Oversupply of buildings is biggest risk to London office market

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 UK’s vote to leave the EU, according to UBS Group.

“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.

The additional space “will hit the market in 2017 and 2018 and isn’t priced into rents,” he said.