Re: Re: The Question of Land
Grey space tends to follow financial services employment culls; it was very prevalent after the dot com bust of 2001 but as the tenancies are on short notice the users of such space enter the market themselves for their own space as the market picks up. It is very good for fit out contractors as the tenant usually hires them twice in a cycle, i.e. once to put in the grey tenant and once to put their newly hired own team in; investment banks are great at hiring large numbers of graduates and ditching them at the next recession, anyone who makes it to 50 at Goldman Sachs or Morgan Stanley is pretty impressive. There is something very surreal about these projects the papers are full of a failing market but you have to work to even tighter deadlines to put the new co in! Almost like a timewarp back to the boom for 2 -3 months!
On reflection I think the conclusion has been reached that rising input prices got us into the mess we were in from a speculative land bubble to contractors not applying realistic pricing to a fear that the spiral would continue indefinitely.
The hangover is clearly lack of finance which is another conversation, lower construction prices which appears to be happening – what are average construction rates per square meter for mews developments in Dublin and what were they in 2006?
The real challenge though is to figure out what is going to be done for the 200,000 unemployed construction industry professionals and tradesmen?