

The report鈥檚 key findings

  • More than 998,000 m2 of space is under construction in central London

  • Across London, 46% of all space under construction is still available to let (up from 41% in March this year).

  • Since March, 166,000 m2 of new developments have been finished in the City, of which 116,000 m2 is still available to let.

  • No new speculative buildings are due to come on stream in London after the first quarter of 2005.