Oversupply Beats Brexit as London Office Risk, UBS Says
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The wave of office buildings under construction in London is a bigger threat to rents and values than the risk of companies moving out after the U.K.’s vote to leave the European Union, according to UBS Group AG.
“We saw a build-up of oversupply of office space long before Brexit which can’t be stopped,” Thomas Wels, global head of real estate at the Zurich-based bank’s asset-management unit, said in an interview. The additional space “will hit the market in 2017 and 2018 and isn’t priced into rents.”