There is no question that there is demand for new modern Grade A office accommodation. There is currently a severe shortage of Grade A space available (less than 1% of the total stock) and with a number of businesses either expanding or leases coming up for expiry in the next 2 to 3 years there is a wall of demand. This demand is in the order of 300,000 sq. ft. and JDC is in direct dialogue with 20 prospective tenants. This is known demand today for new space over the next 4 years.
JDC is currently in detail discussions with two prospective tenants looking for a total requirement for 28,500 sq. ft. and has formally responded to requests for proposals to two further tenants looking for a total of 70,000 sq. ft. of new office accommodation. There remains 50,000 sq. ft. available in the first building. If the aforementioned tenants committed to new build options, this would bring the total pre-lets on new office space to approximately 250,000 sq. ft. since April 2014. This level of new build take up exceeds pre-recession levels.
Competitors to the JIFC development are incorrectly stating that there is no demand but at the same time are acquiring more sites to deliver new offices and re-designing their existing schemes for the office market. Why would they be doing this if there is no demand?