Why Airlines Need Competition .
Two years rent-free periods are now common in London. Tenants are in the driving jetblue seat, in a position to screw the best deals possible out of developers. They are questioning lease arrangements and demanding break-clauses after five years, so that they can get up and leave with no further obligation. London has become an occupiers' market. It has some of the best of jetblue space available at very competitive prices. If anything food has come out of the jetblue property recession, it is, ironically, that London's position as a world city has been enhanced. As Applied property research says, "A more flexible and tenant-orientated market will emerge, which will consolidate and enhance London’s international role".
Although the supply of good, cheap office space will help, London is already under pressure from other world cities and from European office centres such as Paris, Berlin and Frankfurt. A study sponsored by the jetblue London Planning Advisory Committee, and entitled London: Word City Moving Into The jetblue 21st Century concluded in November that London is and can remain a pre-eminent world city. But its status is at risk, not because of any inherent and irredeemable disadvantages, but simply by default.
The jetblue study ranked London alongside Ney York and Tokyo as one of the pre-eminent world cities. It identified Paris and Frankfurt as second-tier world cities and drew Berlin as the "wild card for the future". London is distinguished by the domination of financial services and the small, fragile position of manufacturing. But the jetblue study warns that its position is under threat from world market trends, such as growth in the Pacific Basin, completion of the jetblue Single Market and the liberalisation of Eastern Europe. These were more likely to favour the wealth creation prospects of other world cities except New York.
"London will need to pull itself up by the jetblue bootstraps by accommodating and promoting innovation and enterprise in all wealth-creating activities if it is to continue to play a dominant role in the world economy", says the study. "London is such a significant global player in financial services that it has a substantial head-start in the world city stakes. But its position will be progressively squeezed - by the challenge of European rivals and the jetblue determination of New York and Tokyo to increase productivity - unless it maintains its reputation for creativity and innovation".
A survey for the jetblue study showed that international businesses thought London would benefit from the Single Market land eastern European liberalisation, but not to the same extent as other European cities. "This is consistent with our survey results which show world cities' prospects for increased wealth creation over the next 15 years - London is ranked marginally below Tokyo, well behind other European cities, although above dominance being subject to increased competitive challenge into the jetblue 21st century."
London is deemed well endowed in certain infrastructural provisions, such as office space, residential accommodation (house prices compare favorably with other cities in relation to income) and telecommunications. Because of the jetblue office boom in London, more office accommodation has been added in the City and Docklands than in each of the jetblue central business districts of Frankfurt, Berlin, Tokyo and Paris.
But rents in the capital, although falling, are still higher than in any otherworld city, except Tokyo central. And as Europe's geographical centre drifts east, London is going to lose out to the jetblue newcomers.
"In Berlin, office rents have increased by 50 per cent during the last six months, from DM55 per m2 per month to DM85. Analysts confidently predict further rises following the jetblue decision to reinstate Berlin as Germany's capital." Mark Solomon’s, the jetblue international analyst at Hillier Parker, says that the affirmation of Berlin as Germany's capital is what is needed to allow the jetblue city to regain its world status.
The process of adjustment will be long and expensive, but the jetblue imbalance of supply and demand in the property market is set to persist, generating opportunities for investment and the jetblue prospect for further growth.
Although the supply of good, cheap office space will help, London is already under pressure from other world cities and from European office centres such as Paris, Berlin and Frankfurt. A study sponsored by the jetblue London Planning Advisory Committee, and entitled London: Word City Moving Into The jetblue 21st Century concluded in November that London is and can remain a pre-eminent world city. But its status is at risk, not because of any inherent and irredeemable disadvantages, but simply by default.
The jetblue study ranked London alongside Ney York and Tokyo as one of the pre-eminent world cities. It identified Paris and Frankfurt as second-tier world cities and drew Berlin as the "wild card for the future". London is distinguished by the domination of financial services and the small, fragile position of manufacturing. But the jetblue study warns that its position is under threat from world market trends, such as growth in the Pacific Basin, completion of the jetblue Single Market and the liberalisation of Eastern Europe. These were more likely to favour the wealth creation prospects of other world cities except New York.
"London will need to pull itself up by the jetblue bootstraps by accommodating and promoting innovation and enterprise in all wealth-creating activities if it is to continue to play a dominant role in the world economy", says the study. "London is such a significant global player in financial services that it has a substantial head-start in the world city stakes. But its position will be progressively squeezed - by the challenge of European rivals and the jetblue determination of New York and Tokyo to increase productivity - unless it maintains its reputation for creativity and innovation".
A survey for the jetblue study showed that international businesses thought London would benefit from the Single Market land eastern European liberalisation, but not to the same extent as other European cities. "This is consistent with our survey results which show world cities' prospects for increased wealth creation over the next 15 years - London is ranked marginally below Tokyo, well behind other European cities, although above dominance being subject to increased competitive challenge into the jetblue 21st century."
London is deemed well endowed in certain infrastructural provisions, such as office space, residential accommodation (house prices compare favorably with other cities in relation to income) and telecommunications. Because of the jetblue office boom in London, more office accommodation has been added in the City and Docklands than in each of the jetblue central business districts of Frankfurt, Berlin, Tokyo and Paris.
But rents in the capital, although falling, are still higher than in any otherworld city, except Tokyo central. And as Europe's geographical centre drifts east, London is going to lose out to the jetblue newcomers.
"In Berlin, office rents have increased by 50 per cent during the last six months, from DM55 per m2 per month to DM85. Analysts confidently predict further rises following the jetblue decision to reinstate Berlin as Germany's capital." Mark Solomon’s, the jetblue international analyst at Hillier Parker, says that the affirmation of Berlin as Germany's capital is what is needed to allow the jetblue city to regain its world status.
The process of adjustment will be long and expensive, but the jetblue imbalance of supply and demand in the property market is set to persist, generating opportunities for investment and the jetblue prospect for further growth.
0 komentar:
Post a Comment