London — The decision by Barclays to cut 25% of its London office space highlights the growing risk that tenants will be in short supply for developers of buildings under construction. The bank wants to sublease offices in Canary Wharf to the UK government, according to two people with knowledge of the matter. They asked not to be identified because the information is private. Developers sought to capitalise on escalating rents by starting a record number of central London office projects in the six months to March, making oversupply a bigger threat to rents and values than Brexit, UBS Group said in August. Companies could shift as many as 100,000 jobs away from London within two years of the UK starting the process to leave the EU, Jefferies Group analyst Mike Prew wrote in June. UPPER HAND "Tenants are getting the upper hand in rental negotiations, with banks optioning space to relocate from London," Prew wrote in a note to clients on Monday. "Property yields may give the illusion...
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